September 2013 Issue

    Month: September
    Year: 2013

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    PPP round-up

    In this regular section of the magazine, we take a look at the key public-private partnership developments from around the world over the last month.

    ‘Cost of equity shootouts’: Not for us

    Complicated structures, tight timetables, extensive financing needs…all things that will restrict the field of bidders. And that suits QIC just fine, insists Matina Papathanasiou.

    Looking beneath the surface

    The infrastructure investor base is changing in significant ways. Ritesh Prasad and Perry Clausen of Colonial First State Global Asset Management explore the trends.

    Game change: technological innovation in infrastructure

    Jeffrey Altman delves deep into how various technologies are changing the business models for many sectors.

    Powering ahead

    With sales of existing assets as well as new developments, Oman is worth a second look according to Sohail Barkatali and Derek Kirton of Chadbourne & Parke.

    Brazil’s logistics programme at a glance

    The country plans to spend more than $121bn – together with the private sector – to modernise its logistics network over the next decades. Bruno Alves breaks down spending by sectors.

    The great logistics push

    The Brazilian government outlined a whopping $121bn infrastructure programme late last year to overcome a 30-year logistics deficit. Bruno Alves finds out how recent protests have affected investor interest.

    Taking the lead

    As much as he would like to avoid the description, there is no getting around it – when it comes to public-private partnerships, Virginia is a national leader. Tony Kinn, Director of the Office of Transportation Public-Private Partnerships (OTP3), tells Kalliope Gourntis how the US state got to the head of the class.

    How has the role of private fund groups changed?

    Jennifer Band of Evercore examines the increasing importance of a strong advisory function.

    India’s uphill battle

    Infrastructure funds in India are finding it harder to justify their existence in an environment that increasingly favours direct investments. Michelle Phillips reports.

    Raising GPs

    The biggest players in the infrastructure debt space are not raising funds, they are putting together management teams. Bruno Alves reports.

    Will the numbers exceed the need?

    In the US, fundraising amounts and LP allocations both offer hints that infrastructure is in favour with institutions. But is too much faith being placed in future deal flow? Chris Glynn explores.

    The fee squeeze

    Despite strong interest in the asset class, infrastructure fundraising does not appear to be taking off. In part this reflects enthusiasm for low-cost options, reports Andy Thomson.

    Big beasts, comebacks and the best assets

    This month our readers tell us that only established players can raise big funds, argue that the European project bond market is not much good without projects, and give the thumbs-up to GDP-linked assets.

    Private finance appetite ‘could significantly worsen’

    The government taking equity stakes is one of the reasons why John Laing has reservations about the UK’s new PF2 model. Derek Potts explains why, and also discusses the firm’s renewable energy push.

    Slow transport lags behind

    Traditionally, the two main infrastructure sectors - energy and transport – have seen roughly equal levels of deal activity. But our second-quarter league tables show all the money gravitating to energy.

    The renewables headache

    Governments across Europe are still struggling with the cost of renewables, with Germany the latest country to emit worrying signals.

    Private capital’s forceful friend

    John Ryan of Greengate thinks unfunded pension liabilities could be the key to making private capital investment in US infrastructure acceptable.

    Detrocalypse now

    Detroit is closer to a booby trap than a jackpot. P3 advocates should tread lightly.

    Departure time

    America is slowly but surely taking its cue from Europe on airport PPPs, even if the same handicaps to privatisation remain. Chris Glynn reports.

    Seeking an identity

    The infrastructure asset class lacks standardisation in many respects. Investors, it seems, are not quite sure what to make of it.

    AC toilets? There’s a PPP for that

    A group of returned expatriates in Surat has partnered with local government to operate and maintain 12 toilet blocks.

    All in a good cause

    This October, Team PEI will be running London’s Royal Parks half-marathon. Even a plodding Infrastructure Investor Editor has been persuaded to take part.

    There’s a buzz around this deal

    The contract for the Isle of Wight Highways PFI is being revisited – with a view to protecting wildlife.