PLUS PFI LEGAL REPORT 2020

NOVEMBER 18 2020 ISSUE 685 www.pfie.com

INSIDE THIS ISSUE…

AMERICAS Biden buoys green hopes z AMLO expands infra plan

ASIA PACIFIC Telestra/Optus sales due z WestConnex road in refi

EMEA Telco infra in vogue z Rv 555 currency risk outstanding

LEGAL SURVEY Top firms boost deal numbers

00a Cover.indd 1 17/11/2020 19:42:38 ESG CAPITAL MARKETS WEBCAST

The IFR ESG Capital Markets Webcast takes place on the DATES afternoon of Thursday December 3 2020. DECEMBER 3 2020

Moderated by Keith Mullin, Founder & Director of KM TIME Capital Markets, this timely webcast will bring together  × 52 a panel of senior market participants to assess current themes in the ESG market. FORMAT WEBCAST Topics covered will include:

• &SZUIFYJTSHZWWJSY*8,HFUNYFQRFWPJYXFHYN[NY^d • )NXHJWSNSLIWN[NSLYMJRJXFSIYWJSIXNSLWJJSFSIXTHNFQèSFSHJFSIMT\ HFUNYFQRFWPJYXFWJWJFHYNSLYTYMJRd • 8THNFQèSFSHJYMJRJXHFRJYTYMJKTWJFXYMJ(T[NIHWNXNXJRJWLJI-T\\NQQ YMJNSYJWUQF^GJY\JJSYMJÙ*ÚYMJÙ8ÚFSIYMJÙ,ÚNS*8,HFUNYFQRFWPJYXIJ[JQTU$d • -T\FWJNS[JXYTWXNSéZJSHNSLYMJGJMF[NTZWFSIUJWKTWRFSHJTKNXXZJWXNSYMJ environmental/sustainability capital markets? • What impacts are the various data transparency standards (e.g. Taskforce on (QNRFYJWJQFYJI+NSFSHNFQ)NXHQTXZWJX9FXP+TWHJKTW3FYZWJ7JQFYJI+NSFSHNFQ )NXHQTXZWJX8HNJSHJGFXJI9FWLJYX.SNYNFYN[JMF[NSLTSYMJVZFQNY^TKHTWUTWFYJ *8,WJUTWYNSLFSIINXHQTXZWJ$d • -T\NXYMJ*8,XHTWNSLWFYNSLXFSIJ[FQZFYNTSXNSIZXYW^J[TQ[NSL\NYM IJ[JQTURJSYX$d

The webcast is free to join - all you need to do is register at https://tinyurl.com/y3yl7uj7.

Sponsored by:

Bank Capital Conference 2020 and ESG opportunities.indd 1 11/11/2020 14:26:06 PROJECT FINANCE INTERNATIONAL NOVEMBER 18 2020 ISSUE 685 Contents

EDITOR SUBSCRIPTION SALES ENQUIRIES PEOPLE & MARKETS Rod Morrison (London) CHINA, HONG KONG, JAPAN, KOREA, +44 (0)20 7542 8329 TAIWAN rod.morrison@refinitiv.com Alan Wong 3 Enel scouts for green hydrogen +852 2912 6606 ASIA PACIFIC EDITOR Enel is looking at a number of renewable hydrogen Minerva Lau (Singapore) AUSTRALIA, INDIA, INDONESIA, opportunities in Spain, Italy, the US, and Chile +65 6417 4554 MALAYSIA, SINGAPORE, THAILAND minerva.lau@refinitiv.com Samantha Harris +612 9373 1749 4 AMERICAS SENIOR REPORTER Fortescue launches into global green energy Alison Healey (New York) SUBSCRIPTION ACCOUNT MANAGER Australian mining company Fortescue is targeting the +1 (570) 270 4774 Pia Batuan build-out of 235GW of renewables capacity alison.healey1@refinitiv.com +65 6403 5542 LATIN AMERICAS SENIOR REPORTER GLOBAL ADVERTISING PRODUCTION NEWS Nic Stone (New York) MANAGER +1 (646) 223 4110 Gloria Balbastro nic.stone@refinitiv.com +44 (0) 20 7542 4348 AMERICAS AUSTRALIA EDITOR HEAD OF PRODUCTION 10 Renewables sector cheers Biden win Alex Dockreay (Sydney) Clive George Mobile: +61 466 255 412 Biden’s victory in the US election is expected to add ASSISTANT PRODUCTION MANAGER alexandra.dockreay@refinitiv.com Nita Webb rocket fuel to the sector’s growth prospects SENIOR REPORTER SENIOR PRODUCTION EXECUTIVE Jordan Bintcliffe (London) Andreas Michael 17 AMLO to expand infra programme +44 (0)207 5427 144 jordan.bintcliffe@refinitiv.com MARKETING MANAGER Mexico will unveil a second package of infra projects

SENIOR REPORTER Paul Holliday following last month’s US$14bn programme Peter Collins (London) SALES HOTLINES +44 (0)20 7542 4327 EMEA ASIA PACIFIC peter.collins@refinitiv.com +44 (0) 20 7542 4569 25 GLOBAL HEAD – ADVERTISING & cmi.emeasales@refinitiv.com Towers sales loom large in Australia SPONSORSHIP SALES Americas Both Telestra and Optus are due to divest their towers Shahid Hamid +1 646 223 5543 portfolios, with both deals expected next year +65 9755 5031 cmi.americassales@refinitiv.com ADVERTISING & SPONSORSHIP !SIA 0ACIlC SALES DIRECTOR cmi.asiasales@refinitiv.com 31 WestConnex set for refi Leonie Welss CLIENT SERVICES A$4bn of debt on the WestConnex road project is +44 (0) 20 7542 7752 IFR.Clientsupport@refinitiv.com coming up for refi with UBS running the process REPRINTS OR LICENCE TO COPY Gloria Balbastro EUROPE, MIDDLE EAST AND AFRICA +44 (0) 20 7542 4348 gloria.balbastro@refinitiv.com 39 Fibre and 5G rule telco market REGISTERED OFFICE Numerous telco deals are underway as investors and 5 Canada Square, companies vie for a slice of the digital goldrush Canary Wharf, London E14 5AQ 44 Registered no. 2012235 FX risk open on Rv 555 road PPP Who will take the currency risk remains open as Vegvesen pushes for the deal to be done in kroner FEATURES

56 Top firms boost deal numbers Covid-19 may have caused a wash-out for much of

The contents of this publication, either in whole or part, may not be reproduced, the world’s economy but lawyers of the infrastructure stored in a data retrieval system or transmitted in any form or by any means, industry have been kept busy regardless, with deals electronic, mechanical, photocopying, recording or otherwise without written continuing to close at a good clip. PFI’s Legal Report permission of the pub lishers. Action will be taken against companies or individual persons who ignore this warning. The information set forth herein has been 2020 charts the leading legal practices in the space obtained from sources which we believe to be reliable, but is not guaranteed. and the deals they’ve been working on Subscriptions to Project Finance International are non-refundable after their commencement issue date. © Refinitiv 2020. Printed in England by Walstead Roche Ltd. Unauthorised photocopying is illegal. ISSN: 0967-5914

Project Finance International November 18 2020 1

01 Contents p1.indd 1 17/11/2020 19:54:13 PEOPLE & MARKETS

„ ROD MORRISON Seeking friends for warm thermals

Growing numbers of them as there are many power stations that )%#Sû)NDEED ûTHATûWASûTHEûTRADITIONALûMODELûFORû infrastructure investors are still valuable and needed for regions or developing large energy projects to diversify have been on the hunt for COUNTRIES vû+AKINOKIûSAIDû(OWEVER ûHEûADDEDû RISKûnûAûMODELûTHATûISûNOWûBEINGûUSEDûBYû investments for more than a that the company needed to avoid selling the offshore wind farm developers. decade now and the search has STAKESûATûAûLARGEûLOSS ûORûTOûBUYERSûWHOûMAYû Financial investors were not really into the resell them quickly. FARM DOWNûMODELû)%#SûWERE ûDURINGûTHEûLASTû become ever more elaborate #OMPANIESûSUCHûASû-ARUBENI û-ITSUIûANDû DECADE ûSTARTINGûTOûOFmOADûSOMEûINFRASTRUCTURE – from core to non-core with Sumitomo are labelled as trading houses style assets within their portfolios but it was core+, core++ etc in between. BUTûTHEYûARE ûINûEFFECT ûLONG TERMûINVESTORSûnû NOTûSTANDARDûPRACTICEû4HATûIS ûUNTILû!$./#û But now they can go back to particularly in the energy markets. So selling transacted its mega-scale infrastructure oil and basics – thermals. The trading ASSETSûISûNOTûINûTHEIRûNATUREû4HEûCOAL lREDû then gas pipelines sales. Those two deals seems SALESûWILLûNOTûHAPPENûQUICKLY û-ITSUIûSAID ûITû to have heightened interest in the concept. But houses are putting unloved aims to sell its stakes by the end of decade. THEûMAINûFACTORûINûlNANCIALûINVESTORSûBEINGû coal-fired assets on the block Many of these assets are not only strategic invited in is the economic climate this year. but perhaps more interestingly for the investors but for the host countries as &ARM DOWNSûTOûOTHERû)%#SûAREûNOTûATTRACTINGû the oil and gas companies are WELLûnûSAYû-ITSUISû0AITONûSTAKEûINû)NDONESIAû MUCHûINTERESTû)%#SûSHARESûHAVEûBEENûHITûBYû seeking new partners. Not only is a good price required but the #OVID ûANDûMAYBEûGENERALûCLIMATEûCHANGEû most governments will want reliable weariness. &ORûTHEû*APANESEûTRADINGûHOUSESûTHEIRûCOAL lREDû PARTNERSûBOUGHTûINû)NDONESIA ûFORûEXAMPLE û 7OODSIDEûCHIEFûEXECUTIVEû0ETERû#OLEMANû power stations present a problem. They have is still committed to coal deals having signed spelt it out last week. Last year the Australian pledged to reduce their involvement in the THEû*AWAûûDEALûWITHû+EPCOûLASTûWEEK COMPANYûSOUNDEDûOUTû)%#SûTOûBUYûPARTûOFûITSû sector over the next decade but how? Asset sales Warren Buffett can no doubt be called upon ûSTAKEûINûTHEû53BNû3CARBOROUGHûGASû are the most obvious answer but the buyers are TOûGIVEûSOMEû3AGEûOFû/MAHAûADVICEû(EûHASû lELDûTOûRAISEûFUNDS ûBUTûDUEûTOûTHEûOILûANDûGASû not queuing up in the same way they would JUSTûINVESTEDû53BNûINûlVEûOFûTHEûBIGGESTû price crash this year “that no longer makes HAVEûDONEûlVEûORûûYEARSûAGOû4HATûSAID ûTHEû TRADINGûHOUSESûnû)TOCHU û-ARUBENI û-ITSUBISHI û SENSEv û#OLEMANûSAID assets themselves are performing well enough -ITSUIûANDû3UMITOMOûnûBYûTAKINGûûSTAKESûINû h)TSûJUSTûSIMPLYûNOTûAûGOODûTIMEûINûTHEû ECONOMICALLYûINûMANYûMARKETS ûPRODUCINGû EACH û4HEûINVESTMENTûCOMESûATûANûINTERESTINGû MARKETûTOûSELLûTHAT vûHEûSAIDû)NSTEAD ûITûNOWû DECENTûCASHmOWSûETC ûSOûSELLINGûCREATESûANûISSUEû time as the companies’ energy portfolios have WANTSûTOûSELLûAROUNDûAûûSTAKEûINû0LUTOû for shareholder-based companies. BEENûHITûBYû#OVID ûBUTû*APANûASûAûCOUNTRYû 4RAINû ûWHICHûISûSERVEDûBYû3CARBOROUGH ûTOû -ARUBENISûCHIEFûEXECUTIVEûOFlCERû-ASUMIû ISûPERFORMINGûBETTERûTHANûMANYûINûû(ISû infrastructure investors. Kakinoki said last week it is increasingly foray into energy investment last year was just )Nû5GANDA û4OTALûISûSEEKINGûAûSIMILARû DIFlCULTûTOûSELLûSTAKESûINûCOAL lREDûPOWERûPLANTSû ASûINTERESTING û53BNûINû/CCIDENTALûATûû APPROACHûONûITSû53BNû KMû%ASTû DUEûTOûGROWINGûCRITICISMûOFûTHEûPOWERûSTATIONS û to back its Anadarko deal. Oxy’s shares have !FRICANû#RUDEû/ILû0IPELINEû%!#/0 ûFROMûTHEû which emit high levels of carbon dioxide. tumbled this year during Covid. ,AKEû!LBERTûOILlELDSûTOûTHEû4ANZANIAûCOASTû h4OûSUMûUP ûITûISûBECOMINGûHARDERûTOûSELLû &ORûTHEûINTERNATIONALûOILûCOMPANIESû)/#S û 4ULLOWûISûNOWûOUTûANDûBRINGINGûINûNEWû)%#Sû stakes in coal power plants as coal has run WHOOPS ûNOWûINTERNATIONALûENERGYûCOMPANIESû COULDûBEûTRICKY ûHOWEVERûATTRACTIVEûTHEûASSET INTOûAûLOTûOFûmAKûûû4HEûBESTûSOLUTIONûISûTOûSTOPû )%#S ûTHEûSEARCHûFORûFRIENDLYûINVESTORSûISûASû The infra investors have piled into the ANDûSCRAPûTHEûPLANTS ûBUTûWEûNEEDûTOûSELLûOURû IMPORTANTû5NTILûVERYûRECENTLY û)%#SûCOULDûFARMû !$./#ûDEALSûSOûWHYûNOTûINTOûDEALSûSUCHûASû stakes to parties with an interest in owning down their exposures on schemes to other these? One difference is construction risk.

CRANMORE HIRES IN ISTANBUL members are Haili Ersu Gorkem Mutsu and Kaan Basaran. BANKS & ADVISERS Orhan Tanriverdi HASûJOINEDûTHEû)STANBULû OFlCEûOFûlNANCIALûADVISORYûBOUTIQUE PATT TO TRIBE INFRA JEFFERIES AUSTRALIA HIRES CRANMORE PARTNERS as a director and Emre CHALHOUB Bildirci has joined as an associate director. Christopher PattûHASûJOINEDû!BUû$HABI BASEDû Tanriverdi has joined from Garanti Bank adviser TRIBE INFRASTRUCTURE GROUP as a director JEFFERIES AUSTRALIA has hired M&A WHEREûHEûWASûFORûûYEARSûINûTHEûPROJECTSû TOûBEûBASEDûINû,ONDONûANDû!BUû$HABIû0ATTû adviser Joel Chalhoub in Sydney from TEAMû"ILDIRCIûHASûJOINEDûFROMû%NERJISAûANDû has joined from the power and advisory team ,AZARDû#HALHOUBûADVISESûACROSSûAû before that Garanti. OFû-IZUHOûINû,ONDONû"EFOREûTHATûHEûWORKEDû BROADûSPECTRUMûOFûSECTORS ûINCLUDINGû !BUû$HABI BASEDû#RANMORE ûHEADEDûBY FORû!-%!û0OWER û(3"#ûANDû'$&û3UEZû4RIBEû ENERGY ûTELECOMSûANDûTRANSPORTû!SûVICE Yusuf Macun ûHASûRECENTLYûADVISEDû%NERJISAû has worked on a range of deals and has PRESIDENT ûHEûHASûBEENûWITHû,AZARDûINû ONûITSûCORPORATEûõMûRElNANCINGû4HEû SPECIALISEDûINûWASTE TO ENERGYû7T% ûPROJECTS 3YDNEYûFORûNEARLYûlVEûYEARS ûAFTERûû )STANBULûTEAMûWILLûBEûSUPPORTINGûTHEû YEARSûWITHû2OTHSCHILDûINûTHEûUTILITIES û origination and execution efforts in the PF TRAINING FIRM LAUNCHED transport and infrastructure M&A and WIDERû-IDDLEû%ASTûANDû%UROPE ûWHILEû DEBTûADVISORYûTEAMû(EûHASûWORKEDûATû CLOSELYûMONITORINGûlNANCINGûANDû-!û 0ROJECTûlNANCIERSûSteve Mills ûAudrey Caulliez- NAB and SQM Research. opportunities in Turkey. Current teams Louis Ian Cogswell and projects lawyer Calvin

