European PPP Report 2005
Where have all the PFI deals gone? Hopefully, not to the same place where the flowers went in the Pete Seeger song from the early 1960s. It is a little too early in the life of the private finance initiative (PFI) industry to talk about graveyards. Nevertheless, there is a distinct feeling of slowdown; that deal flow is slowing down noticeably.
There are challenges and opportunities for all players, says Melville Haggard, a development adviser currently on secondment to the Depart-ment for the Environment Food and Rural Affairs (Defra) from Impax Capital.
The UK Ministry of Defence (MoD) has a mixed PFI record. But it has signed £4.3bn in capex schemes and has double that amount to come. By Rod Morrison.
Last month, Argyll & Bute Council struck the first schools NPDO PPP deal. Michael Pryor of Ernst & Young, the council’s financial adviser, looks at the history of the project.
How Tower Hamlets schools PFI was refinanced. By Kwong-Wing Law, assistant general manager, Infrastructure and PPP team, Sumitomo Mitsui Banking Corporation*
With UK PFI lending margins long and thin, banks are turning to the equity piece for some relief. PFI reviews how they are getting along. By Rod Morrison.
Private finance looms large in the Portuguese government’s ambitious new €25bn infrastructure programme, but how do the plans match up with developments on the ground? By Daniel O’Sullivan.
German PPP take-up has been slow but the federal government is now accelerating the programme. By Bernhard Gemmel and Johann-Friedrich Rumetsch, partners at Beiten Burkhardt.
The Greek parliament has passed a new law regulating public-private partnerships (PPPs) and setting the basis for the future development of the PPP sector in sector in Greece. By Ian Andrews and Dimitri Papaefstratiou of Linklaters
A new concessions law and a state-sponsored infrastructure fund could open up a Russian public-private partnerships sector, but many questions remain. By Daniel O’Sullivan.
Creating a successful BOT business is not the easiest of aspirations to fulfil. However, there are a few that have had success over the past few years and Skanska-BOT is one such operation. Michael Dunning reports.
Australia Report 2005
Welcome to Project Finance International’s first Australia Report. While in the past we have covered the Australian market to the full, with our news coverage and annual in-bound supplements, this is the first year we have decided to produce a full outbound Report of the market.
The Australian government will support PPPs where superior value for money can be achieved. By the Hon Dr Sharman Stone MP, Parliamentary Secretary to the Minister for Finance and Administration.
The focus of infrastructure development needs to move away from complex financial engineering and towards sustainable solutions for the user. By Bill Banks, director and representative, project finance advisory, Ernst & Young.
Peter Stewart, partner and Anna Thwaites, solicitor of Allens Arthur Robinson discuss the role of Victoria’s Standard Commercial Principles in the Australian PPP market.
Australia’s interest in using PPPs as a means of delivering major social and transport infrastructure projects is growing at an encouraging rate. By Gerard Blood, managing director, Bilfinger Berger Concessions.
The listing of private equity firm Babcock & Brown in Australia was just under one year ago and the firm has grown from strength to strength. By Sharon Klyne.
Transurban spent the past few years setting up shop in New York and is now the preferred bidder on two major DC area projects and shortlisted on two in Texas. And it might soon be taking on Autostrade and Macquarie on the Dulles toll road. By Alison Healey.
The Braemar power project in Queensland is the first partly contracted and partly merchant plant to be project-financed in Australia. By John O’Neil, head and Marcus Lorentz, manager of Calyon Australia’s project and structured finance team.
Hong Kong’s China Light & Power is on its way to becoming a major player in Australia’s energy sector with its recent acquisitions. Minerva Lau reports.
The Lihir Gold US$250m project financing has closed oversubscribed due to the belief in the company’s turnaround story as much as the lack of supply in the market. By Sharon Klyne.
There has been a surge in the demand for energy, despite oil prices hitting record highs. However, gas is becoming a popular alternative and Australia’s LNG is in demand. Minerva Lau reports.
Americas Energy Report 2005
US LNG - The facts: LNG is the hot topic in the global energy sector currently. And within the LNG sector, the potential of the US market is seen as the driving force behind the boom.
The US market for imported liquefied natural gas (LNG) remains a complicated guessing game that will put risk management skills at a premium in the years ahead. By Tim Evans, senior energy analyst, IFR Markets.
The project financing for Cheniere Energy's Sabine Pass LNG terminal was the company's inaugural debt issuance. By Michael Whelan, managing director, HSBC Project and Export Finance, Americas.
Sempra has used the corporate market to raise debt for its integrated LNG strategy in the US. By Chuck Zabriskie, managing director and Head of Project & Export Finance North America, Royal Bank of Scotland.
