Globeleq, lead partner in the Temane Energy Consortium (TEC), and Electricidade de Mocambique (EDM) have signed a joint development agreement for the 400MW Temane gas-fired power project in Mozambique.
To date, Temane has been developed by EDM and Sasol New Energy Holdings (Sasol), with EDM holding 51% and Sasol 49% in the project. TEC will take a 60% stake in EDM’s shareholding of the local SPV company, with EDM holding the remaining 40%. The project will supply power to EDM through a 25-year tolling agreement using natural gas supplied from the Pande-Temane fields operated by Sasol and state-owned ENH.
Fitch Ratings says Spain's 9GW new renewable energy tendered capacity to be commissioned by end-2019 will face merchant risk as the renewable projects will mostly operate under merchant conditions with regulatory support being limited to the implicit pool price floor.
Fitch claims regulatory support will be lower for new projects than for existing renewable energy assets, only benefiting from an implicit floor price, which we perceive as volatile and complex. With current market prices, the system would not have to compensate the new projects, and the only remuneration required will be for merchant sales. Therefore the leverage of project-financed renewable energy projects in Spain will be substantially lower than before.
Fitch expects the development of the power purchase agreements (PPA) market to play an important role in this new framework, although it may not be able to absorb all the new capacity.
The government of Maharashtra is planning to auction around 2GW of solar capacity in two tranches by August 15. The decision follows a 1GW auction in May in which the lowest bid was INR2.71 per kWh ($0.04/kWh) - Adani Green Energy’s Mahoba Solar (UP) won 200MW, and French developer Technique Solar got 20MW, both at INR2.71/kWh.
Macquarie Infrastructure and Real Assets (MIRA) has appointed Peter Durante as managing director to co-ordinate the ongoing application of new and emerging technologies across MIRA's asset portfolio in EMEA. The newly created role will see Durante enhance and co-ordinate the work of MIRA's asset management teams in identifying and applying technologies that may impact the operational and environmental performance of existing and future portfolio assets.
Turkey has launched a tender for a 1200MW offshore wind project under its YEKA programme. The bidding deadline is 23 October and the reverse auction ceiling price has been set at $0.08 per kWh. The tender specifications require 60% local equipment production and employment of Turkish engineers at a rate of 80%. Saros and Gallipoli located in the Marmara region and Kiyikoy in Thrace are the candidate regions for the project.
Squire Patton Boggs has hired Alexander Dolgov as a partner in the Financial Services Practice Group in its Moscow office, along with four associates. Dolgov and the team join from Hogan Lovells in Moscow, where Dolgov led the Infrastructure, Energy, Resources and Projects group since 2014. Dolgov’s expertise is in PPP, project finance in the infrastructure and energy sectors, and real estate. Prior to Hogan Lovells, Dolgov held senior positions at Gide and Allen & Overy.
Maharashtra State Power Generation Company (MAHAGENCO) has tendered 750MW of grid-connected solar photovoltaic (PV) projects to cater to the agricultural (AG) feeder load of various substations across the state. The submission deadline is 20 July 2018.
MAHAGENCO has also provided a green-shoe option through which any participant bidder can choose to develop another 250 MW of grid-connected solar PV projects at the lowest (L1) tariff discovered in the auction. The upper tariff ceiling is fixed at INR3.25 ($0.0477)/kWh as. A single bidder can bid for the entire capacity tendered. The minimum project size is 2MW at a single location. MAHAGENCO has specified that the bidder needs to identify the land required for the project within the periphery of 3km from a substation. MAHAGENCO has provided a list of substations for bidders.
MAHAGENCO will enter 25-year PPAs with the successful bidders. MAHAGENCO will further sell the power to MSEDCL. The developer will have 395 days from the date of execution of PPA to commission the project.
IRC Properties and its international consortium partners – Greenland Holdings, Jiangsu Provincial Construction Group, Kwan On Holdings and China Harbour Engineering – have secured original proponent status for the proposed $3.7 billion Makati intra-city rail PPP project in the Philippines. Under its proposal, the IRC-led consortium will construct an 11km intra-city subway system with 8 to 10 stations that will connect key points in Makati’s two districts with no funding from the city government.
