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Friday, 18 April 2014

PFIe
PFI Issue 11

Search our complete archive of previous issues to find the story or deal you need.

  • All001934

    PFI Issue 11

    Environment Secretary Michael Howard has announced a team of 10 ministers who will assist Inner Cities Minister, John Redwood, in co-ordinating the City Challenge programme. The 20 schemes form Round 2 of the City Challenge, the government's initiative to foster inner city redevelopment. The 20 schemes will begin to work in 1993/94 and will benefit from a share of £750m in government funding over the next five years.

  • All001935

    PFI Issue 11

    A major conference to be held in Birmingham on 23-25 March, 1993 to enable developing countries to share the benefits of technology in partnership with British companies. Prime Minister John Major gave a pledge at the Rio Summit in June that Britain would host a Technology Partnership Conference, to which over 200 businessmen will be invited. The conference will be held at the Metropole Hotel, NEC, Birmingham and will run in parallel with the Environmental Technology '93 exihibition, a showpiece of Bri

  • Aluminium investment

    PFI Issue 11

    Alcoa has taken a 50.1% stake in Kofem, a subsidiary of Hungary's aluminium monopoly, Hungalu. Alcoa's initial investment in the jv, Alcoa-Kofem, is US$50m but the company has agreed to pump in a further US$115m over five years. Kofem produces flat-rolled aluminium products and Alcoa expects to improve product quality and safety. As part of the deal the State Property Agency and Hungalu (also owned by the SPA), assumed approximately US$40m of Kofem's debt. Last year Kofem had turnover of the equivalent

  • Anfu plans US$6.2bn projects

    PFI Issue 11

    Anfu County in central Jiangxi Province is inviting overseas investors to become involved in the following project: the development of a tourist area in Wugonghan, plants for the manufacturing of ceramic, wood and bamboo products, as well as food and medicinal herb processing and garments. The government is also looking to develop real estate and farming projects and livestock processing. The city of Jiujiang in the far north of the province plans to invest US$1.1bn in communication and energy projects

  • ANTEL sell-off in jeopardy

    PFI Issue 11

    The mid-December referendum on repeal of the privatisation law (PFI 10) is understood to be for partial repeal of the legislation. Specifically, it would cancel the planned privatisation of state telecommunications company ANTEL. The referendum was forced by over 25% of eligible voters signing a petition on October 1 critical of the privatisation legislation. Success of the "no" vote would prevent the government selling stakes in some other state companies. It is understood that it will not, however,

  • Austrians head to Black Sea

    PFI Issue 11

    An Austrian company is considering investing in a hydrotherapy centre along Bulgaria's Black Sea coast. Hoffman & Maculam of Austria has teamed up with Touristengineering of Bulgaria to examine four hotel sites in the resort area. The construction costs of the hydrotherapy facility, which is located at Sveti Konstantin, 10 km from Varna, is said to be in the region of US$100m.

  • Banks sign A$285m Rouse Hill deal

    PFI Issue 11

    Financing of the first phase of the A$750m Rouse Hill infrastructure project in Sydney (IFR 949 p27) was signed earlier this month (PFI 7 p11). The final line-up of banks for the A$285m club deal is Commonwealth Bank of Australia as agent and CBA, ABN AMRO, CIBC and NatWest Capital Markets as underwriters (SBC Dominguez Barry is adviser and arranger). Details as to the amount each bank is subscribing were not available, although a source said that the above running order was an indication of the relati

  • Bayernwerk seeks power cooperation

    PFI Issue 11

    German power concern Bayernwerk is working on expanding its ventures in the power sector with Czechoslovakia. Bayernwerk chief Jochen Holzer announced a programme to cooperate in construction of new conventional thermal power stations and retro-fitting of flue gas desulphurisation equipment. Bayernwerk is considering technical and financial support for these projects. The German company has been negotiating with the Czechs over a new lignite fired power station at Tisova for some time _ these discussio

  • Beijing-Kowloon railway fast-tracked to 1995

    PFI Issue 11

    The government has accelerated the construction of the Beijing- Kowloon Railway to enable it to be in use by 1995, two years ahead of the original schedule. A forecast sharp rise in GDP for China is expected to result in congestion on the railways, making the completion of the 2,370 km trunk railway imperative. Another goal is to facilitate trade between Hong Kong and the mainland. The project is estimated to cost US$3.3bn and involves constructing 549 bridges and 126 tunnels, which will stretch for 60

  • Black Peak power mandate looms

    PFI Issue 11

    CAPCO is getting closer to announcing the mandate for the construction, and thus the financing, for its Black Peak Power Station, to be built next to an existing station in the New Territories. The project is worth a total of US$3bn, with the tenor being 15 years. Bidding for the 1,200 MW plant are a British consortium, headed by GEC and Alsthom, and a German group, lead by Siemens. Financial adviser for CAPCO is Chase, while Schroders is advising GEC and Alsthom, and Deutsche and Bayerische Landesbank

  • Blyth Harbour wind farm

    PFI Issue 11

    This is Border Wind's second wind farm in the UK. It is the main sponsor and equity participant in the 2.7 MW Blyth Harbour project, located 12 miles north of Newcastle-upon- Tyne. The other shareholder and project promoter is Blyth Harbour Commission. The Blyth wind farm, which has a NFFO contract under the 1991 tranche, has nine 300 km HMZ Windmaster turbines (Belgian-built) and is due to come on stream in December this year. The total cost of Blyth is £3.2m and the project benefits from an Ecu1.2m g

  • Board sackings raise questionmark over Nigeria LNG

    PFI Issue 11

    The Nigerian government has sacked its representatives on the board of the country's gigantic US$4.5bn LNG project. Bankers were stunned by the development and are concerned that any delay could have disastrous consequences. Bankers are worried about whether the sackings represent a change in the government's attitude towards the project despite its expression of support.

  • BOT Power for MARAVEN

    PFI Issue 11

    Announcement is imminent of the bidders for a BOT concession for a 130 MW gas-fired combined cycle power plant for PDVSA subsidiary MARAVEN. The facility will be a captive plant serving the MARAVEN oil refinery at Cardon. Due to loose terms of reference about 30 groups pre-qualified.

  • Canal adviser decision imminent

    PFI Issue 11

    Merchant banks and consultants competing for the role of financial adviser to the Panama Canal modernisation project submitted revised proposals on October 16 and expect to hear the final decision around the end of October. It is believed that the Panamanians want to start work in November, although demanding revised bids may have delayed this. As reported in PFI 3, the financial adviser will work with a consortium of advisers appointed to conduct a feasibility study funded by a trileteral commission

  • CEF arranges HK$600m property loan

    PFI Issue 11

    Canadian Eastern Finance, a 50/50 joint venture between CIBC and Cheung Kong, is arranging a HK$600m loan for the construction of an office building and small shopping area in Tsim Tsui East, covering a total floor area of more than 700m sq ft. The complex is due for completion mid 1994. Drawdown will be "as required," given the cash flow surpluses enjoyed by the borrowers. Payment is bullet. The borrower is a consortium consisting of Cheung Kong, Sino Land, Tai Chung and Nam Fung. The loan is over thr

  • China financings flood the market

    PFI Issue 11

    The amount of offshore finance being raised by mainland Chinese institutions to fund projects is reaching flood proportions. Nearly all mainland China transactions are, directly or indirectly, for project financing. In many instances bankers now want the Chinese borrowers to specify exactly which projects the funds are for. The People's Construction Bank of China, PCBC, is raising about US$145m for the Liao Yang Petro-Chemical Fibre Project in Lialing Province in northern China. US Import/Export Finan

  • CIBC specifies uses for GITIC loans

    PFI Issue 11

    In releasing details of a US$20m, two-year club deal for Guandong International Trust and Investment Corporation (GITIC), the arranging bank, Canadian Imperial Bank of Commerce (CIBC), as with all loans to Chinese investment and trust companies, has specified the projects to which it wishes to lend support: in this case to a polyester plant in the Nahai municipality and a dishwashing machine factory in Shunde. The pricing structure is an interesting one. The front-end fee is 100bp, but if a lender deci