2 Project Finance International November 18 2020

02 P&M p2-.indd 2 17/11/2020 19:33:30 Banks & Advisers 2 Developers 3 Funds 6 Governments  Lawyers 9

Walker have launched CCC TRAINING LIMITED ûAû The transaction allows for further VESTAS INKS MASSIVE LATAM ORDER new training company that is focused on SIMPLIlCATIONûOFûTHEûGROUPûCORPORATEû THEûENERGY ûINFRASTRUCTUREûANDûSUSTAINABLEû STRUCTUREûANDûALIGNSû%NELû!MERICASû Turbine maker VESTAS has signed a lNANCEûMARKET business set-up with the rest of the conditional agreement for a project in Mills has been in the training market group. The company is accelerating its Latin America with a capacity above its FORûMOREûTHANûûYEARS ûWHILEû#AULLIEZ decarbonisation plans in the region with DElNEDûANNOUNCEMENTûTHRESHOLD ûTHEû ,OUIS û#OGSWELLûANDû7ALKERûMAINTAINûANû ITSûEXITûFROMûITSûCOALûBUSINESSû)TûISûAIMINGû company said in a statement. Vestas will ACTIVEûINVOLVEMENTûASûPROJECTûlNANCEû to have all its generation come from SUPPLYûMOREûTHANû-7ûOFûTURBINESûTOûAû practitioners alongside their training RENEWABLESûBYû YETûUNSPECIlEDûWINDûFARMûINûTHEûREGION practice. The corporate reorganisation foresees )FûANDûWHENûTHEûPROJECTûTRANSLATESûINTOûAû CCC Training says it offers both THEûINTEGRATIONûINû%NELû!MERICASûOFûTHEû lRMûANDûUNCONDITIONALûORDERûACCORDINGûTOû public and in-house courses that may current non-conventional renewable 6ESTASûDElNITION ûTHEûCOMPANYûWILLûMAKEû be delivered either as live interactive ASSETSûOFûTHEû%NELû'ROUPûINû!RGENTINA û ANûANNOUNCEMENT ûITûADDEDû4HEûCOMPANYû webinars or in a traditional classroom "RAZIL û#OLOMBIA û#OSTAû2ICA û'UATEMALA û is active in almost all countries in the format once the Covid restrictions are 0ANAMA ûANDû0ERU ûTHROUGHûAûSERIESûOFû REGION ûWITHûAûPARTICULARûFOCUSûONû"RAZIL û LIFTEDû%ACHûOFûTHEûFOURûHASûBEENûWITHû transactions culminating in a merger into #HILE û-EXICO ûANDû!RGENTINA VARIETYûOFûINSTITUTIONS ûWITHû-ILLSûENDINGû %NELû!MERICAS UPûATû2"3 û#AULLIEZ ,OUISûATû-5&' û 3UCHûAûMERGER ûRESULTINGûINûANûINCREASEûOFû ENEL SCOUTS FOR GREEN HYDROGEN #OGSWELLûATû.ATIXIS ûANDû7ALKERûATû"AKERû %NELSûSTAKEûINû%NELû!MERICAS ûWILLûREQUIREû û-C+ENZIE an amendment of the by-laws of the latter ENEL is “scouting several development by the shareholders’ meeting to remove OPPORTUNITIESvûFORûGREENûHYDROGENûPLANTSû the existing limitations whereby a single INû3PAIN û)TALY ûTHEû53ûANDû#HILE SHAREHOLDERûMAYûNOTûHOLDûMOREûTHANûû “We are looking at some of the DEVELOPERS of the voting rights. The shareholders’ OPPORTUNITIES ûANDûWEûAREûTRYINGûTOûlNDû meeting will be required to approve the the best possible combination of certain ECUADOR OIL GROUP HEADS RESIGN merger as a transaction with related parties VARIABLESûTHATûINCLUDEûOFFTAKEûAVAILABILITY û in compliance with the applicable laws and WATERûFEED û;ANDûENERGYûPRICES=ûTOûTRYûTOû 4HEûCHIEFûEXECUTIVEûOFlCERSûOFûSTATE OWNEDû regulations. lNDûAûWAYûTOûMAKEûTHISûKINDûOFûBUSINESSû PETROECUADOR and PETROAMAZONAS have %NELûRECENTLYûINCREASEDûITSûSTAKEûINû accretive for our renewable development resigned ahead of the planned merger of #HILEANûSUBSIDIARYû%NELû#HILEûTOûûASû and also useful for the decarbonisation THEûTWOûUNITSû4HEû%NERGYû-INISTRYûSAIDû it looks to lift stakes in its South America- EFFORTûOFûTHEûWORLD vû!LBERTOûDEû0AOLI û INûAûSTATEMENTûTHATû0ETROECUADORû#%/û based subsidiaries by buying out minority %NELSû#&/ ûSAIDûONûTHEûTHIRD QUARTERû Ricardo MerinoûANDû0ETROAMAZONASû#%/û shareholders. The company achieved the earnings call. Juan Carlos Bermeo will remain in their 3 percentage points increase in its stake %NELûREPORTEDûAûûDROPûINûREVENUESû positions until their respective boards by settling two share swap transactions TOûõBNûINûTHEûlRSTûNINEûMONTHSûOFû û select replacements. ENTEREDûINTOûINû$ECEMBERûûWITHûANû DOWNûFROMûõBNûFORûTHEûSAMEûPERIODû The merger is still expected to go UNNAMEDûlNANCIALûINSTITUTIONû4HEûDEALû LASTûYEARû%BITDAûDROPPEDûTOûõBNû through before year-end and will now COSTû%NELû53M FROMûõBNûPREVIOUSLYû,OWERûREVENUESû LOOKûMOREûLIKEûANûABSORPTION ûACCORDINGû were primarily a result of the decline in TOû%NERGYû-INISTERûRene Ortiz. The process SOLARIS TAPS WOLAHAN the volume of gas and electricity sold in began with executive decree 723 on April )TALYûANDû3PAINûASûAûRESULTûOFûTHEû#OVID û û ûBUTûTHEûIMPACTSûOFû#OVID ûANDû Canada-listed miner SOLARIS RESOURCES has pandemic as well as adverse exchange lower oil prices have hit the companies appointed Chad Wolahan as vice-president rates in Latin America. particularly hard. OFûPROJECTSû(EûWILLûNOWûLEADûTECHNICALû 0OWERûSOLDûINû)TALYûSLIPPEDûBYûûAGAINSTû /RTIZûSAIDûTHEûOPTIMISATIONûPROCESSûFORû and economic studies for the company’s THEûSAMEûPERIODûLASTûYEAR ûANDûTHEûAMOUNTû the combined entity would be carried 7ARINTZAûCOPPER GOLDûPROJECT FELLûBYûûINû3PAINû4HEûCOMPANYûSAWûAû OUTûINûûANDûTHEû)NTER !MERICANû 7OLAHANûHASûWORKEDûWITHû)VANHOEû-INESû ûDECLINEûINûVOLUMESûINû!PRILûASûAûRESULTû $EVELOPMENTû"ANKû)$" ûISûEXPECTEDûTOû for the past seven years in various senior of the lockdown. Since then there has provide a loan to aid the process. The capacities and was responsible for project BEENûAûPROGRESSIVEûCONSUMPTIONûRECOVERY û companies have combined assets of planning and management at the Kakula with the decline partially offset by higher roughly US$22bn and a workforce of PROJECTûINûTHEû$EMOCRATICû2EPUBLICûOFûTHEû consumption from residential customers. MOREûTHANû  #ONGOû0RIORûTOû)VANHOEû-INES û7OLAHANû “The vast majority of impacts in worked at Stantec Consulting leading volumes is the contraction of the ENEL LATAM ASSETS VALUED BEFORE AûTEAMûTOûPRODUCEûTHEûMININGûDESIGN û industrial activities associated with MERGER SCHEDULE ûANDûCOSTûESTIMATESûFORûVARIOUSû lockdown and we see that this is mainly projects. CONCENTRATEDûINûTHEûLOCKDOWNûPERIOD vû ENEL GREEN POWER‘s Latin American assets 4HEû ûHECTAREû7ARINTZAûPROPERTYû 0AOLIûSAIDû4HEûCOMPANYûPROJECTSûDEMANDû have been valued at up to US$7bn by ISûINûSOUTH EASTERNû%CUADOR ûINûTHEûSAMEû INû)TALYûANDû3PAINûFORûTHEûLASTûQUARTERûOFû a set of independent auditors at the belt as the Fruta del Norte gold mine and THEûYEARûWILLûBEûDOWNûBYûûAGAINSTûTHEû request of ENEL AMERICAS. The move is a -IRADORûCOPPER GOLDûMINE ûKMûTOûTHEû previous year “and we will see if new precursor to the potential merger of the SOUTH ûANDûADJACENTûTOûTHEû3ANû#ARLOS measures of lockdown will affect or not TWOûENTITIES ûSUBSIDIARIESûOFû)TALIANûGIANTû 0ANANTZAûCOPPERûDEPOSITSû4HEûSTUDIESû THISûPROGRESSINGûRISEûOFûPOWERûDEMANDv û %NELû%NELû!MERICASûHELDûANûINVESTORûCALLû should clarify how much resources he said. ONû&RIDAYû.OVEMBERûûASûPARTûOFûTHEû the mine has and what the costs of %NELSûFORWARDûSALESûFORûûHAVEû talks. development will be. BEENûHEDGEDûTOûûINû)TALY ûANDûALMOSTû

Project Finance International November 18 2020 3

02 P&M p2-.indd 3 17/11/2020 19:33:30 ûINû)BERIAû3PAIN ûWITHûPRICESûOFûõ &ORTESCUEûISûINVESTINGû53MûINûTHEû %LIWANAûMINEûDUEûFORûCOMPLETIONûINû -7HûANDûõ-7H ûRESPECTIVELYû4HATû 0ILBARAû%NERGYû#ONNECTûPROJECT ûAûSOLAR $ECEMBERûANDûTHEû53BN ûMTPAû COMPARESûWITHûHEDGINGûOFûûANDûûINû gas hybrid with battery energy storage )RONû"RIDGEû-AGNETITEû0ROJECTûINû THEûlRSTûHALFû3ALESûFORûBOTHûMARKETSûWEREû ANDûTRANSMISSIONûINFRASTRUCTUREû)TûWILLû development. HEDGEDûûINû ûACHIEVINGûAûPRICEû FEATUREû-7ûOFûSOLARû06ûANDûBATTERYû The company is pursuing major OFûõ-7HûINû)TALYûANDûõ-7HûINû STORAGE ûANDû-7ûGAS lREDûCAPACITYû international expansion into mining )BERIA 0ACIlCû%NERGYSûSUBSIDIARYû#ONTRACTû outside of WA. %NELûALSOûREPORTEDûlGURESûFORûTHEûWIDERû 0OWERû!USTRALIAûISûCONTRACTEDûFORûTHEûLOW “We are focused on early stage macro environment with a spot price emission gas plant. exploration of commodities that support INû)TALYûOFûõ-7HûINûTHEûlRSTûNINEû 4HEû#HICHESTERû3OLAR 'ASû(YBRIDûWILLû DECARBONISATIONûANDûTHEûELECTRIlCATIONû MONTHSûAGAINSTûõ-7HûFORûTHEû also power Fortescue’s operations in OFûTHEûTRANSPORTûSECTOR ûANDûCONTINUEû SAMEûPERIODûINûû)BERIASûSPOTûPRICEû 7ESTERNû!USTRALIA ûUNDERûAû00!û!LINTAûISû TOûASSESSûCOPPER ûGOLDûANDûLITHIUMû WASûõ-7HûAGAINSTûõ-7Hû building and will own the project. The OPPORTUNITIESûTHROUGHOUTû!USTRALIA û3OUTHû previously. PROJECTûSHOULDûPROVIDEûnûOFûTHEû !MERICAûANDû%UROPE vûCHIEFûEXECUTIVEû stationary energy requirements from %LIZABETHû'AINESûSAIDûATûTHEû!'- FORTESCUE LAUNCHES INTO GLOBAL SOLARû$ESIGNûANDûPROCUREMENTûOFûTHEûSOLARû Fortescue’s exploration activities are GREEN ENERGY and battery component will continue in taking place in New South Wales and &9û&ORTESCUESûCAPEXûONûTHISûPROJECTûINû 3OUTHû!USTRALIAûINûITSûHOMEûCOUNTRY û Australian mining giant Fortescue &9ûWASû53Mû4HEûSOLARûCOMPONENTû ANDûOVERSEASûINû!RGENTINAûANDû%CUADORû Metals Group announced ambitions to ISû-7ûANDûTHEûBATTERYû-7 ûWHILEûAû 0RELIMINARYûEXPLORATIONûISûTAKINGûPLACEû become a renewable energy developer KMûTRANSMISSIONûLINEûWILLûLINKûTOû!LINTAû ATûTENEMENTSûINû#OLOMBIA û0ERU û0ORTUGALû on a global scale at its annual general %NERGYSû.EWMANûGAS lREDûPLANT ANDû+AZAKHSTAN meeting last week. Under a new FORTESCUE Fortescue is investing in building FUTURE INDUSTRIES (FFI)ûDIVISION ûTHEûGROUPûISû transmission infrastructure to link both EQUIS DEVELOPMENT SECURES US$1.25bn TARGETINGûTOûBUILDûANûENORMOUSû'7ûOFû NEWûENERGYûSOURCESûWITHûITSû0ILBARAû renewable energy. MININGûOPERATIONS ûATûAûCOSTûOFû53Mû EQUIS DEVELOPMENT ûTHEû3INGAPOREû 0RELIMINARYûDEALSû&&)ûISûMAKINGûAREûWITHû &ORTESCUESû53MûOFûEXPENDITUREûONû renewable energy and waste GOVERNMENTSûINû0APUAû.EWû'UINEAûANDû THISûANDû0ILBARAû%NERGYû#ONNECTûISûSPREADû INFRASTRUCTUREûDEVELOPER ûHASûSECUREDû !FRICAû&ORTESCUEûHASûCOMMITTEDû!BNû OVERû&9ûTOû&9 53BNûOFûFUNDSûFROMûTHEû!BUû$HABIû 53M ûTOû&&)ûOUTûTOûûANDûPLANSûTOû Green hydrogen is central to Fortescue’s )NVESTMENTû!UTHORITYû!$)! û/NTARIOû use off-balance sheet funding for projects. new strategy and the company is 4EACHERSû0ENSIONû0LANû"OARDû/400 û Fortescue signed a deal last quarter with investigating battery electric vehicle ANDûTHEû%QUISûMANAGEMENTûTEAMû4HEû THEû0APUAû.EWû'UINEAûGOVERNMENTûANDû mobility too. PROCEEDSûWILLûlNANCEûITSûINVESTMENTSûINû STATE OWNEDû+UMULû#ONSOLIDATEDû(OLDINGSû Within a week of announcing its !USTRALIA û*APANûANDû3OUTHû+OREA to assess the feasibility of hydropower ambitious renewable energy generation The company is developing or projects in the country. TARGET û&&)ûHASûUNVEILEDûPLANSûFORû CONSTRUCTINGûûASSETSûACROSSûITSûTARGETû &&)ûISûSTUDYINGûûCOUNTRIESûRENEWABLEû DEVELOPINGûAû ûTONNESûPERûYEAR û MARKETSûANDûWILLûlNANCEûANDûBEû energy potential and the governments’ -7ûGREENûAMMONIAûPRODUCTIONû responsible for every stage of an asset’s INTERESTûANDûCAPABILITYû)TûAIMSûTOûSHORTLISTû facility in Tasmania. The group is LIFECYCLE ûITûSAIDûINûAûSTATEMENTû#REDITû COUNTRIESûTOûPURSUEûINITIATIVESûINû!LREADY û TARGETINGûAûlNALûINVESTMENTûDECISIONûINû 3UISSEûWASûTHEûlNANCIALûADVISERûTOûTHEû Fortescue executives have visited 23  !$)!ûANDû/400ûCONSORTIUMûONûTHEûDEAL of those 47 countries. The group is The group already has a A$32m project The company was behind the setting committed to only working in countries to build a green hydrogen refuelling UPûOFû%QUISû%NERGY ûRENAMEDûASû6ENAû that do not tolerate modern slavery and facility at its Christmas Creek mine in the %NERGY ûTHEû53BNûRENEWABLEûENERGYû plans to engage local workforces across all 0ILBARAûANDûDEPLOYûAûmEETûOFûHYDROGENûFUELû platform that was sold to a consortium projects. CELLûPASSENGERûCOACHESûFROMûMID û COMPRISINGû'LOBALû)NFRASTRUCTUREû Though Fortescue has not set a 4HEûMINERûHASûALSOûPARTNEREDûWITHû#3)2/û 0ARTNERSHIPS û030û)NVESTMENTSûANDû#)#û TIMEFRAMEûTOûGETûTOû'7 ûTHATûTARGETû FORûRESEARCHûINTOûHYDROGENûTECHNOLOGIES û Capital. CAPACITYûFARûEXCEEDSûTHEûSTATEDûû and with ATCO Australia to explore renewable energy generation targets set potential for a hydrogen production and GIC ACQUIRES 17.5% IN AC ENERGY by various global oil and gas and energy REFUELLINGûFACILITYûINû0ERTH GIANTSû"0ûANDû%$&ûHAVEûTARGETSûTOûREACHû &9ûWASûAûSTRONGûYEARûFORû&ORTESCUEû Singapore sovereign wealth fund GIC is '7ûOFûRENEWABLEûENERGYûBYûû lNANCIALLYû2EVENUESûOFû53BNû ACQUIRINGûAûûSTAKEûINûAC ENERGY ûTHEû )BERDROLAûISûTARGETINGû'7ûBYûûANDû MARKEDûAûûRISEûONûTHEûPREVIOUSûû power arm of the Ayala Corp group in the /RSTEDû'7ûBYû ûWHILEû4OTALûHASûSETû MONTHSû4HEûVOLUMEûSHIPPEDûATûMû 0HILIPPINESû ANûAIMûTOûREACHû'7ûBYû TONNESûWASûALSOûûHIGHERûTHANûINû !#û%NERGYû0HILIPPINESûSAIDûITSûBOARDû !SûANNOUNCEDûINû*UNE û&ORTESCUEû-ETALSû &9û0ROlTûAFTERûTAXûWASûûHIGHERûATû had approved the acquisition of the stake 'ROUPûWILLûTARGETûNETûZEROûOPERATIONALû US$4.74bn. The company managed to cut VALUEDûATûABOUTû0SBNû53M ûBYû EMISSIONSûBYû ûANDûBYûûISûAIMINGû COSTSûTOû53ûPERûWETûMETRICûTONNEû THEû3INGAPOREûFUNDûVIAûITSûAFlLIATEû!RRANû FORûAûûREDUCTIONûINû3COPEûûANDû3COPEû INCLUDINGûAû53WMTûCOSTûASSOCIATEDû )NVESTMENTû)TûWILLûBEûIMPLEMENTEDûTHROUGHû ûEMISSIONSûCOMPAREDûWITHûûLEVELS WITHû#OVID ûIMPACTS a combination of private placement and The company has started with &ORTESCUESûIRONûOREûMININGûHUBS ûALLû purchase of secondary shares from AC RENEWABLEûENERGYûPROJECTSûATûHOME ûTOû LOCATEDûINû7! ûAREûTHEû0ILBARAû(UBûTHEû %NERGYûATû0SûPERûSHARE ûWHICHûISûû power its Western Australian mining 3OLOMONû(UBûTHEû7ESTERNû(UB ûWHICHû premium to the board-approved rights operations. FEATURESûTHEûUPûTOû53BNûMTPAû OFFERINGûPRICEûOFû0SûPERûSHAREû

