GDF Suez press release:
In 2006, the Group won a contract for the business management of the new independent electricity and desalination production unit, Barka II in Oman (678MW and 120,000 m3/day). At that time, GDF SUEZ undertook to divest its stake in UPC in order to limit its market share in electricity production and comply with the regulations of Oman’s AER (Authority for Electricity Regulation).
GDF SUEZ has a long track record of successes in its developments in Oman. The Manah IPP (independent power project), which was awarded in 1994, is the first privately developed and owned power plant in the Gulf region and in Oman, and the first privately constructed transmission facilities within the country’s national grid. UPC was formed in 1995 as a joint stock company where public owns 40% of shares and the founder shareholders own 60%. Originally a 90MW power plant, the extension project completed in 2000 increased the plant’s generating capacity to 270MW.
To ensure that the necessary technical and operational expertise will continue to be available, UPC has signed a comprehensive operation and maintenance contract with one of GDF SUEZ group companies, which already provides these services to the Sohar and Al Rusail power plants, and will also operate the Barka II plant once it is commissioned.
MENA Infrastructure Fund was established in 2006 as a specialist infrastructure equity fund for long-term equity investments in infrastructure projects and businesses. Its investors include leading international and regional financial institutions and pension funds.
Link:
Monday 29 June 2009
Friday 26 June 2009
HOCHTIEF reaches financial close for PPP service centre in the UK
Hochtief press release:
Investment volume of GBP 58,9 million - Multi-functional complex in Wigan to be financed, built and operated for 25 years by HOCHTIEF HOCHTIEF PPP Solutions (UK) has achieved - together with a partner - financial close for the "Wigan Life Centre" public-private partnership (PPP) project .The consortium will design, finance and build the service centre in Wigan and operate it for a period of 25 years. HOCHTIEF Facility Management UK will manage the complex once it is open. The share of HOCHTIEF PPP Solutions (UK) in the consortium is 50 percent. The project has an investment volume of GBP 58,9 million (EUR 65 million). The contract volume totals GBP 222,7 million (EUR 247 million).
The Wigan Joint Service Centre is one of the first PPP projects in the UK in 2009 that has been concluded despite the crisis in the international financial markets. "We managed to secure long-term project financing with tried-and-tested partner banks. This underscores HOCHTIEF‘s strong position in the field of project financing," says Jane Barber, CEO HOCHTIEF PPP Solutions (UK). In public-sector building alone, HOCHTIEF PPP Solutions is involved in a total of 17 PPP projects in Germany, the UK and Ireland, comprising almost 100 facilities in the education, administration and security segments.
Link:
Investment volume of GBP 58,9 million - Multi-functional complex in Wigan to be financed, built and operated for 25 years by HOCHTIEF HOCHTIEF PPP Solutions (UK) has achieved - together with a partner - financial close for the "Wigan Life Centre" public-private partnership (PPP) project .The consortium will design, finance and build the service centre in Wigan and operate it for a period of 25 years. HOCHTIEF Facility Management UK will manage the complex once it is open. The share of HOCHTIEF PPP Solutions (UK) in the consortium is 50 percent. The project has an investment volume of GBP 58,9 million (EUR 65 million). The contract volume totals GBP 222,7 million (EUR 247 million).
The Wigan Joint Service Centre is one of the first PPP projects in the UK in 2009 that has been concluded despite the crisis in the international financial markets. "We managed to secure long-term project financing with tried-and-tested partner banks. This underscores HOCHTIEF‘s strong position in the field of project financing," says Jane Barber, CEO HOCHTIEF PPP Solutions (UK). In public-sector building alone, HOCHTIEF PPP Solutions is involved in a total of 17 PPP projects in Germany, the UK and Ireland, comprising almost 100 facilities in the education, administration and security segments.
Link:
Thursday 25 June 2009
Honduras to revamp key roadway with assistance from the IDB
IDB press release:
$50 million credit line to help improve Tegucigalpa-Puerto Castilla agricultural corridor
The Inter-American Development Bank approved a $50 million credit line to help Honduras improve a road linking the capital Tegucigalpa with Puerto Castilla on the Atlantic Coast, an area known as the country’s agricultural corridor.
The program's goal is to improve freight and passenger transportation conditions by reducing operating costs and travel times and strengthening regional integration within the country through better road accessibility.
The agricultural corridor links the departments of Francisco de Morazán, Olancho, and Colón. In addition, it will be integrated into the tourism corridor composed of the localities of El Progreso, Tela, Ceiba, Sabá, Tocoa and Puerto Castilla.
Together, agriculture and tourism will strengthen socioeconomic and cultural development in rural areas, raising the quality of life and income levels, which will contribute directly to poverty reduction.
The program includes paving, repair and maintenance work on a 180-kilometer segment between Gualaco and Puerto Castilla, including rehabilitation of bridges and road safety improvement. Routine maintenance will be carried out by microenterprises involving members of the area's Pech indigenous community.
The Bank's credit line consists of $35 million from its ordinary capital and $15 million from its concessional Fund for Special Operations (FSO). The US$35 million tranche is for a 30-year term, with a 5-1/2-year grace period, and carries a variable interest rate. The FSO component is for a 40-year term with 40 years grace period and a 0.25 percent interest rate.
The expected total cost of the program is $77 million, of which the Organization of Petroleum Exporting Countries' Fund for International Development will provide $25 million and the government $2 million in local counterpart funding.
Link:
$50 million credit line to help improve Tegucigalpa-Puerto Castilla agricultural corridor
The Inter-American Development Bank approved a $50 million credit line to help Honduras improve a road linking the capital Tegucigalpa with Puerto Castilla on the Atlantic Coast, an area known as the country’s agricultural corridor.
The program's goal is to improve freight and passenger transportation conditions by reducing operating costs and travel times and strengthening regional integration within the country through better road accessibility.
The agricultural corridor links the departments of Francisco de Morazán, Olancho, and Colón. In addition, it will be integrated into the tourism corridor composed of the localities of El Progreso, Tela, Ceiba, Sabá, Tocoa and Puerto Castilla.
Together, agriculture and tourism will strengthen socioeconomic and cultural development in rural areas, raising the quality of life and income levels, which will contribute directly to poverty reduction.
The program includes paving, repair and maintenance work on a 180-kilometer segment between Gualaco and Puerto Castilla, including rehabilitation of bridges and road safety improvement. Routine maintenance will be carried out by microenterprises involving members of the area's Pech indigenous community.
The Bank's credit line consists of $35 million from its ordinary capital and $15 million from its concessional Fund for Special Operations (FSO). The US$35 million tranche is for a 30-year term, with a 5-1/2-year grace period, and carries a variable interest rate. The FSO component is for a 40-year term with 40 years grace period and a 0.25 percent interest rate.
The expected total cost of the program is $77 million, of which the Organization of Petroleum Exporting Countries' Fund for International Development will provide $25 million and the government $2 million in local counterpart funding.
Link:
EBRD and Sida join forces to improve municipal infrastructure in eastern Europe
EBRD press release:
€18 million co-financing facility to promote municipal infrastructure projects
The Swedish International Development Cooperation Agency (Sida) and the EBRD are joining forces to reduce pollution and improve energy efficiency in municipalities across eastern Europe for the benefit of around three million people.
SIDA has pledged €18 million to support EBRD investments in environmental projects in municipalities through a newly-established three year co-financing facility for municipal and environmental infrastructure projects.
Funds from the new facility will be aimed for projects in the water supply, wastewater treatment, solid waste management and municipal district heating sectors in municipalities in the Western Balkans, Ukraine, Belarus, Moldova and Georgia.
Following years of under-investment, the municipal infrastructure in these countries remains inefficient and heavily reliant on financing from local government.
The Sida funds, used alongside the EBRD investments, will help municipal utilities in the region to reduce operation costs through improved cost control, healthier tariff systems, and reduced wastage, thus improving their autonomy.
As a result, the municipalities will improve the quality of provided services, bringing them closer to the EU standards, and will become more self-reliant and commercially sound. Up to 6 projects will be implemented through the EBRD-Sida co-financing facility, benefiting three million people in the region.
“Promoting sustainable use of natural resources and protection of the environment is a key purpose of the EBRD projects. This new co-financing facility, a continuation of our successful relationship with Sida, will help municipalities in the region approach EU standards of energy efficiency, while bringing significant benefits to the environment and citizens”, said EBRD President Thomas Mirow.
“Climate and environment is one of three priority themes in the Swedish Government’s general policy for development cooperation. Most of Sweden’s focus countries in eastern Europe are only in the early stages of a process which requires extensive support to introduce environment friendly and efficient technical systems along with institutional reforms. By combining forces with EBRD Sida is able to make interventions on a scale that otherwise would not have been possible,” said Anders Nordström, Director-General of Sida.
Sweden has a long-standing collaboration with the EBRD and is an important contributor to many EBRD projects. The value of the joint Swedish-EBRD investments to date is €4 billion.
Link:
€18 million co-financing facility to promote municipal infrastructure projects
The Swedish International Development Cooperation Agency (Sida) and the EBRD are joining forces to reduce pollution and improve energy efficiency in municipalities across eastern Europe for the benefit of around three million people.
SIDA has pledged €18 million to support EBRD investments in environmental projects in municipalities through a newly-established three year co-financing facility for municipal and environmental infrastructure projects.
Funds from the new facility will be aimed for projects in the water supply, wastewater treatment, solid waste management and municipal district heating sectors in municipalities in the Western Balkans, Ukraine, Belarus, Moldova and Georgia.
Following years of under-investment, the municipal infrastructure in these countries remains inefficient and heavily reliant on financing from local government.
The Sida funds, used alongside the EBRD investments, will help municipal utilities in the region to reduce operation costs through improved cost control, healthier tariff systems, and reduced wastage, thus improving their autonomy.
As a result, the municipalities will improve the quality of provided services, bringing them closer to the EU standards, and will become more self-reliant and commercially sound. Up to 6 projects will be implemented through the EBRD-Sida co-financing facility, benefiting three million people in the region.
“Promoting sustainable use of natural resources and protection of the environment is a key purpose of the EBRD projects. This new co-financing facility, a continuation of our successful relationship with Sida, will help municipalities in the region approach EU standards of energy efficiency, while bringing significant benefits to the environment and citizens”, said EBRD President Thomas Mirow.
“Climate and environment is one of three priority themes in the Swedish Government’s general policy for development cooperation. Most of Sweden’s focus countries in eastern Europe are only in the early stages of a process which requires extensive support to introduce environment friendly and efficient technical systems along with institutional reforms. By combining forces with EBRD Sida is able to make interventions on a scale that otherwise would not have been possible,” said Anders Nordström, Director-General of Sida.
Sweden has a long-standing collaboration with the EBRD and is an important contributor to many EBRD projects. The value of the joint Swedish-EBRD investments to date is €4 billion.