  • Coal power deals fizzle

    PFI Issue 11

    The Florida Public Service Commission has rejected a joint plan from Florida Power & Light and Cyprus Energy Partners L.P. to build two 416MW coal-fired cogeneration facilities in South Central Florida. The plan was turned down because the commission determined that the projects would not be the least expensive means of providing 832MW of capacity power that FPL says it needs. The commission did, however, approve the request for the additional capacity to come on line by 1998-1999. FPL will resubmit p

  • Collie wins week's reprieve

    PFI Issue 11

    Asea Brown Boveri and Bankers Trust have won a week's reprieve in their fight to retain preferred bidder status for the A$2.2bn Collie project in Western Australia (PFI 10 p15). A statement released late last week by the State Electricity Commission of Western Australia said that the decision to postpone cancellation of the mandate was made in consideration of "ABB's willingness to continue negotiations." Secwa added that the extra time would allow it to "analyse any revised proposal before it is consi

  • Conference centre attracts bidders

    PFI Issue 11

    Two construction groups are believed to be bidding for a US$200m conference centre in Kiev. One of the groups is said to be French and the other Austrian, possibly Hoffmann & Maculan. RZB is the house bank for the Austrian property constructer and developer. Sources say that the EBRD had expressed interest in the project but has put it on hold due to a staffing shortage.

  • Croydon Tramlink design group formed

    PFI Issue 11

    As expected Tarmac Construction, Transdev and AEG Rail Systems formally signed a project development agreement (PDA) for the Croydon Tramlink project on October 23. The three companies have together committed well over £1m in joining with Croydon Council and London Transport to underwrite the next stage of developing the light rail system in south London. The private sector partnership is regarded as the most significant advance in the project since the Council and LT placed the Croydon Tramlink Bill b

  • Danube dam breach

    PFI Issue 11

    The controversial Danube Dam and Gabcikovo power station have reached a crisis point. Negotiations between Hungary, Czechoslovakia and the EC broke down in late Octover with Czechoslovakia pushing ahead with unilateral development of the scheme. The Hungarian Foreign Ministry said that damming began on October 20, in spite of having received a letter from the federal government in Prague that agreed to a halt in construction until November 2 in order to allow an EC inspection team to investigate the pr

  • Devai participations from Creditanstalt

    PFI Issue 11

    Creditanstalt has contacted banks about taking a portion of its loan to the Devai Utca office centre (PF Europe 18). The amount being syndicated is approximately US$15m and a small club of Austrian institutions will be all that is necessary to complete the deal. The lifetime of the loan is 10 years. Pricing was mooted several months back at 2%-3% over Libor but pressure from the National Bank of Hungary to keep spreads down has resulted in Creditanstalt accepting the lower end of the scale. However, it

  • Disney could reconsider theme park terms

    PFI Issue 11

    Walt Disney Co is considering renegotiating certain parts of its agreement with EuroDisney SCA according to press reports. The company owns 49% of the EuroDisney theme park outside Paris. Currently the agreement between the two companies stipulates that a certain percentage of revenue and operting profit goes back to Disney and the amount increases as income goes up. The company was quoted as saying that although the management fee and royalty structure would not change Disney might postpone some other

  • DKB syndicates Indah Kiat US$46m

    PFI Issue 11

    DKB Singapore is reported to be syndicating a US$46m one-year facility for PT Indah Kiat to be used to finance the borrower's acquisition of another paper and pulp mill. The deal is guaranteed by two state banks - Bank Rakyat, which is syndicating a domestic tranche, and bank Negara Indonesia. The all-in yield is reported to be 140bp at the senior participation level.

  • DKB/Hongkong Bank wins Yangpu Bridge

    PFI Issue 11

    The People's Bank of China has finally awarded the mandate for the construction of the Yangpu Bridge in Shanghai to the DKB/Hongkong Bank group. Another four banks are known to be in the group, including Hang Seng Bank, one US and two European banks. The arrangers are reluctant to disclose detaisl yet, but have confirmed that there will be three tranches: the first is a US$ tranche for 17 years, the second a Japanese yen tranche spanning 21 years, and the third is a US$ tax spread loan over 10 years. T

  • Dutch/IFC technical assistance fund

    PFI Issue 11

    The IFC and the Ministry of Foreign Trade of the Kingdom of the Netherlands have announced the establishment of a trust fund to finance technical assistance projects in Central and East European countries. Under the agreement the Netherlands will provide Dfls2m (US$1.25m) to be used for technical assistance services by Dutch project sponsors or technical partners, consultants and suppliers of technology, to stimulate and accelerate economic transformation in central and eastern European countries.

  • Economists find the figures hard to add up

    PFI Issue 11

    EBRD has made a valian effort to paint a statistical picture of the economic and foreign trade in Eastern Europe in their recently published Quaterly Economic Review. However, bank officials presented the second edition of the weighty Review with an official health warning. "The statistics are not necessarily less reliable for the UK but the change is more rapid and therefore harder to interpret," said Stanley Katz, chief co-ordinator of the country advisory department. "Most statistics relate to the

  • EIB funds infrastructure in Portugal

    PFI Issue 11

    The EIB is lending a total of Esc 14.6bn (Ecu83m) in four loans in support of projects in Portugal. The national railway company, Caminhos de Ferro Portugueses (CP) is to receive Esc6bn to help finance the construction or doubling of sections of track, as well as signalling equipment for major railway lines in Portugal. The investment is part of Portugal's medium-term plan for the modernisation and reconversion of the railways. The total cost of the railway improvement scheme is Exc80bn and will be com

  • Emergency generators

    PFI Issue 11

    State-owned power utility Interconexion Electrica is reported to have ordered three floating generators to alleviate the country's chronic power shortage. A scandal appears to be brewing over allegations of malpractice, as first two units were supposed to be operational in August and September, but are not yet on site.

  • Estisulia seeks new partner

    PFI Issue 11

    Rumours in Caracas suggest that Dow Chemical has exited from, rather than just frozen, the styrene monomer project with PEQUIVEN and Grupo Suliano. Its two Venezuelan partners are said to be looking for a new partner. The stated reason (see PFI 10) for Dow's leaving the project _ a weak market for the product _ surprises many bankers. "The whole conception of the project is as a supplier to the existing Estisulia polystyrene plant with the same shareholders, and the balance going to the Dow plant in Ca

  • Exchange rates001815

    PFI Issue 11

    Units per US$ on October 23 Argentina Peso 0.99 Australia Dollar 1.39 Austria Shilling 10.56 Brazil Cruzeiro 7,510 Canada Dollar 1.25 Chile Peso 399.6 Colombia Peso 791.2 Czechoslovakia Koruna 27.8 Denmark Krone 5.78 France Franc 5.09 Germany Mark 1.50 Greece Drachma 194.7 Hong Kong Dollar 7.73 Hungary Forint 79.6 Indonesia Rupiah 2,044 Italy Lira 1,327 Korea Won 782.8 Malaysia Ringgit 2.50 Netherlands Guilder 1.69 New Zealand Dollar 1.85 Nigeria Naira 19.5 Norway Krone 6.1 Philippines Peso 24.6 Portug

  • Feasibility study into Shoreham wind farm

    PFI Issue 11

    Seeboard, the regional electricity company, is working with Shoreham Port Authority and wind generation consultants, Border Wind, to tes the viability of a wind farm at Shoreham Harbour. A feasibility study and site investigations and currently being carried out, and if the result of these studies is satisfactory, it is expected Seeboard will take an equity interest in the project with the two other parties. Border Wind will be entering the Shoreham wind farm under the third round of the Non-Fossil Fu

  • Fiat jv official

    PFI Issue 11

    The signing of the formal jv agreement on October 17 between Fiat and the FSM carworks means that bankers can start to consider thinking about financing options for Fiat's US$2bn investment. A reliable source says that there will be a three month valuation of the company by Fiat and that a better idea of the shape of the jv's balance sheet will be available in mid-January. Although a substantial part of the investment will be paid for by a debt-equity swap, with Fiat assuming FSM's bad debts, a figure

  • Foreign investment in China soars 131%

    PFI Issue 11

    "Last year everyone was talking about Vietnam: this year everything is China," commented a Hong Kong banker. Recent figures attest to this - foreign investment in China soared to a record high of US$6.6bn in the first nine months of 1992, a jump of 131% from the same period last year. The country approved 27,000 foreing invesment projects between January and September, an increase of 237%. Pledged investment in the projects rose 332%, or US$30.6bn.