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!#û%NERGYûISûONEûOFûTHEûLEADINGûANDû or whether it would be an onshore or GIC ACQUIRES 17.5% IN AC ENERGY fast-growing energy companies in the OFFSHOREûTURBINE ûBUTûSAIDûITûISûhPREPARINGû 0HILIPPINESû)TûHASûSOMEû53BNûOFû AûBIDûFORûOFFSHOREûWINDûPOWERv Singapore sovereign wealth fund GIC is investments in renewables including solar )TûWILLûSTOPûBIDDINGûFORûNEWûCOAL lREDû ACQUIRINGûAûûSTAKEûINûAC ENERGY ûTHEû farms and thermal energy projects in the power projects and aims to increase power arm of the Ayala Corp group in the COUNTRYûASûWELLûASûINû)NDONESIA û)NDIAûANDû ITSûSALESûINûRENEWABLESûFROMûcBNû 0HILIPPINESû Vietnam. 53BN ûINûTHEûûlNANCIALûYEARû !#û%NERGYû0HILIPPINESûSAIDûITSûBOARDû TOûcBNûINûûWITHûAûTHIRDûINûSOLARû had approved the acquisition of the stake CEO ADDS ROLE OF CHAIR AT CIMIC and wind power. VALUEDûATûABOUTû0SBNû53M ûBYû h#LEARLY ûTHEREûWILLûBEûAûPARADIGMûSHIFTû THEû3INGAPOREûFUNDûVIAûITSûAFlLIATEû!RRANû CIMIC GROUP has appointed current chief INûTHEûENERGYûSECTORûGLOBALLYû!SûAûRESULT û )NVESTMENTû)TûWILLûBEûIMPLEMENTEDû EXECUTIVEûOFlCERûJuan Santamaria as we have decided to stop receiving orders through a combination of private EXECUTIVEûCHAIRMANûANDû#%/ûFOLLOWINGûTHEû FORûCOAL lREDûTHERMALûPOWERûPLANTSûTHATû placement and purchase of secondary retirement of executive chairman Marcelino EMITûLARGEûAMOUNTSûOFûCARBONûDIOXIDE vû SHARESûFROMû!#û%NERGYûATû0SûPERû Fernandez Verdes. 4OSHIBAû#%/ûNobuaki Kurumatani told a SHARE ûWHICHûISûûPREMIUMûTOûTHEû Santamaria has been leading the PRESSûBRIElNG board-approved rights offering price of COMPANYûSINCEû&EBRUARY ûAFTERûAûPROMOTIONû 0SûPERûSHAREû FROMûMANAGINGûDIRECTORûOFû#)-)#Sû POWER PRICES TRIM ACCIONA !#û%NERGYûISûONEûOFûTHEûLEADINGûANDû SUBSIDIARYû#0"û#ONTRACTORSû(EûHADûBEENû REVENUES fast-growing energy companies in the #%/ûOFû)RIDIUMûFROMûûTOû ûAFTERû 0HILIPPINESû)TûHASûSOMEû53BNûOFû BEINGû#%/ûANDûCHIEFûOPERATINGûOFlCERûOFû ACCIONA REPORTEDûAûûDROPûINûREVENUESû investments in renewables including solar !#3û)NFRASTRUCTUREû.ORTHû!MERICAûANDû OVERûTHEûlRSTûNINEûMONTHSûOFû ûDUEû farms and thermal energy projects in the #ANADAûBETWEENûûANDûû4WOû to a drop in Spanish energy prices and COUNTRYûASûWELLûASûINû)NDONESIA û)NDIAûANDû ALTERNATEûDIRECTORS ûAdolfo Valderas and THEûEFFECTSûOFûTHEû#OVID ûPANDEMICû Vietnam. Angel Muriel ûHAVEûRETIREDûFROMûTHEûBOARDûATû 2EVENUESûFELLûTOûõBNûFROMûõBNû #)-)#û'ROUP 4HEûDROPûWASûDUEûTOûûLOWERûENERGYû CHRYSAOR INCREASES MEGA RBL revenues mainly down to a reduction JAPANESE TRADERS STRUGGLE WITH INû3PANISHûELECTRICITYûPOOLûPRICES ûWHICHû The CHRYSAOR seven-year reserve based COAL IPP STAKES DROPPEDûTOûõûPERû-7HûFROMûõ LENDINGû2", ûPACKAGEûHASûBEENûAMENDEDû -7HûINû ANDûINCREASEDûTOû53BNûFROMû53BNû MARUBENI’S CHIEFûEXECUTIVEûOFlCERûMasumi Acciona’s energy business installed TOûCOVERûTHEûCOSTSûOFûTHEû0REMIERû/ILû KakinokiûSAYSûITûISûINCREASINGLYûDIFlCULTûTOû -7ûINûTHEûPERIODûANDûHADû-7û ACQUISITION ûREPORTSû2ElNITIVû,0# SELLûSTAKESûINûCOAL lREDûPOWERûPLANTSûDUEû under construction at the end of the The loan has been fully underwritten TOûGROWINGûCRITICISMûOFûTHEûPOWERûSTATIONS û quarter. The company will begin by mandated lead arrangers and WHICHûEMITûHIGHûLEVELSûOFûCARBONûDIOXIDE û CONSTRUCTIONûOFû'7ûBYû BOOKRUNNERSû"ANKûOFû-ONTREAL û".0û 2EUTERSûREPORTEDûh)TûISûBECOMINGûHARDERûTOû )TSûINFRASTRUCTUREûBUSINESSûREVENUESû 0ARIBAS û$."ûANDû,LOYDSû$."ûANDû sell stakes in coal power plants as coal has ALSOûFELLûûMAINLYûDUEûTOûTHEûEFFECTû Bank of Montreal are sustainability RUNûINTOûAûLOTûOFûmAK vûHEûTOLDûANûANALYSTû THEû3YDNEYûSETTLEMENTûHADûONûûSALES û STRUCTURINGûAGENTSû$."ûISûFACILITYûAGENT û meeting. and the consequences of the pandemic in security trustee and account bank. The )Nû-ARCHû û-ARUBENIûHADû'7ûOFû VARIOUSûMARKETSûANDûBUSINESSûAREASûnûBUTû underwriters will look to reduce each of net coal power capacity. particularly in construction and services. their participations in the facility down to “The best solution is to stop and scrap Revenues from other activities increased AûMAXIMUMûOFû53M THEûPLANTS ûBUTûWEûNEEDûTOûSELLûOURûSTAKESû BYûû%BITDAûWASûDOWNûûTOûõMû 4HEûlNANCINGûHASûAûTWO YEARûGRACEû to parties with an interest in owning over the nine months. PERIODûANDûINCLUDESûUPûTOû53BNû them as there are many power stations Acciona’s next disposal will be its of letter of credit sub-limits. There is a that are still valuable and needed for PORTFOLIOûOFû3PANISHûCONCESSIONS ûWHICHû 53MûACCORDIONûFACILITY ûALLOWINGûTHEû REGIONSûORûCOUNTRIES vû+AKINOKIûSAIDû HAVEûõMûINûDEBTû#$01 û$UTCHûINFRAû lNANCINGûTOûBEûINCREASEDûUPûTOû53BNû (OWEVER ûHEûADDEDûTHATûTHEûCOMPANYû FUNDû$)& ûANDû&RENCHûINVESTORû-ERIDIAMû -ARGINSûONûTHEûlNANCING ûWHICHûAREûLINKEDû needed to avoid selling the stakes at a have made bids for the portfolio of TOûCARBONûEMISSIONûREDUCTIONS ûSTARTûATû LARGEûLOSS ûORûTOûBUYERSûWHOûMIGHTûRESELLû 3PANISHû000S ûWORTHûõM ûACCORDINGûTOû BPûOVERû,IBORûFORûTHEûlRSTûFOURûYEARS û them quickly. a report. STEPPINGûUPûTOûBPûUNTILûMATURITYû4HEREû ,ASTûWEEK ûSUMITOMOûBOOKEDûAûcBNû 4HEûSALEûCOULDûTAKEûPLACEûINûTWOûWAYS û ISûAûTICKINGûFEEûOFûûOFûTHEûMARGINûAFTERû 53M ûLOSSûINûITSû!PRILûTOû3EPTEMBERû THEûREPORTûSAID ûWITHû!CCIONAûSELLINGûTHEû ûDAYSûFROMûSIGNING ûRISINGûTOûûOFûTHEû half year on its stake and lending in the economic rights of the portfolio but no MARGINûAFTERûûDAYSû4HEûlRSTûANNUALû2",û -7û"LUEWATERSûCOALûPOWERûSTATIONû GOVERNANCEûRIGHTSûORûBYûSELLINGûANûû REDETERMINATIONûISûSCHEDULEDûFORû*UNEû in Australia. MITSUI has announced it is stake in the vehicle with both economic SELLINGûALLûITSûCOAL lREDû)00ûSTAKESûBYû ANDûGOVERNANCEûRIGHTSûnûBUTûWITHû!CCIONAû ENI/HITECVISION’S VAARGROENN EYES  receiving an initial payment at signing. ACQUISITIONS 4HEûlRSTûOPTIONûCOULDûMAKEûTHEû TOSHIBA INTO OFFSHORE WIND process quicker as it would not trigger )TALIANûOILûMAJORû%NIûANDû.ORWEGIANûPRIVATEû PRE EMPTIVEûRIGHTSûONûTHEûASSETS ûORû EQUITYûGROUPû(ITEC6ISIONSûRENEWABLEû TOSHIBA is developing a state-of-the-art require lenders’ approval. The portfolio energy joint venture VAARGROENN will WINDûTURBINE ûITûSAIDûDURINGûITSûSECOND includes hospital concessions expiring consider asset and corporate acquisitions as quarter results call last week. The BETWEENûûANDû ûANDûSTAKESûINû ITûLOOKSûTOûEXPANDûITSûPORTFOLIOûTOû'7ûBYû company gave no details of the machine motorways.  ûAûSPOKESPERSONûSAID

Project Finance International November 18 2020 5

02 P&M p2-.indd 5 17/11/2020 19:33:31 Vaargroenn will take part in Norway’s RESULTSû/PERATINGûPROlTûDROPPEDûTOûõMû upcoming offshore wind tender as well FROMûõM as other onshore and offshore wind The company has sold a number of its FUNDS AUCTIONS ûANDûWILLûTARGETûOTHERûLOWûCARBONû %UROPEANûDISTRICTûHEATINGûBUSINESSESûTHISû INFRASTRUCTUREû)TûWILLûSEEKûTOûlNANCEûITSû year. A sales process for Fortum’s Baltic ECOFIN US GREEN FUND SEEKS 7-7.25% investments with a combination of equity DISTRICTûHEATINGûBUSINESSûISûONGOING û ANDûDEBT ûEVALUATINGûhBOTHûTRADITIONALû WITHûBIDSûSUBMITTEDûINû/CTOBERûSEEû0&)û ,ONDON BASEDûFUNDûMANAGERû%COlNûISû PROJECTûlNANCINGûFACILITIESûANDûOTHERû   LAUNCHINGûAû53Mû,ONDONû)0/ûFORûITSû STRUCTUREDûlNANCEMEZZANINEûDEBTûTOû !ûCONSORTIUMûOFû)&-û)NVESTORS û0'.I' û ECOFIN US RENEWABLES INFRASTRUCTURE TRUST optimise both the projects’ and company’s 0OLSKAû'RUPAû%NERGETYCZNA ûANDû0&2û VIAû3TIFELû.ICOLAUSû%UROPEû4HEûFUNDûISû CAPITALûSTRUCTUREv ûTHEûSPOKESPERSONûSAID )NWESTYCJEû&):ûHASûSUBMITTEDûANûOFFERûFORû TARGETINGûAûNETûTOTALûRETURNûOFûnûPAû %NIûANDû(ITEC6ISIONûCREATEDûTHEû THEû"ALTICûANDû0OLISHûASSETS ûWHICHûOPERATEû WITHûAûDIVIDENDûYIELDûOFûnûPAû renewables JV with a focus on the INûTHEûGENERATION ûDISTRIBUTIONûANDûSALEûOFû 4HEûFUNDûISûDUEûTOûBUYûAû53Mû .ORDICûREGIONû%NIûHOLDSûAûûSTAKEû HEATûANDûELECTRICITYûINû%STONIA û,ITHUANIA û seed portfolio consisting of four solar 3TATKRAFTSûFORMERûHEADûOFûOFFSHOREûWIND û ,ATVIAûANDû0OLAND investments with a weighted average Olav Hetland ûWILLûLEADû6AARGROENNû4HEû*6û 0'.I'ûTHISûWEEKûMODIlEDûITSûOFFERûTOû POWERûPURCHASEûAGREEMENTû00! ûOFûû builds on the two companies’ cooperation ONLYûINCLUDEû0OLISHûASSETS ûITûSAIDû4HEû YEARSû4WOûOFûTHEûASSETSûAREûOPERATING ûAû INûTHEûOILûINDUSTRYûnûINûûTHEYûCREATEDû other partners in the consortium will third is expected to be operational by the ANûOILûANDûGASûCOMPANY û6AARû%NERGI ûWITHû continue to work together to submit a ENDûOFû ûANDûTHEûFOURTHûISûEXPECTEDû an identical ownership structure. Vaar BINDINGûOFFER ûHOWEVERû2OTHSCHILDûANDû TOûBEûOPERATIONALûBYûTHEûENDûOFû û %NERGIûOPERATESûSEVERALûlELDSûOFFû.ORWAY û 0ORTAû&INANCEûAREûADVISINGû&ORTUMûONûTHEû ORûOTHERWISEûWITHINûTHEûlRSTûQUARTERûOFû INCLUDINGûTHEû!RCTICû'OLIATûOILlELD sale.  “We continue to put focus on our A fund managed by Capricorn FINERGE RAISES €150m balance sheet and securing our overall )NVESTMENTû'ROUPûHASûAGREEDûTOûSUBSCRIBEû lNANCIALûSTRENGTH vû&ORTUMûSAIDûh%QUALLY û FORûûOFûTHEû)0/û4HEûLEADûPORTFOLIOû 0ORTUGUESEûRENEWABLESûINVESTORûFINERGE maintaining a credit rating of at least BBB managers Jerry Polacek ûMatthew Ordway and GROUP HASûRAISEDûõMûOFûDEBTûFROMû CONTINUESûTOûBEûAûPRIORITYv Prashanth PrakashûJOINEDû%COlNSûPRIVATEû Japanese lender MUFG and Spanish Fortum in August closed the sale of sustainable infrastructure investment BANKSû""6! û3ANTANDERûANDû"ANKINTER û the Jarvenpaa district heating business TEAMûINûLATEûû according to reports quoting Finerge INû&INLAND ûRECORDINGûAûCAPITALûGAINûOFû %COlNûSAYSûITûHASûANûACTIVEûPIPELINEû #%/û0EDROû.ORTONû4HEûlNANCINGûWILLû õM OFû53BNûACROSSûûTRANSACTIONSûWITHûAû support Finerge’s growth through The company also sold its Joensuu longer-term pipeline totalling a further further acquisitions. Finerge declined to district heating business in January. 53BNûACROSSûûDEALS ûPREDOMINANTLYû comment. Fortum earlier this year sold its district sourced through off-market transactions &INERGESû)BERIANûSOLARûPORTFOLIOûTOTALSû HEATINGûBUSINESSûINû%STONIA ûANDûINCREASEDû as a result of the team’s proprietary -7ûAFTERûTHEûCOMPANYûTHISûYEARû ITSûSTAKEûTOûûINûTHEû4ARTUûDISTRICTû sourcing network and reputation in the ADDEDû-7ûOFû0ORTUGUESEûCAPACITYû heating business in June. middle market. through four acquisitions in March and 7ITHINûTHESEûPIPELINEûASSETS ûTHEûTEAMû a further six in September. The company WEBUILD COMPLETES ASTALDI HASûIDENTIlEDûAûSUB SETûOFûûUTILITYû ALREADYûHADû-7ûOFûINSTALLEDûCAPACITYû TAKEOVER scale and commercial solar and wind across six plants in Spain. INVESTMENTûOPPORTUNITIES ûCOMPRISINGû Sydney-headquartered asset manager )TALIANûCONSTRUCTIONûGROUPûWEBUILD û ûINDIVIDUALûASSETSûWITHûANûAGGREGATEû &IRSTû3ENTIERû)NVESTORSûISûANûINVESTORûINû FORMERLYû3ALINIû)MPREGILO ûHASûCOMPLETEDû equity value of US$694m. These targeted ANDûBACKERûOFû&INERGE ûWHICHûOPERATESûû ITSûACQUISITIONûOFûûOFûASTALDI via a PIPELINEûASSETSûTOTALûAPPROXIMATELYû-7û WINDûANDûûSOLARûPHOTOVOLTAICûPLANTSûINû õMûCAPITALûINCREASEû0ROCEEDSûWILLû SPREADûACROSSûû53ûSTATESûANDû#ANADA û MOREûTHANûû0ORTUGUESEûMUNICIPALITIESû lNANCEû!STALDIûASûAûGOINGûCONCERNûANDû contracted to predominantly investment- and three Spanish provinces. also pay off privileged and pre-deductible grade quality offtakers with an average &INERGEûHASûAûTOTALû'7ûOFûINSTALLEDû CREDITORS û7EBUILDûSAID 00!ûTERMûEXCEEDINGûûYEARS SOLARûANDûWINDûCAPACITYû)Nû!UGUST ûTHEû The company’s participation was company signed a sale and purchase lNANCEDûVIAûAûFULLYûSUBSCRIBEDûCAPITALû HARBOURVEST CLOSES INFRA FUND agreement for the 242MW Murillo wind INCREASEûINû.OVEMBERûû0ARTICIPANTSû PORTFOLIOûWITHû%$0û2ENOVAVEISû%$02 ûFORû INCLUDEDû3ALINIû#OSTRUTTORI û#$0û%QUITY û "OSTONûASSETûMANAGEMENTûlRMûHARBOURVEST €426m. "ANCOû"0- û)NTESAû3ANPAOLO û5NI#REDITû PARTNERSûHASûREACHEDûlNALûCLOSEûONû and other institutional investors. !DELAIDE ûITSûDEDICATEDûCOREûINFRASTRUCTUREû FORTUM REVIEWS DISTRICT HEATING 4HEûDEALûISûPARTûOFû7EBUILDSûh0ROGETTOû vehicle. )TALIAv ûORû0ROJECTû)TALY ûSTRATEGYû4HEû 4HEûFUNDûCLOSEDûWITHû53MûANDûWILLû Finnish utility FORTUM is reviewing its company is acquiring a number of its TARGETûLONG TERM ûLOW RISK ûCASH GENERATINGû 0OLISHûANDû3WEDISHûDISTRICTûHEATINGû PEERS ûINCLUDINGû3ELIû/VERSEASûANDû'RANDIû core and core-plus infrastructure assets businesses and is considering further Lavori. WITHûAûFOCUSûONû.ORTHû!MERICA û7ESTERNû DIVESTMENTS ûITûSAIDûTHISûWEEKû&ORTUMSû The resulting group will be specialised %UROPEûANDû!USTRALIAû4HEûFUNDûRECEIVEDû %BITDAûFELLûTOûõMûINûTHEûTHIRDûQUARTERû in large infrastructure projects in support from a global group of institutional FROMûõMûAûYEARûEARLIERû,OWû.ORDICû SUSTAINABLEûMOBILITY ûHYDROPOWER ûWATERû investors. power prices due to high hydrology and green buildings with combined (ARBOUR6ESTûHASûBEENûINVESTINGûINû and a seasonally weak third quarter for ENGINEERING ûPROCUREMENTûANDû INFRASTRUCTUREûSINCEûûANDûCREATEDû Fortum’s Uniper segment weighed on the CONSTRUCTIONûORDERSûOFûMOREûTHANûõBN a dedicated infrastructure secondaries