Malakoff has reached financial close on the refinancing of its 50% stake (H. R. L. Morrison & Co owns the other 50%) in the Macarthur Wind project in Australia. Structured via borrowing vehicle Wind Macarthur Finco Pty ltd (WMFPL), the seven-year A$502 million non-recourse syndicated loan has been placed with ING Bank, Societe Generale, Mizuho, OCBC, BNP Paribas and Blackrock Real Assets. The refinancing includes fees and related expenses under the previous term loan facility which was procured in 2013 to refinance the then project loan for the Macarthur Wind Farm.
Societe Generale has bought renewable energy crowdfunding platform operator Lumo. Fintech business Lumo gives both individuals and companies the chance to help finance renewable energy projects in France. The platform has so far been used to gather funds for about 40 wind, solar and hydroelectric projects, which, together, can generate over 260 million kWh.
Bermuda Electric Light Company (BELCO) - Bermuda's sole supplier of electricity - has arranged $107.5 million in financing which the company said will be used to fund the construction of replacement generation and battery energy storage system.
The financing includes a $91.4 million, 12-year export finance loan, guaranteed by EKF, Denmark's export credit agency, paying floating interest based on six month LIBOR, together with a $16.1 million, five-year commercial loan paying floating interest based on three-month LIBOR. Both loans are arranged by HSBC Bank Bermuda Limited and HSBC Securities.
Sonnedix Japan KK – the Japanese operating partner of independent solar power producer Sonnedix Power Holdings – has reached financial close on a JPY13.9 billion ($126 million) non-recourse debt facility with MUFG for the 46.6MW Tono solar photovoltaic (PV) project. NEC Networks & System Integration Corporation has already initiated construction work on the Tono facility, which should be operational in early 2020.
Invis Energy – a joint venture between Asper Investment Management and the Craydel Group – has reached financial close on a 35MW onshore wind farm in county Galway comprising 11 Siemens 3.2MW turbines. Asper is providing equity for the project, and raised a €58 million senior debt facility from NordLB. Dublin-based A&L Goodbody and Ionic Consulting advised respectively on the legal and technical aspects of the transaction.
NordLB has also been mandated to arrange financing for Invis Energy’s next project in the portfolio, a 43MW wind farm in county Mayo.
Climate Investor One, which was launched in partnership with Dutch development bank FMO and Sanlam Infraworks of South Africa, has reached third close at $535 million. This blended finance facility provides funding for renewable energy projects in the wind, solar and run-of-river hydro sectors in developing countries.
Climate Investor One, managed by Climate Fund Managers, seeks to deliver in excess of 1,100MW of new additional capacity, producing 3,200 (GWh/year) of affordable clean electricity to about 7 million people.
Ten bidding teams have been shortlisted for the 100MW solar PV GET-FiT tender in Zambia. Each of the shortlisted consortia will submit proposals for up to two projects of up to 20MW each and at least five projects will be selected for implementation. The ten bidders are: Building Energy; EDF Energies Nouvelles; Enel Green Power; Engie Afrique; Globeleq African Holdings and Aurora Power Solutions; InnoVent and Copperbelt Energy Corp; Mulilo; Phanes Group; Scatec Solar; and SolarReserve. At least five projects will be selected. KfW is managing the tender, along with ZESCO and Zambia’s department of Energy.
Finnvera, Finland's export credit agency, has issued a $1 billion five-year bond. The order book exceeded $1.6 billion with more than 40 investors participating. Lead managers for the issue were Citi, Goldman Sachs, HSBC and TD Securities. The greatest demand came from Europe, followed by the Americas and Asia. The transaction, maturing in June 2023, is Finnvera's second bond issue this year.
Nippon Export and Investment Insurance is providing insurance to support a loan made by MG Leasing Corporation to TDB Leasing, a Mongolian joint venture company between MG Leasing and Trade & Development Bank of Mongolia. The loan will be used to purchase mining machinery and equipment. TDB Leasing purchases Japanese mining machinery and equipment to lease out to local mining and infrastructure companies.
France's Proparco has extended a €25 million loan to Turkish lender Yapı Kredi, one of the leading institutions in the financing of renewable energy projects in the country. The loan carries a tenor of ten years. The financing will be used to boost the bank's commitment for Turkey's sustainable development.
TransCanada is readying itself for the start of construction on its Coastal GasLink natural gas pipeline project as it awaits a final investment decision from LNG Canada about its proposed C$14 billion LNG export terminal at Kitimat. TransCanada has announced construction contracts with Surerus Murphy Joint Venture, SA Energy Group, Macro Spiecapag Joint Venture and Pacific Atlantic Pipeline Construction Inc.
