PFIe
PFI Issue 400 - January 14, 2009

A$150bn worth of projects get go-ahead

PFI Issue 400 - January 14, 2009

More than A$150bn worth of infrastructure projects around Australia have been recommended to the federal government's Infrastructure Australia authority as top priorities. The 94 projects includes the Very Fast Train through Victoria, the ACT and NSW at a cost of A$59bn.

A5 winner challenged

PFI Issue 400 - January 14, 2009

The Vinci/Strabag team, in which Hochtief retains a small stake, has prevailed in the tender for the A5, an A-model toll road that stretches 38.9km from Baden-Baden to Offenburg, triggering a challenge from Bilf

ACWA's new structure

PFI Issue 400 - January 14, 2009

Saudi owned developer ACWA Power International has a new financing department structure now Rajit Nanda has joined as chief financial officer in Dubai. There is a new acquisitions and project finance department that will take care of the company's project developments and a new mandate to buy assets.

ADB provides road funds

PFI Issue 400 - January 14, 2009

The Asian Development Bank (ADB) has approved a multi-tranche financing facility of up to A$400m over 10 years to help build and manage a sustainable road system in the five provinces of the Highlands region, one of the most remote areas in Papua New Guinea.

Additional Lumwana facilities

12 January 2009

Two supporting projects at Equinox Minerals' Lumwana mine have received debt packages from FMO totalling US$28.8m.

AfDB into Guinea Alumina

13 January 2009

The AfDB is supporting the US$6.3bn Guinea Alumina bauxite mine and alumina refinery project with a US$450m financing package. As well as a US$200m direct loan, the bank will syndicate a US$100m B-loan to commercial banks, and source US$150m in parallel co-financing from other DFIs through the newly created African Financing Partnership (AFP).

AGL tilts at windfarms

PFI Issue 400 - January 14, 2009

AGL Energy has bought two windfarm development projects in Queensland and Victoria from Investec Wind Holdings Pty Ltd (Investec) for A$14m. The windfarm at Oaklands in Victoria is a 63MW project costing around A$210m while the Coopers Gap project in Queensland is a 500MW project costing around A$1.2bn. The Victorian project has development approval

Alligator Alley now due in May

PFI Issue 400 - January 14, 2009

The Florida Department of Transportation has extended the bid submission date for the 50-year Alligator Alley lease from January 9 to May 8. FDOT said the five-month extension was granted at the request of shortlisted bidders, and noted that the disruption in the credit markets hindered prospective bidders' ability to raise needed debt for the upfront payment. The move was the second extension – the due date was first set for December 15 2008. Seven bidders were pre-qualified

Another housing PPP Crokes

12 January 2009

The Croke Villas housing PPP project has collapsed, following the fall of five other social housing PPPs. Last June, the government first expressed fears over the €150m project, seeking assurances from developer Bennett Developments in the wake of the €900m of Bernard McNamara projects that disintegrated earlier in the year.

AP LT 400

PFI Issue 400 - January 14, 2009

APA does deal with Marubeni

PFI Issue 400 - January 14, 2009

Pipeline group APA has made a deal with Marubeni Corp and Osaka Gas to sell 80% of the newly formed Energy Infrastructure Investments, which owns electricity cables, two coal seam gas processing plants and two pipelines.

Auction to aid winners

PFI Issue 400 - January 14, 2009

The auction of rights to build and operate power lines for two Amazon hydroelectric dams on the Madeira River will aid the concession winners and reduce the risk of energy rationing, according to JP Morgan Chase & Co.

B&B set to make deal with banks

PFI Issue 400 - January 14, 2009

Babcock & Brown went into a trading halt on Monday with the intention of announcing a new deal with its 25-bank lending group by the end of the week. The deal is being driven by the Australian banks, which have talked their European counterparts out of pushing the group to the wall and scrambling for the assets.

BBP sells assets

PFI Issue 400 - January 14, 2009

Babcock & Brown Power (BBP) has received a number of offers for some or all of its assets and is currently studying them. The company signed a deal to sell the assets of Alinta EATM Pty Ltd to Aurora Energy (Tamar Valley) Pty Ltd, which it says will enable it to realise A$15m.

BC Hydro downsizes Clean Call

PFI Issue 400 - January 14, 2009

BC Hydro is seeking British Columbia Utilities Commission (BCUC) approval to reduce the target size of the Clean Power Call from 5,000 GWh/year to 3,000 GWh/year due to recent economic events and the resulting impacts on BC Hydro's load forecast and demand side management plan. BC Hydro intends to continue with the current RFP schedule and expects to award electricity purchase agreements upon the BCUC's approval.

Bergevin shifts

PFI Issue 400 - January 14, 2009

Christiane Bergevin has moved on from her job as head of SNC-Lavalin Capital to a new job in SNC-Lavalin. She has been appointed senior vice-president and general manager, corporate projects, within the SNC-Lavalin Group. She will be responsible for SNC-Lavalin's investments in various funds and will be supporting the development of a proposed concession investment.

Blaise Diagne syndication open

12 January 2009

BNP Paribas has begun the syndication process looking for lenders on the Blaise Diagne airport. Roadshows in Paris, the Gulf and Africa have taken place, held by a project team including government ministers, EPC contractors and airport management staff in addition to BNP Paribas as structuring bank. The project is seeking €400m over 14 years.