On the heels of a construction spree which added more than 110GW of gas-fired electric generation to the US power markets from 1990 to 2002,1 coal-fired projects are winning increased attention. By Enid Veron, with Patrick Train-Gutiérrez, of Hunton & William's Energy & Project Finance Group.
The private bond offering to fund a portfolio of FPL wind projects was marketed to investment grade and high-yield investors simultaneously. By Alison Healey.
A diverse group of financial players are targeting the energy industry - moving beyond lenders of last resort to become buyers of often time major portfolios of assets. By David Haarmeyer, Director of Strategic Consulting and George Givens, Vice President, Global Energy Decisions*.
Trinidad's state-owned hydrocarbons players plan to spend at least US$800m this year in capital investments to beef up oil and gas infrastructure within the country. By Nicole Gelinas.
Brazil's state-run oil giant Petrobras started the first quarter off with a US$910m massive project-financing to signal its ambitions. By Nicole Gelinas.
Transportadora de Gas del Sur (TGS), the operator of the largest pipeline system in Argentina and in Latin America, has successfully undertaken a consensual restructuring of US$1.02bn in existing notes, commercial bank and multilateral debt. By Rohit Chaudhry and Carlos T Albarracín, Chadbourne & Parke LLP.
Global Infrastructure Report 2005
The Chicago Skyway acquisition was arguably the largest transportation deal to close in the US in 2004. Conor Kelly, managing director of Depfa Bank's infrastructure finance unit in North America, gives an overview of the deal.
The successes in recent years in developing privately owned and operated transportation projects internationally has led to renewed focus on the US market. By Edward R Neaher Jr, White & Case LLP.
More than two years ago, the governor and legislature of Texas signed a law that allows private-sector companies to enter into development agreements with the public-sector Texas Turnpike Authority for greenfield and existing highway construction, operational and maintenance projects.
Anthony Henday enjoys the distinction that the project named after him is the first Design Build Finance Operate (DBFO) PPP to successfully close in Alberta. By Shariq Alvi and Ian Shore, vice-presidents, Pricewater-houseCoop-ers, Canada.
The equity and debt financing for the massive ConnectEast toll road set a number of precedents in the Australian toll road market. By Sharon Klyne.
A group of three banks have concluded the financing of the Akasaka Sigma Tower project in Japan, the first PFI project undertaken by the House of Represent-atives (HoR). By Minerva Lau.
Dr Braedon Clark, a lawyer with Minter Ellison in Melbourne, discusses interest withholding tax exemptions from the perspective of an international lender.
The UK health sector has been the major source of regular mega project deal-flow in the global private finance initiative (PFI) sector. However, while the deal-flow continues, the controversy surrounding the sector has died down. Business has been normalised. By Rod Morrison.
April saw the close by lead arrangers ABN AMRO, IntesaBCI, Banca Antonveneta and its affiliate Interbanca on a €133m project financing package to help fund the €230m Mestre hospital, the first healthcare PPP project in Italy under which the concessionaire takes on an element of performance risk, as is standard in the UK market.
Connoisseurs of French public procurement history have long claimed that, contrary to a widespread perception that the country is somehow a laggard in engaging the private sector in public infrastructure à la model of the UK-type PFI/PPP, France was in fact one of the pioneers in attracting private capital for public goods in great 19th century engineering projects such as the Canal du Midi or the Paris subway.
Asia Pacific Report 2005
The project is one of the first and probably largest private sector IPPs established under the auspices of the new Electricity Act. By Nihar Shah, assistant vice-president, Rajan Gupta, vice-president, and Supratim Sarkar, group head, project advisory & structured finance group, SBI Capital Markets.
Liberalisation of the Japanese power sector is pushing J-Power to expand and seek opportunities outside the country for revenue growth. By Minerva Lau.
Developers and financiers of renewable energy projects in Asia have been watching with interest the development of the South Korean wind power market. By Bruce Weller, director, BNP Paribas, Singapore and Stephen McWilliams, partner, Latham & Watkins LLP, Singapore.
Pertamina has signed its first long-term financing since becoming a Persero state-owned limited liability company. By Bruce Weller, director, BNP Paribas.
The overhang surrounding Reliance Industries, India's largest private sector group, may soon disappear as a nasty family spat may be close to a resolution. By Sharon Klyne.
With its rising urban population and rapid economic growth, China today is one of the world's most active markets for investment in water and wastewater projects, write Nadine Ganesan in Beijing and Stéphane Gasne in Shanghai, Gide Loyette Nouel.
Financing agreements were recently signed for the US$1.582bn 1,070MW Nam Theun 2 hydroelectric power project in Laos, the largest cross-border power scheme in Asia and the largest privately financed hydropower scheme in the world.
