At the Davos jamboree last week President Joe Biden's Inflation Reduction Act came under some fire, with allies in Europe saying: "Hey too much guys, where are we going to find US$369bn, under the sofa?" It was not just the Euro political classes that wanted to go on the attack, behind them Euro corporations were telling the Euro politicans to fight back and establish their own IRA. Establishing the nature of the subsidies appeared to be a secondary concern.
The global project loans market increased by 18.7% in 2022 to US$363bn from US$305.8bn, with the global project bonds market dropping 51.6% to US$38.6bn from US$79.8bn. This means the global commercial project finance market increased by 4.1% in 2021 to US$401.6bn from US$$385.6bn – a new high and the first time the figure has exceeded US$400bn. The number of loan deals rose from 918 to 953 and the number of bond deals dropped to 96 from 167. Multilateral lending dropped by two-thirds to US$5.9bn in the emerging markets but rose a little to US$6.3bn in the developed markets.
On-demand performance bonds are commonly used in international energy construction projects. They take the form of an undertaking by an issuing bank or financial institution, on behalf of an obligor, typically the contractor, to pay on demand a specified amount to a named beneficiary, typically the employer. By Robert Meade, partner, and Alistair Calvert, partner, at Bracewell (UK) LLP, and Tom Swarbrick, partner, at Bracewell Dubai.
Project Finance International has published its yearly Global Infrastructure Report containing in depth analysis on key trend impacting the market in 2022. The report considers the resilient nature of infrastructure in changing times, the threat of stagflation and the use of infrastructure as a policy tool. The report contains case studies on road and airport financings from this year around the world plus various PPP deals. In addition the report looks into important sectors such as telecoms to
The Covid-19 pandemic and the war in Ukraine have led to disruption on a scale unprecedented since the Second World War. Economies around the world have suffered severe dislocation, inflation has returned with a vengeance, supply chains are stretched and asset prices have fluctuated as investors struggle to understand what it all will mean for their portfolios. Meanwhile, governments and businesses are having to assess the impact of this disruption against a backdrop of increasing sustainability pressures and technological change that continue to offer both new challenges and new opportunities across the global economy. By Mark Elsey, partner, Ashurst.
Inflation has been on the rise in many countries due to a combination of market, social and economic effects from the Covid-19 crisis. In the US, the increase in inflation has been extremely high in the past year compared with very low historical rates. By Scott Zuchorski and Greg Remec, Fitch Ratings.
US infrastructure is having its long-delayed day in the sun. The 2,702-page Infrastructure Investment and Jobs Act (IIAJ Act), enacted in November 2021, received significant mainstream attention, due in part to its size – at more than US$1trn, it is the largest infrastructure programme in a generation – and the fact it was a rare piece of legislation passed with bi-partisan support. By Roderick Devlin, Nixon Peabody LLP.
Tesla Motors’ global dominance notwithstanding, US electric mobility and its charging infrastructure are relatively immature versus Europe and Asia. Project developers and financiers are starting to dip their toes in the water, piloting the risks they deem worth taking to get to the promised land. By Joti Mangat.
Norway has a history of using PPPs for road projects, having successfully delivered three greenfield roads using the model during the early 2000s. PPPs fell out of favour for roads in Norway for a time, but returned to the fore a decade later when the Norwegian Public Roads Administration launched a new three-project programme of road PPPs. By Richard Abadie, partner PwC UK, Scott Clyne, assistant director PwC UK, Henrik Gran, partner, PwC Norway and Alexander Vas, manager, PwC Norway.
The Sotra Connection was one of the largest contracts awarded in Europe last year. It involved multiple partners working in a relatively new public-private partnership (PPP) market and significant engineering challenges, as well as the challenges of Covid-19 restrictions. Alex Kornman, managing director at Macquarie Capital, who led on the business's bid, explains how the deal was successfully negotiated.
A street lighting P3 in Washington DC brought project finance into a new sector in the US. The green bond-backed deal may spur others in light of new federal funding. By Alison Healey.
Your first thoughts about Bangkok are probably the delicious food, friendly people – and the heavy traffic. As one of the largest metropolitan capitals in Asia, and in normal times a destination for tens of millions of tourists annually, Bangkok has substantial transport requirements. But on your next trip to Bangkok, you might be surprised to see a fleet of up to 27 fully electric ferries running on the Chao Phraya River. By Won Myong Hong, senior investment specialist, Sarocha Kessakorn, climate finance specialist, Juthaporn Jiajanpong, project analyst, and Tristan Knowles, investment specialist, climate finance, Asian Development Bank.
Airport infrastructure in any city is a significant conduit for the overall economic development of the adjoining region, as the ease of access to the region is a crucial factor for flow of investment and development of economic activity. By N Prakash, Vedavyasa Rao, Rajrajeswari Mishra and Aarani Subhanathan, SBI Capital Markets.
Frankfurt-listed airport operator Fraport and Istanbul-listed TAV Airport Holdings made the headlines in March when they paid a €1.8125bn upfront fee to renew and expand the concession plans under which they jointly operate Turkey’s Antalya tourist airport. By Cristiana Sandeva.