BNDES grants power loans

PFI Issue 400 - January 14, 2009

BNDES has approved financing of R$226m (US$94.6m) for specific purpose entities (SPEs) controlled by Alupar, an energy company owned by Alusa, to build two hydroelectric power plants in São Paulo State. Usina Paulista Lavrinhas de Energia SA, in Paraíba do Sul River, in Lavrinhas, will receive R$111.2m (US$46.6m), and Usina Paulista Queluz de Energia SA, in the city of Queluz, will get R$114.6m (US$48.0m).

BNP set to win

PFI Issue 400 - January 14, 2009

BNP Paribas is expected to be confirmed as the winner of Masdar's green city financial advisory shortly. The scheme will provide homes for 50,000 people in a carbon-neutral environment.

Brazil threatens Ecuador

PFI Issue 400 - January 14, 2009

Brazil has threatened Ecuador with the loss of infrastructure financing projects because Ecuador is contesting a loan payment involving a hydroelectric dam. Celso Amorim, Brazil's Foreign Minister, said Ecuador had "shot itself in the foot" by its action, which included expelling executives of Brazilian company Odebrecht, which constructed the dam.

Calyon lands CCGT advisory

PFI Issue 400 - January 14, 2009

Calyon is understood to have been appointed as financial adviser on a new 412MW CCGT of Poweo in Toul. But the financing of the €350m project is in doubt due to the perceived weakness of Poweo, an issue that could only be resolved if Verbund, which currently holds a 30% stake in Poweo, decided to become more involved in the project. Funds managed by

Captive coal to be shared

PFI Issue 400 - January 14, 2009

The Indian government has relaxed regulations on captive coal mining so that power companies are now allowed to divert surplus coal from one of their projects to another.

Carlyle layoffs include Chase

PFI Issue 400 - January 14, 2009

Brian Chase is among the professionals that have been laid off in a 10% staff reduction by the Carlyle Group. Chase had been working at the Carlyle Group on infrastructure investments for two years, after gaining expertise in the field at Nossaman.

CDB goes commercial

PFI Issue 400 - January 14, 2009

China Development Bank Corp (CDB) was relaunched last week after transforming itself into a commercial organisation. With a registered capital of US$44.12bn, the new corporation inherited all the assets, liabilities and business of the original bank, which was set up in 1994 to organise financing for infrastructure projects and major industrial developments.

CEZ shortlists

PFI Issue 400 - January 14, 2009

A number of banks have already been turned down by CEZ and MOL in the competition for a financial adviser for their €1.4bn power venture, with the sponsors said to be looking for very cheap offers. Of the 17 bank offers received, what is k

Congress mulls P3 support

PFI Issue 400 - January 14, 2009

Two measures on Capital Hill have been proposed to prop up available financing for US public-private partnerships in the infrastructure sector. The first is legislation that has been proposed to repeal the alternative minimum tax applied to Private Activity Bonds. While the move might make PABs slightly more attractive to investors, and thus reduce the cost of raising funds for project sponsors, PAB issuance will continue to be hampered by the lack of a robust monoline market.

Court lifts MPX injunction

PFI Issue 400 - January 14, 2009

A federal district court has lifted an injunction against the building of a coal-fired power plant owned by MPX Energia and Energias do Brasil. MPX said a third party filed a complaint with federal prosecutors in the sta

Curtain falls on Opera

PFI Issue 400 - January 14, 2009

Santander, Calyon and Caisse Nationale des Caisses d'Epargne (CNCE) have signed a €190m six-year bullet for the financing of Opera, a project company that will hold the fibre-optic concessions of 11 SPVs whose maturity ranges between 15 years and 20 years and are owned by Bouygues subsidiary Axione and CDC. Drawdown is expected in the n

Denver toll road progressing

PFI Issue 400 - January 14, 2009

Jefferson Parkway Public Highway Authority has hired project manager Parker Brinkerhoff and expects soon to hire a financial adviser in preparation for the launch of a process to put a public-private DBFOM contract out to bid for the completion of the beltway around Denver, Colorado.

DLA lawyers promoted

PFI Issue 400 - January 14, 2009

DLA Piper has conducted a promotion exercise for 53 lawyers worldwide and of these, six are based in Asia. Another lawyer was promoted as legal director. Two lawyers were promoted in each of the Beijing, Shanghai and Hong Kong offices, with one promoted to partner in Tokyo.

EDF and Petrobras eye wind

PFI Issue 400 - January 14, 2009

EDF-Energias de Portugal and Petrobras may jointly develop wind energy projects in Brazil. Petrobras and EDP closed an agreement recently that may also include developing gas-fired power generation, hydropower and biomass projects.

