The project finance market in 2004 was certainly in an upbeat mood. The loan syndication market for projects was back. The gas market was in vogue. Infrastructure and the global PPP markets continued to develop, albeit perhaps slower in terms of deals closed. And the power market showed signs of recovery with some new deal flow.
How has the changing LNG contract market affected the bankability of LNG schemes? Can LNG project risk be 'sliced' for financing purposes? By David de Ledesma, managing director, Gas Strategies Consulting.
No doubt about it, LNG is the current darling of the energy business. And with good reason. By Jay D Kelley and Stephen D Davis, partners, Project Finance and Development, Vinson & Elkins LLP.
The LNG market in the Asia Pacific region has undergone rapid change. The entry of China as a new player and the groundbreaking Guangdong deal, has led to both suppliers and buyers in the region reassessing the basis on which they conduct their business. By Damien Criddle, senior associate, Baker & McKenzie in Hong Kong.
As many Asian governments including Indonesia and Philippines continue to push ahead with their market deregulation plans, Vijay Sethu, executive director for Asia at ANZ Investment Bank, discusses the relevance of experience from other merchant power markets.
A couple of years ago the governments of Italy and Ireland separately but simultaneously set up parastatal agencies to help finance infrastructure projects - how have they performed since? By Daniel O'Sullivan.
The UK LIFT program and Building Schools for the Future are both examples of significant investment programs which benefit from a proactive coordinated approach. By James Stewart, chief executive, Partnerships UK.
Prior to the end of 2003, project financing for Italian gas-fired IPPs - that is, single-asset gas-fired power plants operating in the newly-liberalised Italian power market - had been much talked about but had yet to be seen. The big non-recourse power sector funding story up to this point in Italy had been the financing and refinancing of the gencos, the three power station portfolios totalling 15GW spun out of incumbent generator ENEL.
The Royal Bank of Scotland (RBS) and KBC Finance Ireland (KBC) were the mandated lead arrangers of the Senior Facilities totalling €305m. Investec Bank (UK) Limited (Investec) acted as lead arranger on the €25m mezzanine facility and was one of the original project sponsors. In early December 2004, syndication of the senior and mezzanine facilities closed, having been accepted by every one of the banks invited into the transaction.
Margins on Spanish wind deals have over the past few years been on somewhat of a roller coaster ride - in a dip for a few years, before climbing up the tracks just 24 months ago. By Michael Dunning.However, they have now fallen to their lowest level yet with the latest EUFER-sponsored scheme. This has opened debate as to why this has happened and whether or not it will be sustained. Spain is one of the world leaders in installing windfarms. In fact, it lies only just behind Germany in terms of its installed wind power capacity. Furthermore a significant part of its wind investment comes from project financings. It also holds the title of having given the project finance market its biggest wind power deal to date - the 15-year €913m deal for the Iberdrola-led 1173MW Energias Eolicas Europeans (EEE) project that was closed in 2001 by BBVA, Credit Agricole, Banesto, WestLB and Ahorro Corporacion Financiera. It also lays claim to the world's first windfarm securitisation.As
Al Ezzel IPP - a case study by Caroline Presber of Freshfields Bruckhaus Deringer, Emmanuel Rogy and Vahram Yerikian of BNP Paribas. BNP Paribas has been co-ordinating the advisory team of Freshfields Bruckhaus Deringer and Mott MacDonald.
The repackaging of assets and their sale to investors is a core part of Depfa's business, carried on for many years through Pfandbriefe issues in Germany and more recently through Irish Asset Covered Securities issues under the new Irish legislation.
Project Financing depends in a large part on a high level of confidence that, in the operation period of a transaction, a given level of revenues which can be depended. By Mark Lemmon, deputy chief executive, project and export finance, HSBC.
Mexico is looking to innovate and foster investment in old and new infrastructure. A tool for jumpstarting this effort with increased participation on the part of the private sector is the private-public partnership (PPP). By Juan A Villalobos-Anaya, senior partner, Sulaiman Asociados, and partner, Grupo Prorsum.
Since the Law to Promote Provision of Public Facilities and Other Related Services by Use of Private Capital and other Resources (thereafter called PFI Law), more than 180 PFI projects have been announced. By Kazuo Ueda, managing director of Japan PFI Association and chairman of Asia PPI Association.
2004 has clearly been an interesting year not only for me but one or two others. Mandelson has gone to the EC, George Bush won again, and Jarvis has had one or two local difficulties. The SRA has beenabolished, Adrian Montague has picked up yet another chairmanship and Nigel Jones is working for Chris Elliott.