The project finance market in Europe is in state of flux in 2012. On the one hand austerity programmes are leading to budget cutbacks and fewer projects on the infrastructure side. Reductions in renewable tariffs are hitting the green energy arena, again leading to fewer projects. But on the other hand, infrastructure is central to the calls for an economic growth agenda and with sovereign budgets tight, the use of private finance will be critical to financing new deals.
The global infrastructure funding market has been knocked sideway by the financial crisis but is now emerging from this period in a healthy state. Banks have become competitive once again, albeit on different terms, the capital markets have re-emerged as an important source of liquidity and the infra fund sector has developed into vibrant participant.
India and its infrastructure road map have hit a rough patch. The Indian government urgently needs to get past those political squabbles so it can focus on the policies that are much needed to help investors. There is still a lot of work needed to be done to raise the estimated US$1tr funding requirement.
The project finance market has been excited over the last few years by the funding of a range of world scale energy projects, culminating in the US$35bn Ichthys LNG scheme from late last year.
Welcome to the PFI 500th Issue Report. It is with great pleasure that I introduce this special report to go with the 500th issue of Project Finance International (PFI). A lot has happened since PFI was launched as a newsletter in 1992. PFI, for one, has been changing with the times – keeping its bi-weekly magazine format but adding Daily News, Reuters News, Thomson Reuters data, Yearbooks, supplements, events, etc, etc…!