Egat to delay power purchases

PFI Issue 400 - January 14, 2009

Electricity Generating Authority of Thailand (Egat) may delay the purchase of power from private producers in Thailand and elsewhere as demand for power is expected to slow down in current market conditions. A panel of executives from state utilities is currently revising the country's power development plan to reflect the weaker economic outlook. Due to the global economic slowdown, electricity demand is expected to grow by only 2% this year, half the rate forecast earli

ELSTA shortlists

PFI Issue 400 - January 14, 2009

The Asia-oriented marketing of financial adviser Royal Bank of Scotland in the sale of AES's 50% stake in the ELSTA Dow 630MW CCGT has paid off, with Marubeni and two Middle Eastern IPPs said to have made the cut alongside International Power and Intergen. Final bids are due by mid-February. The project is owned by Delta (25%)

EMEA LT 400

PFI Issue 400 - January 14, 2009

EMs eye PPPs

PFI Issue 400 - January 14, 2009

About 200 people, double the usual amount, attended the World Bank's conference on public-private partnerships for infrastructure in emerging nations. Amid the current financing crisis, the participants from 65 countries had one question: When will this nightmare end?

Enel tweaks tender

PFI Issue 400 - January 14, 2009

Enel will ask the 12 bidders that submitted indicative offers for its gas distribution network only to bid for the equity value of the 70% stake it has put up for sale. Instead of a staple loan, it has now asked advisers Intesa and Morgan Stanley to launch a tender for the debt financing of the target company in an effort to save on arranging fees. Memos to banks are ex

Euro PPPs jump

PFI Issue 400 - January 14, 2009

The fact that the total volume of European and Middle East deals in 2008 was – at €6.4bn – almost three times the volume of 2007 may come as a surprise with all the doom and gloom towering over the PPP/PFI markets. But deal flow very much depends on the progress of the pipeline and 2008 saw the procurement of major infrastructure projects in countries such as Spain, Belgium and the Netherlands finally come to fruition after years of delay. The first half of the year in fact beat H1 2007 as the plethora

Exelon extends NRG tender

PFI Issue 400 - January 14, 2009

Exelon has extended its tender offer until February 25 after shareholders tendered 45.6% of NRG's outstanding common shares by the earlier deadline. NRG's board of directors continues to dismiss the offer as undervalued and uncertain due to the refinancing of US$8bn in NRG debt that would be required by NRG's current debt covenants.

Final round Maamba bids in

13 January 2009

The two bidders remaining in the competition for Zambia Consolidated Copper Mines Investment Holdings' Maamba Collieries project have submitted their bids. Vedanta Resources and Nava Bharat are the final bidders for the project to redevelop the country's largest coal mine and build a 300MW–350MW power plant.

First Pilanesberg equity done

13 January 2009

Platmin has completed the first tranche of its US$175m equity raising that is funding its Pilanesberg project in place of a US$200m project financing. In the first offering the company has raised US$125m by issuing 184,886,627 shares at C$0.85 each.

Flying in

PFI Issue 400 - January 14, 2009

Next week sees the second annual World Future Energy Summit hosted by Masdar in Abu Dhabi. The Brits turn up in force. Last year, it was Prince Charles, this year it is Tony Blair. It is quite a programme – three days featuring hundreds of speeches from the great and the good in the green world. I was slightly amused to see that Jeffrey Culpepper (ex-Morgan Grenfell, Deutsche oil PF guy) is giving a 45 minute address! But then I notice his latest employer Credit Suisse is the conference lead sponsor.

FPL's Heartland closed

PFI Issue 400 - January 14, 2009

Lloyds TSB, acting as lead structuring agent and an MLA, together with a club of six other banks that came in at the MLA level, have funded a US$372.5m, eight-year bullet loan to support FPL Energy's Heartland Wind project. The financing reimburses FPL for its capital contributions to the 309MW project located on a series of sites in North Dakota and Iowa. The loan

Fund buys into biogas

PFI Issue 400 - January 14, 2009

Ludgate Environmental Fund (LEF) has invested €3m in agri.capital, a developer, owner and operator of biogas plants in Germany. The investment has been structured as 8% preferred stock with detachable warrants and is part of a €10m funding round in agri.capital with Valiance Special Situations Fund investing alongside LEF. The business uses manure and various crop silages as feedstock to produce biogas as they decompose.

GenConn seeks financing

PFI Issue 400 - January 14, 2009

GenConn Energy LLC, a 50-50 partnership between United Illuminating Company and NRG Energy, is seeking US$300m in project financing for a 200MW peak generation facility and is said to be in talks w

Gindalbie to syndicate A$1.25bn this year

PFI Issue 400 - January 14, 2009

The China Development Bank has completed its due diligence on the A$1.8bn Karara iron ore project jointly owned by Gindalbie Metals and Ansteel and will syndicate the A$1.25bn debt finance early next year. CDB is currently

Good news for renewables

PFI Issue 400 - January 14, 2009

Political changes in Washington are expected to bring good news to renewable projects on a number of fronts.

Government retreats from infra

14 January 2009

A number of tenders for Russia's major infrastructure projects have been delayed as their reliance on public finance makes them vulnerable to the government's realignment of priorities in the wake of the financial crisis.

Govt to encourage Chinese BOT

PFI Issue 400 - January 14, 2009

The Taiwanese government is considering ways to allow mainland Chinese investors to take part in some of the 12 Love Taiwan public construction works using the build, operate and transfer (BOT) model. At the moment, Chinese funds are unable to participate in the NT$3.99trn worth of 12 Love Taiwan construction works based on existing regulations.