  • GCA, Credit Lyonnais bring ethanol deal

    PFI Issue 11

    Gerken Capital Associates is acting as financial adviser to American Ethanol Corporation (AEC) on a US$117m project financing relating to a new ethanol facility. All participants in the financing have apparently been identified already. Approximately US$70m will be in the form of a senior debt facility to be arranged by Credit Lyonnais, US$15m in subordinated debt, US$12m in tax increment bond financing, and the balance in equity to be provided by the company and its industrial partners. AEC is a pri

  • GSM invites from Matav

    PFI Issue 11

    The Hungarian Telecommunications PLC (Matav) has dispatched invitations to bid on a new cellular mobil digital radio- telephone system for Hungary. The GSM-standard system uses the 900mw frequency. Hungary currently has a franchise for a more outmoded analogue 450mw frequency through a venture developed by Westel, a jv between Matav and US West. The cost of the new system has been estimated by Matav at US$100m. Matav disclosed that it is possible that two companies will be chosen in order to avoid a m

  • Guangdong expands on growth plan

    PFI Issue 11

    Guangdong Province has revealed further details of its ambitious plan, announced earlier this year, to become Asia's fifth little dragon. The province is targeting the energy, transportation, telecommunications, heavy industry and services in its two-stage strategy aimed at increasing domestic output by 12.9% before 2000, and 12.4% during the following 10 years. Energy: Annual electricity output will increase 13.6%; thermal power will be used in the first stage, but the focus will then shift to nuclea

  • Hotel for Ljubljana

    PFI Issue 11

    Creditanstalt has been mandated to arrange financing for a hotel in Ljubjana. The 300-bed, four-star hotel is part of the World Trade Centre, which comprises two office towers of 45,000 sq m. Financing for the World Trade Centre was arranged domestically. The cost of the hotel will be around ATS 350m. The real estate project is the only one of its standard in Slovenia.

  • IFC checks out Wu's next power plan

    PFI Issue 11

    The International Finance Corp (IFC) will meet with Gordon Wu, general manager of Hopewell Holdings, in Hong Kong this week to discuss the possibility of providing assistance to the entrepreneur for power projects in China. With a proven track record in power stations and highway projects, the IFC views Mr Wu as an attractive business partner.

  • IFC completes US$86m hotel funding

    PFI Issue 11

    International Finance Corp, the World Bank's private lending arm, has completed a US$86m facility with maturities of eight to nine years for Shangri-la Jakarta Hotel. Seven banks committed to the property project, which belongs to a joint venture firm called PT Swadharma Kerry Satya. There are three main partners - Robert Kuok's Shangri-la group has a 30% stake, encompassing 10% belonging to Shangri-la Hotel Singapore. The remaining 70% is shared by the Satya Djaya Raya (SDR) group and PT Tri Handayni

  • IFC promises more for China

    PFI Issue 11

    The head of the International Finance Corp, Sir William Ryrie, vows that his World Bank affiliated-institution will help fund $3bn worth of private sector projects in China over the next three years. Ryrie made the pledge while inaugurating the IFC's first resident office in Beijing October 22, where he completed a two-week Chinese visit that included a call on reformist Vice-President Zhu Rongji. Up to now the IFC has played only a limited role in China, investing just US$48.5m in total of five proje

  • IFF calls for export credit changes

    PFI Issue 11

    The Institute of International Finance in Washington last week called on the governments of G7 countries to improve their support of projects in developing countries. Export credits should be available for longer period than are currently on offer, the political risk coverage should be increased and the issue of widely varying premium rates should be tackled, according to the Institute. The request comes against a back-drop of dwindling export credit agency support; agencies' commitments for long-term

  • India BOT bridge

    PFI Issue 11

    Invitations have been advertised for a feasibility study and project management for a US$33m BOT bridge over the Yamuna River, linking Delhi with the New Okhla Industrial Development area. A local company Infrastructure Leasing & Financial Services appears to hold a contract with Delhi Administration and New Okhla Industrial Development Authority to implement the project itself. The government wishes to carry out the project on a BOT basis. The bridge will consist of an eight lane, 550m long toll bridg

  • Iran targets oil & gas investments

    PFI Issue 11

    Iran intends to use some of its forecast 1993 US$16.5bn oil and gas revenues to develop new fields and infrastructure. Priority items are development of offshore fields in the Straits of Hormuz: contracts are to be signed shortly with Japan Exploration Company. Also targeted are Sirri and Balal fields. In the 1990s Iran should become one of the world's largest gas exporters with opening of the South Pars field. With reserves recently boosted to 20 billion cubic metres, Iran ranks only behind the ex-So

  • Is World Bank's Philippine telecom loan needed?

    PFI Issue 11

    Despite strong objections from the United States and other major shareholders, the World Bank recently agreed to lend US$134m to the privately owned firm that dominates telecommunications services in the Philippines. Opponents argued that scarce Bank resources had no business going to the blue chip Philippine Long Distance Telephone Co, and should instead be used on poverty alleviation projects that Bank President Lewis Preston defines as his institution's central priority. The dispute over the loan,

  • Japanese study US$4bn petrochem plant

    PFI Issue 11

    Japan's six largest trading firms have been granted permission by Chinese authorities to conduct a feasibility study into the building of a US$4bn petro-chemical plant in the northern province of Liaoning. If successful, the complex will include an oil refinery and an ethylene facility, with an annual output of 450,000 tons, to be completed by 2000. It is likely the Chinese government will require a certain percentage of the ethylene to be exported to earn foreign exchange. The six Japanese companies a

  • Law to favour investment

    PFI Issue 11

    India is about to launch a drive to attract foreign investors to help develop infrastructure projects, such as roads and bridges. By January, the government is expected to pass a law allowing it to buy land and turn it over to developers for toll roads and bridges.

  • Legal brief001813

    PFI Issue 11

    Danger in UK energy review By Geoff Haley, Partner, Theodore Goddard The Uk government's U-turn on its policy to coal mine closures may have far-reaching effects on projects requiring private investment throughout the world. Many countries use industrial policy to encourage rationalisation of industry and to reduce excess capacity. Japan assists with the transfer of excess labour from declining to expanding industries in this way. In Japan there is no argument against the fact that segments of industy

  • Legal problems could delay oil loans for Russia

    PFI Issue 11

    A legal dispute between the World Bank and EBRD could hold up financing for the development of Russia's oil resources. EBRD currently has six oil and gas projects in the pipeline, which could result in as much as US$10bn a year in hard currency revenues to Russia. EBRD plans to finance these projects with commercial loans to be repaid from the hard currency oil revenues accrued from increased production. World Bank officials are concerned that the agreements contravene their long-standing "negative p

  • LNG financial advisory bids in

    PFI Issue 11

    Banks which have submitted bids to Qatar Liquefied Gas Company (Qatargas) for the financial advisory work on the Ras Laffan LNG project are assuming that a mandate is unlikely until Mobil's shareholding in the consortium has been confirmed. The company signed a head of agreements with QGP in the summer to take a 10% stake in Qatargas. The banks which are believed to have submitted bids are: Chase, Morgan Grenfell, BZW and JP Morgan. They had been invited to bid last month, with an early October deadli

