Global Competitive Insights Infrastructure November 2011

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Global Competitive Insights (GCI) are monthly reports, which discuss the latest activities taking place in a particular sector, across the globe. The reports are published with an objective of providing all the latest and relevant information to the readers in a concise format.



The objective of GCI reports is to keep the readers abreast with the developments in the concerned sectors, while saving their time and resources in compiling all the data and extracting information of it.

In order to book your subscription, please visit www.indalytics.com

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Global Competitive Insights Infrastructure November 2011

  1. 1. Investment Trends Africa and Middle East November 2011 Indalytics Advisors Infrastructure November 2011 Page 1 © 2011, Indalytics Advisors© 2011, Indalytics Advisors Private Limited I www.indalytics.com I gci@indalytics.com
  2. 2. Global Competitive Insights Infrastructure November 2011About Global Competitive InsightsGlobal Competitive Insights (GCI) are monthly reports, which discuss the latest activities taking place ina particular sector, across the globe. The reports are published with an objective of providing all thelatest and relevant information to the readers in a concise format.The objective of GCI reports is to keep the readers abreast with the developments in the concernedsectors, while saving their time and resources in compiling all the data and extracting information of it.The reports are ideal for: Organizations / CEOs who want to know the latest developments in the sector to find opportunities Consulting firms / Consultants who want to know the latest trends and opportunities that are taking shape in the sector Analysts / Market research firms who track the sector for their end clients Other readers who follow the sector for updating their knowledgeIn order to book your annual subscription of GCI report, please mail us at gci@indalytics.com, orsubscription@indalytics.com, or visit us at www.indalytics.com Page 2 © 2011, Indalytics Advisors
  3. 3. Global Competitive Insights Infrastructure November 2011 in the country. The investments will also helpIn this Report China in getting the resources, required to fuel its economic growth.October 2011 issue of Global CompetitiveInsights Infrastructure discusses the China is further expected to invest infollowing latest developments, which havetaken place in the infrastructure sector China will be investing its resources in theglobally. country to build approximately 50,000 homes in next four years, which would be worth US$5 billion. Bahrain is expected to witness increase in Chinese investments as the China Investing in Other Countries political turmoil in the MENA region is settling down, and the member countries are coming up with investor-friendly policies to attract foreign investment.State-owned Chinese Development Bank isinfrastructure sector. The bank has signed amemorandum of understanding with the New Indian Infrastructure Sector ShowingZealand arm of PricewaterhouseCoopers to Promising Future despite Slow Growthinvest in Christchurch reconstructionprojects. Besides Christchurch, the bank willalso be investing in the NZ$2.4 billion Indian infrastructure sector has witnessed a(US$1.97 billion) inner-city rail loop and slow growth rate in August 2011. The eightsecond harbor crossing in Auckland, and core industries, which make up the Indianother infrastructure projects related to infrastructure sector, witnessed an annualproperty including roads, bridges and growth of 2.3% in September 2011 from abuildings. year ago, as against annual growth of 3.7% in August 2011. The eight core industries which comprise of coal, crude oil, natural gas,China is also investing US$2.5 billion in South refinery products, fertilizers, steel, cement and electricity factory output, and the slowdown in theirpartner, is looking to invest in projects such growth is seen due to tighter monetary policyas energy, roads and other bulk infrastructure Page 3 © 2011, Indalytics Advisors
  4. 4. Global Competitive Insights Infrastructure November 2011by the government of India, which has led to generate approximately 50,000 jobs per year,decrease in demand. over the next 20 years.Despite the slow growth, private equity fund, Canada will be investing approximately CA$2 million (US$2 million) through transportinfrastructure sector. The fund, which has Canada, on the Wabush airport. Theover 15 investments, and US$2.8 billion government will be spending the amount ondeployed in the country, is focusing on the roof restoration for air terminal andpower sector. In last one and a half years, the maintenance buildings, and South Airportfund has made investments in Visa Power, Terminal Parking upgrade.Monnet Power and US$300 million in Moserso far in India by the fund. India Easing Regulations for Infrastructure Sector Canada Expected to Invest in Infrastructure central bank, Reserve Bank of India (RBI) has allowed Indian infrastructure companies to raise Chinese Yuan- infrastructure sector possesses denominated debt. The debt can be raisedinvestment opportunities in near future. through the approval route, subject to anAccording to economists, as the country is annual cap of US$1 billion, pending furtherexpected to have an infrastructure deficit of review. Further, according to the guidelines,more than CA$300 billion (US$302.3 billion), the approval will be valid for a period of threethere will be opportunity for private firms to months from the date of issue of the approvalenter the sector under the public private letter, and the loan has to be executed withinpartnership. The Canadian Imperial Bank of the same period.Commerce is also working with the federalgovernment to launch energy mega-projects,which can help create jobs in the country. RBI has also relaxed permissions for IndianCanada is expected to spend approximately infrastructure companies. Companies withCA$180 billion (US$181.4 billion) in the oil minimum direct foreign equity of up to 25%,sands and C$50 billion (US$50.4 billion) in the and indirect foreign equity of up to 51%, willpower sector over the next decade. This will now be able to raise fund overseas, throughinclude development in the oil sands, external commercial borrowing, withoutpipelines, power generating stations and government permission. The cap of ECBtransmission lines, and will help the country issued by RBI is up to US$5 million. Page 4 © 2011, Indalytics Advisors