Hastings wins Cairns Airport

PFI Issue 400 - January 14, 2009

The Queensland government has concluded the privatisation of its airport portfolio after agreeing to the A$530m sale of Cairns Airport to a consortium led by JP Morgan, Westpac and Hastings Funds Management.

High-speed finalists

PFI Issue 400 - January 14, 2009

Brisa/Soares da Costa/Iridium/Bento Pedroso, advised by CaixaBI and Millennium BCP, and Mota-Engil/Somague/Sacyr/Teixeira Duarte, advised by Banco BPI and BES, are the groups that RAVE has decided will go through to the next round for the Poceirao to Caia section of the TGV high-speed train link between Lisbon and Madrid, in accordance with the NPV results reported in October. An invi

HPI to develop new power project

PFI Issue 400 - January 14, 2009

The National Development and Reform Commission has approved Huaneng Power International's power plant project in Jinggangshan, Jiangxi province. Huaneng's Phase II project will cost about US$400m and will comprise a power unit with 600MW of generation capacity.

Iamgold buys Essakane developer

13 January 2009

Iamgold is to buy Orezone Resources in an all-share transaction worth about US$139m in order to take control over the miner's 4m oz Essakane project in Burkina Faso. Orezone's other assets, all in the exploration phase, are to be spun off into a new entity, New Orezone, which will be distributed pro rata to all existing shareholders. Regarding Essakane, each shareholder will receive 0.08 Iamgold shares per current Orezone share held.

IFC and IDB form soybean loan

PFI Issue 400 - January 14, 2009

The IFC and the IDB are forming a US$230m financing package for Noble Argentina for the construction and operation of a soybean crushing facility in its port terminal in Timbues, Santa Fe Province. The IFC plans a US$75m A loan, and the IDB a US$40m A loan. Also, the IFC will form a US$45m syndicated loan, and another US$70m will come from equity and subordinat

II fund BIIFed

PFI Issue 400 - January 14, 2009

The sale of Infrastructure Investors, the secondary market UK private finance initiative (PFI) equity fund, to Barclays Private Equity has been completed. The £558.6m deal was backed by a £346m short-term acquisition loan from Calyon (£99m), RBS (£99m), Lloyds TSB (£85m) and Nationwide (£63m).

Invenergy closes on wind deal

PFI Issue 400 - January 14, 2009

Invenergy Wind has closed on the debt and equity financing for its subsidiary, Coastal States Wind Holdings LLC. UniCredit/HVB arranged the debt financing, which took the form of a construction bridge loan that was syndicated on a best efforts basis. Pricing was said to be 250bp over the US prime rate.

J-Power acquires 400MW

PFI Issue 400 - January 14, 2009

J-Power, in a joint venture with John Hancock, has purchased interests in three power plants in New York and Virginia. The assets were purchased from Harbinger Independent Power Fund II, DiFazio Electric and Northwestern Mutual affiliates. Dexia acted as financial adviser, Baker & McKenzie as legal adviser to J-Power.

Katanga takes convertible loan

12 January 2009

Katanga Mining has secured a US$265.3m convertible loan from shareholder Glencore, having previously professed an urgent need for cash. The two-year mandatorily convertible facility, priced at 300bp over Libor, comprises a new US$100m loan, and the amendment and restatement of an existing US$150m Glencore loan, which accrued interest has taken to US$165.3m.

Key issues due

PFI Issue 400 - January 14, 2009

The request for proposals on Eskom's independent power project (IPP) programme is still targeted to be sent by the end of February but the utility has to make two key decisions before the documents can go out. First, it has to decide on the level of forex indexation provided under the power purchase agreements (PPA). This will then have an impact on the size of the pro

Kuwait cancels Dow

PFI Issue 400 - January 14, 2009

The deteriorating economic conditions were blamed for the decision by the Kuwaiti government to cancel its US$17bn joint venture with Dow Chemical. The move, announced on 28 December after days of speculation and political pressure to scrap the deal, followed a meeting of Kuwait’s Supreme Petroleum Council and came three days before the deal was due to take effe

LIPA plans RFP and mulls solar

PFI Issue 400 - January 14, 2009

The Long Island Power Authority's Shoreham Advisory Committee plans to issue an RFP for a consultant to help determine the best use of the 60 acre site of the former Shoreham Nuclear Power Plant. Possibilities include a solar park, but LIPA is emphatic that no new nuclear power facility will be built on the site. The committee is made up of local pu

LNG terminal news

PFI Issue 400 - January 14, 2009

Vopak and Gasunie have set a ceiling on the margins they are willing to accept on the extra 20.5-year €180m debt for the expansion of their GATE LNG project, asking for 215bp during construction and 200bp to 260bp during operation. R

M&P deal on hold

PFI Issue 400 - January 14, 2009

The Maurel & Prom reserve base lending (RBL) deal appears to have been put on hold. BNP Paribas and Calyon launched the five-year US$500m deal, priced at 290bp, in a senior phase last autumn but sales proved difficult as the oil price collapsed. The French company is now said to be looking at alternatives.