6 Project Finance International November 18 2020

02 P&M p2-.indd 6 17/11/2020 19:33:31 PEOPLE & MARKETS

TEAMûINûû4HEûTEAMûHASûINVESTEDû in distributed waste water provider Trust and the closed-ended Lighthouse APPROXIMATELYû53BNûACROSSûMOREûTHANû #AMBRIANû)NNOVATIONû3PRINGû,ANEû 3OLARû&UNDû!SSETSûINCLUDEûTHEû-7û ûINFRASTRUCTUREûTRANSACTIONSûOVERûTHEûLASTû provided project equity as part of the %MERALDûSOLARûPARKûANDûTHEû-7û decade. 53MûlNANCIALûCLOSEûFORûTHEû!RIESû (UGHENDENûSOLARûFACILITYûINû1UEENSLANDû ,INDENûBIOSOLIDSûGASIlCATIONûFACILITYûINû %ARLIERûINû ûAlexandra O’Dea joined INFRA PROMOTIONS AT FIRST SENTIER New Jersey. from Willis Towers Watson as investment director. Fund manager FIRST SENTIER INVESTORS has NEW PAKISTAN CREDIT ENHANCEMENT announced several appointments within FUND LAUNCHED TRUE INFRA FUND OF FUNDS LAUNCHED the direct infrastructure team. New York-based John Ma has been promoted )NFRACOû!SIAû)NVESTMENTSûANDû+ARANDAAZû .EWLYûESTABLISHED û!USTRALIA BASEDûTRUE to partner and head of North America. 0AKISTANûHAVEûSETûUPûINFRAZAMIN PAKISTAN ûAû INFRASTRUCTURE MANAGEMENT has launched to Marcus Ayre in London will be the head of CREDITûENHANCEMENTûFUNDûTHATûAIMSûTOûlLLû MARKETûITSûlRSTûFUND ûAûWHOLESALEûINVESTORû %UROPE ûHAVINGûBEENûCO HEADûDanny Latham the gap in local markets. fund of funds. The proceeds of the offer and Chris MacArthur in Sydney retain their 4HEûFUND ûANûINITIATIVEûOFû0RIVATEû will be deployed with the institutional positions as co-heads of Australia and New )NFRASTRUCTUREû$EVELOPMENTû'ROUPû funds of two Australian infrastructure :EALAND 0)$' ûWILLûPROVIDEûGUARANTEESûTOû MANAGERSûnû)NFRASTRUCTUREû#APITALû'ROUPû !LSOûINû3YDNEY ûDIRECTORûGavin Kerr has enhance the credit quality of local )#' ûANDûLISTEDûINFRASTRUCTUREûINVESTORû been promoted to head of transactions for currency debt instruments intended to !TLASû)NFRASTRUCTUREû)#'SûFUNDSûAREûTHEû !USTRALIAûANDû.EWû:EALAND ûANDûDIRECTORû fund infrastructure development in the !USTRALIANû2ENEWABLESû)NCOMEû&UNDûANDû Daniel Timms to head of asset management country. A shareholders’ agreement was $IVERSIlEDû)NFRASTRUCTUREû4RUST FORû!USTRALIAûANDû.EWû:EALAND SIGNEDûLASTûWEEK ûSETTINGûOFFûTHEûSTARTûOFûITSû True’s fund will have initial exposure Three infrastructure managers based in operations. Allard Nooy ûTHEû#%/ûOFû)NFRACOû TOûûOFû)#'SûUNLISTEDûASSETSûACROSSû the UK have been made partner: Hamish !SIA ûISûEXPECTEDûTOûBEûAPPOINTEDûCHAIRûOFû RENEWABLES ûPOWER ûUTILITIESûANDûTRANSPORT û Lea-Wilson ûGregor Kurth and Nick Grant. Niall THEû)NFRA:AMINûBOARD ANDûAROUNDûûASSETSûGLOBALLYû4HEûFUNDû Mills has been head of global infrastructure OFûFUNDûTARGETSûANûûANNUALûRETURNûAFTERû since May. ENEX INFRA GETS FUND LOAN FEESûANDûAûûGROSSûDIVIDENDûYIELDûMike &IRSTû3ENTIERû)NVESTORSûHASûUNDERGONEû Fitzpatrick ûWHOûFOUNDEDû(ASTINGSû&UNDSû AûREBRANDINGûOVERûTHEûLASTûYEAR ûAFTERûITû ENEX INFRASTRUCTURE INVESTMENT CORP is set -ANAGEMENTûINûûANDûISûAûMAJORû was known as Colonial First State Global TOûRAISEûAûcBNû53M ûDEBUTû SHAREHOLDERûINû)#' ûHASûLAUNCHEDû4RUEû Asset Management in the home market SYNDICATEDûLOAN ûTHEû4OKYO LISTEDû Peter McGregor is chief executive for the OFû!USTRALIAûANDû&IRSTû3TATEû)NVESTMENTSû INFRASTRUCTUREûFUNDûSAIDûLASTûWEEK ûREPORTSû new wholesale fund of funds. McGregor overseas. The rebranding followed the ,0# WASûFORMERLYû#%/ûOFûTHEû!USTRALIANû arrival of new owner Mitsubishi UFJ Trust 3HINSEIû"ANK û3UMITOMOû-ITSUIû"ANKINGû )NFRASTRUCTUREû&UND ûANDûTHEûHEADûOFû ANDû"ANKINGû#ORPORATIONûINû!UGUSTûû Corp and Sumitomo Mitsui Trust Bank infrastructure and utilities at Goldman Commonwealth Bank of Australia sold are among the arrangers of the secured Sachs JBWere. the investment manager to the Japanese TERMûLOAN ûWHICHûISûSPLITûINTOûAûcBNû bank.  YEARûAMORTISINGûTRANCHE ûAûcBNû EX MIZUHO BANKERS IN GREEN FUND &IRSTû3ENTIERû)NVESTORûHADû53BNûINû  YEARûAMORTISINGûPORTIONûANDûAûcBNû RAISING infrastructure assets under management one-year and four-month bullet tranche. ASûATû3EPTEMBERûûû4HEûGROUPûACROSSû 4HEûINTERESTûMARGINSûAREûBP ûBPûANDû Richard Lum ûEduardo Monteiro and Tony ALLûASSETûCLASSESûHADû!BNû53BN ûINû BPûOVERûSIX MONTHû4IBOR ûRESPECTIVELY CatachanasûAREûSEEKINGûTOûRAISEûaMûVIAû AUM on that date. Signing and funding are slated Aû,ONDONû)0/ûFORûTHEûVH GLOBAL SUSTAINABLE FORû.OVEMBERûûANDû$ECEMBERû û ENERGY OPPORTUNITIESûFUND ûRUNûBYû,ONDON SPRING LANE NAMES CFO/COO respectively. Funds are for the acquisition BASEDû6ICTORYû(ILLû#APITALû!DVISORSû of assets and other ancillary costs. The 6ICTORYû(ILLûWASûFOUNDEDûINû-AYûBYûTHEû Boston based sustainability-focused FUND ûLISTEDûONûTHEû4OKYOû3TOCKû%XCHANGEû TEAMûOFûENERGYûlNANCIERSûTHATûWASûSPUN PRIVATEûEQUITYûlRMûSPRING LANE CAPITAL has INû&EBRUARYû ûINVESTSûINûRENEWABLEû OUTûOFû-IZUHOû4HEYûHADûBEENûWORKINGû appointed Ann Leng ASûCHIEFûlNANCIALû energy. TOGETHERûFORûlVEûYEARSûATûTHEûBANKû OFlCERûANDûCHIEFûOPERATINGûOFlCER û 4HEûCOMPANYûWILLûhSEEKûSTABLEûRETURNS û effective immediately. Leng joins from AC LIGHTHOUSE INFRASTRUCTURE principally in the form of income )NVESTMENTû-ANAGEMENT ûWHEREûSHEûWASû APPOINTS CFO DISTRIBUTIONS ûBYûINVESTINGûINûAûDIVERSIlEDû #&/ûFORûMOREûTHANûûYEARS portfolio of global sustainable energy Spring Lane Capital’s investment Melbourne-based fund manager LIGHTHOUSE INFRASTRUCTUREûASSETS ûPREDOMINANTLYûINû MODELûPROVIDESûPROJECTûlNANCEûANDû INFRASTRUCTURE has appointed Mark Murray COUNTRIESûTHATûAREûMEMBERSûOFûTHEû%5 û growth capital for companies deploying ASûCHIEFûlNANCIALûOFlCERûANDûCOMPANYû /%#$ û/%#$ûKEYûPARTNERûCOUNTRIESûORû DISTRIBUTEDûASSETSû,ASTûYEAR ûTHEûlRMû SECRETARYû(EûJOINSûFROMûDEVELOPERû4ILTû /%#$ûACCESSIONûCOUNTRIESv ACHIEVEDûlNALûCLOSEûONûITSûINAUGURALûFUND û 2ENEWABLES ûWHEREûHEûWASûlNANCIALû Lum was formerly global head of bringing total equity commitments to CONTROLLERû(EûHASûWORKEDûINûlNANCEûROLESû ENERGYûORIGINATIONûATû-IZUHOû"ANKûINû APPROXIMATELYû53Mû4HEûCOMPANYû ATû3UMOû0OWER û/RIGINû%NERGYûANDû'% û ,ONDONû-ONTEIROûHELPEDûBUILDû-IZUHOû has entered investment partnerships with ANDûATû5"3ûANDû$ELOITTE Bank’s natural resources corporate !TLASû/RGANICS û#AMBRIANû)NNOVATIONû ,IGHTHOUSEû)NFRASTRUCTUREûMANAGESû lNANCEûADVISORYûUNIT ûOFûWHICHûHEûWASû ANDû!RIESû#LEANû%NERGYû)TûHASûINVESTEDû funds investing in sustainable ACTINGûHEADûFORû%-%!û#ATACHANASûWASû 53MûINûLANDlLLûWASTEûDIVERSIONû INFRASTRUCTUREû)TSûFUNDSûAREûTHEûOPEN responsible for business strategy and COMPANYû!TLASû/RGANICSûANDû53Mû ENDEDû,IGHTHOUSEû)NFRASTRUCTUREû&UNDû INVESTMENTûSOLUTIONSûFORû%-%!ûANDûLEDû

