The Department for Business, Energy & Industrial Strategy (BEIS) has announced shortlisted carbon capture, usage and storage (CCUS) projects for its cluster process, naming 20 projects in three categories – power, hydrogen and industrial carbon capture (ICC). Winning projects will feed into the two CCUS clusters selected last autumn – the East Coast Cluster on Teesside and Humberside and HyNet in the north-west around Manchester.
The Refinitiv project finance numbers for the first half of this year show an encouraging increase in activity in the market, but underpinning the numbers the tectonic plates have been shifting, quickly. LNG is back on the gas, fibre is covering the land and the push to net zero via renewable energy has slowed a little. Underlining all this is a changing economic and capital markets environment that does not bode too well – in the short term.
The project finance loan market jumped in the first half of this year, helped by impressive deal flow in the US LNG and European fibre markets. As expected, the project bond market fell back – although not as far as it might have given the dearth of bond deals across the global debt capital markets. Commercial bank liquidity does not seem to be suffering right now. The question in the second half is whether this liquidity will ebb away as well, although currently there is little sign of it. What is uncertain is the impact of inflation on new greenfield projects.
Land acquisition for power projects, particularly solar, has received a difficult reputation in Bangladesh. Is that deserved? What is actually the reason for the solar project delays? Is it really the mechanics or availability of land? Or are deeper causes at play? By Edwin Vanderbruggen, senior partner, and Osman Goni. VDB Loi, Bangladesh office.
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.
Welcome to the 2022 Refinitiv Project Finance International (PFI) Yearbook. The Yearbook is our annual publication in which we look at the events of 2021 through case studies and the PFI Awards, and look forward into 2022 with a range of themed articles and profiles in the Global section of the book. By now we all would have hoped the Covid 19 pandemic would be in the rear-view mirror but, perhaps not surprisingly, the virus lingers and mutates. One last push, one final variant and we should be
|Date||Project Name||Region||Country||Sector||Cost (US$m)||Developer||Advisers||Story Link|
|Vidalia Active Anode Material Facility Expansion Project||United States||United States||Industry, Industry||176.000||Syrah Resources Ltd||GREENHILLWHITE-CASE|
|NeuConnect Power Interconnector Project||EMEA||Germany||Power, Power||2,783.250||Meridiam SAS, Allianz SE, The Kansai Electric Power Co||DEUTSCHE-BANK, SOC-GENHERBERT-FREE, LINKLATERS, CAMERON-NABARRO, GVW|
|Sanwa Electrical Engineering Kasaoka Bay Area Biogas Plant Project||APAC||Japan||Power||26.060||Sanwa Electrical Engineering|
|Opdenergy Zaragoza and Cuenca Solar Photovoltaic Expansion Project||EMEA||Spain||Power||356.860||Opdenergy Holding SA||WATSON-FARLEY|
|Lal Lo Solar Farm Phase 2 Project||APAC||Philippines||Power||10.210||AC Energy Inc, CleanTech Global Renewables, Ace Endevor Inc|
|Aton per il Progetto PPP Refinancing Project||EMEA||Italy||Power||71.370||Vauban Infrastructure Partners, Siram SpA|
|Tocantinzinho Gold Project||LATAM||Brazil||Mining||90.000||Brazauro Resources Corp, Eldorado Gold Corp, Kanadario Gold Inc|
|One Guyana FPSO Project||LATAM||Guyana||Oil & Gas, Oil & Gas, Oil & Gas||1,750.000||SBM Offshore NV|
|Lal Lo Solar Farm & Transmission Line Phase 1 Project||APAC||Philippines||Power, Power||10.210||AC Energy Inc, CleanTech Global Renewables, Ace Endevor Inc|
|Kenhardt Solar and Battery Project||EMEA||South Africa||Power, Power||992.580||Scatec Asa, Black Economic Empowerment|
|Date||Project Name||Status||Region||Country||Sector||Cost (US$m)||Developer||Advisers||Story Link|
|Senex Energy Atlas & Roma North Onshore Gas Expansion Project||Announced||APAC||Australia||Oil & Gas||710.500||Senex Energy Ltd|
|BP Bunge Bioenergia Sugarcane & Biofuels Acquisition Project||Announced||LATAM||Brazil||Power||1,960.000||Bunge Ltd, BP PLC||JPM|
|Sompuri Infrastructure Dhamra Pellet Plant & Filter Cake Project||Government Approved||APAC||India||Industry, Industry||987.600||Sompuri Infrastructure Pvt|
|Sompuri Infrastructure Deojhar Beneficiation Plant Project||Government Approved||APAC||India||Industry||580.600||Sompuri Infrastructure Pvt|
|Rungta Metals Rairangpur Integrated Steel Plant Project||Government Approved||APAC||India||Industry||177.010||Rungta Metals Pvt Ltd|
|ReNew EFuels Paradip Green Hydrogen & Green Ammonia Plant Project||Government Approved||APAC||India||Petrochemicals, Power||252.870||Renew Efuels Pvt Ltd|
|Mumbai Residential EV Charging Points Project||Announced||APAC||India||Power||0.000||Tata Power Co Ltd, JP Infrastructure Ltd|
|Tata Steel Jagatsinghpur, Rayagada, Jaipur, Bhadrak, Kendujhar, Cuttack & Mayurb||Government Approved||APAC||India||Industry, Industry||126.430||Tata Steel Ltd|
|India Wind & Solar Renewable Energy Assets Portfolio Acquisition Project||Sale Agreement Signed||APAC||India||Power, Power||1,331.390||Mytrah Energy India Pvt Ltd||KPMG, PWCKHAITAN|
|Riacho da Serra Solar Complex Acquisition Project||Sale Agreement Signed||LATAM||Brazil||Power||0.000||Upside Value Renewables Grp, Decal Renewables SpA||FINERGREENTOZZINI-FREIRE, VEIRANO-ADVOGADO|