  5. 5. Global Competitive Insights Infrastructure November 2011 Companies Reacting to Increasing Another African nation, Ghana, has invited Need for Infrastructure both local as well as foreign investors having technical or financial capacities to invest in couGrowing need for infrastructure has led to government has recently completed the Mining Sector Support Program, being fundedGerman industry conglomerate Siemens AG; by the European Commission, and hasfourth business unit starting October 1, 2011. discovered some new minerals such asWith around 87,000 employees, the unit has phosphate, nickel, chromium, copper lead, zinc and uranium. As the local mining andfive divisions: Rail Systems, Mobility andLogistics, Low and Medium Voltage, Smart exploration firms lack the financial and technical expertise to carry on theGrid, and Building Technologies. exploration process on a large scale, the government is inviting foreign players to enter the market. Africa Inviting Countries to Invest in Infrastructure Investments Happening in MENA Region despite Political TurmoilThe African Development Bank (AfDB) hasapproved an 8.5-year senior loan for US$45million to the Emerging Africa Infrastructure Middle East and North Africa (MENA)Fund (EAIF). The loan will be used by EAIF tofinance its investment commitments and region is witnessing increased investment in infrastructure. Financing of the first public-support private sector infrastructure projects private-and infrastructure-related companies in sub- wastewater sector has been completed by aSaharan Africa. EAIF, has already approvedover 30 transactions in the region, and has consortium led by Samsung Engineering. With Invest AD and United Utilities as partners ofinfrastructure projects worth approximately Samsung Engineering, the MuharraqUS$500 million in its portfolio. It had earlier Wastewater Treatment Plant, involves areceived a senior loan of US$31.25 millionand a US$12.5 million standby loan facility greenfield 100,000 m3/day wastewater treatment plant and a 15 kilometers deepfrom AfDB in 2009. The funding is done from gravity sewer conveyance system under ana joint pool of AfDB, Austrian Development availability based concession structure. TheBank and the International FinanceCorporation, which amounts to a total of Capital, which arranged a US$22 millionUS$105 million. financing solution for 22 years through its teams in the UAE and South Korea. Page 5 © 2011, Indalytics Advisors
  6. 6. Global Competitive Insights Infrastructure November 2011Qatar is also expected to invest expressway (US$27 million), a 3-lane highwayapproximately US$80-100 billion by 2016 in in Barwa City, and the Najma road.infrastructure in order to prepare itself forthe 2022 FIFA World Cup. The government Egyptian private equity firm Citadel Capitalis planning to invest approximately US$45 will be funding a five-year project to improvebillion budget for developing the countrys rail transport links between Kenya and Uganda.and road networks, including US$824 million The firm will invest US$234 million in Riftfor 13 large infrastructure projects across the Valley Railways, which operates 2,352 km ofcountry through its Public Works Authority, track linking the Indian Ocean Kenyan port ofAshghal. The projects include the Lusail Mombassa to the Ugandan capital Kampala,Highway (US$687 million), the Dukhan for a 25-year concession period. The fundingHighway (US$300 million), the Doha will be a mix of both new debt, as well as equity. Page 6 © 2011, Indalytics Advisors
  7. 7. Investment Trends Africa and Middle East November 2011Organizations Mentioned in this ReportAfrican Development Bank Macquarie CapitalAustrian Development Bank Monnet PowerBlackstone Moser BaerCanadian Imperial Bank of Commerce PricewaterhouseCoopersChinese Development Bank Reserve Bank of IndiaCitadel Capital Samsung EngineeringInternational Finance Corporation Siemens AGInvest AD United Utilities Visa Power Page 7 © 2011, Indalytics Advisors
  8. 8. Investment Trends Africa and Middle East November 2011DisclaimerThe information contained in this report is of a general nature and is not intended to address any particular roper care has been taken to provide accurate and timelyinformation, there can be no guarantee that such information is accurate as of the date it is received or that it willcontinue to be accurate in the future. Indalytics Advisors Private Limited does not guarantee that the informationcontained in this report is authentic and reliable. No one should act upon such information without appropriateprofessional advice after a thorough examination of the particular situation.In order to book your annual subscription of Global Competitive insights, mail us at gci@indalytics.com, orsubscription@indalytics.com, or visit us at www.indalytics.com. Publication Volume: GCI-11-011 Publication Date November 2011 © 2011 Indalytics Advisors Private Limited For further information, please contact gci@indalytics.com Page 8 © 2011, Indalytics Advisors

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