Project Finance International November 18 2020 7

02 P&M p2-.indd 7 17/11/2020 19:33:31 the creation and development of the 4UTUKAûISûTASKEDûTOûRAISEû)NDONESIASûOILû real asset investment business of Asset PRODUCTIONûTOûMûBARRELSûOFûOILûPERûDAYû -ANAGEMENTû/NE ûTHEûASSETûMANAGEMENTû GOVERNMENTS BPD ûBYûûFROMû ûBPDûASûOFû ARMûOFûTHEû-IZUHOû&INANCIALû'ROUP 3EPTEMBERû Lum and Monterio are the co-chief DANLY NAMED FERC CHAIRMAN The appointments were made on INVESTMENTûOFlCERSûANDû#ATACHANASûISûTHEû .OVEMBERûûBYû%NERGYûANDû-INERALû CHIEFûEXECUTIVEûOFlCERû#%/ û4HEûFUNDû 0RESIDENTû$ONALDû4RUMPûHASûNAMEDûJames 2ESOURCESû-INISTERû!RIlNû4ASRIFûh4HEû is targeting a net asset value total return DanlyûASûCHAIRMANûOFûTHEû&EDERALû%NERGYû CHALLENGEûAHEADûISûNOTûEASY ûESPECIALLYû OFûûPAûNETûOFûTHEûCOMPANYSûCOSTSûANDû 2EGULATORYû#OMMISSIONû&%2# ûREPLACINGûNeil because we are in the midst of trying expenses. Numis is the sponsor and sole Chatterjee ûWHOûWILLûSTAYûONûASûAûCOMMISSIONERû to revive our economy following the BOOKRUNNERûONûTHEû)0/ UNTILûTHEûENDûOFûHISûTERMûINû*UNEû$ANLYû PANDEMIC vûSAIDûTHEûMINISTER Michael Egan is the fund’s chief has been a commissioner since March and lNANCIALûOFlCERû(EûJOINSûFROMû3TEINHOFFû GENERALûCOUNSELûTOû&%2#ûSINCEûû AUCTION PLAN FOR 3.1GW )NTERNATIONAL ûAûGLOBALûVERTICALLYûINTEGRATEDû $ANLYSûAPPOINTMENTûCOMESûWEEKSû RENEWABLES retail conglomerate. And Lawrence Bucknell û after Chatterjee encouraged power grid FROMû-IZUHOSûLEGALûDEPARTMENT ûISûTHEû operators to incorporate state carbon 3PAINûPLANSûTOûAUCTIONûATûLEASTû'7û chief general counsel. PRICINGûPOLICIES ûAûCONTROVERSIALûISSUEûWITHINû of renewable capacity by the end of the Trump administration. Chatterjee THEûYEAR ûTHEû%NERGYûû%NVIRONMENTû RGREEN FUND IN €480M CLOSE WASûAPPOINTEDûBYû4RUMPûINûûANDûHASû Ministry said. Of the capacity to be BEENûCHAIRMANûTWICE ûMOSTûRECENTLYûSINCEû AUCTIONED ûATûLEASTû'7ûWILLûBEûWIND û French asset manager RGREEN INVEST‘s /CTOBERû WITHû'7ûOFûSOLARûPHOTOVOLTAICû06 ûANDû %UROPE FOCUSEDû)NFRAGREENû)6ûFUNDûHASû -7ûOFûBIOMASSû4HEûREMAINDERûOFûTHEû REACHEDûAûõMûTHIRDûCLOSEû)NFRAGREENû INDONESIA APPOINTS NEW ENERGY capacity will be technology agnostic. )6ûTARGETSûLIQUIDûJUNIORûDEBTûANDûEQUITYû DIRECTORS 4HEûFOLLOWINGûlVEûYEARSûWILLûSEEûTHEû investments in infrastructure projects amount of capacity available in the LINKEDûTOûTHEûENERGYûTRANSITION ûCLIMATEû )NDONESIASûMINISTRY OF ENERGY & MINERAL WIND û06 ûSOLARûTHERMAL ûBIOMASSûANDû RESOURCES change and CO2 reduction. û-%-2 ûHASûAPPOINTEDûTWOûNEWû hOTHERvûCATEGORIESûRISEûOVERûTIMEû"Yû 4HEû%UROPEANû)NVESTMENTû"ANKûHASûAû energy directors. ûTHEûGOVERNMENTûPLANSûTOûHAVEû õMûTICKETûWITHûTHEûFUNDû4HEûSUBSCRIPTIONû One is long-time ministry bureaucrat AUCTIONEDû'7ûOFûWIND û'7ûOFû PERIODûENDSûINû-ARCHûû)NFRAGREENû Dadan Kusdiana ûWHOûISûTHEûNEWû 06 û-7ûOFûSOLARûTHERMAL û-7û )6ûHASûANûOVERALLûTARGETûOFûõMûANDûAû RENEWABLESûDIRECTORûGENERAL ûANDûTHEû OFûBIOMASS ûANDû-7ûINûTHEûOTHERû HARDûCAPûOFûõMû4HEûFUNDûHASûTO DATEû other is engineering professor Tutuka CATEGORYûnûINCLUDINGûINCLUDINGûBIOGAS û INVESTEDûMOREûTHANûõMûINû%UROPEANû Ariadji ûWHOûISûTHEûNEWûOILûANDûGASû HYDRAULIC ûANDûTIDAL INFRASTRUCTUREûPROJECTS û2'REENûSAIDû2'REENû director general. They will oversee the Spain is targeting the installation )NVESTûISûLEDûBYûFOUNDERû.ICOLASû2OCHONûANDû country’s renewable energy and oil OFû'7ûOFûRENEWABLESûBYû ûWITHû HASûõBNûOFûASSETSûUNDERûMANAGEMENT ANDûGASûINDUSTRIES ûASû)NDONESIAûAIMSûTOû AûTOTALû'7ûPLANNEDûFORûAUCTIONSû develop clean energy and ramp up oil BYûTHEûENDûOFû ûACCORDINGûTOûAû DIF BOLSTERS TEAM production at the same time. DIRECTIVEûFROMûTHEû%NERGYû-INISTRYû)Fû $ADANûISûTASKEDûTOûPUSHû)NDONESIASû THEûDIRECTIVEûISûAPPROVED ûTHEûMINISTRYû $UTCHûINFRASTRUCTUREûFUNDûMANAGERûDIF RENEWABLEûENERGYûMIXûTOûûBYûû will put in place a calendar for the CAPITAL PARTNERS has hired Caine Bouwmeester ASûMANAGINGûDIRECTORûINû,ONDON ûMarcel „ NOT PEOPLE & MARKETS BeverungenûASûSENIORûDIRECTORûINû&RANKFURT û and Pierre BoschinûASûSENIORûDIRECTORûINû0ARIS Bouwmeester joins from Macquarie’s An old friend 'REENû)NFRASTRUCTUREû'ROUPûANDûHASûMOREû THANûûYEARSûOFûEXPERIENCEûINûRENEWABLEû Refinancing transport assets has been a steady unprecedented 25% of base case assumptions ENERGYûWITHûAûTRACKûRECORDûOFûDEVELOPING û stream of business this century but for obvious when it opened in 2004. ACQUIRING ûANDûlNANCINGûMOREûTHANû'7ûOFû reasons the sector has come to a grinding halt So it is reassuring to note that a) traffic levels wind and solar projects. this year as we all have had to stay at home. are now two-thirds of the original assumptions Beverungen was previously a director Exceptions to the rule? WestConnex in Australia and b) of all the transport assets around the INû2OTHSCHILDSûENERGY ûPOWERûANDû is one. Is there ever a time when something world, it is one that is looking to be refinanced INFRASTRUCTUREûTEAMûINû'ERMANYû0RIORûTOû financial is not happening on that road? Another in 2020–21. Actually, the term refinancing is THATûHEûHELDûROLESûATû5"3ûANDû$RESDNERû is the Warnow Tunnel, an old counter-cyclical not strictly accurate. The loan was out to bed in Kleinwort in their energy and renewables friend. 2000 so it has only five years to go. That said, TEAMS ûADVISINGûINSTITUTIONALûINVESTORSûONû Twenty years ago when the infrastructure the concession runs to 2053. The M6 has a M&A. sector was largely made up of transport and similarly long-term concession so maybe in the Boschin was managing director at PFI, the Warnow Tunnel in Germany stood long run these two assets will be real winners. French M&A boutique Messier Maris & out like a beacon of not success – along Famed economist John Maynard Keynes said, !SSOCIES ûWHEREûHEûADVISEDû&RENCHûUTILITIES û with the M6 in England. Both were held by when talking about investment horizons, in BLUEûCHIPS ûANDûPRIVATEûEQUITYûHOUSESûONû Macquarie-linked vehicles. While the M6 was the long run we will all be dead. But its seems transactions in the energy and industrial not a complete write-off, Warnow really was our children will be happily driven along these SEGMENTSûINû&RANCEûANDû3OUTHERNû%UROPEû a challenge for its sponsors, Macquarie Atlas projects in their battery power vehicles for some (EûWASûPREVIOUSLYûANûINVESTMENTûBANKERû Roads and Bouygues, with traffic levels at an time yet. FORû#REDITû3UISSEûANDû,AZARD

8 Project Finance International November 18 2020

02 P&M p2-.indd 8 17/11/2020 19:33:31 PEOPLE & MARKETS

AUCTIONSûOVERûTHEûCOMINGûlVEûYEARSû ASSOCIATEû*INûJOINSûFROMû%$&û2ENEWABLESû development and disposal of projects and 0ARTICIPANTSûWILLûBIDûWITHûTHEûPRICESûATû $ISTRIBUTEDû3OLUTIONS ûWHEREûHEûSERVEDûASû drafting agreements. which they would be willing to sell the in-house counsel. "EFOREûMOVINGûTOû(OUSTON û%DNEYû energy. 0OGUEûBRINGSûTOûTHEûlRMûMOREûTHANû was seconded to one of Japan’s largest two decades of experience in the energy international oil and gas companies SECTORû(EûREPRESENTSûlNANCIERSûANDû INû4OKYOû$URINGûTHISûASSIGNMENT û INVESTORSûINûRENEWABLEûENERGYûPROJECTS û he worked on the development and LAWYERS as well as other players in various aspects lNANCINGûOFûTHEûWORLDSûLARGESTûPOST of the power and renewables industries. combustion carbon capture and storage MAYER BROWN HIRES RENEWABLES 4ORMEYûFOCUSESûONûTHEûDEVELOPMENT û project. TEAM ACQUISITIONûANDûlNANCINGûOFûVARIOUSû TYPESûOFûENERGY RELATEDûASSETS ûINCLUDINGû ASHURST HIRES OZ PROJECTS MAYER BROWN has hired a four-lawyer POWER ûGASûPIPELINES ûLIQUElEDûNATURALû PARTNER RENEWABLEûENERGYûTEAMûFROMû(UNTONû GASûFACILITIES ûTRANSMISSIONûLINESûANDû Andrews Kurth in the US. The team led compression facilities. ASHURST has appointed Bree Miechel as a by partners Eric Pogue and John Tormey partner in the projects practice. Based has joined Mayer Brown’s projects and NORTON ROSE ADDS IN HOUSTON INû3YDNEY û-IECHELûISûAûPROJECTSûANDû infrastructure practice. construction lawyer. She has relocated 0OGUE ûFORMERLYûCO CHAIRûOFû(UNTONSû NORTON ROSE FULBRIGHT has hired Luke Edney FROMû3INGAPORE ûWHEREûSHEûWORKEDûFORû RENEWABLESûPRACTICE ûWILLûBEûBASEDûINû ASûSENIORûCOUNSELûINûITSû(OUSTONûOFlCEû Reed Smith as partner. Miechel has acted .EWû9ORK ûANDû4ORMEYûWILLûBEûBASEDû %DNEYûISûAûPROJECTûlNANCEûLAWYERûWHOû FORû!SIAN û%UROPEANûANDû53ûCLIENTSûONû INû7ASHINGTONû$#û4HEYûAREûJOINEDûBYû JOINSûFROMû6INSONûû%LKINSû(EûHASû POWER ûOILûANDûGAS ûWATERûANDûWASTE ûANDû associates Samantha Leavitt who will experience working with conventional TRANSPORTûPROJECTS ûANDûONûCOMMERCIALû be based in New York and Addison and renewable energy project PROPERTYûDEVELOPMENTSûACROSSû!USTRALIA û 0ERKINSûWHOûWILLûBEûBASEDûINû7ASHINGTONû DEVELOPERS ûPETROCHEMICALûCOMPANIESû !SIA ûTHEû-IDDLEû%AST û!FRICA û%UROPEûANDû $#û4HEûlRMûHIREDûHenry Jin as an ANDûCONTRACTORSûONûTHEûACQUISITION û the Americas.

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Project Finance International November 18 2020 9

02 P&M p2-.indd 9 17/11/2020 19:33:34 NEWS AMERICAS

Brazil 11 Canada 11 Chile 14 Colombia 15 Mexico 16 Panama 17 United States 18

„ FRONT STORY US - RENEWABLES Renewables sector cheers Biden win

New tax incentives for clean energy are widely expected under President-elect Biden Stricter permitting may offer a downside of the new administration’s plan

BY ALISON HEALEY AND NIC STONE panelists said, with zero emissions by 2035 incentives, and grid-scale storage. He proposes for the utility sector as a mid-step. “cleaning up and redeveloping abandoned Certain industry groups are salivating at In “The Biden Plan to Build a Modern, ANDûUNDERUSEDûBROWNlELDûPROPERTIES ûOLDû the prospect of a Biden administration Sustainable Infrastructure and an Equitable POWERûPLANTSûANDûINDUSTRIALûFACILITIES ûLANDlLLS û and the boost it will give to renewables, Clean Energy Future,” the President-elect abandoned mines, and other idle community and the offshore wind sector in particular. proposes a technology-neutral Energy assets that will be transformed into new “Under the Biden Administration, it is %FlCIENCYûû#LEANû%LECTRICITYû3TANDARDû economic hubs.” He aims to “double down” expected that offshore wind will experience (EECES) for utilities and grid operators. on research investments and tax incentives substantial growth from projects, supply “Paired with his historic, front-loaded for technology that captures carbon and says chain development, and job creation,” investments in the power sector, Biden’s he will ensure the market can access green according to a statement from the Business EECES will cut electricity bills and cut hydrogen at the same cost as conventional Network for Offshore Wind. electricity pollution, increase competition in hydrogen within a decade to provide a clean President-elect Biden has indicated he the market and incentivize higher utilization fuel source for some existing power plants. INTENDSûTOûPROVIDEûAûLEVELûPLAYINGûlELDûWITHû of assets – and achieve carbon-pollution free Biden aims to create the Advanced Research tax policies for clean energy technologies – energy in electricity generation by 2035,” the Projects Agency on Climate, a cross-agency and hopefully with a multi-year extension plan notes, adding that Biden plans to utilise group that will focus on new clean energy of tax credits for all renewables projects and best practices from state-level clean energy technology including “grid-scale storage at complementary standalone battery storage; standards. one-tenth the cost of lithium-ion batteries” and by reducing the country’s substantial Panelists said they expect Biden to extend and “using renewables to produce carbon-free fossil-fuel subsidies. federal incentives for clean energy like the hydrogen at a lower cost than hydrogen from The American Wind Energy Association production tax credit (PTC) and investment shale gas through innovation in technologies (AWEA) thus updated its outlook for wind tax credit (ITC) and to focus on storage and like next generation electrolyzers”. energy across the United States in the advanced biofuels. “Biden’s plan to tighten Without Democratic control of the coming decade. Forecasters expect about carbon-emission and fuel-economy standards Senate, however, sweeping changes “will '7ûOFûNEWûWINDûPOWERûINûTHEûNEXTûlVEû while expanding the availability of renewables not happen”, according to K&L partner Bart years, with 94GW over the coming decade in would depress the demand for oil, which Gordon, the former chair of the US House total. Offshore wind is slated to have 20GW would accelerate carbon-transition risks for the Committee on Science & Technology. And of operational projects by 2029. industry in the short term,” Moody’s said in a despite the focus on clean energy, a Biden "IDENSûSTANCEûONûGAS lREDûGENERATIONûISû report on the expected credit effects of Biden presidency may not be good news for project not as clear, however. Then-nominee Biden, policy. “However, these policies could provide lNANCEûTHROUGHOUTûTHEûENERGYûSECTOR speaking during a town hall meeting, impetus for the industry to pursue energy- Federal permitting regulations that were said he would not ban fracking if elected. transition strategies with shifts in product loosened under the Trump administration, But the US$2trn clean-energy plan he is offerings and investments in renewables.” especially those with an environmental pushing aims to edge natural gas out of the Biden is expected to use the federal component, can be expected to return to their power generation matrix within 15 years. procurement market to transform the US former level of scrutiny. Biden has indicated he “While Biden’s plan pushes for major FEDERALûmEETûTOûCLEANûVEHICLESûANDûHYBRIDS û plans to discontinue oil and gas development investments in clean energy, it does not call according to Laurie Purpuro, a government on federally managed lands over time. for divestment of fossil fuels or a carbon AFFAIRSûADVISERûINûTHEûlRMSûPUBLICûPOLICYû A post-election alert from Baker Botts tax,” Moody’s pointed out. “It also does not and law group. Additional priorities for the SAIDûTHEûlRMûISûPREPARINGûTOûPROVIDEûCOUNSELû call for a ban on hydraulic fracturing, which new administration include transmission on matters such as increased regulatory has driven the surge in domestic oil and gas expansion to enable increased renewables enforcement and heightened scrutiny of production for more than a decade.” development, fast-tracking clean energy environmental, social and governance The market is expecting a very broad requirements for utilities and grid operators, %3' ûDISCLOSURESûUNDERû"IDENû4HEûlRMû infrastructure plan including clean energy to be and vehicle charging station development. offered its assistance with “formulating and introduced in Q1 by the Biden administration, In a document entitled “Nine Key executing upon strategies for challenging according to panelists on a K&L Gates town hall Elements of Joe Biden’s Plan for a Clean new regulations or executive actions focused Webinar entitled, “Election 2020: What just Energy Revolution”, Biden says he will work on delaying or limiting permitting, leasing happened and what does it mean for energy with governors and mayors to support the and drilling on federal lands and waters”, and and environmental policy and regulation?” deployment of more than 500,000 new “advising on a potential increase in citizen Biden will pursue a goal of net public charging outlets by the end of 2030. enforcement as environmental groups redirect zero emissions by 2050 that will be In his more detailed plan, Biden emphasises RESOURCESûFROMûlGHTINGûREGULATORYûROLLBACKSû accomplished by a combination of BROWNlELDûDEVELOPMENT ûEFlCIENCYûINITIATIVES û TOûlLINGûMOREûCITIZENûSUITSûUNDERûTHEû#LEANû!IRû executive orders and legislative efforts, clean transportation, new carbon capture tax Act, Clean Water Act, and other statutes”.