Link:
Wednesday 24 June 2009
VenGrowth sells Criterion Investments to First Asset
VenGrowth press release:
TORONTO, ONTARIO—(June 24, 2009) – VenGrowth Asset Management ("VenGrowth") and First Asset Capital Corp. ("First Asset") are pleased to announce that they have executed a definitive purchase and sale agreement whereby First Asset will acquire the mutual fund business of Criterion Investments ("Criterion"). First Asset will also retain a number of key employees, including Ian McPherson, President of Criterion.
The completion of the transaction, which is currently scheduled to occur on or about July 31, 2009, remains subject to certain conditions, including the approval of the unitholders of the funds, regulatory and third party approvals and other customary closing conditions. A meeting of unitholders has been scheduled for July 28, 2009.
Criterion has been at the forefront of unique investment strategies for Canadian retail investors in recent years, launching Canada’s first global water infrastructure fund, first global clean energy fund and first family of currency-hedged funds. Criterion’s investment philosophy is to offer investment solutions that can add value to portfolios in the form of thematic trends, portfolio risk mitigation or sought-after investment management talent.
Criterion will continue this tradition with First Asset, a provider of innovative, tax-effective investment vehicles including TSX-listed investment funds, mutual funds, principal-protected notes and flow-through limited partnerships.
“We look forward to building on the foundation that Ian McPherson and his team have laid by maintaining the Criterion brand, continuing to offer the existing line-up of funds and adding to the line-up through First Asset’s internal investment management expertise and through its deep relationships with a variety of top tier external investment management companies globally,” said Barry Gordon, President and CEO, First Asset.
"We are delighted to have agreed to terms that will enable Criterion to join a company of First Asset’s reputation and expertise,” said David Ferguson, VenGrowth Managing General Partner. “This will allow VenGrowth to dedicate itself fully to its private equity business while still participating in the future success of Criterion and First Asset through a minority equity interest resulting from the transaction."
Link:
TORONTO, ONTARIO—(June 24, 2009) – VenGrowth Asset Management ("VenGrowth") and First Asset Capital Corp. ("First Asset") are pleased to announce that they have executed a definitive purchase and sale agreement whereby First Asset will acquire the mutual fund business of Criterion Investments ("Criterion"). First Asset will also retain a number of key employees, including Ian McPherson, President of Criterion.
The completion of the transaction, which is currently scheduled to occur on or about July 31, 2009, remains subject to certain conditions, including the approval of the unitholders of the funds, regulatory and third party approvals and other customary closing conditions. A meeting of unitholders has been scheduled for July 28, 2009.
Criterion has been at the forefront of unique investment strategies for Canadian retail investors in recent years, launching Canada’s first global water infrastructure fund, first global clean energy fund and first family of currency-hedged funds. Criterion’s investment philosophy is to offer investment solutions that can add value to portfolios in the form of thematic trends, portfolio risk mitigation or sought-after investment management talent.
Criterion will continue this tradition with First Asset, a provider of innovative, tax-effective investment vehicles including TSX-listed investment funds, mutual funds, principal-protected notes and flow-through limited partnerships.
“We look forward to building on the foundation that Ian McPherson and his team have laid by maintaining the Criterion brand, continuing to offer the existing line-up of funds and adding to the line-up through First Asset’s internal investment management expertise and through its deep relationships with a variety of top tier external investment management companies globally,” said Barry Gordon, President and CEO, First Asset.
"We are delighted to have agreed to terms that will enable Criterion to join a company of First Asset’s reputation and expertise,” said David Ferguson, VenGrowth Managing General Partner. “This will allow VenGrowth to dedicate itself fully to its private equity business while still participating in the future success of Criterion and First Asset through a minority equity interest resulting from the transaction."
Link:
Equity Partners Infrastructure Company buys stake in Moto International Holdings
EPIC press release:
Equity Partners Infrastructure Company No. 1 Limited (EPIC) today announced it has agreed to acquire a 17.49% stake in Moto International Holdings Limited for a consideration of £19.7 million. The acquisition price represents an EV/EBITDA multipleof 10.3x 2008 pro-forma EBITDA.
Moto is the leading motorway service area (MSA) operator in the UK, with 64 sites and 38 per cent market share. Moto provides UK motorists with essential 24/7 refuelling services, parking and bathroom facilities as well as food and retail outlets. Moto operates under an established, stable regulatory regime which ensures motorists have access to adequate services at well located MSAs to maximise safety and prevent congestion.
According to EPIC Chairman, Mr Don Walker, “Moto’s investment profile represents significant value for our investors. We are impressed by Moto’s strong management team and their proven track record of business growth.“As part of our investment, and to ensure the alignment of our shareholders’ interests with that of Moto, EPIC will be represented on the board. We look forward to working with the team at Moto,” he said.
Mr George Kerr, Chairman of Equity Partners Asset Management said, “Since acquiring an interest in Thames Water we have looked at over 50 infrastructure investments, on behalf of EPIC. Moto is a stand-out opportunity for EPIC, particularlygiven the supportive regulatory regime. We are very happy with the acquisition.”
Link:
Equity Partners Infrastructure Company No. 1 Limited (EPIC) today announced it has agreed to acquire a 17.49% stake in Moto International Holdings Limited for a consideration of £19.7 million. The acquisition price represents an EV/EBITDA multipleof 10.3x 2008 pro-forma EBITDA.
Moto is the leading motorway service area (MSA) operator in the UK, with 64 sites and 38 per cent market share. Moto provides UK motorists with essential 24/7 refuelling services, parking and bathroom facilities as well as food and retail outlets. Moto operates under an established, stable regulatory regime which ensures motorists have access to adequate services at well located MSAs to maximise safety and prevent congestion.
According to EPIC Chairman, Mr Don Walker, “Moto’s investment profile represents significant value for our investors. We are impressed by Moto’s strong management team and their proven track record of business growth.“As part of our investment, and to ensure the alignment of our shareholders’ interests with that of Moto, EPIC will be represented on the board. We look forward to working with the team at Moto,” he said.
Mr George Kerr, Chairman of Equity Partners Asset Management said, “Since acquiring an interest in Thames Water we have looked at over 50 infrastructure investments, on behalf of EPIC. Moto is a stand-out opportunity for EPIC, particularlygiven the supportive regulatory regime. We are very happy with the acquisition.”
Link:
Infigen Energy acquiers Wind Energy Assets from Babock & Brown
Infigen Energy press release:
Infigen Energy (ASX:IFN) today advises that it has reached commercial agreement with Babcock & Brown International Pty Ltd (BBIPL) on the terms of the acquisition of its Australian and New Zealand wind energy project development assets, its US wind asset management business, and its minority interests in IFN’s existing wind farms in the US and Germany. The total consideration for these acquisitions is $23.5 million. Additional separation costs are still expected to be approximately $8 million.
Miles George, Managing Director said, “The acquisitions represent high quality assets and significantly add to the growth prospects and value of our operations in Australia and the US over the medium term. The acquisition of the Australian and New Zealand wind energy project development assets provides attractive options for continuing growth of our market leading Australian business, whilst the internalisation of the US asset management capability will enable us to capture further performance and cost improvements for our US wind farms, as well as providing
a platform for growth in third party service revenue. “In addition, the acquisition of the remaining minority interests in IFN’s wind farms previously held
by B&B will contribute approximately 20 MW of installed capacity and further consolidate the portfolio,” he said.
The Australian and New Zealand wind energy development assets are primarily 50% interests in development opportunities comprising more than 1000MW in four Australian states and in New Zealand, with a number of the projects located close to IFN’s existing Australian wind farms. The development opportunities have the potential to be delivered in the next 5 years. The majority of the remaining interests in the Australian wind energy development assets are owned by National Power Partners (“NPP”). FN is in advanced discussions with NPP and with the former B&B Australian and New Zealand wind energy development team to formalise the development joint venture arrangements.
The acquisition of the US wind energy asset management business will bring in-house the on-site and centralised wind farm management, regulatory compliance and accounting services for IFN’s US wind farms previously provided under contract by B&B. This business also services a range of other wind farm investors in the US, providing a potential source of third party revenue. “We are an active wind farm manager and completion of the acquisitions significantly enhances our ability to maximise returns for all securityholders,” Mr George said.
Regulatory approval for the acquisition of the Australian and New Zealand wind energy project development assets has been obtained. Legal documentation in relation to the acquisitions is substantially complete and signing and financial close is expected to occur prior to 30 June 2009 for all acquisitions (other than the acquisition of the Caprock wind farm which is subject to regulatory approval).
Link:
Infigen Energy (ASX:IFN) today advises that it has reached commercial agreement with Babcock & Brown International Pty Ltd (BBIPL) on the terms of the acquisition of its Australian and New Zealand wind energy project development assets, its US wind asset management business, and its minority interests in IFN’s existing wind farms in the US and Germany. The total consideration for these acquisitions is $23.5 million. Additional separation costs are still expected to be approximately $8 million.
Miles George, Managing Director said, “The acquisitions represent high quality assets and significantly add to the growth prospects and value of our operations in Australia and the US over the medium term. The acquisition of the Australian and New Zealand wind energy project development assets provides attractive options for continuing growth of our market leading Australian business, whilst the internalisation of the US asset management capability will enable us to capture further performance and cost improvements for our US wind farms, as well as providing
a platform for growth in third party service revenue. “In addition, the acquisition of the remaining minority interests in IFN’s wind farms previously held
by B&B will contribute approximately 20 MW of installed capacity and further consolidate the portfolio,” he said.
The Australian and New Zealand wind energy development assets are primarily 50% interests in development opportunities comprising more than 1000MW in four Australian states and in New Zealand, with a number of the projects located close to IFN’s existing Australian wind farms. The development opportunities have the potential to be delivered in the next 5 years. The majority of the remaining interests in the Australian wind energy development assets are owned by National Power Partners (“NPP”). FN is in advanced discussions with NPP and with the former B&B Australian and New Zealand wind energy development team to formalise the development joint venture arrangements.
The acquisition of the US wind energy asset management business will bring in-house the on-site and centralised wind farm management, regulatory compliance and accounting services for IFN’s US wind farms previously provided under contract by B&B. This business also services a range of other wind farm investors in the US, providing a potential source of third party revenue. “We are an active wind farm manager and completion of the acquisitions significantly enhances our ability to maximise returns for all securityholders,” Mr George said.
Regulatory approval for the acquisition of the Australian and New Zealand wind energy project development assets has been obtained. Legal documentation in relation to the acquisitions is substantially complete and signing and financial close is expected to occur prior to 30 June 2009 for all acquisitions (other than the acquisition of the Caprock wind farm which is subject to regulatory approval).
Link:
EQT Opportunity portfolio company filed for bankruptcy
EQT press release:
The Board of Directors of Bodilsen A/S (Bodilsen) has on June 23 filed for bankruptcy at the Bankruptcy Court in Holsterbro, Thisted office. Several attempts to avoid an insolvency situation in Bodilsen have been made but have not been successful. The business of Bodilsen has consequently been suspended.
