June 2011 Issue


    Month: June
    Year: 2011

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    The Infrastructure Investor 30: 2011

    We are pleased to announce this year’s ranking of the top 30 investors in the infrastructure asset class – the second we have undertaken. Devising the ranking requires rules, judgment and a willingness to dive into the grey areas of a multi-faceted asset class.

    Deal flow will never run dry

    A New York investment firm is busy educating investors on the opportunity in water. Alexandra Atiya meets its co-founders to find out more

    False starts and fading interest

    Despite bursts of activity, Central and Eastern Europe has failed to embrace PPPs wholeheartedly. Bruno Alves wonders if the region is falling out of love with the model altogether

    Great expectations

    St. Petersburg was seen as the brightest star of the Russian PPP firmament, but the global financial crisis dimmed its light. Now that liquidity has returned to Russian banks and the worst of the crisis has passed, Bruno Alves sees the city finally starting to live up to its full potential

    Why shale will drive scale

    What impact will the dramatic increase in shale gas reserves have on the power project finance market in the US? Keith Larson of Hogan Lovells provides answers

    The retail opportunity

    Roy Kuo looks at the role of infrastructure within investment portfolios, and the importance of being able to access infrastructure through listed vehicles

    Russian PPPs: caught between the state and privatisation

    Pavel Brusser of Gazprombank looks at the particular approach to public-private partnerships in Russia, where state control is not easily relinquished

    The rise of the independents

    A changing-of-the guard between banks and fund managers, a cross-town rivalry and the rapid ascent of Australian and Canadian pensions are some of the stories embedded in this year’s Infrastructure Investor 30, Cezary Podkul finds

    Why does hedging get short shrift?

    Infrastructure funds often fail to prioritise hedging when negotiating deals, resulting in hidden exposures and inflexible structuring. John Rathbone, chairman of J.C.Rathbone Associates, a pioneer in PPP/PFI hedging advice, discusses this and other key issues.

    ‘These people will try to bully us’

    Political risk is a key concern cited by those keen to invest in US infrastructure, and Harrisburg has been the scene of a colourful stand-off between public and private parties over what should happen to the city’s parking garages.

    Who’s afraid of Basel III?

    New banking regulations are raising the spectre of costlier debt and an end to long-term lending. But the impact of Basel III may vary greatly from one bank to another.

    Prosperity amid austerity

    The UK government’s tough stance on PFI is not necessarily punishing investors in the space.

    Holding GPs liable for slack procurement

    The EU/IMF bailout of Portugal hints at a new type of risk for investors: be ‘complicit’ with investment programmes of dubious fiscal soundness and you may be made to pay a price further down the line.

    No shocks here

    An Actis deal in the electricity sector will assist Guatemala’s growing reputation as an attractive home for capital.

    At the front of the queue

    Infrastructure funds looking to run the PR 22 and PR 5 toll roads in the US territory of Puerto Rico are preparing final bids.

    A safe pair of hands

    That’s how London-listed investment group 3i wants to be seen in the infrastructure space - an impression that will soon be put to the test with fundraising on the agenda. Andy Thomson meets with Cressida Hogg and Neil King to find out more about the firm’s plans in developed markets and India

    Is there such a thing as ‘core’ infrastructure?

    The launch of Alinda’s latest fund will provide a litmus test for the distinction between ‘core’ and ‘value-added’ infrastructure assets.

    Moving through the gears

    Morgan Stanley and Isolux Corsan’s new India joint venture coincides with rapidly increasing car ownership in the country.

    Parking space available

    Three Spanish developers have divested non-core car park businesses to infrastructure funds.

    The middle men are being sidelined

    The BAM/PGGM arrangement is the latest sign of sophisticated pension capital gravitating towards developers rather than GPs.

    A whole new climate

    With long-term investments likely to be affected by changing weather patterns, infrastructure investors need to start hinking about the associated risks. By Cliff Warman of Marsh

    Pushing at an open door

    Has the ‘refinancing wall’ lost some of its power to intimidate? Andy Thomson reports on strong bond and bank appetite for many infrastructure assets.

    No smoke without ire

    Cigarette users are up in arms at an airport’s decision to cash in on their habit.

    PPPs take a walk on the wild side

    The world’s first zoo PPP gives rise to some interesting questions about the nature of risk and contractual obligations.