The Shell, Petronas, Mitsubishi and Korea Gas Corp consortium developing the Kitimat terminal have been given a November deadline to accept a C$6 billion incentive offer by the British Colombian government.
WIRSOL Energy has signed power purchase agreements with GFG Alliance's Australian unit SIMEC ZEN Energy for the majority of energy production from the 89MW Clermont Solar Farm, near Emerald in Queensland and the 110MW Wemen Solar Farm, near Mildura in Victoria.
Greenbacker Renewable Energy Company has entered into an agreement with ET Capital to buy alll outstanding equity in the Tar Heel Solar II Portfolio. The 13.5MW portfolio consists of the construction-ready Sun Farm V and Sun Farm VI solar power projects located in the towns of Hertford and Bethel, North Carolina. Power will be sold to Dominion Energy under a 15-year PPA.
Dutch pension fund service provider PGGM Infrastructure Fund has signed agreements with EDF Renewables to buy a 50% ownership interest in four American projects with a total capacity of 588MW. EDF will provide management and O&M services.
The projects are the 200MW Red Pine Wind in Lincoln County Minnesota; the 154MW Rock Falls Wind in Grant and Kay Counties, Oklahoma; and the 234MW Switch Station 1 and 2 Solar in Clark County, Nevada.
Engie has agreed the sale of its 69.1% interest in the Thai-listed independent power producer Glow to Global Power Synergy Public Company Ltd (GPSC) for €2.6 billion. Glow's operations across Thailand and Laos consist of 3.2GW of capacity including 1GW of coal-fired generation.The transaction will result in Engie no longer operating coal-fired assets in Asia-Pacific.
Saskatchewan utility SaskPower has selected Ontario-based renewable energy company Saturn Power Inc for a procurement of 10MW solar capacity. The companies have signed a 20-year PPA for the Highfield Solar Project in Coulee and it will become the Canadian province's first utility-scale solar development.
Nordic Investment Bank and the meat processing company Danish Crown have signed a seven-year loan agreement of €100 million to finance the acquisition of DK-Foods in Denmark and the Gzella Meat Group in Poland, as well as the construction of a new processing plant in Pinghu, China.
Danish Crown’s new production plant in Pinghu, near Shanghai, will process meat from Danish slaughter houses. Upon completion in 2019, the plant will produce up to 14,000 tonnes of meat products.
British utility SSE and Fluor Limited are preparing to enter their Seagreen offshore wind project located off the coast of Scotland into the next contracts-for-difference (CfD) subsidy auction due to take place in spring 2019. The project received planning consent in 2014.
FERC upheld its decision to approve the 303-mile Mountain Valley Pipeline (MVP) gas pipeline although the 3:2 split highlighted that the Commissioners remain divided on key issues. The majority opinion denied rehearing requests challenging MVP and laid out the difficulty in evaluating greenhouse gas emmissions in its 150-page ruling. Minority opinion suggested that the Commission has the tools needed to evaluate the projects' impacts but that it didn't use them. It also questioned the reliance on pipeline precedent agreements with affiliate companies to establish the need for the project.
UK Export Finance (UKEF) has published its 2017-2018 performance highlights, revealing that it provided £2.5 billion of support for UK exports, helping 191 companies sell to 75 markets around the world. UKEF lent £666 million directly to overseas buyers to help them buy from the UK - more than double the amount for 2016 to 2017. The group also added 22 new currencies to its local currency financing offer, taking the total to 62.
ING has published a report on China's Belt and Road Initiative, with forecasts about what it could mean for the growth of world trade. A halving in trade costs between countries involved in the project could increase world trade by 12%, with countries in Eastern Europe and Central Asia stand to benefit most, it finds.
Several commercial banks in Ghana are being threatened with having their accounts with the Bank of Ghana (BoG) directly debited over monies they owe to the former Export Development and Agricultural Investment Fund (EDAIF), which has been absorbed into the Ghana EXIM Bank. If the banks fail to pay their debts voluntarily, they are most likely to have their accounts with the central bank debited directly and the monies involved given to EXIM Bank.