Bodilsen was acquired in November 2006 for DKK 1 million by the EQT Opportunity Fund which focuses on special situations including turn-arounds. In connection with the change in ownership, EQT Opportunity injected approximately DKK 100 million while lenders wrote off DKK 190 million leaving around DKK 300 million of debt in the company.
Bodilsen was in severe distress at the time of acquisition by the EQT Opportunity Fund which nevertheless saw an opportunity to bring back Bodilsen to profitability. A number of measures to turn the company around were indentified. In 2008, EQT Opportunity Fund injected an additional DKK 36 million into the company, bringing the total to DKK 136 million.
Operations have been streamlined and made less complex. Bodilsen has deepened its commercial partnerships with major customers. There has been a significant reduction of fixed costs and subsidiaries in China, Estonia, UK and the US have been closed down, sold or scaled back. A shift towards the growing segment of pigmented furniture has been made, necessitating extensive investments.
Bodilsen has been loss-making since 2002 and although the size of the losses has been reduced, the company could not continue operating in its current financial structure.
However, the recent decline in demand due to the economic crisis has been sharper and faster than anticipated and in June, Bodilsen’s financial performance and capital structure became unsustainable. Attempts to reach a mutual agreement with the company's lenders for a financial reconstruction have been unsuccessful and the Board finally had no other option than to file for bankruptcy.
Bodilsen manufactures pigmented and solid wood flat-packed furniture. The company has operations in Northern Jutland, Denmark and has a staff of around 400 employees.
Full press release:
The Board of Directors of Bodilsen A/S (Bodilsen) has on June 23 filed for bankruptcy at the Bankruptcy Court in Holsterbro, Thisted office. Several attempts to avoid an insolvency situation in Bodilsen have been made but have not been successful. The business of Bodilsen has consequently been suspended.
Bodilsen was acquired in November 2006 for DKK 1 million by the EQT Opportunity Fund which focuses on special situations including turn-arounds. In connection with the change in ownership, EQT Opportunity injected approximately DKK 100 million while lenders wrote off DKK 190 million leaving around DKK 300 million of debt in the company.
Bodilsen was in severe distress at the time of acquisition by the EQT Opportunity Fund which nevertheless saw an opportunity to bring back Bodilsen to profitability. A number of measures to turn the company around were indentified. In 2008, EQT Opportunity Fund injected an additional DKK 36 million into the company, bringing the total to DKK 136 million.
Operations have been streamlined and made less complex. Bodilsen has deepened its commercial partnerships with major customers. There has been a significant reduction of fixed costs and subsidiaries in China, Estonia, UK and the US have been closed down, sold or scaled back. A shift towards the growing segment of pigmented furniture has been made, necessitating extensive investments.
Bodilsen has been loss-making since 2002 and although the size of the losses has been reduced, the company could not continue operating in its current financial structure.
However, the recent decline in demand due to the economic crisis has been sharper and faster than anticipated and in June, Bodilsen’s financial performance and capital structure became unsustainable. Attempts to reach a mutual agreement with the company's lenders for a financial reconstruction have been unsuccessful and the Board finally had no other option than to file for bankruptcy.
Bodilsen manufactures pigmented and solid wood flat-packed furniture. The company has operations in Northern Jutland, Denmark and has a staff of around 400 employees.
Full press release:
IDB: $120 million to Haiti for infrastrufture, basic services and disaster prevention
IDB press release:
The Board of Governors of the Inter-American Development Bank approved an allocation of $120 million in grants for 2010 to help Haiti make investments in key sectors such as infrastructure, basic services and disaster prevention.
The Board of Governors, which is formed by top officials from the IDB’s 48 member countries, substantially increased the resources available to Haiti. For 2009 they allotted $100 million in grants, up from $50 million in each of the previous two years.
IDB President Luis Alberto Moreno welcomed the governors’ decision, noting that among all member countries, Haiti was especially hit by last year’s hurricanes and the spikes in oil and food prices. “This is also a vote of confidence in the Haitian public sector, which has shown a growing capacity to put aid pledges into action,” Moreno said.
The IDB is readying projects totaling $100 million for Haiti that are due to be presented to its Board of Executive Directors over the next few months.
These projects will support Haiti’s efforts to boost public revenues and increase the efficiency and transparency in government spending as well as to improve roads, repair schools, expand water distribution in mid-size cities, reduce the risk of floods in priority watersheds and strengthen a child nutrition program.
The $120 million grant allocation for 2010 is expected to provide more funds for investments in transportation infrastructure, a second phase of the rehabilitation of the Péligre hydroelectric plant and the extension of water services in Port-au-Prince, among other priority activities.
The IDB is currently financing 22 projects in Haiti, with a total budget of $675 million. The portfolio of loans and grants is largely focused on infrastructure, agriculture, water and sanitation, electricity, education, vocational training, and state modernization.
Link:
The Board of Governors of the Inter-American Development Bank approved an allocation of $120 million in grants for 2010 to help Haiti make investments in key sectors such as infrastructure, basic services and disaster prevention.
The Board of Governors, which is formed by top officials from the IDB’s 48 member countries, substantially increased the resources available to Haiti. For 2009 they allotted $100 million in grants, up from $50 million in each of the previous two years.
IDB President Luis Alberto Moreno welcomed the governors’ decision, noting that among all member countries, Haiti was especially hit by last year’s hurricanes and the spikes in oil and food prices. “This is also a vote of confidence in the Haitian public sector, which has shown a growing capacity to put aid pledges into action,” Moreno said.
The IDB is readying projects totaling $100 million for Haiti that are due to be presented to its Board of Executive Directors over the next few months.
These projects will support Haiti’s efforts to boost public revenues and increase the efficiency and transparency in government spending as well as to improve roads, repair schools, expand water distribution in mid-size cities, reduce the risk of floods in priority watersheds and strengthen a child nutrition program.
The $120 million grant allocation for 2010 is expected to provide more funds for investments in transportation infrastructure, a second phase of the rehabilitation of the Péligre hydroelectric plant and the extension of water services in Port-au-Prince, among other priority activities.
The IDB is currently financing 22 projects in Haiti, with a total budget of $675 million. The portfolio of loans and grants is largely focused on infrastructure, agriculture, water and sanitation, electricity, education, vocational training, and state modernization.
Link:
Tuesday 23 June 2009
Canadian PPP Case Studies
The Canadian Council for Public-Private Partnerships published a new book with Canadian PPP Case Studies like Autoroute 30, Northwest Anthony Henday Drive, William R. Bennett Bridge, Abbotsford Regional Hospital & Cancer Centre and HIghway 407 ETR.
Link:
Link:
OCI Awarded Contracts worth US$ 168 million for Infrastructure Work in Egypt
Orascom Construction Industries (OCI) press release:
Orascom Construction Industries (OCI) announced today that its Construction Group has been awarded contracts for infrastructure work in Egypt valued at US$ 168 million.
OCI has been awarded a contract valued at US$ 128 million for construction work on section 5 of the new Cairo-Alexandria highway by the Egyptian Ministry of Transportation. The project includes all necessary paving and road construction works. OCI will be responsible for paving 34 km worth of roads between both cities. The road work includes two double level u-turns and two overhead bridges with four lanes each as well as two service roads with two lanes each. The project is expected to be completed during Q4 2011.
OCI has also been awarded a project valued at US$ 40 million for construction of the South Waste Water Treatment Plant in 6th of October City. The project was awarded by the Ministry of Housing, Utilities and Urban Development. The wastewater treatment plant will have a capacity of 100,000 m3 per day. OCI will be responsible for all construction work related to the project as well as the Operation and Maintenance (O&M) of the plant for a period of 12 months.
This is the second award for OCI in the field of waste water during the quarter. OCI in joint venture with Spainbased Aqualia was recently awarded Public Private Partnership (PPP) concession for the construction and operation of the New Cairo Waste Water Treatment Plant in a contract valued at US$ 470 million. The project is also expected for completion during Q4 2011.
Orascom Construction Industries Chief Executive Officer, Nassef Sawiris commented, “OCI continues to benefit from a vibrant pipeline of infrastructure opportunities in its key regional markets especially Egypt. Opportunities have been prevalent in transportation, energy, water and social infrastructure.”
Full press release
Orascom Construction Industries (OCI) announced today that its Construction Group has been awarded contracts for infrastructure work in Egypt valued at US$ 168 million.
OCI has been awarded a contract valued at US$ 128 million for construction work on section 5 of the new Cairo-Alexandria highway by the Egyptian Ministry of Transportation. The project includes all necessary paving and road construction works. OCI will be responsible for paving 34 km worth of roads between both cities. The road work includes two double level u-turns and two overhead bridges with four lanes each as well as two service roads with two lanes each. The project is expected to be completed during Q4 2011.
OCI has also been awarded a project valued at US$ 40 million for construction of the South Waste Water Treatment Plant in 6th of October City. The project was awarded by the Ministry of Housing, Utilities and Urban Development. The wastewater treatment plant will have a capacity of 100,000 m3 per day. OCI will be responsible for all construction work related to the project as well as the Operation and Maintenance (O&M) of the plant for a period of 12 months.
This is the second award for OCI in the field of waste water during the quarter. OCI in joint venture with Spainbased Aqualia was recently awarded Public Private Partnership (PPP) concession for the construction and operation of the New Cairo Waste Water Treatment Plant in a contract valued at US$ 470 million. The project is also expected for completion during Q4 2011.
Orascom Construction Industries Chief Executive Officer, Nassef Sawiris commented, “OCI continues to benefit from a vibrant pipeline of infrastructure opportunities in its key regional markets especially Egypt. Opportunities have been prevalent in transportation, energy, water and social infrastructure.”
Full press release
Monday 22 June 2009
Australian Infrastructure Fund raised $106m
AIX announces completion of institutional component of equity raising to raise approximately $106 million
Full press release:
Full press release:
Launch of Plenary Investment Management
The Premier of Victoria, John Brumby today launched Plenary Investment Management; a new funds management joint venture between Plenary Group and Pinnacle Investment Management.
Plenary Investment Management has been established to provide institutional investors with access to the growing pipeline of social infrastructure opportunities in Australia.
Mr Brumby said that social infrastructure was a key part of capital investment for all Governments, and Victoria was no exception.
“Projects like the new Melbourne Convention Centre – delivered as a PPP – are great examples of how PPPs are delivering vital, innovative and sustainable infrastructure projects.
“Victoria has led Australia in the development of a national market for PPPs and has developed a culture of public private collaboration. We are committed to continue to use the Partnerships Victoria framework to deliver social infrastructure projects for our state.”
Mr John O’Rourke, Principal, Plenary Group, said the new fund will be capped at A$500m and “seeded” with a diversified portfolio of existing Plenary Group assets.
“We are confident the fund will appeal to institutional investors who haven't been in a position to engage in resource intensive PPP bidding processes and/or had access to social infrastructure projects of sufficient size to warrant investment”, Mr O’Rourke said.