10 Project Finance International November 18 2020

03 Americas p10-24.indd 10 17/11/2020 18:51:49 NEWS AMERICAS

US$100m into the Brazilian solar sector in its plans remain on track. Bank of America, order to help it deal with the fallout from XP Inc, Banco BTG Pactual, and Morgan BERMUDA Covid-19. The funds are part of IFC parent Stanley will manage an offering that may group the World Bank’s rapid-reaction raise R$10bn (US$1.81bn). The group APUC CONTINUES BUYING SPREE programme to the pandemic. owns the Casa de Pedra mine and is the IN BERMUDA The lenders will each take a US$50m country’s largest iron ore exporter. It has ticket in this deal, which “will be devoted CERTIlEDûRESERVESûOFûMOREûTHANûBNûTONNES û Canada’s Algonquin Power & Utilities to the commercialization of photovoltaic according to information on the company’s Corp (APUC) has closed the acquisition of panels”, they said in a statement. The funds website. ASCENDANT GROUP, which includes subsidiary will be available as a 12-month bridge deal Bermuda Electric Light Company. It is to borrowers to allow them to continue the sole utility on the island of Bermuda, activity in the sector. The deals will be providing regulated electrical generation, extendable for a second 12-month period. CANADA transmission and distribution services The World Bank and the IFC launched to approximately 36,000 customer Aû53BNûPACKAGEûOFûFAST TRACKûlNANCINGû ATLANTICA TO ACQUIRE DISTRICT HEATING connections. to assist companies and countries in their The purchase price was US$365m, which efforts to prevent, detect and respond to ATLANTICA SUSTAINABLE INFRASTRUCTURE, the APUC will pay in cash. This is APUC’s 27th the coronavirus, earlier this year. UK-domiciled and Nasdaq-listed yieldco, acquisition of a regulated utility since 2009 “It’s essential that we shorten the time has agreed to acquire Calgary District and follows shortly after its purchase of to recovery. This package provides urgent Heating for US$20m in cash. The company Empresa de Servicios Sanitarios de Los support to businesses and their workers to has been in operation since 2010 and ,AGOSû%33!, ûINû#HILEû!05#ûISûAûDIVERSIlEDû REDUCEûTHEûlNANCIALûANDûECONOMICûIMPACTû provides heating services to government, international generation, transmission and of the spread of Covid-19,” said David institutional, and commercial customers distribution utility with approximately Malpass, president of the World Bank with high credit quality in Calgary. US$11bn of total assets. Group, at the time. Its assets provide 55MW of power and “The World Bank Group is committed to BENElTûFROMûAVAILABILITY BASEDûREVENUESû AûFAST ûmEXIBLEûRESPONSEûBASEDûONûTHEûNEEDSû WITHûINmATIONûINDEXATIONûANDûûYEARSûOFû of developing countries. Support operations average weighted contract life. Contracted BRAZIL are already under way, and the expanded capacity and volume payments represent funding tools approved today will help approximately 80% of total revenue. The EVOLTZ EYES DEBENTURES sustain economies, companies and jobs.” TRANSACTIONûWILLûREPRESENTû!TLANTICASûlRSTû TRANSMISSION REFI acquisition in the district energy space. RIO EYES WIND SALE AGAIN 4EXASû0ACIlCû'ROUPSûLOCALûPOWERûGROUPû CLARESHOLM SOLAR FUNDED EVOLTZ is looking to sell R$1bn (US$184m) Denham Capital subsidiary RIO ENERGY is INûDEBENTURESûTOûRElNANCEûDEBTûBACKINGû in talks to sell its entire wind portfolio, Toronto-based renewables developer its Norte Brasil Transmissora de Energia INCLUDINGûBROWNlELDûANDûGREENlELDûASSETSû CAPSTONE INFRASTRUCTURE and Danish transmission line connecting Porto Velho The interested buyers already include local solar developer OBTON have met funding and Araraquara. utility Copel, according to reports. conditions to close up to US$115m of 4HEûORIGINALûlNANCINGûCOMPRISESûAû 4HISûISûNOTûTHEûlRSTûTIMEûNOISEûHASûBEENû CONSTRUCTION TO TERMûlNANCINGûONûTHEû BNDES loan and an earlier bond issuance. made about a potential sale process for Claresholm solar project in Willow Creek, The company has tapped BTG Pactual, the company, after it shopped some of Alberta. Itau BBA, and Banco ABC to lead the deal. the wind farms in 2017 that are now up Over the summer Claresholm signed a Evotlz bought a 51% stake in the 600kV for sale again. Rio Energy has 822MW of credit agreement with ATB Financial, Fiera transmission line in July this year, with power purchase agreements and 2.6GW of Infrastructure Private Debt Fund and Telus Eletronorte holding the remaining 49%. projects at various stages of development Pensions Liability Hedging Master Trust. overall. Construction on the project is under way. CGN PENS PRIVATE PPA WITH BOLT Rio Energy is also looking to potentially The project will be Canada’s largest solar buy some solar projects for up to R$300m facility when complete. Chinese company CGN BRASIL ENERGIA has (US$56.8m), according to the local reports. signed a 15MW wind power purchase Rio Energy recently used BNDES to take INNERGEX CLOSES RUN-OF-THE-RIVER agreement (PPA) with local company BOLT out a loan of R$848m (US$208m) for the HYDRO LOAN ENERGY valued at R$90m (US$16.5m). The company’s operating assets and R$847.9m output will come from CGN’s 195MW for its Babilonia cluster. INNERGEX RENEWABLE ENERGY and indigenous Lagoa do Barro wind farm in Piaui. The PPA group PITUVIK have closed a C$92.8m is part of a wave of private deals on Brazil’s MINING IPO FACES DELAY (US$71.1m) non-recourse construction and free market, which has been key in driving TERMûlNANCINGûWITHû-ANUFACTURERSû,IFEû development of renewables, Bolt said in a Local steelmaker COMPANHIA SIDERÚGICA Insurance Company for the construction statement accompanying the deal. NACIONAL will continue to pursue an initial of Innavik, a 7.5MW run-of-the-river public offering of its mining unit CSN hydroelectric facility. IFC AND SANTANDER TO LEND TO MINERAÇÃO, despite noise about a delay to the The project on the Inukjuak River in SOLAR SECTOR process in local press reports. northern Quebec has a 40-year power Paper Valor Economico said that political purchase agreement (PPA) with Hydro- The International Finance Corporation and economic uncertainty may hold up the Quebec. The construction loan will convert (IFC) and Santander will put a combined DEAL ûBUTû#3.ûSAIDûINûAûSECURITIESûlLINGûTHATû INTOûAû YEARûTERMûLOANûCARRYINGûAûlXEDû

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03 Americas p10-24.indd 11 17/11/2020 18:51:49 interest rate of 3.95% when the project of potash near the village of Tugaske, but expansions to projects will. The move reaches commercial operation in December Saskatchewan. towards tolling comes as Alberta seeks new 2022. Total construction costs are estimated h4HEûlNALISATIONûOFûTHEûSHAREHOLDINGû WAYSûTOûlNANCEûINFRASTRUCTUREûAMIDûANû at C$127.8m and the remaining C$35m structure for the SPV represents one of the economic slump. WILLûBEûlNANCEDûBYû)NNERGEXûANDû0ITUVIKû last items required for a decision to advance )FûTHEûBILLûPASSES ûTHEûlRSTûTOLLINGûPROJECTû Construction is under way. the senior debt approval,” said Gensource is likely to be a bridge on Highway 697 The project is expected to produce CHIEFûEXECUTIVEûOFlCERû-IKEû&ERGUSONûh4HISû over the Peace River that will replace adjusted Ebitda of C$8.6m per year on gets the company one step closer to full a ferry that has been criticised as AVERAGEûFORûTHEûlRSTûlVEûYEARSûOFûOPERATIONû construction in 2021.” unreliable. In September, Alberta deputy and will provide Inukjuak’s off-grid Gensource will own 49.98% of the SPV minister of infrastructure Shannon Flint customers with power, replacing diesel. while Helm and the other investor will said the provincial government is also each own 25.01%. Gensource’s ownership working to create an unsolicited proposal NWT LOOKS TO REVIVE MACKENZIE interest comprises two components: framework to gather new project ideas DELTA LNG a US$30m paid-in capital amount and fuel economic recovery from Covid-19 representing the value of the project that disruption. The government of the Northwest will be vended into the SPV, plus the Territories (NWT) is considering a revival of PROJECTûlNANCINGûCOSTSûEXPENDED ûANDûAû KICKING HORSE P3 REACHES CLOSE planning efforts for Mackenzie Delta LNG cash investment. export project off the Tuktoyaktuk hamlet The agreement on shareholding structure KICKING HORSE CANYON CONSTRUCTORS, a joint in the Inuvik region. has been forwarded to KfW IPEX-Bank venture of Aecon, Parsons, and Emil The project was originally explored and Societe Generale, the mandated joint Anderson Construction, has reached in the early 2000s and was to export LEADûARRANGERSûFORûSENIORûDEBTûlNANCING û lNANCIALûCLOSEûONûTHEû+ICKINGû(ORSEû#ANYONû to the US. This time the government is and German federal government credit project – Phase 4 in British Columbia. investigating the possibility of transporting insurance agency Euler Hermes is expected The total contract is valued at C$440.6m the gas to East Asia by tanker, according to to bring the project to its Inter-ministerial (US$337.4m). Phase 4 of the project lies a report from Canada’s CBC News. #OMMITTEEûFORûAûlNALûINVESTMENTûDECISIONû between the Phase 3 West (Golden Hill The government has issued a request for (FID) at one of its next regular meetings. to West Portal) and Phase 1 (Yoho Bridge) proposals (RFP) for consultants that would The company previously said the debt sections of the Trans-Canada Highway, prepare a feasibility study on developing would be US$180m and each of the two east of Golden, BC. The project involves THEûREGIONSûGASûlELDSûANDûBUILDINGû lead banks is expected to commit to a upgrading approximately 4.8km of the pipelines and two offshore liquefaction and SIGNIlCANTûTAKE AND HOLDû4HEûTOTALûCOSTû highway, constructing new bridges, tanker loading platforms. The project could of the project was estimated in 2017 at realigning curves and widening the ship roughly 4m tonnes of LNG per year. C$279m (US$212m). highway to four lanes. A cost estimate has not yet been prepared. Construction is expected to begin in Responses to the RFP are due November 23. SCOZINC SEEKS MINE PF Q4 and the project is expected to be completed in 2024. The federal government ORIGIN MAKES OFFER FOR .OVAû3COTIA BASEDûMININGûlRMûSCOZINC MINING is contributing C$215m and the provincial NEWFOUNDLAND REFINERY ISûAGGRESSIVELYûPURSUINGûPROJECTûlNANCINGû government is funding the remainder of for its Scotia mine project, according to a the design-build project. Maryland-based oil recycling and terminal corporate update. The company recently storage company ORIGIN INTERNATIONAL has received a completed pre-feasibility study UNION STATION WINNER EMERGES made a formal offer to take over all the on the zinc and lead mine and is seeking assets of Newfoundland and Labrador, roughly C$30m (US$23m) in project Infrastructure Ontario (IO) and Metrolinx Canada-based NORTH ATLANTIC REFINING, lNANCE (MX) have selected ONTRACK ALLIANCE as the INCLUDINGûTHEû#OMEû"Yû#HANCEûOILûRElNERY The mine was put under care and preferred bidder on the Union Station A deal to sell the project to Irving maintenance in 2009 due to the decline enhancement project in Toronto. Oil fell through earlier this month. The in zinc and lead prices. ScoZinc acquired The team comprises Kiewit & Alberici RElNERYûISûOWNEDûBYû3ILVERPEAK ûAû.EWû the project in June 2011 and entered an joint venture, WSP Canada, and Mass 9ORKûALTERNATIVEûINVESTMENTûlRMû$ETAILSû OFFTAKEûANDûlNANCINGûAGREEMENTûWITHû Electric Construction Canada. Additional of the offer have not been disclosed. At Switzerland’s MRI Trading for the mine’s teams that competed for the project PEAKûOPERATIONS ûTHEûRElNERYûCANûPROCESSû restart in 2018. included GTA Alliance, led by EllisDon 135,000 barrels of oil a day, but it was idled MRI agreed to buy the lead and zinc and Keltbray with AECOM, Zeidler, and after the Irving Oil deal failed to close. concentrates to be produced throughout Stephenson Engineering; OneUnion Origin plans to bring the project back to the life of the mine and provide C$10.6m Alliance, led by Aecon, Modern Niagara full capacity. (US$8.1m) in debt and C$760,000 and PNR RailWorks with Mott MacDonald (US$583,200) in equity capital. ScoZinc and Systra; and Union Gateway Alliance, GENSOURCE INKS SHAREHOLDERS’ DEAL estimates the mine could be producing in led by Dragados with Parsons and Hatch LESSûTHANûAûYEARûAFTERûCLOSINGûlNANCING Engineering. GENSOURCE POTASH has negotiated the The private partner will design and shareholding structure with the project ALBERTA MOVES TOWARD TOLLING construct infrastructure and implement offtaker and equity investor, Germany’s upgrades to accommodate GO rail service (ELM ûANDûANOTHERûUNNAMEDûlNANCIALû Alberta has introduced legislation that will expansion. The project will reconstruct investor for the Tugaske project special allow the tolling of new roads and bridges platforms, increasing the width and purpose vehicle. The SPV will be the FORûTHEûlRSTûTIMEû%XISTINGûPROJECTSûWILLû realigning tracks to allow higher speeds. legal entity engaged in the production not be eligible for tolling under the bill The team will enter into an alliance

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AMERICAS GENERAL CORPORATE FUNDING ACTIVITY NOVEMBER 2 TO NOVEMBER 16 2020 Security type Issuer/Borrower Amount (m) Maturity Issue price Pricing Bank Energy, gas and water distribution Term Loan Cypress Creek Renewables $200 04/11/27 100.000 N/A Investec Bank/CA/East West Bank,Pasadena/Silicon Valley Bank Rev Cred Fac Oncor Electric Delivery Co $2,000 17/11/23 100.000 LIBOR +112.500 JPM/Barclays/Citigroup/MUFG Union/Mizuho FG/RBC CM/ to 175.000 bp Wells Fargo Term Loan Galloway I Solar Farm $151 N/A 100.000 N/A CIT/Commerz/DNB Cap/Rabobank/Siemens Financial Services Term Loan Bakersfield Refinery Green $365 04/11/26 100.000 LIBOR +1250.000 bp Grosvenor Capital/Orion Energy Partners/Voya Invest Mgmt Sr Unsecurd Nts Antero Midstream Partners LP $550 15/05/26 100.000 7.875 JPM/Barc/Citigroup GM/CA/Truist Financial/Wells Fargo Secs Fst Mtg Bonds Ameren Illinois $375 15/11/30 99.577 1.550 Mizuho Secs/SMBC Nikko Secs America/Truist Financial Sr Unsecurd Nts Consolidated Edison Co of NY $600 01/12/60 99.398 3.000 Citigroup/Wells Fargo /BNY CM/CIBC World Markets Coll Trust Bds Entergy Louisiana $300 15/12/30 99.61 1.600 Citigroup/KeyBanc/Mizuho/MUFG/Scotia Cap/SMBC Nikko Secs Coll Trust Bds Entergy Louisiana $300 15/03/51 104.413 2.900 Citigroup/KeyBanc/Mizuho/MUFG/Scotia Cap/SMBC Nikko Secs Fst Mtg Bonds Pacific Gas & Electric Co $1,450 15/11/21 100.000 Floats BofA/Mizuho Secs/MUFG Secs Americas/Wells Fargo Secs Infrastructure Firms Term Loan A Oracle Elevator Co $8.45 12/05/24 100.000 LIBOR +550.000 bp NXT Capital/Twinbrook Capital Partners/Varagon Capital Mining Units Apex Resources C$0.07 — 0.100 — — Units Apex Resources C$0.06 — 0.100 — — Ord/Common Shs. Richland Resources Ltd £1 — 0.028 — Peterhouse Capital Ltd Ord/Common Shs. Richland Resources Ltd £2.33 — 0.028 — Peterhouse Capital Ltd Units CanAlaska Uranium Ltd C$0.44 — 0.200 — — Units CanAlaska Uranium Ltd C$0.59 — 0.220 — — Units Fremont Gold Ltd C$2 — 0.050 — — Ord/Common Shs. NorthIsle Copper & Gold C$3.2 — 0.130 — — Units Richmond Minerals C$0.1 — 0.060 — — Deposity Rcpts Aura Minerals R$87.3 — 48.500 — XP Investimentos Ord/Common Shs. Skeena Resources Ltd C$40 — 2.350 — Raymond James Ltd/Canaccord Genuity Units Ressources Miniere Radisson C$6 — 0.340 — Eight Capital/INFOR Financial/BMO CM Units Ressources Miniere Radisson C$6.23 — 0.600 — Eight Capital/INFOR Financial/BMO CM Flow Through Sh Ressources Miniere Radisson C$0.94 — 0.500 — Eight Capital/INFOR Financial/BMO CM Petrochemicals; Petroleum Refining Ord/Common Shs. Touchstone Exploration £23.08 — 0.950 — Shore Capital Stockbrokers/Canaccord Genuity Ltd Units Canadian Spirit Resources C$1 — 0.050 — — Ord/Common Shs. 3R Petroleum Oleo e Gas SA R$690 — 21.000 — Banco BTG Pactual/Banco Itau-BBA/XP Investimentos/ Genial Investimentos Senior Notes Continental Resources $1500 15/01/31 100.000 5.750 BofA/Citigroup/Mizuho/RBC/TD/JPM/MUFG/US Bancorp/ Wells Fargo Telecommunications Gtd Sr Notes Totalplay Telecomunicaciones S $575 12/11/25 100.000 7.500 Barc/CS/Jefferies/BCP Secs Sr Unsecurd Nts Verizon Communications $2,250 20/01/31 99.545 1.750 BofA/Citigroup/GS/JPM/Wells Fargo/BNPP/Loop/Mizuho/ MUFG/RBC/Santander/TD Sr Unsecurd Nts Verizon Communications $2,750 20/11/50 99.740 2.875 BofA/Citigroup/GS/JPM/Wells Fargo/BNPP/Loop/Mizuho/ MUFG/RBC/Santander/TD Sr Unsecurd Nts Verizon Communications $3,000 20/11/40 99.907 2.650 BofA/Citigroup/GS/JPM/Wells Fargo/BNPP/Loop/Mizuho/ MUFG/RBC/Santander/TD Sr Unsecurd Nts Verizon Communications $2,000 20/11/25 99.990 0.850 BofA/Citigroup/GS/JPM/Wells Fargo/BNPP/Loop/Mizuho/ MUFG/RBC/Santander/TD Sr Unsecurd Nts Verizon Communications $2,000 20/11/60 99.124 3.000 BofA/Citigroup/GS/JPM/Wells Fargo/BNPP/Loop/Mizuho/ MUFG/RBC/Santander/TD Source: Refinitiv

development agreement with IO and MX (EDCO) as the preferred proponent to Developers, led by Ferrovial with Scotia TOûCOLLABORATEûONûDESIGN ûlNALISINGûPROJECTû DESIGN ûBUILDûANDûlNANCEûTHEû1%7û #APITALûASûlNANCIALûADVISERû cost, and identifying and managing project Credit River Improvement project in The project involves construction risks as well as the delivery of the project. Mississauga. of a new bridge north of the existing 4HEûPARTIESûEXPECTûTOûREACHûlNANCIALûCLOSEû The consortium includes Aecom Credit River bridge, rehabilitation of in autumn 2021. as designer and EllisDon Capital as the existing Credit River bridge, and lNANCIALûADVISERû/THERûSHORTLISTEDû replacement of the Mississauga Road WINNER SELECTED ON CREDIT RIVER P3 proponents were Keystone overpass. A plan to demolish the bridge Transportation Partners, led by Peter was cancelled earlier this year. The Infrastructure Ontario (IO) and the Kiewit Sons and Dufferin Construction, PARTIESûEXPECTûTOûREACHûlNANCIALûCLOSEûBYû Ministry of Transportation (MTO) with Peter Kiewit Sons also acting as the end of the year. A cost estimate has have selected ELLISDON and COCO PAVING lNANCIALûADVISERûANDû#REDITû2IVERû not yet been released.