M3 launched

PFI Issue 400 - January 14, 2009

The prequalification for the M3 motorway in Hungary has been launched, with expressions of interest due by February 2 and the prequalification list expected in early March. The tender for the public financial advisory role on the project is to be relaunched after a mistake in the procurement documents. ING, KPMG and Ernst & Young were battling it out for the tender.

Manah on the block

PFI Issue 400 - January 14, 2009

Suez is putting its 270MW Manah independent power project (IPP) up for sale. The scheme was one of the first IPPs developed in the region back in 1994 and was expanded from 90MW in 2000. In addition, the project includes 180km of transmission lines.

McKenna Long taps Indy mayor

PFI Issue 400 - January 14, 2009

Former Mayor of Indianapolis Stephen Goldsmith has joined McKenna Long & Aldridge as a Senior Strategic Advisor to the law firm’s Global Infrastructure Finance and Public-Private Partnerships Practice. In this role Goldsmith will focus on structuring and executing public-private partnership arrangements and teams.

Metro stations banked . . . for now

PFI Issue 400 - January 14, 2009

Santander, BBVA, Caja Madrid and La Caixa have signed two one-year bridge facilities, totalling €1.16bn, for the €773m downpayment that FCC/OHL/Copisa and Dragados/Acciona/Comsa

Miners seek US$1bn

PFI Issue 400 - January 14, 2009

Barrick Gold and Goldcorp, two Canadian mining firms, are negotiating a project loan of US$1bn to help pay for the development of the jointly owned Pueblo Viejo gold mine. The firms have not yet selected any institutions.

Minor delay at Blue Ridge

13 January 2009

Commissioning of Ridge Mining's Blue Ridge plant has been delayed to the last week of January by a safety review by EPC contractor Bateman Engineering, prompted by a minor accident. Construction began in January 2007, ahead of financial close in December 2007, when Blue Ridge secured R715m from Standard Bank, Investec, DBSA and IDC.

Moody's highlights E&P risks

PFI Issue 400 - January 14, 2009

Moody's has highlighted the risks facing independent exploration and production (E&P) oil and gas companies and put the outlook for the sector on hold. Collapsing oil and gas prices in the last quarter have put some stresses on the sector, although Moody's says that many companies have made substantial cuts to their 2009 capex plans and therefore now have adequate liquidity.

MOP starts airport tender

PFI Issue 400 - January 14, 2009

MOP, the public works ministry, has started a consultancy tender for the modernisation of the Balmaceda airport in Region XI, which is the southern part of the country, the US Trade and Development Agency (USTDA) reported.

More leave Citi

PFI Issue 400 - January 14, 2009

Simon Elliston is leaving Citigroup to take a job in industry. He was EMEA head of energy and infrastructure finance. Elliston joins a list of high-ranking Citi leavers, including Chris Hasty, former global head of project finance, and Simon Dudley who worked on infrastructure and securitisations.

Mundra loan wrapped up

PFI Issue 400 - January 14, 2009

Tata Power has wrapped up all the financing documents for the US$3.2bn deft facilities for the Mundra UMPP. All relevant documents have been signed, including the inter-creditor agreement.

NCIT pre-development lapse

PFI Issue 400 - January 14, 2009

An exclusive pre-development agreement between CenterPoint and the North Carolina State Port Authority (NCSPA) has expired. The NCSPA is now discussing the development of the proposed US$2.3bn North Carolina International Terminal in Southport with other parties. CH2M HILL is design consultant.

New fund from Aurarian Capital

PFI Issue 400 - January 14, 2009

Aurarian Capital in New York plans to launch its Capital Clean Energy Asset Based Lending fund in January with an advisory board that will include representatives from Cargill, United Technologies and Marathon Oil. The US$100m fund will lend to support the development of second generation biofuel refineries and power plants.

Next bridge

PFI Issue 400 - January 14, 2009

ADWEA subsidy Abu Dhabi Sewerage Services Company (ADSSC) is working on the next bridge for a project in the Emirate – the second independent sewerage scheme. Veolia and Besix won the US$400m project last summer with th

Oilexco North Sea drowned

PFI Issue 400 - January 14, 2009

Oilexco North Sea, the UK arm of Canadian independent Oilexco, has been put into administration after it ran out of funds. The change in the company's fortunes since the summer has been remarkable. By Rod Morrison.

Olkaria closed

12 January 2009

Ormat Technologies has reached financial close on the 13MW–48MW expansion of its Olkaria III geothermal plant. Subsidiary Orpower 4 has received US$105m from DEG, FMO, EAIF, Proparco, KfW, European Financing Partners and the EIB. The 10+1 year debt is priced below Rabai's 350bp, thanks to signing a few months later.

Paiton banks to meet

PFI Issue 400 - January 14, 2009

The commercial banks involved in the 815MW Paiton 3 project are planning to meet again at the end of this month, but this may be slightly tricky due to the Lunar New Year holidays in the region.

Peakers still in pipeline

13 January 2009

The two peaking IPPs, at KwaZulu-Natal and Port Elizabeth, are still in development, with original losing bidder Suez set to take over following AES's pulling out. A Suez-led consortium is in negotiations with the Department of Minerals and Energy (DME) that are aimed to be finished by April, almost exactly a year on from AES abandoning the project.