Social Infrastructure is proving to be an attractive option for private capital investment given its growing global pipeline and the surety of steady payment streams and long term returns.
“As a specialist social infrastructure business in the PPP sector we continue to build our portfolio to a significant scale both in our home market and in Canada where we have over $1.5 billion in hospital projects under development”, Mr O’Rourke said.
Plenary Group’s business model centres on creating long term equity value through the active management of assets at all key stages; through construction, commissioning and operations. In its five year history Plenary has retained the equity in its PPP assets. The portfolio is performing to expectations and is now providing predictable, inflation linked payment streams.
“The new fund is structured to allow investors access to long term opportunities that benefit from Plenary Group’s proven capacity to manage assets. At the same time it will enable Plenary to bid for the largest projects in the market”, Mr O’Rourke said.
Plenary Group will retain a majority position in Plenary Investment Management ensuring consistent management of assets through their lifecycle on behalf of fund investors and Governments.
Mr O’Rourke said he thought a key differentiator for Plenary Investment Management will be the way it will align the interests of Plenary with the interests of investors through low base fees, a commitment to be a cornerstone investor in the fund, and its focus on long term operational performance of the assets.
“We have put a lot of thought into overcoming some of the flaws that have been exposed in fund models in the economic infrastructure space”, he said.
The timing is good for our business having reached a point of critical mass and proven performance that co-incides with a pipeline of large scale projects and investor appetite for quality, predictable 25-30 year returns from the asset class.
Link:
Plenary Investment Management has been established to provide institutional investors with access to the growing pipeline of social infrastructure opportunities in Australia.
Mr Brumby said that social infrastructure was a key part of capital investment for all Governments, and Victoria was no exception.
“Projects like the new Melbourne Convention Centre – delivered as a PPP – are great examples of how PPPs are delivering vital, innovative and sustainable infrastructure projects.
“Victoria has led Australia in the development of a national market for PPPs and has developed a culture of public private collaboration. We are committed to continue to use the Partnerships Victoria framework to deliver social infrastructure projects for our state.”
Mr John O’Rourke, Principal, Plenary Group, said the new fund will be capped at A$500m and “seeded” with a diversified portfolio of existing Plenary Group assets.
“We are confident the fund will appeal to institutional investors who haven't been in a position to engage in resource intensive PPP bidding processes and/or had access to social infrastructure projects of sufficient size to warrant investment”, Mr O’Rourke said.
Social Infrastructure is proving to be an attractive option for private capital investment given its growing global pipeline and the surety of steady payment streams and long term returns.
“As a specialist social infrastructure business in the PPP sector we continue to build our portfolio to a significant scale both in our home market and in Canada where we have over $1.5 billion in hospital projects under development”, Mr O’Rourke said.
Plenary Group’s business model centres on creating long term equity value through the active management of assets at all key stages; through construction, commissioning and operations. In its five year history Plenary has retained the equity in its PPP assets. The portfolio is performing to expectations and is now providing predictable, inflation linked payment streams.
“The new fund is structured to allow investors access to long term opportunities that benefit from Plenary Group’s proven capacity to manage assets. At the same time it will enable Plenary to bid for the largest projects in the market”, Mr O’Rourke said.
Plenary Group will retain a majority position in Plenary Investment Management ensuring consistent management of assets through their lifecycle on behalf of fund investors and Governments.
Mr O’Rourke said he thought a key differentiator for Plenary Investment Management will be the way it will align the interests of Plenary with the interests of investors through low base fees, a commitment to be a cornerstone investor in the fund, and its focus on long term operational performance of the assets.
“We have put a lot of thought into overcoming some of the flaws that have been exposed in fund models in the economic infrastructure space”, he said.
The timing is good for our business having reached a point of critical mass and proven performance that co-incides with a pipeline of large scale projects and investor appetite for quality, predictable 25-30 year returns from the asset class.
Link:
Friday 19 June 2009
German High-Tech-PPP (Radar Satellite) completed
EADS astrium press release:
Friedrichshafen, 09 June 2009 – The German radar satellite TanDEM-X has been successfully completed by the space company Astrium in Friedrichshafen. The satellite has been developed in conjunction with the German Aerospace Centre (DLR).
- Testing to be undertaken in Munich - Launch from Baikonur in October
- Mapping of the Earth with innovative radar interferometer
- High-precision digital elevation model available as of 2012
Next week, the satellite, which is five metres long and weighs 1.3 tonnes, will be transported to Ottobrunn near Munich where it will undergo testing at Astrium’s and IABG’s test facilities. TamDEM-X will remain there until mid-September, where final checks will be conducted ahead of launch. It will then be transported to the Baikonur space centre (Kazakhstan) with lift-off aboard a Russian Dnepr launcher scheduled for October.
TanDEM-X will fly in tandem formation with the identical TerraSAR-X satellite for a period of two years, generating a digital elevation model of the Earth's land masses. By flying in close formation at distances of just a few kilometres to 200 metres apart, both satellites form a radar interferometer. Through this process the satellites will be able to provide radar images of unprecedented quality over the coming years.
As with the TerraSAR-X 'sister mission', the TanDEM-X project was implemented in a Public-Private Partnership (PPP) between Astrium GmbH and DLR. The PPP agreement provides TanDEM-X funding and data utilisation. Thus, the partners (DLR and Astrium) jointly financed the satellite to the total of approximately €85 million: €59 million was provided by DLR and €26 million by Astrium. Furthermore, DLR has developed the mission-relevant ground segment and is responsible for mission planning and implementation, as well as for the control of both satellites and the generation of the digital elevation model. Data exploitation for scientific purposes is coordinated by the DLR institute for high-frequency technology and radar systems. Infoterra GmbH (Friedrichshafen), a wholly owned subsidiary of Astrium, is exclusively responsible for commercial marketing.
...
EBRD promotes higher standards in public transport sector in Bulgaria
EBRD press release:
€6 million loan to renew bus fleet and launch e-ticketing in the city of Plovdiv
The EBRD is helping to raise the standards of public transport in Bulgaria providing financing for modern buses and an innovative e-ticketing system.
The bank is lending €6 million to Hebros Bus Ltd, the largest privately owned regional transport operator providing public transport services in Plovdiv and in southern Bulgaria.
The proceeds of the loan will be used to acquire 30 new buses running on natural gas. These will replace old diesel vehicles currently being used in Plovdiv. Hebros Bus will invest additional €1.3 million to build its own fuelling station for the new bus fleet and to refurbish two interurban bus stations.
While considerably cutting gas emissions, the new buses will help the company reduce operating costs by €500,000 annually, due to lower fuel and maintenance costs.
The Bank’s credit is complemented by grant funds from the Dutch government, which will help the city of Plovdiv introduce an innovative electronic ticketing system. The new system will make public transport more convenient to Plovdiv citizens. It will also increase transparency in the ticketing system and improve fare collection revenue.
To foster the modernisation of the public transport sector in Bulgaria, the EBRD will also help the city of Plovdiv implement an EU-compliant Public Service Contract for all public transport operators.
“With the EBRD support, Hebros Bus will become a model private operator in Bulgaria to provide services in accordance with EU environmental standards. This project will set new and improved standards in the Bulgarian passenger transport sector”, said James Hyslop, EBRD Director for Bulgaria.
“With the signing of the financing agreement with the EBRD, we set the beginning of a long term cooperation with the Bank for modernising transport services, hopefully not only in the city of Plovdiv, but elsewhere in the region. This project will help Hebros Bus develop into a modern European transport company”, commented Vesselin Doshkov, General Manager of Hebros Bus.
Since the beginning of its operations in Bulgaria, the EBRD has committed over €1.8 billion million in more than 120 projects in the financial services, corporate, infrastructure and energy sectors. Working with its many partners, the Bank has mobilised more than EUR 6.6 billion for projects in Bulgaria.
Calyon, financial adviser for a greenfield port terminal project in Ukraine
Calyon press release:
Calyon has been appointed as financial adviser by Frotora Holdings Ltd (the Sponsor), which is owned by Evraz and Revolution! Enterprises. This mandate’s aim is to provide financial advisory services with the aim of raising limited recourse finance for construction of a greenfield coal/iron ore port terminal in Ukraine.
The project consists of the construction, commissioning and operation of a 16 million tpa of iron ore, coal, coke and metal products port terminal. It will be adjacent to the port of Yuzhny near Adzhalyksky Estuary at the Black Sea, 42 km away from Odessa (Ukraine). There is a 65 ha back plot at the disposal of terminal and under conditions of its full development four moorages will be included there. It is anticipated to be loaded with bulk products exported/imported primarily by Evraz.
Evraz Group S.A. is one of the largest vertically-integrated steel, mining and vanadium businesses in the world. Revolution! Enterprises Limited is a privately owned company active in Ukraine.
Tenaska Selects Fluor as Engineering, Construction Firm for Trailblazer Energy Center In Texas
Taneska press release:
SWEETWATER, Texas – In a major step in development of the Tenaska Trailblazer Energy Center, Tenaska has selected Fluor Corporation (NYSE: FLR) as its engineering, procurement and construction (EPC) contractor for the next-generation advanced-technology power plant. Tenaska has signed a memorandum of understanding with Fluor that will be the basis of a joint Tenaska-Fluor limited engineering phase of work.
“Fluor is one of a select group of engineering and construction firms capable of designing, engineering and constructing a plant the scale of the proposed Trailblazer plant,” said Tenaska Engineering and Operations President and CEO Michael Lebens.
“Fluor is known and respected for its expertise and experience in building power plants across the globe and has experience both in coal-fueled facilities and in advanced carbon capture technology,” he said.
The proposed Tenaska Trailblazer Energy Center is expected to be the first conventional commercial coal-fueled power plant in the United States, and possibly worldwide, to produce electricity while designed to capture 85 to 90 percent of the carbon dioxide (CO2) emissions and providing for its use in enhanced oil recovery (EOR) and geologic storage. The plant’s advanced air quality control system will also minimize release of other emissions.
“The selection of Fluor represents another milestone in Trailblazer’s path toward becoming a revolutionary and state-of-the-art generator of needed electric energy in Texas,” said Lebens.
This engineering phase, to last approximately 12 months, will produce the preliminary design and the cost to build the plant. The results will be a factor in Tenaska’s final decision on whether to proceed with construction of the Trailblazer project. If Tenaska proceeds after this initial phase, Lebens said the company intends to sign a contract with Fluor for EPC services for the facility.
Fluor has delivered solid-fueled power plants ranging in unit size from 65 to 1,600 megawatts (MW) for decades. Trailblazer would produce approximately 600 MW of electricity, enough to supply power to approximately 600,000 homes. Fluor's experience covers all aspects of pulverized coal, including supercritical facilities like Trailblazer.
Although Tenaska’s final decision on Trailblazer construction will likely be made in 2010, the plant is in an advanced stage of development. Tenaska has acquired all necessary property and signed tax abatement agreements with Nolan County and the Nolan County Hospital District. Trailblazer has received a draft air permit from the Texas Commission on Environmental Quality (TCEQ) and has received a Screening Study from the Electric Reliability Council of Texas (ERCOT).
