It gets very cold in January in the northern hemisphere and when it gets cold, often the winds drop and there is a stillness in the air. So much for prose - no wind, no power! Securing the baseload power back up is more than ever a priority to keep us warm and lighted. In the summer of course the need to feed the air conditioners in the mega cities such as New York is paramount. Boring baseload please.
The first half of the year saw the project finance loan market tread water but the bond market more than double in size. The market in general felt quiet as the impact of the Covid pandemic stretched into a second year and most of us remained outside the office. But, as the league tables show, there is still plenty going on. Renewables, telecoms and the sale of infrastructure asset related to oil and gas projects have provided plenty of deal flow.
The decrease in feed-in tariffs announced last year by the French Government was intended to capture windfall gains in a few situations were tariffs were resulting in excess profit. But things have been turning sour since the draft decrees were made available for consultation in June, with tariff levels that would leave a lot of project companies insolvent. By François April and Pierre Guillot, energy and infrastructure partners, Linklaters LLP.
Interest in the infrastructure sector has never been higher as economies seek to rebuild following the Covid 19 pandemic. But the market is evolving as digital infrastructure, a key economic player in the pandemic, becomes as vital as other forms of infra. The PFI Global Infrastructure Report reviews financing trends in growing sectors such as fibre and data centres and analyses the prospects for the market as whole across various countries around the globe. In addition the report include market
Washington-headquartered data centre provider EdgeConneX considers itself a pioneer in defining and building the so-called edge, a subsector of data centres that are designed to scale with demand and are located in close physical proximity to the people, machines and processes that generate and use data. The close proximity enables better conditions for fast traffic flows, availability and security – and for project financing the assets. By Jordan Bintcliffe.
The global pandemic may have accelerated demand for data infrastructure, but the underlying drivers behind the growth of data centre markets go far beyond short-term factors, explains Laurence Monnier. head of quantitative research, real assets, Aviva Investors.
Asia is seeing increased investment in and demand for data centres. Regarded as essential assets for economies and societies, data centres are now being compared to must-haves such as water supply, electricity, and agriculture. By Sharad Somani, partner and head of infrastructure, Asia-Pacific, and Diptendu Mitra – director, strategy, KPMG Singapore.
With the exponential increase in demand for data consumption, which the Covid-19 pandemic has further strengthened, a reliable and ever-faster fixed and mobile broadband infrastructure has never been more essential. Thanks to its vastly superior features, fibre to the home (FTTH) has emerged as the future-proof technology for fixed internet access compared with DSL networks, cable or even 5G, writes Fabrice Garus, investment director and partner, Vauban Infrastructure Partners.
Financing the construction and launch of a 150Gbps new High Throughput Satellite of the Republic of Indonesia (Satria), the first telecommunication satellite PPP project in Indonesia. By Roland Tan, Hongkong & Shanghai Banking Corporation.
Lenders, borrowers and sponsors alike are driving the rapid take-up of green and sustainability-linked loans in global project finance markets. In the Asia-Pacific region, this positive shift is increasingly prevalent in transport and social infrastructure and is likely to accelerate. The trend is underpinned by strong support from a broad range of market participants, creating a virtuous cycle of demand-supply and loan-volume growth. By Jan Gabrynowicz, director, Energy & Infrastructure Project Finance, Brett Ruitenberg, head of Energy & Infrastructure, Project Finance Australia, and Tarek El Rakshy, head of Project Finance Australia, SMBC.
The vast unmet demand for infrastructure in India, coupled with a pipeline of opportunities running into trillions of dollars, has been attracting investors to Indian infrastructure for more than two decades now. By Simon La Greca, head of Infrastructure Debt Asia, Justin Chan-Sew, principal, Infrastructure Debt Asia and Sharat Goyal, head of India, Infrastructure Equity, AMP Capital.
Allens infrastructure and project finance specialists provide insights into the recent evolution of PPPs in Australia and potential future direction for the PPP model. By David Donnelly, partner, Michael Ryan, partner, Paul Telford, partner and Lisa Zhou, managing associate, Allens.
When the first waves of the Covid-19 pandemic broke across the shores of American business, there was a collective feeling that we had seen this before – not necessarily the public health crisis, the likes of which had not been experienced for a century, but the commercial disruptions and financial dislocations expected to result from such a massive shutdown of the economy. As the pandemic unfolded, however, our worst financial expectations never came to pass. By Charles G Renner, Kansas City-based partner and Will P Nulton, Kansas City-based attorney, Husch Blackwell LLP.
Brazil’s infrastructure minister Tarcisio Gomes de Freitas has predicted there will be R$1trn (US$200bn) of infrastructure concessions for the private sector by the end of 2022. The government is backing up the plan with bold action to bring private capital to the projects, many with added green credentials. By Nic Stone.
A recent downgrade of Colombia’s sovereign rating to junk by S&P is expected to be followed by one from Fitch later this year. Equity and debt investors remain bullish in the country’s highway sector despite the risks. By Nic Stone.
On April 29 2021, the Czech Republic made an important step in its continued efforts to speed up the upgrade and completion of its highway network when the DIVia consortium, comprising on a 50:50 basis, Vinci Highways, the lead company and a subsidiary of Vinci Concessions, and Meridiam, together with its group of lenders, successfully completed the financing of the D4 highway PPP transaction. By Jan Brazda, advisory partner, and Karel Kolar, senior adviser, PwC CEE.