PEP launches tender

PFI Issue 400 - January 14, 2009

PEP, Pemex's E&P subsidiary, has launched an international tender for the drilling of 500 development wells in the Chicontepec field in Puebla and Veracruz states. Bidding rules are available through to January 14 and bids are due by January 20.

Pertamina gets Balongan loan

PFI Issue 400 - January 14, 2009

State oil and gas company Pertamina has raised a two-year amortised US$225m loan facility for the upgrade of its refinery plant in Balongan, West Java. Lenders BNP Paribas, HSBC and Sumitomo Trust signed the deal in late December.

Petrogas seeks EPC

PFI Issue 400 - January 14, 2009

Petronas Gas has started looking for an EPC contractor for its proposed M$900m power plant project located in Kimanis in the district of Papar, Sabah. Pre-qualification is scheduled to take place early this year, within the first quarter. The tender documents could be out either in March or May.

PetroVietnam to sell 49% stake

PFI Issue 400 - January 14, 2009

PetroVietnam plans to sell a 49% stake in Vietnam's first crude oil refinery at Dung Quat. Construction has been completed and it is now scheduled to begin operations in February. There seems to be preference for international partners committed to supplying crude to the refinery.

Piedmont buys LNG storage site

PFI Issue 400 - January 14, 2009

Piedmont Natural Gas has purchased land to site its planned Robeson LNG peak storage facility in Robeson County, North Carolina. The proposed 1.25bcf storage project is estimated to cost US$300m–US$350m and is to be completed in late 2012. A confirmation or update on the project timeline is expected before the end of Q1.

Port of Miami Tunnel upset

PFI Issue 400 - January 14, 2009

Florida Secretary of Transportation Stephanie Kopelousos announced that the Miami Port Tunnel Project would be cancelled due to the credit crisis just as the project seemed to be moving forwards after many disruptions. Miami Access Tunnel, the concessionaire selected to build the project in May 2007, noted, however, that it had just received new commitments for equity capital and that Kopelousos's outlook for the project was "invalid".

Porterbrook due out

PFI Issue 400 - January 14, 2009

Syndication of the loan facilities backing the acquisition of Porterbrook, the UK rolling stock leasing company (ROSCO), is due shortly. The asset was bought for £1.83bn from Santander's Abbey National by a private equity consortium made up of BNP Paribas's Antin Infrastructure Partners, Deutsche and Lloyds TSB (PFI issue 396) and backed by debt facilities of £1.

Power sector to be reformed

PFI Issue 400 - January 14, 2009

The government will reform its power sector in 2009, said senator and energy committee secretary Rubén Camarillo of the ruling PAN party. Earlier, Congress approved a reform focused on Pemex, the state oil company, with some measures included for renewable and sustainable energy.

PPP news

PFI Issue 400 - January 14, 2009

The tender for the eagerly awaited €1.5bn A15 Maasvlakte to Vaanplein project, a 30km road running from the east of the country to the west, has been launched. Expressions of interest for the PPP scheme are due by February 20. There is word that the tender for the A12 road from Veenendaal to Utrecht could also be launched in Q1, straining the country's infrastructure market.

PPP news

PFI Issue 400 - January 14, 2009

Fortis has won the €1bn PPP Flemish schools PPP for a possible 211 school buildings. The Fortis Bank Belgium/Fortis Real Estate group beat Méridian/NIB/Barclays Capital and Cofinimmo in the final round; Dexia/KBC had previously been eliminated. Fortis, which bid for the debt and the equity, is now negotiating the contract with the government.

ProInversion gets six bids

PFI Issue 400 - January 14, 2009

ProInversión, the state agency for the promotion of private investment, received six proposals for the Red Vial 4 highway project. The bidders are Concesionaria del Sur, Concesionaria Vial del Norte, the consortia Concesionaria Panamericana and Vías del Perú CCION, OHL Concesiones and the consortium consisting of Promotora del Desarrollo de América Latina and Obras de Ingeniería.

Rail news

PFI Issue 400 - January 14, 2009

Groups led by Vinci, Eiffage and Bouygues submitted for prequalification for the €1.4bn Nimes to Montpellier bypass high speed rail PPP. Tender documents are expected in Q2. SG is advising Bouygues while the other two sponsors are said to be still looking for financial advisers.

RBS slims down

PFI Issue 400 - January 14, 2009

Royal Bank of Scotland has slimmed down and restructured its project and structured finance operations. It has established a secured debt markets division, which includes products such as project finance and securitisation. The move resulted in some significant jobs cuts before Christmas – mainly on the infrastructure side, where half the large 25-strong project finance team left. The move was similar to the HSBC restructuring, where products lines have been combined and new coverage g

REG renews credit

PFI Issue 400 - January 14, 2009

Renewable Energy Generation (REG) has renewed its corporate credit facility with Bank of Scotland. The company has obtained an 18-month £20m corporate revolver to replace the £30m general credit facility from October 2007. The UK-based company raised C$75m of 15-year project finance from Fortis to fund its Canadian wind farms last year.