The Texas Legislature, in the session just concluded, helped advance the prospects for Trailblazer development by passing progressive incentives and a regulatory framework to attract capital-intensive clean energy projects to Texas, including a grant to help fund front end engineering and design (FEED) studies for carbon-capturing energy facilities.
Construction of Trailblazer, on a West Texas site east of Sweetwater, could begin as early as 2010, with operation in 2015. The CO2 captured by Trailblazer’s groundbreaking technology will be delivered via pipeline to the Permian Basin, where it will be used to increase oil production. CO2 has been used for EOR in Texas for more than 30 years to improve production and increase economic value. The CO2 Trailblazer would provide to the Permian Basin oil fields would increase annual production by more than 10 million barrels, enhancing the West Texas economy and helping reduce dependence on foreign oil.
“We look forward to working with Tenaska on the first phase of this next-generation power plant,” said Dave Dunning, president of Fluor’s Power Group. “We believe Trailblazer will set a new standard for clean coal generation of electricity globally by using advanced carbon capture technology, and we are pleased to be a part of this innovation in clean energy production.”
Thursday 18 June 2009
Coventry, Solihull and Warwickshire given £129 million boost to reduce landfill waste
Defra press release:
ffective waste management in the Coventry, Solihull and Warwickshire areas were given a boost as a local waste management partnership was awarded £129.1 million worth of Private Finance Initiative (PFI) credits earlier this month.
Project Transform, a partnership project between the three local authorities, will help divert up to 427,000 tonnes of biodegradable municipal waste (BMW) from landfill per annum by 2020.
The project could see a reduction of approximately 34,500 tonnes of CO2 emissions, compared with the current scheme, equal to taking 10,800 cars off the road for a year. In addition, this project is expected to create more than 250 jobs during construction.
Each local authority involved is committed to long-term minimum recycling and composting rates of over 50 per cent by 2020.
Brookfield Infrastructure Closes $200 Million Credit Facility
Brookfield press release:
Hamilton, Bermuda, June 17, 2009 – Brookfield Infrastructure Partners L.P. (the “Partnership”) (NYSE: BIP) today announced that Brookfield Infrastructure L.P. (together with its subsidiaries, “Brookfield Infrastructure”) has closed a $200 million revolving credit facility with a syndicate of global financial institutions. The credit facility, which replaces the facility that was previously in place, is comprised of a single tranche that will be available for investments and acquisitions, as well as general corporate purposes.
“With this credit facility and the proceeds from the sale of TBE, we believe that we have ample capacity to take advantage of opportunities that we see in the current market place,” said John Stinebaugh, Chief Financial Officer of Brookfield Infrastructure.
Commitments under the facility will be available on a revolving basis until June 16, 2010. All amounts outstanding at that time will be repayable in full on June 16, 2011.
Hastings: Australian Infrastructure Fund Capital Initiatives
The Board of Australian Infrastructure Fund Limited together with Hastings Funds Management Limited as Manager and Responsible Entity of the Australian Infrastructure Fund Trust (together “AIX”) today announced a series of capital initiatives, comprising an underwritten accelerated non-renounceable pro-rata entitlement offer (the “Offer”) and the establishment of a new debt facility (“New Standby Debt Facility”). The capital initiatives will reduce overall gearing and significantly enhance AIX’s financial flexibility, with the repayment of all currently drawn corporate level debt.
The net proceeds from the Offer will be used to fully repay and cancel the Multi Option Facility (“MOF”) which is drawn to $159.5 million as at the date of this announcement and fund organic growth initiatives in the existing Australian airport portfolio.
The capital initiatives consist of:
• A 1 for 2 fully underwritten accelerated non-renounceable pro-rata entitlement offer to raise $211 million at an offer price of $1.10 per security (the “Offer Price”). The underwriters are Credit Suisse (Australia) Limited and Deutsche Bank AG, Sydney branch
• Repayment and cancellation of the existing MOF
• A credit approved $30 million New Standby Debt Facility with a 2-year term (undrawn)
• Alignment of distribution policy with cash flows received from portfolio assets
The impact of these capital initiatives is expected to reduce AIX’s fund weighted average pro-forma gearing to 34.4% from 43.7%, based on net debt and enterprise value as at 31 December 2008.
Mr Jeff Pollock, Chief Executive Officer of AIX, said, “the capital initiatives announced today are a complete fund level capital solution and will provide a platform for further growth.”...
Full press release:
The net proceeds from the Offer will be used to fully repay and cancel the Multi Option Facility (“MOF”) which is drawn to $159.5 million as at the date of this announcement and fund organic growth initiatives in the existing Australian airport portfolio.
The capital initiatives consist of:
• A 1 for 2 fully underwritten accelerated non-renounceable pro-rata entitlement offer to raise $211 million at an offer price of $1.10 per security (the “Offer Price”). The underwriters are Credit Suisse (Australia) Limited and Deutsche Bank AG, Sydney branch
• Repayment and cancellation of the existing MOF
• A credit approved $30 million New Standby Debt Facility with a 2-year term (undrawn)
• Alignment of distribution policy with cash flows received from portfolio assets
The impact of these capital initiatives is expected to reduce AIX’s fund weighted average pro-forma gearing to 34.4% from 43.7%, based on net debt and enterprise value as at 31 December 2008.
Mr Jeff Pollock, Chief Executive Officer of AIX, said, “the capital initiatives announced today are a complete fund level capital solution and will provide a platform for further growth.”...
Full press release:
Wednesday 17 June 2009
Macquarie Power & Infrastructure Income Fund Exercises Accordion Feature under Credit Facility
Macquaire press release:
TORONTO, ONTARIO (June 17, 2009) – Macquarie Power & Infrastructure Income Fund(TSX: MPT.UN; MPT.DB – “MPT” or the “Fund”) today announced that it has partiallyexercised the accordion feature in its existing credit facility to add $20 million of capacity toits facility.
As previously announced on May 19, 2009, the Fund established a credit facility in the aggregate amount of $162.5 million, comprised of a $121.9 million term facility and a $40.6million revolving facility, under which $85 million is currently drawn. The credit facility containsan accordion feature, which permits the Fund to increase the size of the credit facility up to anaggregate of $200 million, subject to securing additional commitments from existing or newlenders. The credit facility matures in June 2012.
“The support of the lending community is a vote of confidence in the stability of MPT’sbusinesses,” said Michael Bernstein, the Fund’s interim President and Chief Executive Officer.“The partial exercise of the accordion further enhances our capacity to pursue growthopportunities that will build long-term value for our unitholders.”
Unison: A Critical Examination of PFI
Unison published a critical document about PFI:
Reclaiming the Initiative - putting the public back into PFI
The report catalogues how ever-growing billions of public money has become locked into financing massively expensive PFI schemes. The Government has committed taxpayers, for a generation to come, to a bill of more than £217bn worth of repayments between now and 2033/34 on just £64bn of PFI projects. PFI’s reliance on the private sector was supposed to give public building programmes more rigour and strength but, as the union’s latest report - “Putting the Public Back into PFI” – shows, in reality it has exposed them to greater hazards and weaknesses. Public projects have been tainted by private failure
Hochtief: EUR 632 million contract on seven PPP schools in Australia
Hochtief press release:
Financial close reached - Leighton-led consortium to design, finance buildand operate facilities for 30 years
A consortium led by Leighton Contractors, a company of HOCHTIEF’s subsidiary Leighton, has achieved financial close for a PPP project in Australia: Aspire Schools, as theconsortium is called, will design, finance and build seven schools in the state of Queensland and operate them for a period of 30 years. The client is Queensland’s Department ofEducation and Training. The contract volume amounts to approximately EUR 632 million (AUD 1.1 billion).
Leighton Contractors leads the consortium that will realize six primary schools and one highschool within the framework of a public-private partnership model. Design and constructionare in the hands of Broad Construction Services, a subsidiary of Leighton Contractors. Theworks will be completed by 2014. Afterwards, Leighton Services will take over operation andmaintenance of the buildings. In Queensland, the project will create up to 2,150 new jobs inthe construction phase alone.
Tasmania Greens: New Sustainable Infrastruture Fund
Tasmania Greens party press release:
The Tasmanian Greens today responded to the State Budget by outlining a vision for Tasmania as a global leader in a carbon constrained world, investing in intergenerational infrastructure and skilling the Tasmanian work force in low emissions technology.
Greens Leader and Treasury spokesperson Nick McKim MP launched the Greens’ Sustainable Infrastructure Fund initiative during his Budget Reply speech, announcing that the entire funds generated by the sale of TOTE Tasmania would be quarantined to invest in projects that have intergenerational value for the Tasmanian community.
Mr McKim also reiterated the Fiscal Strategy that was launched in the Greens’ Alternative Budget Statement last week, which adopted a revised position of maintaining the State Budget in surplus on a six-year rolling average basis.
“In contrast to the Bartlett government, which has failed to position Tasmania to take responsibility for its own future in a carbon-constrained world and to generate its own well-being, the Greens are prepared to take responsibility for its own future instead of relying on federal funds,” Mr McKim said.
Launching the Sustainable Infrastructure Fund
“The Greens today announce that we would invest the entire funds generated by the sale of TOTE into a fund that would invest in building Tasmania for the future that we all know is coming.”
“The Greens’ Sustainable Infrastructure Fund would invest in projects that have intergenerational value, and will be useful for our children, and their children.”
“While the Bartlett government aims to use the TOTE a sale funds for pre-election pork barrelling, the Greens would quarantine that money for investment in the future.”
“Key social priorities that the Greens would prioritise funding from the Sustainable Infrastructure Fund are purchasing the rail network from Asciano, invigorating our cities, and invest in a future Hobart hospital fund.”
Mr McKim also announced that the Greens would redirect some government Budget allocations for roads into public transport and freight rail.
21st Century Transport Solutions: Redirect Road Funding into Public Transport and Rail
“For too long Tasmanian taxpayers’ money has been thrown at new roads while public transport and 21st century transport solutions have been underfunded or ignored completely.”
“The Greens would identify immediate savings of $5.4 million this year, and $100 million over the forward estimates, by deferring or not proceeding with some of Labor’s carbon intensive road projects.”
The Greens’ 21st Century Transport Solutions proposal would:
- Install seatbelts in every school bus in Tasmania, to make our children safer.
- Invest in Park and Ride facilities at Kingston, we can revolutionise transport into town for the people from the Southern suburbs and beyond.
- Invest in passenger light rail, proceeding with feasibility studies and construction in Hobart’s northern suburbs and along the north-west coast.
- Modernising Tasmania’s bus fleet.