  • Longest road yet

    PFI Issue 11

    On Friday October 30 the Ministry of Transport is expected to send out pre-qualification invitations for the 245 km M3 Motorway extension. This is the most ambitious of Hungary's three tollway projects to go out to tender this year. The cost of project is estimated at US$1.7bn. The deadline for application is February 9, 1993 but the actual tender is not expected until much later next year. The project comprises the extension of the M3 motorway to the Hungarian-Ukrainian border and the construction of

  • Madach Promenade figures

    PFI Issue 11

    More details are available about the massive Madach Promenade property redevelopment in Hungary's seventh district that is being advised by Coopers & Lybrand. The gross planning area comprises 21 ha with the building area half of this. Nearly 50 buildings would be demolished with 716 dwellings affected. There would be 29 new buildings constructed with a useable area of 120,000 sq m. Coopers is preparing a feasibility study that will assist with the technical, economic, legal and personnel issues that w

  • Metals/Mining001881

    PFI Issue 11

    Mining finance specialists feel that Placer Dome is likely to structure the US$400m Zaldivar mine finance around a Barbados-based vehicle. This structure has been used before by Placer Dome, they say, and resulted in Barbados country risk being substitured for the host country. In addition there is favourable tax treatment. "Placer got semi-corporate pricing for the earlier mine deal," said one banker. Although Placer has enough cash to finance Zaldivar (see PFI 10), few think the Canadian mining compa

  • Metals/Mining001890

    PFI Issue 11

    Bolivia: The legendary Spanish silver mine Cerro Rico is estimated by UN studies to contain huge amounts of low grade silver ore. The reserves would cost about US$800m to extract using open cast and heap leaching techniques. Foreign companies are reported to have expressed interest. However, considerable political opposition to foreign involvement exists.

  • Metals/Mining001903

    PFI Issue 11

    International firms are to be invited to bid for the right to develop new deposits of gold ore in the Magadan region in far eastern Russia. Press reports said that the development of the Miaskoye field could begin in the second half of next year, once results of the bidding process are announced and a feasibility study has been completed.

  • Metals/Mining001907

    PFI Issue 11

    Russia and the diamond rich Siberian region of Yakutia agreed to form joint ventures to mine and market diamonds. They will both hold stakes in a mining company and a separate sales venture. Russia is acknowledged to have huge diamond reserves. The Russian parliament has to approve the agreement.

  • Metals/Mining001948

    PFI Issue 11

    Tanzania: Canadian companies Sutton Resources Ltd and Romanex International are preparing to explore and develop what is billed as one of the biggest nickel reserves in the world. The reserves cover a 26,000 sq km area in the Kagera region and are estimated at seven billion tonnes. Besides nickel, they contain copper, cobalt, lead, zinc and platinium. An agreement covering conditions of exploiting the reserves were reportedly signed between the Canadian and Tanzanian governements in mid-1992. Exclusive

  • Minol-Leuna sale cleared

    PFI Issue 11

    Germany's finance minister Theo Waigel has approved the sale of Mino; AG and the eastern German refinery Leuna-Werke AG to the group led by Elf, Thyssen and Deutsche SB-Kauf. The ministry remarked that the consortium would be able to build a core industry in eastern Germany and would help preserve 7,000 jobs. The consortium is expected to invest some DM6bn in Minol and Leuna-Werke. It will upgrade the Leuna refinery to the capacity to process 10m tpa of crude oil. According to press reports the Minol-

  • Minorco buys into Collahuasi

    PFI Issue 11

    Chevron Exploration Corporation finally found a buyer for its interest in the huge Collahuasi copper project in the form of Minorco, affiliate of South Africa's Anglo American. Chevron holds a one third stake, for which Minorco is to pay US$185m. Chevron partners Falconbridge and Shell Billiton hava a pre- emptive right to purchase Chevron's stake. Minorco's share will be held by a new company Minera Mantos Minorco, 50.1% owned by Minorco and 49.9% by Empresa Minera de Mantos Blancos, which is in turn

  • More Bank funds for 1,400 MW Chinese dam

    PFI Issue 11

    The World Bank is lending US$100m to finance completion of the 1,400 MW Shuikou hydroelectric project in China's Jiangsu province. It is the Bank's second financing package to the dam, following an earlier US$140m loan that helped launch the project in January 1987 and is now almost fully disbursed. The loans cover most of the foreign exchange components of the US$1bn dam on the Min River 84 km from the provincial capital, Fuzhou. San Francisco, Calif-based Morrison Knudsen Engineers has worked with C

  • Motorway hotel by RZB

    PFI Issue 11

    RZB is putting together a major real estate project backed by Agip of Italy. The 50,000 sq m development consists of the construction of a three-star hotel in Prague's 4th district along with a petrol station complex and shopping arcade. The site is located on the main Prague/Brno/Bratislava motorway (with connections to Vienna and Budapest). Lease agreements were signed in September. RZB has 50% of the project's equity with Agip holding the balance. The debt component of approximately ASch200m represe

  • New Projects in Australia

    PFI Issue 11

    Projects announced or approved include the following: A$2bn homes: Sanwa Vines, a subsidiary of Japanese construction company Sanwa Tatemono Group, and West Australian government agency Homeswest have won conditional environmental approval for a A$2bn housing scheme at Ellenbrook, north east of Perth.

  • New projects in China001836

    PFI Issue 11

    Projects announced or approved include the following: Transport system: Yunnan Province, in southwest China, is seeking local and foreign investment for a comprehensive transport system. The government plans to complete a transport network (the building of one 800 km stretch has already begun) connecting all border ports with inland areas in the next 10 years. The province is also reconstructing the Yunnan-Vietnam railway and restoring the lines connecting Burma and Thailand, in conjunction with these

  • NTA invites 11 tourist proposals

    PFI Issue 11

    The National Tourism Administration recently invited overseas investors to develop tourist facilities in 11 state-level holiday resorts. The State Council has offered eight policy incentives to attract investments, including tax incentives, reduced import duties and the allowing of foreign exchange shops. The resorts are: Jinshi Beach in north-east Dalian, Shilaoren Beach in Qinhdao City, Taihu Lake in Jiangsu Province, Hengsha Island in Shanghai, Zhijiang River in Hangzhou, Wuyi Mountain and Meizhou I

  • Oil financing signed

    PFI Issue 11

    ANZ has completed syndication of a US$96m trade and working capital facility for the Ghana National Petroleum Corporation (GNPC), guaranteed by the Bank of Ghana. The 14-month facility is supported by income from the export of cocoa. As previously reported in issue 7 and 8 of PFI, about 25% of the facility will be used to support GNPC's hydrocarbon exploration and well testing programme. This transaction is the second major facility for the borrower in recent years in the euromarkets and is also the fi

  • Oil/Gas001889

    PFI Issue 11

    Trinidad: Financing partners in the Trinidad & Tobago Oil Co Ltd (TRINTOC) US$411m crude oil extraction and refining project are as follows: IDB, Japan Exim, CDC, EIB and Caribbean Development Bank. CDB joined last with an US$18m commitment. For details see PFI 9.

  • Oil/Gas001891

    PFI Issue 11

    Region: Calgary and Houston-based Petroleum Information Corp reported much higher reserves of oil in Latin America than previously estimated. The study indicates there is closer to 10 billion tonnes than the two billion thought to be in the ground east of the Andes in Argentina, Colombia, Ecuador, Peru, Bolivia and Paraguay. A further seven billion tonnes is thought probable. The study was organised by the World Bank, Canada's state owned Petro-Canada International and the southern governments concerne

  • Oil/Gas001904

    PFI Issue 11

    An idle pipeline running from the north Caspian towns of Guryev via Astrakkhan to a refinery at Grozny is to be opened and a deal to extend it to the Black Sea is near. The pipeline has not been in use because of Kazakhstan's wish to export its oil.