The sponsors of Jimah Energy Ventures have successfully closed an aggressively structured deal, but scarcity of issuance has resulted in strong investor interest. By Sharon Klyne.
China and India are the fastest-rising stars of Asia in terms of investments and profile. And a substantial amount of these investments are being channelled into the power sector. By Bill Laukka, head of utilities research, JP Morgan.
North America Report 2005
Wellsprings of tolling history: Out on the high plains a bit east of the main Front Range line of settlement that stretches between Pueblo through Colorado Springs and the Denver area up north to Fort Collins, there have been wild voices raised again plans for an investor-built Front Range Toll Road.
Will PPPs come to NY State? Even after massive budget deficits in the past five years cut into the state’s plans to invest, the state government, headed by a Republican friendly to privatisation efforts, did not get very far in pushing an integrated roads PPP programme to potential creditors or to the public. By Nicole Gelinas.
The Transportation Reauthorization Act has narrowly avoided expiration on several occasions, with last-minute extensions signed into law eight times. By Alison Healey.
The global project finance market rebounded in 2004 with an overall volume of US$144bn, according to Thomson Financial. By Ramesh Raman, director, and Scott Flippen, associate, Taylor de Jongh.
Calpine approached Calyon and CoBank to lead a group of underwriters (comprising HSH Nordbank, HypoVereinsbank and UFJ) for the financing of its next stand-alone power project last September. By Martin Livingstone, director, Calyon project finance.
Cheyenne Plains Gas Pipeline Company LLC is an interstate natural gas pipeline company that has developed and placed into service the Cheyenne Plains Pipeline. By Ralph Cho, associate director, loan and debt capital markets, WestLB Securities, and Sanjay Nayyar, director, project finance, El Paso Corporation.
Global Energy Report 2005
US Inc pushes a subtle one: US multilaterals, Opic in particular, are taking a strategic approach to energy, helping to increase global supply by investing in viable projects around the world, whether they directly diversify America's import mix or not. By Nicole Gelinas.
South Korea and Japan are two of biggest buyers of oil and gas in the world. And the search for these has their ECAs tagging along, as well as, leading their home-based companies into new territories. Minerva Lau writes.
Germany might be in recession but its institutions remain at the forefront of energy finance. By Rod Morrison.
TransCanada and Enbridge are racing to get a lead position on the Alaskan pipeline and to get agreements in place before LNG starts to land in the US. By Alison Healey.
Greenfield and brownfield gas storage projects are being announced in the dozens and the projects benefit from strong regulatory support. By Alison Healey.
The natural gas market in India has been suffering under a demand-supply inequality for a long time. By Harsh Gupta, vice-president, SBI Capital Markets.
The Italian gas market is growing but a glut of planned import projects means developers must race to ensure scheme viability. By Daniel O'Sullivan.
When the NLNG train six financing was cancelled in late 2003, the limited prospects for project finance in the country appeared to be over. Not so. By Rod Morrison.
Sinopec is catching up with other oil majors, as it expands its capacities domestically and spreads its arms in the international market to secure energy resources. Minerva Lau reports.
International Power is in the midst of more corporate activity in Australia, having completed the company-transforming acquisition of Edison Mission Energy's global portfolio. By Sharon Klyne.
Middle East Report 2005
Since 1995, the government of the Sultanate of Oman has undertaken to diversify the country's economy and decrease its reliance on revenues from the oil sector. By Katharine C Baragona, Director, Infrastructure and Energy Finance, Citigroup - adviser to Oman LNG/Qalhat LNG.
The Sohar IWPP raced to financial close late last year. In this case study Rajit Nanda, vice president in corporate and project finance at Suez Tractebel in the Middle East, Tom Teerlynck, general counsel at Suez Tractebel and Thierry Tardy, of BNP Paribas, examine the deal and the Mid East market.
The total estimated debt requirement for energy projects in Saudi Arabia is billions of US$. So how will the Saudi banking sector cope with increasing demand for long-term funds? By Saad-ur-Rehman, head of structured finance and syndications, Banque Saudi Fransi, Riyadh, Kingdom of Saudi Arabia.
The Middle East is in the process of implementing its largest expansion phase to-date, its fourth wave of expansion, and a staggering 23m tons per year of ethylene capacity is expected to be added in the next five to six years. By Rizwan Sheikh, senior consultant, Nexant.
The Mid-East oil kingdoms are leveraging their low energy costs to diversify into basic metals-related ventures just as commentators predict a sustained global boom in the sector. By Daniel O'Sullivan.
Mid East - Some reality: Project Finance International's Middle East survey this year is published in buoyant economic times - certainly in terms of project scheme announcement inflation. What is the reality?