- Cycling infrastructure
Tuesday 16 June 2009
Hastings Diversified Utilities Fund: Further expansion of the South West Queensland pipeline
Hastings announcement:
Epic Energy secures conditional agreement with Origin Energy to underpin further expansion of the South West Queensland Pipeline and QSN Link
Hastings Funds Management Limited (Hastings) as Responsible Entity for HDF today advised that Epic Energy (“Epic”) has signed a conditional long term Gas Transmission Agreement (“GTA”) with Origin Energy (“Origin”) to underpin the proposed Stage 3 expansion of the South West Queensland Pipeline (“SWQP”) and QSN Link (which would incorporate the capacity to be provided under the Stage 2 expansion). The overall agreement includes a conditional long term GTA on Epic’s Moomba to Adelaide Pipeline (“MAPS”)...
Link
Epic Energy secures conditional agreement with Origin Energy to underpin further expansion of the South West Queensland Pipeline and QSN Link
Hastings Funds Management Limited (Hastings) as Responsible Entity for HDF today advised that Epic Energy (“Epic”) has signed a conditional long term Gas Transmission Agreement (“GTA”) with Origin Energy (“Origin”) to underpin the proposed Stage 3 expansion of the South West Queensland Pipeline (“SWQP”) and QSN Link (which would incorporate the capacity to be provided under the Stage 2 expansion). The overall agreement includes a conditional long term GTA on Epic’s Moomba to Adelaide Pipeline (“MAPS”)...
Link
Monday 15 June 2009
Allianz acquires wind farm in France
Allianz press release:
Allianz has acquired the operational Les Cent Jalois wind farm from project developer Eurowind. Located in the Aisne department in Northern France close to the village of Autremencourt, the wind farm utilizes Nordex N90 LS 100 2.5 MW wind turbines and has a rated capacity of 12 MW.
EBRD supports modernisation of retail sector in Albania
EBRD press release:
€24 million loan to build the largest shopping centre in the country
The EBRD plans to raise standards and boost competition in the Albanian retail sector with credits worth €24 million to build the country’s biggest shopping centre.
The proceeds of the loan will help Tirana East Gate, a wholly owned subsidiary of one of the leading real estate companies in Albania, Mane TCI, an affiliate of Balkan Finance Investment Group (Balfin), to develop and construct a modern family-oriented retail and entertainment centre in Lundër, Farka County, 5 km south-east of Tirana.
With a leasable area of 39,000 square meters, as well as parking spaces for over 1600 cars, the new shopping centre will be the largest western-style mall in Albania.
Addressing the high demand for modern shopping centres, this project will generate greater competition and promote high-quality standards in the Albanian retail sector. Construction of the new mall will also create new jobs and contribute to modernisation of Tirana’s suburban area.
The EBRD financing consists of a €17 million senior loan and a mezzanine loan of €7 million, which will strengthen the capital structure of the project and support the Albanian retail sector in the current crisis time, where the availability of long term financing is scarce.
“We are pleased to support the development of modern retail facilities in Albania. The East Gate shopping mall will bring a new, higher-quality shopping experience and help transform Tirana’s suburbs into modern hubs. This transaction also proves that the Albanian commercial infrastructure sector is robust and able to accommodate innovative financing tools in the current tight credit market”, said Sylvia Gansser-Potts, Director of the Property & Tourism Team at the EBRD.
“We appreciate the EBRD’s commitment to the project and to the company, and are proud to continue our successful relationship with the Bank. Being able to raise financing and attract investors is a great feat in the current economic climate. The Albanian retail market is still in its infancy, and we are very excited about bringing more new brands to the consumers of Albania. Tirana East Gate will be bigger and better than our main shopping centre QTU, currently the market leader in the country”, said Samir Mane, President and CEO of the Balfin Group.
Since the beginning of its operations in Albania the EBRD has committed €450 million in more than 30 projects in infrastructure, corporate, energy and financial sectors, which attracted additional investments of €945 million.
Press contact:
Ina Coretchi, London - Tel: +44 20 7338 7874; E-mail: coretchi@ebrd.com
Saturday 13 June 2009
3i Group joins FTSE100
3i press release:
The FTSE Group (“FTSE”) confirms today that global private equity firm 3i Group will be joining the FTSE 100.
The changes to the indices take place following FTSE’s UK Index Series quarterly review, which is carried out by the independent FTSE Europe, Middle East and Africa Regional Committee. The regular index reviews ensure the indices remain an accurate reflection of the market they represent which is essential, as they form the basis of many pension fund’s and investment portfolios.
All changes from this review take effect from the start of trading on Monday 22nd June 2009.
For further information please contact:
Press team, 3i,
email. prteam@3i.com
tel. +44 (0)20 7975 3558
Link
The FTSE Group (“FTSE”) confirms today that global private equity firm 3i Group will be joining the FTSE 100.
The changes to the indices take place following FTSE’s UK Index Series quarterly review, which is carried out by the independent FTSE Europe, Middle East and Africa Regional Committee. The regular index reviews ensure the indices remain an accurate reflection of the market they represent which is essential, as they form the basis of many pension fund’s and investment portfolios.
All changes from this review take effect from the start of trading on Monday 22nd June 2009.
For further information please contact:
Press team, 3i,
email. prteam@3i.com
tel. +44 (0)20 7975 3558
Link
EBRD and Kazakhstan to cooperate on rail sector reform
EBRD press release:
Bank, Kazakh national rail company sign Memorandum of Understanding
The EBRD and the Kazakh national rail company, Kazakhstan Temir Zholy (KTZ), have agreed to work together to support the country’s efforts to reform its railways sector, in order to improve competitiveness.
A Memorandum of Understanding signed by EBRD President Thomas Mirow and KTZ CEO Askar Mamin on the sidelines of the Foreign Investors Council meeting in Kostanai, will facilitate the further development, financing and implementation of a Rail Reform Strategy in the next five years, which is currently being developed by KTZ.
The EBRD and KTZ will work together to identify priority projects eligible for EBRD financing, with the aim of increasing efficiency, strengthening corporate governance and transparency, improving regulations and tariffs and encouraging competition in the freight segment.
The Bank will also seek to mobilise grant financing for technical cooperation assistance.“The EBRD has long identified improving the railways sector as one of its priorities for Kazakhstan, as key to unlocking its full economic potential, enhancing efficiency and promoting sustainable growth for the country,” President Mirow said at a signing ceremony in Kazakhstan’s northern city of Kostanai on the sidelines of the Foreign Investors Council.
"The reform strategy for the railway sector in the coming five years is very important for our company. For us it is also very significant that an authoritative institution such as the EBRD is our strategic partner in the implementation of projects within this strategy," KTZ CEO Askar Mamin said.
KTZ is a national multi-purpose transport holding and an operator of the main railway network. It is integrated in the global transport system and it provides a sustainable and competitive development of the Kazakh economy.
Press contact:
Bojana Todorovska, London - Tel: +44 20 7338 6940; E-mail: todorovb@ebrd.com
Link
Bank, Kazakh national rail company sign Memorandum of Understanding
The EBRD and the Kazakh national rail company, Kazakhstan Temir Zholy (KTZ), have agreed to work together to support the country’s efforts to reform its railways sector, in order to improve competitiveness.
A Memorandum of Understanding signed by EBRD President Thomas Mirow and KTZ CEO Askar Mamin on the sidelines of the Foreign Investors Council meeting in Kostanai, will facilitate the further development, financing and implementation of a Rail Reform Strategy in the next five years, which is currently being developed by KTZ.
The EBRD and KTZ will work together to identify priority projects eligible for EBRD financing, with the aim of increasing efficiency, strengthening corporate governance and transparency, improving regulations and tariffs and encouraging competition in the freight segment.
The Bank will also seek to mobilise grant financing for technical cooperation assistance.“The EBRD has long identified improving the railways sector as one of its priorities for Kazakhstan, as key to unlocking its full economic potential, enhancing efficiency and promoting sustainable growth for the country,” President Mirow said at a signing ceremony in Kazakhstan’s northern city of Kostanai on the sidelines of the Foreign Investors Council.
"The reform strategy for the railway sector in the coming five years is very important for our company. For us it is also very significant that an authoritative institution such as the EBRD is our strategic partner in the implementation of projects within this strategy," KTZ CEO Askar Mamin said.
KTZ is a national multi-purpose transport holding and an operator of the main railway network. It is integrated in the global transport system and it provides a sustainable and competitive development of the Kazakh economy.
Press contact:
Bojana Todorovska, London - Tel: +44 20 7338 6940; E-mail: todorovb@ebrd.com
Link
Friday 12 June 2009
Brookfield Infrastructure Partners sell Brazilian Transmission Investments
Brookfield Infrastructure Partners published following press release:
Hamilton, Bermuda, June 11, 2009 –Brookfield Infrastructure Partners L.P. (the “Partnership”, and along with its related entities, “Brookfield Infrastructure”) (NYSE: BIP) today announced that it has received approval from BNDES to complete the previously announced sale of Brookfield Infrastructure’s minority interests in a group of five related Brazilian transmission investments (“TBE”). BNDES is the Brazilian development bank, which is the lender to TBE. Closing of the sale is expected to occur on or about June 30, 2009.
For more information, please contact:
Tracey Wise
Vice-President, Investor Relations & Communications
Brookfield Asset Management Inc.
Tel: 416-956-5154
Email: twise@brookfield.com
Link
Hamilton, Bermuda, June 11, 2009 –Brookfield Infrastructure Partners L.P. (the “Partnership”, and along with its related entities, “Brookfield Infrastructure”) (NYSE: BIP) today announced that it has received approval from BNDES to complete the previously announced sale of Brookfield Infrastructure’s minority interests in a group of five related Brazilian transmission investments (“TBE”). BNDES is the Brazilian development bank, which is the lender to TBE. Closing of the sale is expected to occur on or about June 30, 2009.
For more information, please contact:
Tracey Wise
Vice-President, Investor Relations & Communications
Brookfield Asset Management Inc.
Tel: 416-956-5154
Email: twise@brookfield.com
Link
Thursday 11 June 2009
Infrastructure ETFs
There are several Infrastructure ETFs on the market:
Macquarie Global Infrastructure 100 Index
- Ishares FTSE/Macquarie Global Infrastructure 100 ETF
- SPDR FTSE/Macquarie Global Infrastructure 100 ETF
S&P Global Infrastructure Index
NMX Infrastructure Indices
Palisades Water Index
F2i AND AXA Private Equity Partners buy 80% of the share capital of Enel Rete Gas SpA
• The agreement provides for the sale of 80% of the share capital of Enel Rete Gas SpA, a 99.88% owned subsidiary of Enel Distribuzione SpA, to F2i and AXA Private Equity, for a consideration of 480 million euros. • Conclusion of the agreement is subject to approval by the Antitrust Authority, to approval by the Regulatory Authority for Electricity and Gas of the Distribution and Metering Tariffs for 2009 and to the signing of a financing agreement between Enel Rete Gas and a pool of banks. • The transaction, which is part of the programme to optimise the Enel Group’s portfolio of subsidiaries, corresponds to a total Enel Rete Gas Spa’s valuation in line with the Regulated Asset Base (RAB) and will reduce Enel’s consolidated net financial debt by over 1.2 billion euros, taking into account the deconsolidation of the debt of Enel Rete Gas.