  • Oil/Gas001932

    PFI Issue 11

    London Total Gas, the 50:50 joint venture gas marketing company formed by London Electricity and Total (see PFI issue 10), has signed up its first customer. A contract worth more than £100,000 has been agreed with Mercury Communications to supply gas to seven of its offices across the UK.

  • Oil/Gas001941

    PFI Issue 11

    Norway: A group of four banks _ ABN-Amro, Citicorp, Credit Lyonnais and Societe Generale _ have won a US$400m mandate for Total Norge, the Norwegian subsidiary of the French oil company. The financing is a five-year corporate loan and the margin is expected to range from 45 to 57.5bp over Libor.

  • Other Industrials001822

    PFI Issue 11

    China International Iron & Steel Investment Corp (CSI), the borrower behind the Wuhan Steel Project (PFI 10 p7), had trouble in obtaining visas to attend the signing ceremony in Hong Kong, and has been forced to postpone it to mid-December. The syndication process for the seven year, US$29m tax spread loan will continue for at least another six weeks.

  • Other Industrials001824

    PFI Issue 11

    Ka Wah Finance has arranged a four-year US$10m loan facility for Shunde Huabao Fine Chemical, a Sino-foreign joint venture between Shunde and Eastern Revenue, a Hong Kong company. The loan will be used to finance aerosol production equipment supplied by German and British manufacturers. The borrower has a technological transfer deal with Bayer AG to produce insecticides.

  • Other Industrials001877

    PFI Issue 11

    ING Bank is understood to have won the job of privatising a military aircraft factory for the government (see PFI 9). The three banks bidding for the business were ING, Morgan Grenfell and First Chicago. The Cordoba-based factory is a small operation with subcontracting links with manufacturers in the USA and Europe.

  • Other Industrials001906

    PFI Issue 11

    MDS Mannersmann Demag Sack GmbH won a contract to supply a copper wire plant with annual capacity of 40,000 tonnes to Kazakhstan. The client organisation is IA Balchashmed Metalkombinat. The product will be used for microelectronics. The plant is to be operational in 1994.

  • Other Industrials001909

    PFI Issue 11

    Uzbekistan: South Korea's Daewoo plan to set up a consumer electronics factory in Uzbekistan by 1994. The company also intends to build a car assembly plant in the republic.

  • Other Industrials001914

    PFI Issue 11

    Continental Can Polska Sp plans a US$70m drinks can plant to be completed in 1993/4. Germany's Schmalbach-Lubeca AG, a packaging concern, is to be involved. Schmalbach-Lubeca holds 51% of Continental-Opakomet White Cap Sp, which makes glass containers.

  • Other Industrials001918

    PFI Issue 11

    The Czech government launched an international offer of a 34% stake in heavy engineering group Skoda Plzen. The goal is to find a single partner which will be able to implement a reorganisation of the Czech company's business and finances. Siemens is pursuing joint ventures with Skoda Plzen in transport and power independent of this privatisation.

  • Other Real-Estate001825

    PFI Issue 11

    Guangzhou is planning to build a number of commercial complexes and renovate others, and overseas investors are finding the plans attractive, according to the deputy mayor. Authorities are planning a 12-storey shopping venture centre for next year, costing HK$14.1bn. Half of the funds will be sought from overseas. Sung Hung Kai Properties, Cheung Kong and Chia Tai, a Thai construction company, are said to be involved in the project.

  • Other Real-Estate001826

    PFI Issue 11

    Shenzhen authorities have signed a letter of intent with Kong Wah Holdings for a huge project, including residential estates, office buildings and a ferry terminal, in the western part of the city. Total investment may reach HK$1bn over the first two years. It is understood that Cheung Kong is one of the partners.

  • Other Real-Estate001872

    PFI Issue 11

    Morgan Grenfell completed the privatisation sale of the Barquisimeto Hilton to a group including Ladbroke of the UK as a minority partner. The successful bidder was the only bidder, and cleared the reserved price. Two hotels remain to be sold in this mandate (see PFI 3).

  • Other Real-Estate001874

    PFI Issue 11

    Paribas has signed contracts appointing it to arrange the sale of three race courses operated by Instituto Nacional de Hippodromos (INH). The most important of three race courses run by INH is the one located in Caracas. This will be sold first.

  • Oyster Creek to go

    PFI Issue 11

    The six banks mandated to arrange Destec Energy's 388 MW gas- fired cogeneration project - Oyster Creek - have now signed off on the term sheet (PFI 17 p 16). Union Bank of Califormia is lead bank, working alongside Banque Paribas, Credit Lyonnais, Toronto Dominion, Bank of Nova Scotia and Barclays. Total project cost is US$410m, although US$185m of this is composed of institutional private placement debt, lead by Cigna. The arranging banks are currently in the process of deciding how much of the US$2

  • PAA awards first marine works contract

    PFI Issue 11

    The Provisional Airport Authority (PAA) has awarded its first construction contract for marine works at the Lok On Pai Transhipment Centre to a local Hong Kong contractor, Gammon Construction. The tender, the lowest of those received, is a fixed price, lump sum contract, valued at HK$24.329m. The project is scheduled to be completed by May 1993. The works to be constructed include a cargo handling wharf to facilitate the transhipment of contractors' materials and a pier at the airport site at Chek Lap

  • Papua New Guinea

    PFI Issue 11

    Govt adds Kutubu deal to review Macquerie Bank`s hopes of winning the go-ahead from the PNG government to refinance the latter's stake in the Kutubu oilfield (PFI 4 pg 14) are on hold while the scheme is being reviewed. According to a source at the bank, the three-month old government has installed new senior management at Mineral Resources Development Corp which owns the 22.5% stake through a subsidiary, Petroleum Resource Kutubu. The new management has called for a review of the scheme's costs and be

  • Paribas swaps some Indeck risk

    PFI Issue 11

    Banque Paribas is close to completing a refinancing of the Yerkes facility _ one of the five cogeneration plants sponsored by Chicago-based Indeck. The US$60m loan was originally put together by SecPac (PFI 1 p11). According to sources at the French bank, Bank of America has remained loyal to the deal and the arranger is now in discussion with a third institution. This bank, which has not been named, is likely to take a participation in Indeck in exchange for Paribas taking an equivalent stake in one o

  • Patten digs heels in over airport

    PFI Issue 11

    China's sour response to Governor Chris Patten's democracy plans for Hong Kong in the run-up to 1997 has cast fresh doubt on the construction schedule for Chek Lap Kok. Few doubt that the airport will be built, but the political acrimony pushes the date for the start of the platform and the rail link further and further into the future. Before Patten's visit to Beijing just two weeks ago, it was already made clear by the Chinese side that they did not like the British proposal to invest the money from

  • People & Markets001814

    PFI Issue 11

    Bank of America reorganises Bank of America in London recently made several organisational changes, including the appointment of a new regional manager, and five group heads. Clive Adamson assumes responsibilities as regional manager for the Uk, Nordic and Eastern European countries. The specialised industries group is now headed by Noel Edison, previously head of the London energy team. The department's responsibilities have been expanded to include construction, real estate, shipping, energy, utilit

  • Petrochemicals001924

    PFI Issue 11

    Treuhand is to present plans in December for privatising the big petrochemical works in the region of Leipzig, Halle and Bitterfeld. Analysts feel that Treuhand will start with olefins, as the most promising sector. Head of Saechsischen Olefinwerke AG (SOWAG), Karl-Heinz Milz, was quoted saying his firm could be among the first to be offered. Deutsche Shell AG is known to want SOWAG's cracker facilities. SOWAG is currently awaiting the green light from Treuhand for a DM100m investment to boost its crac

  • Petroleum refineries coming

    PFI Issue 11

    Tenders to restructure Poland's large refineries could be dispatched in the near future following last month's approval of a privatisation strategy by the Council of Ministers. Poland has six major refineries and in the summer of 1991 Lazards was appointed to come up with an overall strategy for the industry. Sources say it is likely that holding companies will be established and that subsidiaries, such as petrol station chains, will be spun off from the various entities. A major focus of the revamp o

  • Plenty of power and road deals in Puerto Rico

    PFI Issue 11

    The US territory of Puerto Rico has a surprisingly ambitious programme to develop private power sources, as well as toll roads and bridges. New projects in both sectors will appeal to international contractors and banks (see below). The Puerto Rican Electric Authority (PREPA) uses a variety of public and private models for power station ownership and operation. To fund its directly owned facilities it forecasts capital requirements of US$1.6bn, of which, it will borrow US$1.5bn. It recently borrowed

  • Power001823

    PFI Issue 11

    The market appears to be somewhat frazzled by the tight deadline on Shajiao C getting head office approval. Bankers have been given only three weeks to respond to invitations (PFI 10 p6).