Project Finance International November 18 2020 13

03 Americas p10-24.indd 13 17/11/2020 18:51:50 RFQ ISSUED FOR MEGA P3 The commitment is subject to pending CABO LEONES WIND DEAL UP COMMUNITY CENTRE approval of the Trinidad & Tobago Securities & Exchange Commission. GRUPO IBEREOLICA and GLOBAL POWER CORPORATION The City of Toronto and Infrastructure “With the impact of Covid-19 on the AREûTALKINGûTOûBANKSûABOUTûlNANCINGû Ontario (IO) have issued a request for region and the growing demand for low- the 204MW Cabo Leones II wind farm. QUALIlCATIONSû2&1 ûONûTHEû'EORGEû3TREETû carbon power supply, we are determined The company has approached lenders revitalisation project, which will be done to invest in the transition to clean energy ANDûWILLûUSEûPROJECTûlNANCEûTOûFUNDû USINGûAûDESIGN BUILD lNANCEû$"& ûMODELû4HEû infrastructure in the Caribbean to make the development. The project costs are project will include about 622,000ft2 of new it more resilient and independent,” expected to be around US$350m. construction and restored heritage buildings said Martin Vogt, managing director 'RUPOû)BEREOLICAûANDû%$&ûlNANCEDû#ABOû that will comprise a long-term care home, of renewable energies at MPC Capital. Leones I with a US$230m, 18-year loan a transitional living facility, an emergency “The private sector plays a crucial role in via Caixabank, DNB, and ICO. This deal is shelter, affordable housing and a community mobilising capital for investment and job expected to follow a similar trajectory. The hub. A request for proposals (RFP) is expected creation, and we want our activities to help deal included a US$20m letter of credit. in spring 2021. The last cost estimate on the promote green recovery.” The scheme will use Senvion turbines. project came in at C$583m (US$447.9m). Construction work began in 2019.

THREE SHORTLISTED ON ALBERTA ARROYO LANDS REFI P3 SCHOOLS CHILE ARROYO ENERGY has closed its US$140m The Alberta government has shortlisted ABENGOA LANDS TRANSMISSION MANDATE RElNANCINGûBACKINGûAûDUOûOFûRENEWABLESû three groups competing for a public-private projects. Credit Agricole and SMBC led the PARTNERSHIPûTOûBUILDûlVEûNEWûSCHOOLSûINû Transelec subsidiary TRANSMISORA DEL deal, which has a seven-year tenor. The Alberta. PACÍFICO has tapped Abengoa to deliver ASSETSûRElNANCEDûINCLUDEûTHEû-7û%Lû The teams include ALBERTA PARTNERSHIP FOR the 500kV Nueva Tineo–Nueva Ancud Arrayan wind farm in Coquimbo and the LEARNING, comprising Graham Capital Partners double-circuit transmission line. Works 103MW Conejo solar facility in Antofagasta. GEC Architecture, Gibbs Gage Architects, include construction of the 95km line Both sell power to industrial customers Graham Design Builders and Johnson and expansion of the Nueva Puerto Montt under long-term power purchase agreements. Controls; CONCERT-BIRD PARTNERS, comprising substation. 4HEûRElûWASûINûTHEûMARKETûEARLIERûTHISûYEAR û Concert Infrastructure, Bird Capital, BR2 4RANSELECûISûCHARGEDûWITHûlNANCINGûTHEû but was delayed due to the outbreak of Covid- Architecture, Bird Construction, Wright works to the tune of US$107m. It will be 19. Arroyo’s assets in Chile are held under its Construction Western, and Ainsworth; and paid a Valor Anual de la Transmision por subsidiary ARCO and include the 218MW of PLENARY-MAPLE HIGH SCHOOLS, comprising Plenary Tramo (VATT) of US$9.57m, which includes UTILITY SCALEûRENEWABLESûRElNANCEDûANDû-7û Group, Stantec Architecture. Maple Reinders US$7.75m for the investment value annuity of distributed generation. Constructors, and Honeywell Canada. and US$1.82m for the cost of operation, Last year, the company closed a US$64.6m The province expects to select the winning maintenance, and administration. lNANCINGûTHROUGHû.ATIXISûBACKINGûITSû BIDDERûINû*ULYûANDûlNALISEûAûCONTRACTûINû The project consists of the construction portfolio of distributed generation projects September. The schools are due to open in of a high voltage electrical transmission in the country. The company also recently 2024. The schools bundle has an estimated line that will be developed between the bought out Pattern Energy’s Chilean business. total cost of more than C$200m (US$151.9m) Nueva Puerto Montt (Tineo) substation, and and will include sites in Blackfalds, the future 220kV Nueva Ancud sectioning NEW CONSTITUTION COULD HIT MINING Edmonton, Langdon and Leduc. Alberta substation, passing through the communes cancelled plans for the P3 earlier this year of Llanquihue, Puerto Varas, Puerto Montt, The Chilean copper industry will see as the province said it aimed to avoid delays Maullín, Calbuco, and Ancud, in the Los investment lag for at least two years as associated with coronavirus disruption. Lagos Region. the country rewrites a constitution that Procurement was relaunched in September. underpinned nearly three decades of mining GOVT EYES GREEN HYDROGEN LEADERSHIP GROWTH ûAûSENIORûMININGûOFlCIALûTOLDû2EUTERS “Hardly a project of a very large magnitude The Chilean government is looking to will be carried out in the next two years until CARIBBEAN be a world leader in the export of green there is clarity around the new constitution,” hydrogen by the end of the decade, said Diego Hernández, president of Chile’s RBC INTO MPC WIND AND President Sebastian Pinera has said. As National Mining Society (Sonami). SOLAR PLATFORM part of the effort, the government will Issues that could arise in the rewrite for contribute US$50m to the sector to help miners include indigenous and environmental Royal Bank of Canada (RBC) through companies develop scalable and replicable rights, foreign investment checks, and worker LOCALûAFlLIATESûINû4RINIDADûû4OBAGOûHASû PROJECTSûANDûTOûPLUGûPOTENTIALûlNANCINGû BENElTSû!LLûNOBLEûCAUSES ûWHICHûCOULDûCHANGEû committed US$10m to German asset gaps. THEûWAYûMININGûlNANCEûDEALSûAREûDRAWNûUP manager MPC CAPITAL‘s Caribbean wind and Energy Minister Juan Carlos Jobet said There were jubilant scenes in Chile solar platform. RBC made the investment the government is hoping to see 5GW in October when the country voted in on behalf of its managed clients’ accounts, of electrolysis capacity either built or in a landslide 78% victory to change the which enabled local investors such as development by 2025, and up to 25GW constitution drafted during the military pension funds, insurance companies, by the end of the decade. “We need rule of Augusto Pinochet. A majority of 79% and credit unions to invest in the energy offtakers, we need technology, and we need also voted in favour of the new constitution transition in the region. The account has companies to come down and invest,” Jobet to be drawn up by a body that will be 100% raised US$30m since 2019. said during a recent event. elected by a popular vote.

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Another vote will occur on April 11 2021 There isn’t much more clarity around the NOVATOR PLOTS MAJOR TELECOMS to choose the 155 people who will make up bidding process, but the scheme is expected to INVESTMENT the convention that will draw up the new enter commercial operation by June 30 2022. CONSTITUTIONû)TûWILLûBEûSPLITûûMENûANDû The tender is open to local and international London-based NOVATOR PARTNERS will invest women. The new constitution will then be companies, with three alternatives available US$1bn in infrastructure telecoms projects put to the Chilean people for a vote in 2022. for the winning concessionaire. INû#OLOMBIAûOVERûTHEûNEXTûlVEûYEARS ûITûSAIDû 4HEûlRSTûTWOûEACHûPROPOSEûTHEûINSTALLATIONû in a statement. The move comes after the SACYR LEADS PPP RACE of a 15MW battery storage system and launch of its WOM mobile phone brand another one of 35MW, which will all be in the country and four months after it A SACYR-led consortium has submitted the connected to different substations. The third acquired a majority stake in telco Avantel. lowest bid for the US$112m Buin-Paine hospital option is the installation of a 45MW system Work includes installation of 8,000 antennas public-private partnership. The Consorcio Sacyr connected to one substation. to improve connectivity in rural areas. group features Sacyr Concesiones, Sacyr Chile, “Colombia’s mobile telephone sector is static; and Global Dominion Access. NGX TAPS CPVEN the concentration of the mobile market has 4HEûTEAMûPRESENTEDûANûOFFERûOFûAûlXEDû delayed key investments for the development subsidy per month during construction of NGX ENERGY INTERNATIONAL has received a of the country,” Chris Bannister, CEO of WOM 0S ûANDûAûlXEDûSUBSIDYûPERûMONTHû binding commercial offer from CPVEN to in Colombia, said in a statement. during operation of Ps64,699. The winning develop gas wells and provide services at the bidder will have to invest US$120m at the former’s SN-9 block in the Lower Magdalena MULTINATIONAL INFRA STUDY site, with a 15-year concession period to Basin. CPVEN has initially committed to GROUP LAUNCHED follow. construct and complete four gas wells, Other bidders included OHL, Consorcio including mobilisation, demobilisation, Colombian development bank Financiera Iberoasiatico, Inversiones Hospitales Maule, engineering, drilling, and completion, for de Desarrollo Nacional (FDN), the Inter- GIA+A, and Moller y Perez Cotapos. The an aggregate cost of US$27.2m. CPVEN American Development Bank (IDB), and hospital will have an area of 56,000m2 with HASûOFFEREDûTOûlNANCEûTHEûCONSTRUCTIONû the Government of the United Kingdom ûBEDSû!ûDECISIONûISûEXPECTEDûINûTHEûlRSTû OFûTHEûFOURûWELLS ûWITHûDElNEDûMONTHLYû will team up to fund a pre-investment quarter of 2021, with construction to begin instalments for each based on the results of VEHICLEûTOûCO lNANCEûPRE FEASIBILITYûANDû in 2022, and commercial operation in 2025. THEûlRSTûWELLû.'8ûWILLûBEûOBLIGEDûTOûMAKEûAû feasibility studies of infrastructure projects 25% downpayment on the cost of each well, in Colombia. The FDN and IDB will commit with 10% in advance of the commencement US$1m each, while the UK will provide of drilling and the remaining 15% paid 90 US$720,000 to the entity. COLOMBIA days after drilling is commenced, with the “This is an important step for the promotion remaining 75% paid in monthly installments. of new infrastructure projects as it allows to FRENCH GROUP TURNS ON SOLAR NGX will be obligated to maintain a inject resources for a solid structuring, thus monthly balance of US$1m to pay for CPVEN’s making them easily bankable, executable and French company GREENYELLOW has turned services, which will serve as a guarantee attractive to the market,” said FDN President on the 12.5MW Petalo de Cordoba I solar for such payment. This is done under the Francisco Lozano. project in Cordoba. The project has a power economic interest the company has in the 4HEûCO lNANCINGûOFûTHISûSTAGEûISûAIMEDûATû purchase agreement with retail chain SN-9 block, according to a statement. CPVEN providing mature infrastructure projects to Grupo Exito. It will power 27 warehouses has operations in Colombia, Ecuador, the USA, the market and promoting their structuring owned by chain. Kuwait, Peru, and Venezuela. with a high quality standard, according to a 4HISûISû'REEN9ELLOWSûlRSTûUTILITY SCALEû project in Colombia. The group has more than 15MW of solar capacity in development. The company’s model sees it assume Major renewables ALLûTHEûlNANCINGûNEEDSûFORûTHEûDESIGN û implementation, and operation of the plants. auction planned ISA EYES STORAGE AUCTION „ COLOMBIA Renewables Local group INTERCONEXION ELECTRICA (ISA) will participate in Colombia’s upcoming auction Colombia will offer long-term contracts for more Colombia’s National Administrative Department for utility-scale storage, executives said. than 5,000MW of capacity in its next renewables of Statistics. Colombia is looking to appoint a company auction slated for Q1 2021. The procurement will The auction bidding terms will be elucidated to design, build, operate, and maintain the be aimed at power retailers serving large industrial by the Ministry of Mines & Energy over the facility in the department of Atlantico. It is customers, which account for around one-third of coming months. In a speech about the auction expected to have a 50MW capacity with a the country’s overall demand. Projects will have to at the dedication of a solar park, president Ivan likely 15-year service contract. come online before December 2022. Duque said that the Colombian government “We will evaluate all growth The solicitation follows on from the country’s would also be developing the green hydrogen opportunities, including the auction for maiden renewables auction in late 2019, which road-map in collaboration with Chile. He said battery storage,” said ISA chief executive saw weighted average pricing on the contracts of that Colombia would have “at least two or three Bernardo Vargas in a quarterly earnings Ps95.65/kWh (US$0.026/kWh). Contracts will large-scale [green hydrogen] projects” developed call. “The plan was for that to happen this be pegged to the Colombian peso and updated in the near future. year but we think it will now take place at based on a producer price index certified by Nic Stone the start of next year.”