Rome, 29 May 2009 – Further to the green light of the Board of Directors of Enel SpA (“Enel”), which met yesterday under the chairmanship of Piero Gnudi, an agreement has been reached between Enel and F2i SGR SpA (“F2i”) and AXA Private Equity (“AXA Private Equity”) for the disposal of 80% of the share capital of Enel Rete Gas SpA (“Enel Rete Gas” or the “Company”), a 99.88% owned subsidiary of Enel Distribuzione SpA (“Enel Distribuzione”), by means of a vehicle where F2i will own 75% of the capital and Axa Private Equity 25%.
Enel Rete Gas is the subsidiary of the Enel Group operating in the distribution of natural gas in Italy, with a market share of about 12% in terms of the amount of gas distributed, with more than 2 million users connected to the grid and approximately 3.6 billion cubic meters of gas distributed to more than 1,200 municipalities in 2008. Last year, Enel Rete Gas generated revenues of 307.1 million euros, an operating profit equal to 63.4 million euros and a net profit of 17.3 million euros, with 1,289 employees at 31 December 2008.
The proposed consideration for the 80% of the share capital of Enel Rete Gas is 480 million euros and implies an enterprise value for 100% of the Company (including debt and other liabilities) in line with the Regulated Assets Base (“RAB”).
The transaction foresees that, before the closing, Enel Rete Gas will distribute dividends and reserves to Enel Distribuzione for a consideration of approximately 245 million euros. The offer envisages that the consideration for the sale will be paid in two tranches of 240 million euros each, through bidders’ equity for 170 million euros and a vendor loan granted by Enel to the bidders for 70 million euros at an annual interest rate of 8.25% and maturity in 2017. Payment of the first tranche is envisaged at the closing of the agreement, whereas the second tranche with interests (equivalent to Euribor + 100 basis points) is expected to be paid by 28 December 2009. The above-mentioned consideration is subject to a price adjustment on the basis of (i) the RAB of Enel Rete Gas determined by the Regulatory Authority for Electricity and Gas (“AEEG”) for the 2009 Tariffs and (ii) the Company’s net financial position at closing.
Enel Distribuzione will have a call option on the 80% of the share capital of Enel Rete Gas, from 2014 (when the five-year lock up period that applies to both Enel Distribuzione and the bidders expires) until 2018, at a strike price that takes into account the fair market value of the stake. At the end of the lock up period, parts will assess the opportunity to float the Enel Rete Gas’ shares on the Stock Exchange.
Completion of the transaction, envisaged for the summer of 2009, is subject to approval by the Antitrust Authority, to approval of the AEEG Distribution and Metering Tariffs for 2009 and to the signing of a financing agreement for an amount of 1,025 million euros between Enel Rete Gas and a pool of banks, which are already committed. The purpose of the financing is the repayment of existing bank and intra-group debt foreseen at closing, the capital expenditures plan of Enel Rete Gas, the working capital needs and the payment of the above-mentioned capital distribution by the Company.
The transaction is part of the programme to optimise the Enel Group’s portfolio of subsidiaries, as announced to the market in connection with the guidelines for the 2009-2013 business plan. The transaction will reduce Enel’s consolidated net financial debt by over 1.2 billion euros, taking into account the deconsolidation of the debt of Enel Rete Gas.
Fulvio Conti, Enel’s Chief Executive Officer and General Manager, commented: “With this transaction we are taking an important step forward in the disclosed programme of portfolio optimization. The sale of the 80% equity stake in Enel Rete Gas, along with other on-going transactions, such as, in particular, the rights issue, will allow the Enel Group to reduce the Group’s debt, after having become one of the main operators in the energy sector worldwide after the completion of the Endesa acquisition".
Vito Gamberale, F2i Chief Executive Officer and Mathias Burghardt, AXA Private Equity’s Head of Infrastructure, said: “This transaction alongside Enel is a perfect evidence of F2i and Axa Private Equity’s strategy to take part in the development of energy distribution networks and of networks in general, in Italy and Europe. The investment requirements in this sector are massive and this transaction is a very good example of successful cooperation between long term financial investors and industrial operators”.
Rome, 29 May 2009 – Further to the green light of the Board of Directors of Enel SpA (“Enel”), which met yesterday under the chairmanship of Piero Gnudi, an agreement has been reached between Enel and F2i SGR SpA (“F2i”) and AXA Private Equity (“AXA Private Equity”) for the disposal of 80% of the share capital of Enel Rete Gas SpA (“Enel Rete Gas” or the “Company”), a 99.88% owned subsidiary of Enel Distribuzione SpA (“Enel Distribuzione”), by means of a vehicle where F2i will own 75% of the capital and Axa Private Equity 25%.
Enel Rete Gas is the subsidiary of the Enel Group operating in the distribution of natural gas in Italy, with a market share of about 12% in terms of the amount of gas distributed, with more than 2 million users connected to the grid and approximately 3.6 billion cubic meters of gas distributed to more than 1,200 municipalities in 2008. Last year, Enel Rete Gas generated revenues of 307.1 million euros, an operating profit equal to 63.4 million euros and a net profit of 17.3 million euros, with 1,289 employees at 31 December 2008.
The proposed consideration for the 80% of the share capital of Enel Rete Gas is 480 million euros and implies an enterprise value for 100% of the Company (including debt and other liabilities) in line with the Regulated Assets Base (“RAB”).
The transaction foresees that, before the closing, Enel Rete Gas will distribute dividends and reserves to Enel Distribuzione for a consideration of approximately 245 million euros. The offer envisages that the consideration for the sale will be paid in two tranches of 240 million euros each, through bidders’ equity for 170 million euros and a vendor loan granted by Enel to the bidders for 70 million euros at an annual interest rate of 8.25% and maturity in 2017. Payment of the first tranche is envisaged at the closing of the agreement, whereas the second tranche with interests (equivalent to Euribor + 100 basis points) is expected to be paid by 28 December 2009. The above-mentioned consideration is subject to a price adjustment on the basis of (i) the RAB of Enel Rete Gas determined by the Regulatory Authority for Electricity and Gas (“AEEG”) for the 2009 Tariffs and (ii) the Company’s net financial position at closing.
Enel Distribuzione will have a call option on the 80% of the share capital of Enel Rete Gas, from 2014 (when the five-year lock up period that applies to both Enel Distribuzione and the bidders expires) until 2018, at a strike price that takes into account the fair market value of the stake. At the end of the lock up period, parts will assess the opportunity to float the Enel Rete Gas’ shares on the Stock Exchange.
Completion of the transaction, envisaged for the summer of 2009, is subject to approval by the Antitrust Authority, to approval of the AEEG Distribution and Metering Tariffs for 2009 and to the signing of a financing agreement for an amount of 1,025 million euros between Enel Rete Gas and a pool of banks, which are already committed. The purpose of the financing is the repayment of existing bank and intra-group debt foreseen at closing, the capital expenditures plan of Enel Rete Gas, the working capital needs and the payment of the above-mentioned capital distribution by the Company.
The transaction is part of the programme to optimise the Enel Group’s portfolio of subsidiaries, as announced to the market in connection with the guidelines for the 2009-2013 business plan. The transaction will reduce Enel’s consolidated net financial debt by over 1.2 billion euros, taking into account the deconsolidation of the debt of Enel Rete Gas.
Fulvio Conti, Enel’s Chief Executive Officer and General Manager, commented: “With this transaction we are taking an important step forward in the disclosed programme of portfolio optimization. The sale of the 80% equity stake in Enel Rete Gas, along with other on-going transactions, such as, in particular, the rights issue, will allow the Enel Group to reduce the Group’s debt, after having become one of the main operators in the energy sector worldwide after the completion of the Endesa acquisition".
Vito Gamberale, F2i Chief Executive Officer and Mathias Burghardt, AXA Private Equity’s Head of Infrastructure, said: “This transaction alongside Enel is a perfect evidence of F2i and Axa Private Equity’s strategy to take part in the development of energy distribution networks and of networks in general, in Italy and Europe. The investment requirements in this sector are massive and this transaction is a very good example of successful cooperation between long term financial investors and industrial operators”.
Link: Enel press release
Macquarie Global Infrastructure Total Return Fund Declares Regular Quarterly Distribution
NEW YORK--(BUSINESS WIRE)--Macquarie Global Infrastructure Total Return Fund Inc. (NYSE: MGU - News) (the “Fund”) declared today a regular quarterly distribution for the period ending June 30, 2009 of $0.16 per share.
Based on the Fund’s net asset value (“NAV”) of $15.49 and New York Stock Exchange closing market price of $12.76 on June 10, 2009, the $0.16 per share distribution is equal to an annualized distribution rate of 4.13% at NAV and 5.02% at market price, respectively.
Mr. Justin Lannen, Co-Portfolio Manager of the Fund, said: “As credit and equity markets begin what we expect to be a slow recovery, the Fund has started to benefit from the long-term valuation opportunities in global infrastructure securities that were created by the volatile markets of the last 18 months. Throughout this period, the infrastructure assets owned and/or operated by the Fund’s holdings have generated mostly predictable and reliable cash flows and their operational performance has generally met our expectations.”
A portion of the distributions may be treated as paid from sources other than net income, including but not limited to short-term capital gain, long-term capital gain and return of capital. The final determination of the source of all distributions in 2009, including the percentage of qualified dividend income, will be made by the Fund after December 31, 2009.
This distribution will be payable on June 30, 2009 to shareholders of record on June 22, 2009, with an ex-dividend date of June 18, 2009.
Contact:
Investor/Broker Enquiries
1-800-910-1434
mgu-questions@macquarie.com
www.macquarie.com/mgu
or
Media Inquiries
Macquarie Group
Paula Chirhart, 1-212-231-1310
Corporate Communications
EPA announces almost $257 million in Recovery Act funds for water infrastructure projects
EPA announces almost $257 million in Recovery Act funds for water infrastructure projects in Illinois to boost economy, create jobs and protect public health
CHICAGO (May 27, 2009) - In a move that stands to create jobs, boost local economies, improve aging drinking water and wastewater infrastructure and protect human health and the environment for people in the State of Illinois, the U.S. Environmental Protection Agency (EPA) has awarded almost $257 million to the Illinois Environmental Protection Agency. This new infusion of money provided by the American Recovery and Reinvestment Act of 2009 will help the state and local governments finance many of the overdue improvements to water projects that are essential to protecting public health and the environment across the state.
"EPA is pleased to provide almost $257 million in Recovery Act funds for much needed improvements to Illinois' aging drinking water and waste water infrastructure, including sewer systems," said Bharat Mathur, Acting Regional Administrator. "This money will protect human health and improve water quality while helping to create good jobs in the state."
The Recovery Act funds will go to the state's Clean Water and Drinking Water State Revolving Funds programs.