  • Power001867

    PFI Issue 11

    Oxbow is said to be talking to banks with a view to financing Chevron's sale of its geothermal assets in Imperial Valley.

  • Power001868

    PFI Issue 11

    York Research Corp has sold a 50% interest in its Brooklyn Navy Yard Cogeneration project to SCE Corp's Mission Energy unit. Mission will provide funding for the US$370m project, which has been on the drawing board for a number of years.

  • Power001876

    PFI Issue 11

    An upcoming privatisation is the electricity distribution business of the city of La Platal Located near Buenos Aires, La Plata has population of 700,000.

  • Power001908

    PFI Issue 11

    Kyrgyzstan: The government of Kyrgyzstan is in preliminary discussions with General Electric of the US to build a complex of hydroelectric dams at Kambarata on the Naryn River which is on the republic's border with China. Further meetings are scheduled for later this year at GE's hydroelectric headquarters in Canada. Kyrgyzstan, which exports to China, currently produces 13bn kWh of electricity, but could produce 140 kWh.

  • Power001943

    PFI Issue 11

    Spain: Barclays is believed to have arranged and underwritten a project financing for three mini-hydroelectric power stations on the Ebro river in northern Spain, with a total capacity of 34 MW. More details will be made available once the financing and shareholding in the project has been finalised, but it is rumoured that one of the large Spanish utilities is involved.

  • Power001944

    PFI Issue 11

    Spain: The EIB is lending Ptas20bn (Ecu145m) to Instituto de Credito Oficial (ICO), which will onlend these funds to Hidroelectrica Iberdrola for financing the expansion and modernisation of the electricity grid in the Basque Country, Madrid and Castilla y Leon. The loan will go mainly towards financing construction of subtransmission schemes (11 substations) plus intallation of more than 3 500 km of distribution lines.

  • Power001949

    PFI Issue 11

    Guinea: The EIB is lending Ecu20m to the Republic of Guinea for the expansion of electricity generating capacity. The scheme comprises the construction of a power station with three diesel generating units at the Tombo power station in Conakry. The 20-year funds will be on-lent by the Guinean Government to the Entreprise Nationale d'Electricity de Guinee(ENELGUI), the public utility responsible for the generation, transmission and distribution of power throughout the country. The total of the works is

  • PPC decision imminent

    PFI Issue 11

    The board of PPC is expected soon to make a decision on its proposed 630 MW gas-fired power station in Lavrion. The two finalists are a group comprising ABB Energy Ventures, EdF and British Gas and a partnership between Tractebel, PowerGen and Endesa. Each group has a syndicate of banks supporting its bid. Proposals were submitted in April this year. Sources say that the Tractbel group is the preferred bidder but no mandate has yet been forthcoming. In addition PPC is considering a new power station a

  • Pressing for Cerromatosa decision

    PFI Issue 11

    Shell Billiton is said to be pressing the Colombian authorities for approvals for the Cerromatosa nickel project by October31. It is believed that the key outstanding issues concern royalty agreements. Shell needs a variation in its mining concession to increase nickel ore production to supply the proposed smelter. This amendment to the concession and associated royalty payments to surrounding municipalities are the stumbling block. "We've been through three Minesters of Mining in 12 months. It's hard

  • Prime building site goes to French

    PFI Issue 11

    The building site in central Budapest that was to have been developed by Olympia & York as the headquarters for the Hungarian Credit Bank (Magyar Hitel Bank) has been given a new lease of life (PF Europe 17). It is understood that a French construction company has taken over the deal and that the project is being financed by a French bank or consortium. There is speculation that either the Central European Intl Bank (a jv that includes Sogen) or BNP-Dresdner are behind the deal. The 10-storey building

  • Private placements for three projects

    PFI Issue 11

    Three major petrochemical projects in Venezuela appear to have escaped from the commercial bank project finance market and will raise funds instead via US and international private placements ACCRO (First Boston), BITOR (J P Morgan) and MARAVEN (Bank of New York) have obtained investment grade ratings _ BBB minus or better _ which should allow them to tap a wider range of financial institutions than a traditional bank financing. Bankers and rating agency officials say that a trickle of projects choos

  • Problems with coal

    PFI Issue 11

    By Roger Hogan The reputation of coal project financings as a problematic area for bankers looks set to be underlined by the outcome of talks between Australian miner MIM and its backers over a A$700m refinancing for the Newlands-Collinsville-Abbots Point project in Queensland. The company confirmed last week that the negotiations, which have been going on for more than a year, have made "no progress," and there are increasing signs that the 26 banks involved are losing patience and seeking a resolutio

  • Property development comes of age

    PFI Issue 11

    The old buy and sell approach to property development in Hong Kong is fading. "The Hong Kong property industry has clearly come to appreciate that stability in construction and therefore property values comes from realistic costing and management controls," said David Smith, principal of WT Partnership, one of Hong Kong's leading construction cost consultants, and part of the Chek Lap Kok project team. Smith was speaking at the opening of the WT Partnership's new offices in the recently completed Chin

  • Rail sell-off delayed by challenges

    PFI Issue 11

    Despite the approach of the December 31 deadline for disposing of the nation's entire railway network, the privatisation of Buenos Aires' metro and commuter rail system has been hit by challenges and may move into the courts, say local sources. It appears that the intention of announcing a decision before the end of October may now be impossible. The government commission had completed during the summer the technical evaluation of seven bids for Subterraneos de Buenos Aires and Ferrocarriles Metropoli

  • RATP supports independents

    PFI Issue 11

    RATP and two banks, Credit Agricole and Credit du Nord, have joined Agir Association, a group of 17 independent transport operators in medium-sized cities across France. The newly formed company, called Agir Services, will be able to give support to these transport operators to help them maintain their independent status. Advisory services will be provided either by internal employees or will be sub-contracted to RATP and the banks.

  • Re-introducing Richmond

    PFI Issue 11

    Barclays is near to closing syndication of a US$138m finance package for Richmond Cogeneration. The facility was originally arranged and fully underwritten on behalf of Hawker Siddeley which developed the site. However, Enron has recently bought out Hawker Siddeley's share of the project and now owns 90.5% of the plant. With the new owner installed, Barclays has opted to syndicate the facility, kicking off with a bank meeting in Houston in mid October. While the 15-year tenor will doubtless prevent ce

  • Russian gas hiccup

    PFI Issue 11

    Flows of natural gas from Russia into Western Europe resumed last week. But earlier in the month gas supplies had suddenly dropped, eventually slowing by more then 50%. Although the specific reason for the disruption is unclear, it seems to have developed from an argument over payments between Russia and Ukraine (through which the pipeline passes). The real problem seems to be that gas prices and barter arrangements between Russia and Ukraine have not been settle yet. According to press reports a conti

  • S & P to rate San Joaquin tollroad

    PFI Issue 11

    The massive San Joaquin Transportation Corridor tollroad project is moving forward rapidly. The most interesting development is that rating agency Standard & Poors has been asked to rate the project _ this will be discussed at a meeting in mid-November. The five-bank structuring group is also recommitting to pursue the financing. The structuring banks are: Bank of America, Banque Nationale de Paris, Industrial Bank of Japan, Barclays and Credit Suisse. Head of the tollroad group at S & P, Ernest Perez