Renewables hit

PFI Issue 400 - January 14, 2009

The Ernst & Young global renewable attractiveness index saw scores fall across the globe in the third quarter of 2008 as the credit crunch and the impeding recession hit home. The US maintained its place at the top of the table but was joined by Germany.

Rio out of Ma'aden

PFI Issue 400 - January 14, 2009

Rio Tinto has pulled out of the US$10bn aluminium smelter project it was developing with Saudi state mining company Ma'aden, perhaps not surprisingly. However, Ma'aden still seems to be pressing ahead with the scheme, particularly as the EPC costs on the project will now be reducing. Last year, Ma'aden financed its fertiliser scheme with state petroc

Road news

PFI Issue 400 - January 14, 2009

Financial adviser Calyon is expecting offers this week for the €1.5bn financing of AWSA's new 104km availability-based stretch of the A2 toll motorway from Nowy Tomysl to Swiecko. The EIB could participate for up to 50% of the debt and the sponsors are said to be open to a variety of financing structures given the tough environment.

RWE lines up Essent loan

PFI Issue 400 - January 14, 2009

RWE is the leading candidate to take over Dutch peer Essent and has lined up banks for a €10bn deal that could be one of the biggest European mergers of 2009. Essent's management will ask the supervisory board and shareholders this week to start exclusive negotiations with RWE. Vattenfall and a consortium of Eni and DON

SembCorp confirmed

PFI Issue 400 - January 14, 2009

SembCorp has been confirmed as the winner of the US$1bn Salalah independent water and power project (IWPP). The win was first revealed in PFI last September but the award has been on hold. Standard Chartered is the sole bank on the deal and now has to put together a financing plan.

Seven firms eye hydro plant

PFI Issue 400 - January 14, 2009

Seven companies have submitted letters of interest for the US$700m, 324MW Los Blancos hydro plant, which is planned for Mendoza province, The project will be in the Tunuyán River, 155km from Mendoza. A second 119MW Los Blancos II is part of the tender.

Shah Deniz bridged

PFI Issue 400 - January 14, 2009

Calyon and Societe Generale have signed a one-year US$100m bridge, priced around 300bp, for the refinancing of SOCAR's 10% stake in the Shah Deniz gas field. SOCAR's intention is to clinch the five-year US$400m take-out by the end of the year.

Shenhua to expand CTL project

PFI Issue 400 - January 14, 2009

Shenhua Group, the country's biggest coal producer, will expand the capacity of its direct coal-to-liquids (CTL) project to 3mtpa once its technology has tested sound in trial operations. Shenhua's pilot plant in Inner Mongolia is currently producing fuels and it wants to extend the trials before launching into full-scale production.

Shu 2 done

PFI Issue 400 - January 14, 2009

The Shuweihat 2 bridge financing was duly signed just before the holidays and work will now start on the long-term financing. The six banks were Bayerische Landesbank, Calyon, Natixis, National Bank of Abu Dhabi, KfW and Standard Chartered. The US$945m nine-month loan was priced at 150bp with a 100bp fee and a 50bp commitment fee. The swaps were done by BBVA, Natixis, HSBC and Bayerische Landesbank.

Sime to develop low-cost airport

PFI Issue 400 - January 14, 2009

Sime Darby has received government approval for the development of a low-cost carrier terminal (LCCT) in the southern state of Negeri Sembilan. The proposed LCCT project is an integral part of the company's development plan for its Negeri Sembilan Vision City, Sime stated in a filing to the stock exchange. The project cost is estimated at M$1.6bn (US$456m).

Solar rumours

PFI Issue 400 - January 14, 2009

The Abengoa/Total team is believed to be frontrunner on the Masdar solar scheme. Four teams bid for the 100MW Masdar solar project – one of the world's largest single solar deals. BNP Paribas is advising Masdar. The fo

Sorgenia may need more equity

PFI Issue 400 - January 14, 2009

Sorgenia's bank group for its new CCGT genco is so far up to four – Intesa, Mediobanca, WestLB and MPS – and the company now has to decide if it wants to settle for a 50:50 debt/equity split or wait for more banks at the risk of incurring penalties in its EPC contract with Ansaldo. Other banks such as BNP Paribas and UniCredit are looking at the deal positively but

Stanchart rumours

PFI Issue 400 - January 14, 2009

Former head of leveraged finance at ABN AMRO, James Courtenay, is believed to be moving to Standard Chartered in London - perhaps to replace Anil Dua, the current global head of project finance. Dua is moving to head coverage in Africa.

StarHub gets new COO

PFI Issue 400 - January 14, 2009

Tan Tong Hai has been appointed as the new chief operating officer (COO) of StarHub, one of the three mobile phone operators in Singapore and a provider of internet services. He will join from January 15 and report directly to chief executive officer Terry Clontz.

Sundance to develop US$3.3bn mine

13 January 2009

Sundance Resources subsidiary Cam Iron has signed a framework agreement with the government to develop the 50mtpa Mbalam iron ore project. A definitive agreement will follow the feasibility study, currently under way.

Tariff regs to be announced soon

PFI Issue 400 - January 14, 2009

India's power regulator, the Central Electricity Regulatory Commission (CERC), said that new tariff regulations lasting for five years were likely to be announced by January 15. A senior CERC official said that all suggestions made by the power utilities had been considered. CERC has reportedly simplified the tariff norms and incentives enjoyed by the utilities.