The Clean Water State Revolving Fund program will receive $177,243,100. It provides low-interest loans for water quality protection projects for wastewater treatment, non-point source pollution control, and watershed management. The Drinking Water State Revolving Fund program will receive $79,538,000. It provides low-interest loans for drinking water systems to finance infrastructure improvements. The program also emphasizes providing funds to small and disadvantaged communities and to programs that encourage pollution prevention as a tool for ensuring safe drinking water.
An unprecedented $6 billion dollars will be awarded to fund water and wastewater infrastructure projects across the country under the Recovery Act in the form of low-interest loans, principal forgiveness and grants. At least 20 percent of the funds provided under the Recovery Act are to be used for green infrastructure, water and energy efficiency improvements and other environmentally innovative projects.
President Obama signed the American Recovery and Reinvestment Act of 2009 on February 17, 2009, and has directed that the Recovery Act be implemented with unprecedented transparency and accountability. To that end, the American people can see how every dollar is being invested at Recovery.gov.
Information on EPA's implementation of the American Recovery and Reinvestment Act of 2009 visit http://www.epa.gov/recovery
CHICAGO (May 27, 2009) - In a move that stands to create jobs, boost local economies, improve aging drinking water and wastewater infrastructure and protect human health and the environment for people in the State of Illinois, the U.S. Environmental Protection Agency (EPA) has awarded almost $257 million to the Illinois Environmental Protection Agency. This new infusion of money provided by the American Recovery and Reinvestment Act of 2009 will help the state and local governments finance many of the overdue improvements to water projects that are essential to protecting public health and the environment across the state.
"EPA is pleased to provide almost $257 million in Recovery Act funds for much needed improvements to Illinois' aging drinking water and waste water infrastructure, including sewer systems," said Bharat Mathur, Acting Regional Administrator. "This money will protect human health and improve water quality while helping to create good jobs in the state."
The Recovery Act funds will go to the state's Clean Water and Drinking Water State Revolving Funds programs.
The Clean Water State Revolving Fund program will receive $177,243,100. It provides low-interest loans for water quality protection projects for wastewater treatment, non-point source pollution control, and watershed management. The Drinking Water State Revolving Fund program will receive $79,538,000. It provides low-interest loans for drinking water systems to finance infrastructure improvements. The program also emphasizes providing funds to small and disadvantaged communities and to programs that encourage pollution prevention as a tool for ensuring safe drinking water.
An unprecedented $6 billion dollars will be awarded to fund water and wastewater infrastructure projects across the country under the Recovery Act in the form of low-interest loans, principal forgiveness and grants. At least 20 percent of the funds provided under the Recovery Act are to be used for green infrastructure, water and energy efficiency improvements and other environmentally innovative projects.
President Obama signed the American Recovery and Reinvestment Act of 2009 on February 17, 2009, and has directed that the Recovery Act be implemented with unprecedented transparency and accountability. To that end, the American people can see how every dollar is being invested at Recovery.gov.
Information on EPA's implementation of the American Recovery and Reinvestment Act of 2009 visit http://www.epa.gov/recovery
Wednesday 10 June 2009
PFI in school building – does it influence educational outcomes?
KPMG published a report where they asked if PFI influences student achievement and motivation.
The main findings of the report are:
Full report
The main findings of the report are:
- The rate of improvement in educational attainment is 44 percent faster in schools rebuilt using PFI than those rebuilt conventionally.
- Unauthorised absence in schools rebuilt using PFI is reducing, whereas in a comparable set of conventional schools it is increasing. Unauthorised absence seems to be an indication of lack of student motivation, which is often argued to make a major contribution to student performance.
Full report
Queensland wants to sell Infrastructure Assets
QR sale WILL PROTECT PASSENGER SERVICES AND CAPITAL BUILDING JOBS
Premier Anna Bligh has said the sale of Queensland Rail’s non passenger assets will protect the State’s capital building program and thousands of jobs from the worst effects of the global financial crisis.
Ms Bligh said the sale means passenger service assets will stay in Government hands while the sale of QR coal, freight and other assets will contribute more than $7 billion to state coffers.
"It also means the Queensland taxpayer will not have to contribute an estimated $7 billion in future capital expenditure on QR infrastructure," said the Premier.
"Of that money around $500 million would have been used to build rail infrastructure outside of Queensland as part of the company’s interstate freight business.
"Now, more than ever, we need these jobs and this money at home as we continue to create jobs with the largest capital building program in Australia.
"We will retain in Government ownership and control all passenger rail assets in our State."
The Premier said that passenger rail services played an increasingly important part in the role of Government.
"Passenger rail is an essential public service and public services cannot be run solely to make a profit," she said.
"We will not only retain control of Queensland Rail’s passenger services but we commit to restructuring and improving these services in the years to come.
"The sale of these QR assets is the right thing to do and now is the right time to do it," said Premier.
"It means Government can concentrate on delivering world class passenger rail services and continue to build the roads, rail, schools and hospitals that Queensland needs.
"The global financial crisis has driven a $14 billion locomotive through State finances and the QR sale will contribute to repairing that damage.
"This will make a massive contribution to restoring our AAA credit rating and keeping the Queensland economy strong."
Treasurer Andrew Fraser said the sale means projects such as the $800 million Darra to Springfield Transport Corridor and the $324 million Robina to Varsity Lakes Rail Extension will be finished.
"These projects alone are creating around 6000 jobs and our record capital building program is creating many thousands more," he said.
Mr Fraser said the sale of QR assets would not include passenger services in any way.
"We are retaining control of passenger services and we will be able to continue to invest in new services, new trains and new infrastructure because of this sale," he said.
"In the long term, a privatised Queensland Rail would be a stronger more sustainable business that will continue to grow and create jobs in Queensland.
"Qantas Airways has expanded its workforce by 24% since privatising in 1995 because it became a stronger and bigger business. The same can happen with a new QR.
"This is the right time to sell because these QR assets need investment to grow and the private sector can make that investment to allow QR to reach its great potential."
Monday 8 June 2009
EBRD invests $100 million in Macquarie Renaissance Infrastructure Fund
A press released by the European Bank for Reconstruction and Development (EBRD):
Fund to target projects in Russia, Ukraine, Kazakhstan and other CIS countries
The European Bank for Reconstruction and Development is investing up to 100 million USD in the first infrastructure fund being set up to target projects mainly in Russia, Kazakhstan and Ukraine, three countries where the EBRD’s cumulative investments in this particular sector of the economy already amount to nearly 4.5 billion USD.
The EBRD announcement at the annual St. Petersburg Economic Forum follows a decision by the supervisory board of Russia’s state-owned Vnesheconombank to invest 200 million USD in the Macquarie Renaissance Infrastructure Fund.
The other key stakeholders in this new fund are the International Finance Corporation (IFC), the private sector lending arm of the World Bank, and Kazyna Capital Management JSC, a subsidiary of Kazakhstan’s sustainable development fund.
The fund’s founding partners and future managers, Macquarie, a global leader in infrastructure finance, and Renaissance Group, a Russia-based financial services provider, are each contributing 50 million USD. VEB’s decision completes the line-up of the fund's cornerstone investors.
The fund will in the current crisis have a crucial role to play in modernising vital infrastructure in the three largest economies of the former Soviet Union, as well as other countries of the Commonwealth of Independent States (CIS), by making up for the dearth of credit from traditional sources of finance, EBRD President Thomas Mirow said.
This is an innovative use of private equity to finance infrastructure in the CIS region and it underlines the EBRD’s long-term commitment to what is one of the top priorities for all these states, as well as the Bank’s determination to pursue this goal together with experienced private investors despite the dark economic outlook, Mr. Mirow added.
In the transport and municipal infrascture segments alone, the EBRD has to date invested over 3.2 billion Euros in the three countries named, broken up as follows:
• Kazakhstan -- 420 million Euros
• Russia -- 1.960 million Euros
• Ukraine -- 850 million Euros
Under the fund rules, at least 50 percent of total commitments will be in Russia. The fund will limit its exposure to no more than 25 percent of total commitments in any other CIS country, but its non-Russian investments will mainly target Ukraine and Kazakhstan. The Fund’s target size is around 1 billion USD.
The fund’s equity investments will mainly focus on roads, airports, ports, electricity and gas distribution networks, heating networks, communications infrastructure, rail networks, water and sewerage utilities, as well as social infrastructure. Transport deals are expected to account for the bulk of the fund’s investments.
How Infrastructure Investments Support the U.S. Economy:
This study released by the Alliance for American Manufacturing (AAM) claims that about 18,000 new jobs would be created for every $1 billion in new infrastructure spending.
AAM Study
AAM Study
OECD: The Role of Communication Infrastructure Investment in Economic Recovery
Telecommunication infrastructure is increasingly recognised as basis for economic and social development. Telecommunication can improve efficiency. This paper argues that one needs to analyse the costs and advantages of public investments in telecommunication infrastructure and select projects which can achieve strong prompt demand effects.
OECD Study
OECD Study
Pension Consulting Alliance (PCA) Newsletter and Reports
PCA publishes a newsletter and reports about infrastructure:
PCA Research
PCA Research
Thursday 4 June 2009
Regional PPP Databases and Information
Many countries / regions have their own PPP database or there are specialised regional PPP webpages.
Australia:
IPFA
Canada:
PPP Council
Europe:
CREAM EuroPPP (Mainly Eastern Europe)
India:
PPP India
PPP India Database
Ireland
Irish Government PPP
Israel:
PPPs in Israel
Germany:
PPP-Platform
Switzerland:
PPP Schweiz
UK:
Partnerships UK
PPP Forum
Australia:
IPFA
Canada:
PPP Council
Europe:
CREAM EuroPPP (Mainly Eastern Europe)
India:
PPP India
PPP India Database
Ireland
Irish Government PPP
Israel:
PPPs in Israel
Germany:
PPP-Platform
Switzerland:
PPP Schweiz
UK:
Partnerships UK
PPP Forum
Wednesday 3 June 2009
Infrastructure Online Magazines
There are several magazines online about infrastructure and project finance. These can be recommended:
infra-news.com (Charged service)
infrastructurejournal.com (Charged service)
projectfinancemagazine.com (Partly free)
pfie.com (Partly free)
infra-news.com (Charged service)
infrastructurejournal.com (Charged service)
projectfinancemagazine.com (Partly free)
pfie.com (Partly free)
Tuesday 2 June 2009
J.P. Morgan Infrastructure Survey
This report includes a survey of infrastructure investors. They asked how investors classify infrustructure, where they invest in infrastructure, what type of infrastructure investments are of greatest interest...:
J.P. Morgan Next Generation Alternative Investing Report (Page 19)
J.P. Morgan Next Generation Alternative Investing Report (Page 19)
Monday 1 June 2009
OECD: Pension Fund Investment in Infrastructure
Theoretical basis about infrastructure and the question if pension funds should invest in infrastructure:
Pension Fund Investment in Infrastructure - Georg Inderst
Pension Fund Investment in Infrastructure - Georg Inderst
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