  • Short lives

    PFI Issue 11

    The lifetime of the senior loan is a relatively short three years. This is due to the quick payback period of the project, although increased competition from other operators in Russia could mean that reduced tarrifs stretch out repayment. The subordinated loan has a maturity of five years from signing, which apparently took place nearly 18 months ago. The EBRD maintains that its loan is the first private sector non-recourse loan in Russia. The EBRD has sold off a small portion of its loan to ING. A so

  • Smelter decision soon

    PFI Issue 11

    Sources at Belgium's Union Miniere said that its proposed US$550m copper smelter and refinery in Chile is currently being reviewed by the company's board of directors. Pending final conclusions from a feasibility study and the board's decision, the outcome should be clear "in a few weeks". As reported in PFI 8 , the smelter refinery is expected to be about 200,000 tpa and the refinery 150,000 tpa. Mining sources say that Union Miniere holds about 20% in a joint venture to build a new smelter, but appea

  • SocGen launches three deals

    PFI Issue 11

    Three deals launched by Societe Generale in the past two weeks are all related to project financing. The bank is arranging a five-year, US$20m loan for China Investment Bank (CIB), for which syndication is being finalised. Five or six banks are expected to form the underwriting group; a commitment of US$5m will earn a front-end fee of 40bp, and US3m gets 35bp. Repayment will be in three instalments, to begin 36 months after the drawdown (due mid-November). In the pipeline also is a four-year, US$15m `

  • Sovintel wrapped up

    PFI Issue 11

    The EBRD has completed financing for EDN Sovintel, a jv between GTE and the Russian Ministry of Communications. The project's total investment is US$18m, of which US$6.5m is in the form of a non-recourse senior loan. A further US$5.3m of subordinated junior debt is being provided by Barclays while the balance of the investment is coming from equity of the jv partners. The deal has been in the works for about a year and was held up largely due to legal complications in Russia. EDN Sovintel provides a d

  • Stadium site on skids

    PFI Issue 11

    The US$130m Washington Redskins stadium financing has moved to the back burner as serious community opposition in Arlington Va. resulted in the cancelling of plans to build a stadium there. Football team owner Jack Kent Cooke held a press conference two weeks ago to withdraw the abandoned rail yard site from consideration. However, bankers looking at the financing are hopeful there is still a deal to be done. "Jack Kent Cooke appears to be committed to having a stadium with his name on it," one lender

  • Standard completes US$20m deal

    PFI Issue 11

    Standard Chartered Asia has completed a US$20m three-year term loan for Hong Kong Macau International Investment Company at a spread of 100bp over Libor. The deal has a two year grace period and is paying 75bp up front fees, giving an all-yield of 125bp. The borrower is a PRC company, owned by the Bank of China group, China Resources, China Merchants and, beneficially, China's Ministry of Finance. It trades and lends on the mainland, but one of the basic conditions in the deal is that the funds should

  • Telecommunications001888

    PFI Issue 11

    Brazil: The new head of BNDES _ the agency charged with privatisations in Brazil _ Antonio Barros de Castro, ruled out selling off strategic companies like Telebras, Petrobas and CVRD. This marks a shift from policy under President Collor. A revision of privatisation regulations is also scheduled for March 1993. This will introduce different levels of foreign ownership and types of eligible payments.

  • Telecommunications001892

    PFI Issue 11

    Peru: The result in the race to appoint financial advisers for privatisation of state telephone company ENTEL Peru is expected to be known in the week of November 2. The six bidders are BZW, J P Morgan, Nomura, BT, Morgan Grenfell/Coopers & Lybrand, Salomon and a local firm Sosimer. ENTEL and an associate company included in the package operates 600,000 lines.

  • Telecommunications001951

    PFI Issue 11

    Jordan: The French government has agreed to fund a FF80m telecommunications project in Jordan, the first project aid to the country since the Gulf war.

  • Thai Oil's US$200m loan nears launch

    PFI Issue 11

    As expected, Thai Oil Company, the country's biggest oil refiner, is tapping the markets for at least US$200m, though it would have liked to have raised more. The loan is of 10 years maturity with a lenders' five year put and will provide the long-term financing for the US$347m purchase of two refineries in the Sri Racha district of Southern Thailand, which until now have been leased from the Thai government. Thai Oil was advised to buy the refineries in preparation for its stock market listing in two

  • The future of gas-fired power stations

    PFI Issue 11

    The moratorium on pit closures and the review of the UK's energy policy announced by Michael Heseltine on October 19, has raised the question how many more independent gas-fired power stations can Britain afford? Energy bankers seem fairly confident that all the IPP projects which already have section 36 approval from the Energy Minister, will go ahead, providing such projects can secure a gas supply, an offtaker and private sector financial backing. Sutton Bridge (sponsor - Independent Power Generator

  • The transport concerns of UK manufacturers

    PFI Issue 11

    A survey of 850 UK manufacturing companies conducted by management consultants, Pera International, found that congestion on Britain's motorways costs British manufacturers up to $4.5bn a year. The cost of congested motorways on road transport is put at £7.6bn and personal business travel at £2.4bn, making a total cost to all industrial sectors of £10bn a year. British Road Federation statistics show that between 1980- 90 traffic flows on UK motorways increased by 74% and by 43% on all roads. Traffic

  • Total activity in Burma

    PFI Issue 11

    Total SA is embarking on a natural gas project in Burma which could involve investments of some US$1bn. The company is exploring offshore blocks in the Andaman Sea. Total has entered into production sharing agreements with Myanmar Oil & Gas Enterprise. Total plans to build a pipeline to carry the gas to Thailand. Terrorist activity along the pipeline route complicates the project.

  • TransCanada eyes two

    PFI Issue 11

    TransCanada Pipeline Ltd is developing two 150 MW gas-fired combined cycle cogeneration facilities along its 12,200 km length. The facilities will be located at North Bay and Kapuskasing, Ont. Westinghouse has been contracted to build the plants at a cost of C$180m apiece, supplying W501D5 combustion turbines and steam generators. Construction is expected to begin n 1993 with the plants coming on line in 1995. Each will be powered by natural gas and waste heat drawn from compressors stations along the

  • Transportation/Infrastructure001821

    PFI Issue 11

    Standard Chartered has won mandates for both Beijing ITIC and Hainan ITIC and says it will be able to release more details soon.

  • Transportation/Infrastructure001827

    PFI Issue 11

    The end of this year will see construction begin on four highways and a bridge, costing HK$19.6bn. The projects are the eastern section of the Guangzhou-Zuhai expressway, the first and second pahse of the Shenzhen-Shantou highway and the Foshan-Kaiping expressway. The bridge is the Humen bridge. About 20% of the financing will be raised overseas and provincial authorities hope that Hong Kong consortiums will display keen interest.

  • Transportation/Infrastructure001866

    PFI Issue 11

    The federal government made a US$3m grant for a feasibility study into a high speed rail link in the corridor Detroit- Chicago-Saint Louis-Milwaukee. In the 650 mile corridor are some of the most congested airports and highways in the nation, which a high speed rail could alleviate.

  • Transportation/Infrastructure001873

    PFI Issue 11

    Bids are now in for the privatisation of Caracas' port of La Guaira. Timing of the result in not know.

  • Transportation/Infrastructure001905

    PFI Issue 11

    Rail consultancy divisions attached to the state railways of France (Soferail), Spain (Tifsa) and Italy (Italfer-SisTav) are to sign a contract to advise the October Railway network in Russia on track and rolling stock maintenance and replacement, signalling and staff training. Soferail is leading the consultancy contract. In March Soferail won an assignment to study ways of improving the Moscow-Saint Petersburg link, including upgrading to high speed rail. During a recent visit of French Transport Mi

  • Transportation/Infrastructure001926

    PFI Issue 11

    The search for a location for Berlin's major new airport has been narrowed to four sites, according to a consultant's report commissioned by the Brandenburg state government. These are: East and West Jueterbog, Borkheide and Michelsdorf.