The debts arose during the last years of EDAIF, before it was merged with Eximguaranty Company and the Export Finance Company to create EXIM Bank in 2016 by government.
Sponsors of the 34MW Ngonye solar project in Zambia – Enel Green Power (80%) and Industrial Development Corporation (20%) – have signed a $34 million DFI-backed package to fund the scheme.
The financing package arranged by IFC includes senior loans of up to $10 million from IFC and up to $12 million from the IFC-Canada Climate Change Program, plus $2.5 million in interest-rate swaps from IFC and a $2.8 million partial risk guarantee from the World Bank's International Development Agency. The European Investment Bank is also providing $11.75 million of the debt.
The project is backed by a 25-year power purchase agreement with Zambia’s state-owned utility ZESCO based on a tariff equivalent of $0.078 per kWh.
London-based insurance broker Miller has hired Ryanne Smith to strengthen its energy capabilities in North America. Smith specialises in onshore energy and will be focusing on North American oil and gas, midstream, power and utilities and renewable energy.
She has worked as a retailer and marketer in energy for both Marsh and Lockton in Houston; and for the Onshore Energy and Structured Credit & Political Risks teams at RKH Specialty in London.
SunEQ Namibia has reached financial close with the Development Bank of Namibia for a 5 MWAC solar project for Ohorongo Cement, the largest cement factory operator in the country.
The captive power plant is located next to the Ohorongo Cement factory in the Otjozondjupa region. Once it starts commercial operation, about 14GWh per year of clean electricity will be fed into the electricity grid of Ohorongo Cement.
SunEQ has structured the financing substantially from local Namibian sources, both in terms of equity and debt. Namibia Infrastructure Finance Limited, an unlisted infrastructure investment company targeting renewable energy projects in Namibia, has a shareholding of 60%, together with a Namibian Empowerment Partner Hungileni Investment holding 30% and SunEQ holding 10%. The Co-Developer and EPC-Contractor is GILDEMEISTER Energy Solutions GmbH.
The C$1.65 billion ($1.24 billion) Surrey Newton-Guildford light rail transit (LRT) project in British Columbia will be procured as a short-term public-private partnership similar to the Canada Line, according to a market update from Metro Vancouver’s transport network operator Translink.
Translink plans to seek private sector interest in a DBF contract followed by a seven-year O&M contract, after which TransLink will take over the concession.
St Louis Missouri Board of Estimate & Appointment has finalised a consulting contract with a team of 16 advisory firms that will explore a public-private partnership (P3) for St Louis Lambert International Airport. The advisory team includes: Moelis & Company as financial advisor; McKenna & Associates to manage and oversee process; Grow Missouri for support and financing; Mayer Brown for transaction documentation counsel services; Squire Patton Boggs for public finance and compliance services; Siebert PFM Financial Advisors, Stifel, Nicolaus & Co and Cisneros Shank & Co for financial analysis, advice and consulting services; and Greenberg Traurig for legal advisory services. The project has been approved by the Federal Aviation Administration for its airport privatisation pilot programme.
KfW IPEX-Bank, together with NordLB, is providing a €95 million loan to finance the purchase of 80 new trams that can be used in double traction for local public transport in the German cities of Mannheim, Ludwigshafen and Heidelberg.
KfW IPEX-Bank was syndicate leader, with the total investment volume amounting to more than $250 million. The EIB is also providing a long-term loan to complement the commercial syndicated loan.
Rhein-Neckar-Verkehr is purchasing the new rail vehicles to modernise and expand its vehicle fleet and to improve local public transport services. The new trams will be supplied by the Czech manufacturer Skoda Transportation.
Genex Power has received a term sheet for a A$516 million 20-year subordinated loan from Northern Australia Infrastructure Facility (NAIF) for its Kidston 2 combined solar and pumped hydro project. The debt will be priced at concessional rates and provide the bulk of the project’s financing.
The project – the first of its scale to combine solar and pumped hydro – will be located in the former Kidston gold mine, where water will be stored in disused pits, providing 250MW of capacity and up to eight hours storage. This will be combined with up to 270MW of large-scale solar – on top of the 50MW already built – and possibly another 150MW of wind.
Financial close is expected later this year, with a three-year construction timetable for the hydro, and 18 months for the solar.