Tenaga cool on Bakun dam

PFI Issue 400 - January 14, 2009

Tenaga Nasional is interested in undertaking the undersea cable project but it is not keen on taking an equity stake in the 2,400MW Bakun hydroelectricity dam. The company has told relevant government bodies about its limited interest, adding, however, that it would be keen to operate the hydroelectricity dam.

Termoflores seeks financing

PFI Issue 400 - January 14, 2009

Termoflores, a generating company, is seeking a US$278.2m financing package for its 169MW gas-fired combined cycle project. The project would include an IFC A loan of US$65m and a B loan of US$92.5m, a local currency loan of US$22.6m, and the rest in equity. The IFC is now evaluating the loan.

Thameslink out

PFI Issue 400 - January 14, 2009

The request for proposals (RFP) for the £2bn plus Thameslink rail scheme, being procured under a public private partnership (PPP) structure, are out and bids from the four manufacturers are due back by April 30. The financing for the scheme is being procured on as simple a basis as possible to allow the manufacturers to concentrate on the technical solution.

Theodoropoulos joins Fengate

PFI Issue 400 - January 14, 2009

George Theodoropoulos has left his position as the head of the Canadian advisory group of RBC Infrastructure Finance in Toronto to join Fengate Capital Management. Theodoropoulos will remain in Toronto. In his new post as senior vp. Theodoropoulos will focus on investing equity capital in the infrastructure and power sectors. Fengate has been active as an equity player in the Canadian public private partnerships market, and will now expand its geographical focus.

Tilaiya receives five bids

PFI Issue 400 - January 14, 2009

The 4,000MW Tilaiya UMPP, the latest ultra mega power plant being offered to the private sector for development, attracted five bids when the auction was conducted on December 29.

Tollroads may need change

PFI Issue 400 - January 14, 2009

Another unwelcome aspect of the global recession could be a financial restructuring of some tollroads, said Boris Otto, managing partner in the Mexico City office of Chadbourne & Parke, a global law firm. In troubled times, the concessionaire might have to restructure its loans because of reduced traffic.

Transurban pulls out of M7 sale

PFI Issue 400 - January 14, 2009

Transurban has told Macquarie Infrastructure Group (MIG) that it will cancel its pre-emptive rights over the sale of MIG's 50% interest in Westlink M7.

Tunnel starts operations

PFI Issue 400 - January 14, 2009

Santiago's San Cristóbal tunnel started complete operations on December 30. The opening of the second, north-to-south tunnel permits traffic to flow in both directions, six months after the originally scheduled start date.

Unlucky tender

PFI Issue 400 - January 14, 2009

Turkey's privatisation administration OIB has extended the deadline for the national lottery Milli Piyango from February 27 to April 15. The pre-qualification deadline was also extended to February 16 from January 15. The delay was sought by bidders looking for more time to raise finance.

Vinci on top

PFI Issue 400 - January 14, 2009

The Vinci Concessions/ABN AMRO Highways team, advised by BNP Paribas, has won the 30-year PPP contract to build and maintain the 52km R1 expressway. But the government could scrap the tender and opt for traditional procurement if Vinci does not manage to raise finance quickly, while Strabag/Porr, which came on to

Welsh Power bids due

PFI Issue 400 - January 14, 2009

The second round bids for Welsh Power will go in on January 23. The latest info memo seems to imply that only the Severn Power IPP and Wyre Power development asset are up for sale as the other parts of the company did not attract much interest. It is believed that only Dong and Scottish & Southern bid for Welsh Power as a whole.

Wind news

PFI Issue 400 - January 14, 2009

WestLB, UniCredit and Interbanca are in advanced negotiations about a mandate from Theolia to arrange project level debt for a 30MW windfarm in Sicily, the first in a portfolio of windfarms totalling 130MW and later to be increased to 200MW in Sicily and Puglia. The debt for the first transaction should come in at around €60m.

Wind news

PFI Issue 400 - January 14, 2009

RF Energy has agreed a 13-year €25m financing package with EFG for its acquisition of the 42MW wind portfolio of Garbis and Zephiros from Babcock & Brown. However, it had to consent to a debt:equity split of 45:55 and margins of 250bp. Babcock originally acquired the projects in May 2007 from Penta Holding.

Winston & Strawn expands

PFI Issue 400 - January 14, 2009

Winston & Strawn has hired Jonathan Birenbaum as a partner based in New York, in another move to broaden its energy related practice. The hire follows the addition in late 2008 of Robert Nelson and Dirk Mueller from Thelen, both of whom have extensive expertise related to energy projects. Winston & Strawn’s energy-related corporate practice is headed by Jerry Bloom in Los Angeles.

YTL to build 1,200MW plant

PFI Issue 400 - January 14, 2009

YTL Power has proposed to build a gas-fired 1,200MW power plant estimated to cost about M$4bn (US$1.15bn). The plant, which will replace YTL's ageing facilities, will be designed to use less gas, in response to government's call for more efficient IPPs. YTL is still waiting for government approval.