  • Transportation/Infrastructure001933

    PFI Issue 11

    A report recently published by the Department of Transport has concluded that it would not be practicable or commercially viable to convert existing British Rail lines to the much larger continental "loading gauge" needed to take lorries or lorry trailers on trains. The review examined the movement of freight by rail and the problems associated with upgrading British Rail's network to a large continental loading gauge in preparation for the opening of the Channel Tunnel. Called "Moving Freight by Rail:

  • Transportation/Infrastructure001940

    PFI Issue 11

    Turkey: Bankers Trust was due to close its US$220m commercial bank loan element of the US$455.9m/£42.5m financing package for Greater Ankara Municipality for the Ankara metro project on October 30. Syndication had been due to close on October 3 but, as an official at BT explained, "The maturity of the Turkey tranche has involved heftier credit analysis by banks than we's expected."

  • Transportation/Infrastructure001945

    PFI Issue 11

    Spain: The EIB is lending Ptas8.96bn to the Autonomous Community of Castilla y Leon towards upgrading 1,600 km of the regional highway system and 1,900 km of provincial roads. The EIB is also lending Ptas1bn for the expansion of the Port of Barcelona. The funds will be used to extend the quay, dredge the inner dock and construct a new container terminal. The present credit follows on from a Ptas3bn tranche advanced by the EIB in 1990 for the same purpose.

  • Turow refit moves ahead

    PFI Issue 11

    The Turow power plant project is moving ahead. On October 15 a letter of intent was signed between a consortium of contractors led by ABB and Elektrownia. As reported in PFI issue 3 three main groups vied for the role to upgrade a portion of the 2,000 MW power plant. In July Ahlstrom of Finland signed a letter of intent to supply boilers but it was only this month that official documentation was signed for supplying equipment for the project by a consortium led by ABB. ING Bank is acting as advisor fo

  • Two alumina export projects

    PFI Issue 11

    National Aluminium Company announced it intends to set up an export-oriented alumina project, in cooperation with Hydro Aluminium. In addition Indian Aluminium and Larsen & Toubro are developing plans for a similar scheme. A feasibility study into NALCO's 900,00 tpa scheme should be completed in Spring 1993. A joint venture company is to be established to implement the US$800m project. It is expected that the NALCO alumina unit will be located near its bauxite mines in Orissa. It should be implemented

  • Two bidders for E1

    PFI Issue 11

    As expected two bidding groups submitted offers for the nationwide E1 mobile telephone licence on October 16, said federal post and telecommunications minister Schwarz- Schilling. They were "E-Plus-Mobilfunk" (Thyssen AG, Veba AG, Bell South Enterprises Inc, Vodafone Group plc and seven other German companies) and "E-Star" (BMW AG, MAN AG, RWE Energie AG, Metallgesellschaft AG, US West Corp, GTE Mobile Communications International and nine other German companies). Schwarz-Schilling said he wants to awa

  • Two chase A$1.2bn Melbourne bypass

    PFI Issue 11

    Two consortia have been shortlisted for the A$1.2bn western and southern bypass in Melbourne, according to project financiers keen to get in on the project. The consortia are Transfield/Obayashi and Chart Roads, which includes Clough, John Holland, Allco Finance, Roche Bros and Thiess. Few other details of the bidding were available. The scheme consists of a western and southern bypass totalling about 8 km, including a tunnel under the city's Domain area. Bankers have expressed an unusual degree of en

  • Utilities(Gas, Electric, Water)001828

    PFI Issue 11

    The Shanghai Electric Science Research Institute and the Shanghai Foreign Economic and Trade Company have combined a sewage project for the city. The project is aimed at alleviating waste water pollution in the Huangpu and Suzhou rivers, which flow through the metropolis, and improving drinking water.

  • Utilities(Gas, Electric, Water)001878

    PFI Issue 11

    A delay has occured in opening envelopes containing financial offers from consortia vying to take over the Buenos Aires water supply. This was originally scheduled for October 23. Sources close to the deal say that it will now be known on November 4 which of the four bidders qualifies on technical grounds. There will then be a week's free-for-all, when bidders are allowed to pick holes in each others' cases. This is followed a further week to resolve all outstanding issues. Then on November 18 the fina

  • Utilities(Gas, Electric, Water)001925

    PFI Issue 11

    Treuhand is seeking a new investor to take over eight plants of recycled paper products manufacturer Dresden Papier AG, following withdrawal of Papeteries Matussiere et Forest SA. The French company was to buy Dresden Papier with Dresdner Bank affiliate Beteiligungsgesellschaft fuer di deutsch Wirtschaft. Dresdner Bank's unit intends to push ahead with the purchase. Investments of around DM100m are planned. Matussiere et Forest cited excessive competition in newsprint manufacture as a reason for pullin

  • Utilities(Gas, Electric, Water)001942

    PFI Issue 11

    Ireland: The EIB is lending I£30.45m (Ecu40.7m) for water and road improvement schemes in the Republic. Of the total amount, I£@0m is being used to finance 21 water supply and wastewater treatment schemes. Sewerage works funded included the Tuam main drainage in Galway, the Clonmel main drainage in Tipperary, Ballybunion in Kerry, Curraheen in Cork and Rathkeale in Limerick. Water supply schemes include the Nenagh Regional in Tipperary, Bailieboro and District in Cavan, Lough Mask and Erris in Mayo and

  • Vic reviews privatisation plans

    PFI Issue 11

    In Victoria, meanwhile, the new state government is reviewing a number of privatised infrastructure projects, including the proposed sale of a 40% stake in the Loy Yang B power station to Mission Energy Company (PFI 10 p15). A source at Westpac, which is advising Mission, said that the review would "run concurrently" with the bank's latest, mid-November, timetable for syndicating the financing. The source admitted, however, that there was no way of guaranteeing that the outcome of the review would be p

  • VW plant financing details emerge

    PFI Issue 11

    Details of the eight year US$420m plant financing for Faw- Volkswagen Automotive have finally been concluded. The arrangers, CDFC and Commerzbank, are joined by BOC, Arab Bank, BNP, Credit Lyonnais, KEB Asia and Sumitomo, who all assume the title of lead manager. Although not a project financing (BOC is guaranteeing the deal) it is interesting for the tenor and size. The spreads are Libor plus 75bp for the first four years, and Libor plus 87.5bp for years five to eight. Commitment fees are 12.5bp. Lead

  • Waiting for the EBRD

    PFI Issue 11

    The EBRD board is expected to give its formal approval in early November to participate in the US$100m Polish Power Grid financing that Creditanstalt is putting together. This should pave the way for completing the asset-backed deal, which has been in the market since early summer. Sources say that the EBRD has invited banks to take a participation in its Konspol-Bis chicken processing deal. The EBRD signed an agreement in mid-September to lend Ecu 11.6m to the Ecu 18.25m project.

  • Wardley restructures Wharf deal

    PFI Issue 11

    The Wharf Holdings/Wharf Properties two-tranche US$2.2bn has proved to be a difficult syndication, basically because many banks were at their limit on exposure to the Wharf group. To get the transaction safely away, the deal has had to be restructured with the more popular HK$1.2bn property construction loan being slightly upped, and the Wharf Holdings HK$1bn corporate loan slightly cut. Details of allotments from arranger Wardley Capital are expected soon (PFI 8 p5).

  • Wheelabrator wins trash/energy permit

    PFI Issue 11

    The Connecticut Department of Environmental Protection has approved permitting applications of Wheelabrator Technologies Inc's plan to build a 150,000 TPD trash to energy facility in Lisbon, Conn. The facility would turn Lisbon's municipal waste into 14MW to be sold to Northeast Utilitie's Connecticut Light & Power unit. Wheelabrator expects to commence construction during the first quarter of 1993, with a 1995 target to come on line. The cost is approximately US$80m, however bankers see limited oppo