On March 3 2022, Acciona Agua SA, together with its Saudi partners Tawzea and Tamasuk Holding Company, closed loans totalling about US$700m including US$480m in green loans for three independent sewage treatment plants (ISTPs) in Saudi Arabia. The simultaneous financial close of three ISTPs, achieved in six months, is a major milestone in the Saudi water sector. By Gurmeet Kaur, partner, Elen Roberts, solicitor with input from Benedict Tse, associate, at Pinsent Masons LLP.
On February 15 2022, the French Ministry of Armed Forces signed with Nové, a subsidiary of Eiffage and Group Arcade VyV, the concession contract for the outsourced management of its housing stock in France, known as CEGELOG. Through this contract, the French Ministry of Armed Forces made an important step in its efforts to enhance its real estate assets, improve the quality of life of soldiers and their families, and renovate the way the authorities cooperate with the private sector in this industry. By Arnaud Troizier, partner, Watson Farley & Wiliams LLP.
RPS specialists offer insights into the recent upsurge of telecommunication tower transactions happening across the Asia-Pacific region. Billed as low-risk infrastructure to potential buyers – is this really the case when it comes to balancing operational cost, financing and ESG? By Merrill Lee, director, Henri Baz, associate director, Roddy Adams, director, and Wayne Gagel, associate director, RPS.
There is a lot, and we mean a lot, talked and written about the future of digital infrastructure in Asia. With good reason, the fundamentals driving growth are staggering. By Don Stokes, partner Singapore office, and Kieran Donovan, partner Hong Kong office, Latham & Watkins.
Over the last 10 to 15 years, the waste-to-energy (WtE) sector in the UK has seen significant investment and growth. Tolvik was set up as a consultancy in 2009 when just 3.6m tonnes (Mt) of residual waste, ie waste remaining after recycling, was sent to WtE facilities in the UK. By 2021, the figure had risen to 14.8Mt and, based on WtEs that are currently in construction in the UK, by 2026 it is projected that this will have risen to 19.8Mt. By Adrian Judge, director. Tolvik Consulting.
|Date||Project Name||Region||Country||Sector||Cost (US$m)||Developer||Advisers||Story Link|
|Hong Kong Rooftop Solar PV Project||APAC||Hong Kong||Power||51.050||Widex Solar Asset Hldg Ltd, Widex Grp Hldg (Hk) Ltd|
|ScaleH2 Project||APAC||Australia||Power, Petrochemicals||5.670||Atco Australia Pty Ltd|
|Hanwha Energy Wakayama Solar Power Plant Project||APAC||Japan||Power, Power||23.870||Hanwha Energy Corp|
|Pine Hills PV Power Plant Project||APAC||Japan||Power, Power||47.360||Hanwha Energy Corp|
|SPIC Brasil Rio Grande do Norte Wind Farm Project||LATAM||Brazil||Power||55.330||SPIC Brasil Energia|
|A&G Jerez De La Frontera Solar Portfolio Project||EMEA||Spain||Power||79.450||A&G Banca Privada Sau||CLIFFORD-CHANCE, URIA-MENENDEZ|
|Jamesfield Farm Standalone Battery Energy Storage System Project||EMEA||United Kingdom||Power||12.500||Harmony Energy Ltd, Tagenergy Sa|
|Gulf Oil US Refined Products Terminals Portfolio Acquisition Project||United States||United States||Petrochemicals||723.180||Gulf Corp(Chevron Corp)|
|Krakow Fast Tram PPP Project||EMEA||Poland||Transportation||236.550||Gulermat Matbaa||DOMANSKI|
|Mloty Pumped Storage Power Plant Project||EMEA||Poland||Water & Sewerage||1,144.240||PGE Energia Odnawialna SA, NFOSiGW|
|Date||Project Name||Status||Region||Country||Sector||Cost (US$m)||Developer||Advisers||Story Link|
|Golden Plains Wind Farm Stage 1 Acquisition Project||Announced||APAC||Australia||Power||0.000||TagEnergy|
|Calgary Zero Emission Buses Project||Announced||NA||Canada||Transportation||124.180||Calgary Transit|
|United States CCM Manufacturing Facility Project||Announced||United States||United States||Power||0.000||Plug Power Inc, Johnson Matthey PLC|
|Ministry of Ports, Shipping & Waterways Galathea Bay International Container Tra||In Tender||APAC||India||Transportation||2,208.040||Ministry Of Ports Shipping|
|Portugal Offshore Wind Project||Announced||EMEA||Portugal||Power||0.000||Minister Of The Econ And, Ministry Of Infrastructure &|
|Rajasthan Solar Park Project||Agreement Signed||APAC||India||Power||1,121.190||Rays Power Infra Pvt Ltd, Government Of Rajasthan|
|Thachang Green Energy Nong Mamong Community Waste Power Plant Project||Contract Signed||APAC||Thailand||Power||0.000||Thachang Green Energy PCL|
|Open Grid Europe Acquisition Project||Sale Agreement Signed||EMEA||Germany||Oil & Gas||0.000||Macquarie Fund IV LP|
|Ministry Of Infrastructure And Energy Albania Offshore Wind Project||Feasibility Study||EMEA||Albania||Power||0.000||Ministry Of Infrastructure||EBR|
|Kleczew Solar & Wind Project||Under Construction||EMEA||Poland||Power, Power||200.420||Lewandpol Holdings SP ZOO||NORTON-ROSE-FUL, GESSEL, CMS|