Argentina's Transportation Ministry has awarded six road projects to five different consortia in the first allocations for its new PPP programme. It received 32 bids from 10 consortia. Argentina's Helport SA and Spanish firm Obras y Servicios Copasa were awarded a Buenos Aires to Santa Fe highway project and another between Santa Fe and Cordoba. China Construction America with Argentina’s Green SA won a contract for highways between Buenos Aires and La Pampa. A consortium of Mota Engil and a local firms was also successful.
Silicon Ranch Corporation has entered into an agreement to own and operate 194MW of new solar capacity at four locations across Georgia by 2021. Green Power EMC will buy the output and supply the power to its 38 Electric Membership Corporations in the state over a period of 30 years.
B Grimm Power of Thailand and Vietnamese company Xuan Cau have signed a cooperation agreement to develop a 420MW solar project in Tay Ninh, south-west Vietnam. The project is scheduled to be commissioned in June 2019 and will be the largest solar PV project in South-east Asia.
UK regulator Ofgem has appointed Diamond Transmission Partners – a consortium comprising Mitsubishi and HICL Infrastructure - as preferred bidder for the 20-year Race Bank OFTO concession (Equitix is reserve bidder).
The operational Race Bank wind farm, located 27km off the coast of Norfolk, consists of 91x6MW turbines and has a capacity of 573MW. The developer of the windfarm and the link is a consortium comprising Orsted, Macquarie European Infrastructure Fund 5, Macquarie Capital, and Sumitomo Corporation. The consortium's initial estimated value of the transmission assets is £530.4 million. Once the final value of the assets has been agreed by Ofgem, the preferred bidder will pay the developer.
The Race Bank OFTO is part of the fifth round of the OFTO regime. The other links in it are to the 402MW Dudgeon, 400MW Rampion, 340MW Galloper and the 660MW Walney Extension offshore wind farms. The invitation to tender stages for the latter two are currently running and will be followed by Rampion.
Network Rail has unveiled a raft of changes that will ban tier one contractors from using retentions, and require them to pay suppliers within 28 days of work being carried out.
The company will revamp its terms and conditions for all tier one contractors that win work in the £48 billion Control Period 6, as part of a growing shift in public sector procurement.
It comes amid a growing industry debate over the payment of subcontractors in light of Carillion's collapse. Contractors that do not adhere to Network Rail’s terms will risk being in breach of contract.
The Center for Financial Accountability (CFA) in its latest report has analysed 72 Indian energy projects that reached financial close in 2017 and found that $9.35 billion of lending was made to coal projects, while $3.5 billion was made to renewable energy projects. Eight of the top ten coal lenders were majority government owned banks with three-quarters of loans refinancing projects that have already been built or are under construction. The majority of the 60 renewable power projects were financed by commercial financial institutions and three-quarters of debt was primary finance. All the lending occurred in only 14 states.
Berlin-headquartered renewable energy and cleantech advisory Apricum has appointed Duncan Ritchie as partner to head up its project advisory practice and lead an expansion into new industry sectors and geographies. Ritchie was previously head of power & renewables within the Asian Investment Banking Division at Bank of Tokyo-Mitsubishi UFJ Ltd (BTMU) and is a former CEO of boutique advisory firm Aequero.
French independent solar power producer Reden Solar has closed a €270 million ($311.7 million) refinancing for the majority of its French assets. The deal consolidates 92 loans with 17 banks that cover 150 of its domestic solar PV assets. The operational portfolio has a 73MW net capacity.
The 17-year non-recourse financing was led by Societe Generale and Credit Agricole with Bpifrance coming in as a lender. Reden plans to use any freed up cash to buy new projects in France, Portugal and Chile. The borrower was advised by Astris Finance and Linklaters.
Project company ICT City in the Negev, formed by Shikun & Binui and Africa Israel Properties, has been selected as best bidder for a Ministry of Defense DBFOM project to establish the IDF Telecom HQ near Ben Gurion University in Beer Sheva, Southern Israel. Solel Boneh and Danya Cebus will carry out the five-year construction and ICT City will operate and maintain the facility for 20 years. The project will be financed by a consortium led by Bank Leumi.
Edgemoor-Star America Judicial Partners has been named as the preferred bidder for the DBFOM project for a new Howard County Circuit Courthouse in Maryland. The 30-year concession will receive $75 million in general obligation debt and an annual $10 million service payment. Voting on the bill to establish the public-private partnership is expected on July 27.
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