A consortium of Meridiam, Munich Airport and Strabag endured a host of legal challenges and political delays – not to mention a global pandemic – to finance the Sofia Airport public-private partnership (PPP) in time for Christmas. By Peter Collins.
As a pathfinder social infrastructure public-private partnership (PPP) project for the Kingdom of Saudi Arabia and the wider Middle East, the launch of the Tatweer Building Company (TBC) Schools PPP Programme paves the way for a spate of new social infrastructure PPPs across the region. By Sachin Karia, partner, Elliott Sawford, partner, Richard Chamberlain, senior associate, Shane Jaftha, senior associate, and Liva Orleane, associate. Allen & Overy.
The project was the first of its kind – a Saudi Arabian IWP combined with a water transmission pipeline. By Trevor Butcher, partner, projects, finance and restructuring, and Mahima Sodhi, associate, projects, finance and restructuring, at DLA Piper (Middle East) LLP.
ACWA Power has completed a first-of-its-kind US$266m refinancing for an independent water project in the Kingdom of Saudi Arabia though a combination of a privately placed issue of rated project bonds and a commercial bank tranche. By Anil Vijayachandran, director, Haoyong Chen, senior manager, and Abdulwahab Alsalman, manager, in ACWA Power's acquisitions and project finance team.
Save the date – August 31 2026. This is the date by which all the investments set out in the National Recovery & Resilience Plan (PNRR) presented by the Italian Government to Parliament and to the European Commission must be completed. By this deadline, all the projects provided for in the PNRR must not only be defined and authorised but also effectively completed. By Stefano Maria Zappalà and Maria Juan Parra, Juridicum avvocati associati.
Welcome to the 2021 Refinitiv Project Finance International (PFI) Yearbook. The Yearbook is our annual publication in which we look at the events of 2020 through case studies and the PFI Awards, and look forward into 2021 with a range of themed articles and profiles in the Global section of the book.
|Date||Project Name||Region||Country||Sector||Cost (US$m)||Developer||Advisers||Story Link|
|PT Smelting Copper Smelter and Refinery Expansion Project||APAC||Indonesia||Mining||1,000.000||PT Smelting|
|148.5MW Caman Wind Project||LATAM||Chile||Power, Power||182.000||Mainstream Renewable Power Ltd|
|Minera Valle Central Copper Tailings Refinancing Project||LATAM||Chile||Mining||50.000||Amerigo Resources Ltd|
|Arroyo Solar & Storage Project||NA||United States||Power, Power||70.000||Centaurus Renewable Energy LLC|
|Basra Port Expansion Project||EMEA||Iraq||Transportation||200.000||Aloreen Investment Co Ltd|
|Bosa Hospital PPP Project||LATAM||Colombia||Leisure & Property||68.200||Colombia, Ortiz Dieste SL||CREDICCUAT-GONCALVES|
|34.1 MW Kinguele Aval Hydropower PPP Project||EMEA||Gabon||Power, Power||206.710||Meridiam SAS, Gabonese Fund For Strategic||GIDE-LOYRETTE|
|Refinaria Landulpho Alves Refinery Acquisition Project||LATAM||Brazil||Petrochemicals||1,800.000||Petroleo Brasileiro SA, Mubadala Capital|
|Ola Future Factory Manufacturing Hub Phase 1 Project||APAC||India||Industry||100.000||Temasek International Pte Ltd, Warburg Pincus LLC, Ola SA|
|Project ERA||EMEA||Italy||Power, Power||230.350||E VA Energie Valsabbia SpA||LEGANCE, BERTACCO-RECLA|
|Date||Project Name||Status||Region||Country||Sector||Cost (US$m)||Developer||Advisers||Story Link|
|Pangasinan Tri City Ferry System PPP Project||In Tender||APAC||Philippines||Transportation||0.000|
|250MW Statkraft Ireland Solar PV Portfolio Acquisition||Announced||EMEA||Ireland-Rep||Power, Power||171.700||Statkraft Ireland Ltd, Octopus Renewables|
|250 MW Statkraft Solar Photovoltaic Portfolio Acquisition Project||Announced||EMEA||Ireland-Rep||Power, Power||171.080||Statkraft AS, Octopus Renewables|
|264MW Valdesolar PV Farm Project||Announced||EMEA||Spain||Power, Power||235.980||Repsol SA|
|First Sentier Investors Tank Terminal Acquisition Project||Announced||EMEA||Netherlands||Oil & Gas||0.000||First Sentier Investors||DAIWA|
|Refoenergy Bita Power Generation Plant Project||Announced||LATAM||Colombia||Power, Power, Power||21.400||Valorem SAS, Refocosta||BAKERMCKENZIE|
|Bavaria Arberland Klinik Viechtach Renovation & Expansion of General Care Hospit||Government Approved||Germany||Germany||Leisure & Property||44.990||Bavarian Government|
|48.5MW Aoliki Panachaikou Wind Farm Acquisition Project||Announced||EMEA||Greece||Power, Power||0.000||Cubico Sustainable Invests, Enora SA, Enteka Services SA||GRANT-THORNTON|
|Nuevo Mahou-Calderon Residential Units Project||Announced||EMEA||Spain||Leisure & Property||0.000||BGO Stella Propco SL||CLIFFORD-CHANCE|
|28MW Minas Gerais Distributed Solar Project||Announced||LATAM||Brazil||Power, Power||0.000||Energea Global Llc|