Project Finance International November 18 2020 15

03 Americas p10-24.indd 15 17/11/2020 18:51:50 statement. “Additionally, the markets in which %LECTRICIDADû#ALIlCADOSû&ITCHûISûEXPECTEDûTOû PROJECTSûCANûBEûlNANCEDûINûTHEûMEDIUMûANDû rate the deal BBB–. long term are strengthened, ensuring that MEXICO Colombia has bankable national and local GANFENG INCREASES SONORA STAKE projects,” the statement added. BLACKSTONE’S FISTERRA EYES CCGT 4HEûPROJECTûSELECTIONûCRITERIAûWILLûBEûDElNEDû BOND REFI Chinese company GANFENG LITHIUM has by a Directory of Contributors and will exercised its option to increase its stake in consider, among other things, the strategic "LACKSTONEûAFlLIATEûFISTERRA ENERGY is looking to BACANORA‘s Sonora Lithium mine. Cornerstone IMPORTANCEûOFûTHEûPROJECT ûTHEûCO lNANCINGûOFû issue US$904m of 20-year bonds rated BBB– to investor and offtaker Ganfeng will subscribe the studies by public entities, as well as the RElNANCEûPROJECTûlNANCEûDEBTûBACKINGûTHEû for 73,955,680 new ordinary shares in project economic, social, and environmental impacts 875MW Tierra Mojada combined-cycle natural company SLL at £0.2959 (US$0.39) for a total of the project. A projects committee will GAS lREDûPOWERûPLANTûINû'UADALAJARA value of £21,883,485, subject to certain evaluate the projects presented against these The company has tapped Morgan Stanley, conditions. It will take the group’s stake in criteria for the selection of those that will be Goldman Sachs, and SMBC Nikko to lead the project company to 50% from 22.5%. CO lNANCEDûWITHûRESOURCESûFROMûTHEûTRIO the deal, with investor calls beginning this Bacanora will remain as the project operator The project structuring process will month. The deal will come through special in Sonora, while Ganfeng will be responsible be carried out under best practices purpose vehicle FEL Energy and pricing is for leading the engineering, procurement, and implemented by the contributors, expected to be 6.5%. construction of the mine. The move is likely to according to the statement. The vehicle will “The holdco debt will be senior secured, PUSHûTHEûlNANCINGûTOûCLOSEû"ACANORAû,ITHIUMû operate for a maiden six-year term. fully amortising (including cash sweeps), with has mandated Citi and Canaccord to land full AûlXEDûINTERESTûRATE vûSAIDû&ITCHûh"ONDHOLDERSû development capital for the mine, with close SECOND WAVE 4G HIGHWAY BENElTûFROMûAûCASHûSWEEPûSUBJECTûTOûAû expected to come before construction begins REBOOT EMERGES target outstanding debt balance throughout early next year. the debt life, which is expected to reduce Overall project costs are estimated at about Public hearings are set to be launched mandatory interest payments during the later US$800m across Stage 1 and 2 construction, for a reworked concession for the stalled YEARSûOFûTHEûDEBTûANDûSIGNIlCANTLYûIMPROVEû with US$420m needed for Stage 1. The 456km Santana–Mocoa–Neiva 4G highway project resilience to stresses. company signed a US$150m conditional public-private partnership. Lawmakers “Adequate structural features such as senior debt facility with RK Mine Finance in will meet with stakeholders on November a six-month debt service reserve fund ûTOûlNANCEûDEVELOPMENTûOFûTHEûSCHEME û 18 in Pitalito, in Mocoa on December 2, (DSRF), a 12-month backward and forward- with US$125m still to be drawn. Production is and in Neiva on December 14 to develop a looking DSCR distribution test of 1.2x, and targeted for 2023. framework for a new tender. indebtedness limitations are expected to Works are expected to cost around ENSUREûTHATûAûSUFlCIENTûLEVELûOFûLIQUIDITYûISû ORLA DRAWS ON GOLD PF US$1.8bn, according to the Colombian maintained. The project bears minimal FX government. There will be a 29-year risk.” Canada-listed ORLA MINING has drawn down the concession period. The project was part of 4HEûOPCOûWILLûTRANSFERûALLûOFûITSûCASHmOWû SECONDû53MûTRANCHEûOFûITSûPROJECTûlNANCEû the second wave of 4G projects. after payment of income taxes, other facility backing the Camino Rojo oxide gold operating expenses, debt service and other mine in Zacatecas. All conditions precedent pari passu payments to the holdco via FORûTHEûSECONDûDRAWDOWNûHAVEûBEENûSATISlED û intercompany loans or distributions. including the receipt of key mine permits at COSTA RICA 4HEûDEBTûWILLûBEûSECUREDûBYûAûlRSTû Camino Rojo, according to the company. priority, perfected security interest in all To-date, US$75m of the original US$125m WIND FARM GETS APPROVAL tangible and intangible assets of the issuer credit facility has been drawn. The third and and the guarantors. This includes certain lNALûTRANCHEûOFû53MûMUSTûBEûDRAWNû Central American interconnection project accounts, the project documents, within six months of the second tranche commission CRIE has approved the 110MW and capital stock. Commercial operation and remains subject to meeting certain Toabre second phase wind complex in was expected in December 2019, but was conditions. Cocle. The project sponsored by RECURSOS pushed into this year, prompting the 4HEûCOMPANYûCLOSEDûTHEûlVE YEARûDEALû EOLICOS and AUDAX RENOVABLES will be the company to take out a US$88m one-year through Trinity Capital Partners, with second largest in Costa Rican history. bridge loan through Morgan Stanley. Pierre Lassonde and Agnico Eagle Mines Overall investment is US$150m. The duo Fisterra Energy closed a roughly US$600m joining the syndicate of lenders, in October tapped Vestas for the turbines. debt package backing the scheme in 2017. 2019. Pricing was 8.8%. The deal features !UDAXûCLOSEDûAû53MûlNANCINGûBACKINGû That deal features construction facilities and a principal repayment at maturity with an earlier 66MW stage of the scheme. It was letters of credit, and with an overall cost of no scheduled amortisation: Orla can pre- lNANCEDûVIAûAû YEARûSYNDICATEDûLOANûWITHû about US$900m the leverage is around 66%. pay the loan, in full or in part, at any time Banco Prival acting as agent bank on the deal. Societe Generale, Credit Agricole, Natixis, during the term, without penalty. The project has a 15-year power purchase SMBC, Mizuho, and Intesa Sanpaolo were #UTlELDû&REEMANûû#OûPROVIDEDûADVISORYû agreement (PPA) with a group of three the lenders on the deal. Fisterra engaged services, with Cassels Brock & Blackwell as DISTRIBUTIONûCOMPANIESûPRICEDûATû53-7Hû the World Bank’s Multilateral Investment legal counsel. The feasibility study supports Plans exist to expand the project up to 225MW. Guarantee Agency (MIGA) to cover the a simple open-pit mine and heap-leach Costa Rica gets the majority of its power commercial bank debt and equity. The tenor operation with low capital and operating from hydro, over 50% according to recent on the deal was 15 years. costs providing rapid pay-back and a strong estimates, but it is looking to increase the The majority of Tierra Mojada’s capacity lNANCIALûRETURN ûACCORDINGûTOûTHEûCOMPANY amount of non-conventional renewables on will be sold under a 20-year power purchase The mine is expected to produce 100,000 the grid. agreement (PPA) with Comision Federal de ounces of gold annually. The project is

16 Project Finance International November 18 2020

03 Americas p10-24.indd 16 17/11/2020 18:51:50 NEWS AMERICAS

AMLO to expand infra programme „ MEXICO PPP

President Andres Manuel Lopez Obrador (AMLO) private sectors, with the private sector expected northern highway package, the Aguascalientes says a second package of infrastructure projects to contribute at least 50% of the funding for bypass, the San Luis Potosí bypass, the Tuxtla for the Mexican private sector will be announced each project. Gutiérrez–San Cristóbal highway widening, the soon, following on from the US$14bn plan The projects include 28 highways, two ports, Tepic Villa Unión highway, the Fresnillo–Osiris– revealed last month. two railways, two water and sewage systems, Cuauhtémoc bypass modernisation, and the The deal is expected to result in “another and five energy projects. The list is expected to Jala–Compostela–Las Varas highway. package of infrastructure works with significant grow in the coming months and it is the first On the energy side, projects include the amounts of funding to keep boosting the time energy projects have been included under a Ethane terminal in Pajaritos, the Camargo country’s economy,” AMLO said at his daily news programme launched by AMLO. fertiliser plant, the Tula refinery coking plant, the conference. Seven of the projects are already under rehabilitation of the Cadereyta refinery coking The government is looking to bring in private construction, nine are set to see construction plant, and the Salinas Cruz liquefaction unit. sector finance to help boost the economy and start by year-end, while the remainder are Other notable works include the roadworks deliver major infrastructure works in the wake of expected to enter construction in 2021. improving connectivity to AIFA, a cruise dock in Covid-19. “We have agreed on a process from which Cozumel, and the García–Monterrey Airport light AMLO revealed the first block of public-private the potential projects are presented first, then rail corridor. partnerships as part of the economic relief plans they go on to an analysis stage, then to a specific The programme is part of a plan that hopes at the beginning of October. formulation of the projects, then to the approval to start projects worth as much as a quarter of The programme builds on the previously and the execution stage,” finance minister Arturo the nation’s GDP by 2022 and create as many as launched US$43bn National Infrastructure Plan Herrera said at the press conference launching 185,000 jobs. (PNI) list of PPPs that the government and the the programme. Mexico’s finance executives association the private sector presented in November 2019. Some of the highway projects include the IMEF is also currently pushing the government Many of those projects were hit by the Covid-19 Siervo de la Nación urban highway, the Santa to create a PPP agency for the country to help pandemic. Catarina urban viaduct, the Mitla–Tehuantepec II deliver the projects and provide assistance in Unlike the previous plan, the new version highway, the Ecuandureo to La Piedad highway, structuring and development. combines financing from both the public and the Pacific southern highway package, the Nic Stone

100% owned and covers more than 200,000 ENA LANDS TOLL ROAD BOND REFI in Panama was enough to turn a few heads hectares. Commercial operation is expected on the buyside. in 2021. Local toll road operator EMPRESA NACIONAL “The timing of this deal is not bad DE AUTOPISTAS (ENA) has closed a US$400m because economic activity is on the pick-up. BONDûISSUEûDUEûûRElNANCINGûDEBTûATû Forecasts show stronger growth in 2021,” subsidiaries ENA Sur SA and ENA Este SA. said an analyst following the deal. PANAMA ENA Sur holds the concession for the The bond’s structure, which carries Corredor Sur toll road in Panama City various reserve accounts and is secured by ENEL SOLAR CONSTRUCTION BEGINS and ENA Este holds the concession for toll road revenues, also mitigates some of the connection between the Panamerican the risks brought on by the pandemic. Enel, through ENEL GREEN POWER PANAMA highway and the Tocumen airport. “Moody’s recognises that the weak (EGPP), has broken ground on the 26.24MW The deal was led by Bank of America and performance is partially compensated Esperanza solar project in Chiriqui. Banco General. With about US$2.4bn in orders, BYû%.!û-ASTERû4RUSTSûPROJECTûlNANCEû The scheme is part of EGPP’s US$50m THEûBORROWER ûRATEDû"AA""" """ ûWASûABLEû PROVISIONSûINûTHEûSTRUCTUREûANDûAûlVE YEARû investment plant for solar PV through to price the amortiser with an average life of grace period for principal payments,” the to 2021 in the country. The project will around 19 years at a yield of 4%, well inside rating agency wrote in a report. sell power to commercial and industrial initial price thoughts of the mid to high 4s. Moody’s points out that the bond issue customers. Commercial operation is slated Final pricing came tight to the last time has a debt service reserve fund that would FORûTHEûlRSTûHALFûOFû ENA hit the market in 2012, when it issued cover 12 months in interest and principal The scheme will use 64,440 US$600m of 2028 bonds at par to yield 4.95%. payments. Furthermore, the borrower can monocrystalline PV modules and produce Those bonds were recently trading at 100.50 only make dividend distributions if debt 41.85GWh of electricity per annum. On to yield 4.5%, according to MarketAxess. service cover is at least 1.3x. September 14, EGPP also started building As a state-owned entity, ENA is seen as the 13.12MW Jaguito solar park in Cocle. quasi-sovereign risk and the deal offered a The projects is likely to contribute to nice pick-up over Panama’s curve, where its the power purchase agreement EGPP long-dated bonds have been trading in the PERU signed with state lender National Bank of low 3% area. Panama (Banconal) to supply 31GWh of The company has seen a dramatic BIDS IN FOR SUBSTATIONS CLEANûENERGYûOVERûlVEûYEARSû/VERALL û%'00û DECLINEûINûTRAFlCûANDûHENCEûREVENUESû has 62MW of solar online and expects to during the Covid-19 health crisis. But the Private investment promotion agency exceed the 100MW mark by the end of decent spread to the sovereign plus the PROINVERSIONûHASûQUALIlEDûSEVENûGROUPSûFORûTHEû 2021. prospects of a recovery in economic growth 30-year public-private partnership concession

Project Finance International November 18 2020 17

03 Americas p10-24.indd 17 17/11/2020 18:51:50 TOûBUILDûANDûOPERATEûTHEûK6û#HINCHAû thus the electrical interconnection between The private partner will be tasked Nueva and Nazca Nueva substations. Bidders the two countries will be a reality in the with the management of MTA’s ferries include six companies and one consortium; medium term. Development in technical services; the maintenance of the Acciona, Celeo Redes, Cobra, Conelsur, ISA, aspects is coordinated by a binational terminals and vessels; the optimisation of Terna Plus, and the Edemsa consortium. commission,” said ProInversion’s project ticketing services; and the operation of a The winner will be charged with director, Aníbal del Águila. An award is maintenance facility in Isla Grande. The lNANCINGûTHEûWORKS ûWHICHûWILLûBEû53Mû scheduled for the second quarter of 2021. authority estimates the P3 will result in for the Chincha site and US$19.5m for savings of approximately US$337m for the the Nazca one. Financial requirements SOLARPACK AND ARDIAN LAND REFI government of Puerto Rico by the end of for bidding companies include US$30m the project term. of equity on the books and US$90m of Spain’s SOLARPACK and France’s ARDIAN The project proposed by HMS was assets as a minimum. The winning bidder INFRASTRUCTURE have closed a US$226.5m evaluated as a revenue risk proposal will receive availability payments for the RElNANCINGûBACKINGûTHREEûSOLARûPROJECTSû through which the private operator would assets. The awardee will have access to BNP Paribas, Societe Generale, and be entitled to the revenues generated, but incentives granted by Peruvian law to new SMBC were the lenders. BNP was the would retain the risks associated with the infrastructure concessions, such as legal administrative agent, Citi was collateral SUFlCIENCYûOFûTHEûREVENUESûTOûCONTINUALLYû stability agreements, early refund of VAT, agent and account bank, while Astris operate and maintain the ferries, according and others. Finance advised on the deal. to project documents. 4HEûDEBTûRElNANCESûEXISTINGûDEBTû The services will be performed under ENEL INKS DEBT DEAL provided by the US Overseas Private a 23-year operations and maintenance Investment Corporation (OPIC), now known agreement (OMA) divided in two phases. ENEL DISTRIBUCION PERU has signed a S140m as the International Development Finance Phase 1 will begin after the commercial 53M ûDEBTûlNANCINGûTOûINûPARTûHELPû Corporation (DFC), which had to be closely closing date and last for three years. During it fund its investment plans in Peru. The coordinated given the unique prepayment this phase the MTA will reimburse the three-year promissory note issue was sequence and steps that had to be taken private partner for all operations expenses. signed with an unnamed lender. with the DFC. HMS will collect fare revenue for the “With this new debt, the company The deal backs the 19.4MW Moquegua, MTA but will not retain revenue until will be able to continue responding to 24.9MW Tacna, and 23.6MW Panamericana Phase 2 begins on the third anniversary of THEûlNANCINGûNEEDSûOFûCUSTOMERSûFORûTHEû SOLARûPROJECTSû%ACHûFACILITYûBENElTEDûFROMû commercial close. payment of their energy bills, in addition to AûSPECIlCûANDûSEGREGATEDûCOLLATERALûPACKAGE û At the end of the initial three-year term, ensuring continuity and quality electricity with no cross-collateralisation. The deal the government will transfer demand risk supply, development of the annual thus included more than 30 local security to the private operator, which may consider investment plan, company operations and DOCUMENTS ûACCORDINGûTOûONEûOFûTHEûlRMSû other ancillary services such as parking full compliance with the chain of payments on the deal. to generate additional revenue. If fare to suppliers and workers,” Enel said in a The transaction also required analysis revenues are 30% higher than projected, SECURITIESûlLING of each of the power purchase agreements the excess will be divided equally between Enel Distribucion Peru serves as a entered into by each borrower with the HMS and the MTA. concessionaire for the public electricity Peruvian government, in order to assess service in the northern zone of any potential bankability issues for the Metropolitan Lima, Callao, Huaura, Huaral, lenders. Garrigues and Milbank represented Barranca, and Oyón. the lenders, while Rodrigo, Elías & Medrano UNITED STATES Abogados advised the borrowers. PIURA TRANSMISSION BID OUT TALEN TO RETIRE 5GW OF COAL POWER

Private investment promotion agency Allentown, Pennsylvania-based TALEN ENERGY ProInversion has released the bidding PUERTO RICO ISûTOûRETIREûITSûENTIREûmEETûOFûCOALûPLANTSûBYû documents for the roughly US$163.5m 2028 and will develop new renewables or Piura–Nova Frontera 500kV transmission WINNER NAMED ON FERRIES P3 utilise repowering initiatives to take their line. The scheme will be developed as a place. public-private partnership, with the private The Puerto Rico Public-Private Partnerships Talen operates more than 4GW of PARTNERûCHARGEDûWITHûTHEûDESIGN ûlNANCING û Authority has selected HMS FERRIES for projects fuelled entirely by coal and construction, operation, and maintenance the operation and maintenance of the roughly 1GW of additional projects in of the line. Maritime Transportation Authority (MTA) which coal is a part of the fuel mix. The It will serve as the main Peruvian artery and its assets under a 23-year public-private company will replace part of the lost that will connect the country’s grid with partnership. coal capacity with roughly 1GW of solar, the Ecuadorean grid. There will be a 40- Other shortlisted teams included Balearia wind, and battery storage it has started month construction period and a 30-year Caribbean, Priority Roro Services, Puerto developing, and will repower the impacted concession. The call is open to domestic Rico Fast Ferries, and Seastreak. The aim plants to run on alternate fuel sources. and international bidders. The winning of the project is to improve and modernise Some of those projects may transition bidder will be the company that offers the the municipal ferry service for the routes from baseload to capacity resources within lowest total service cost, in accordance with of Catano–San Juan and Ceiba–Vieques– the PJM market. Talen will provide more the provisions of the bases. Culebra and to reduce the government details on its investments, energy transition “The importance of our tender is that it subsidy of the maritime transportation strategy, project execution and capital will develop the Peruvian section, while system. The winning proponent is a unit of allocation plan at its ESG investor day in Ecuador does the same with its section, and Indiana-based HMS Global Maritime. Q1 2021.

18 Project Finance International November 18 2020

03 Americas p10-24.indd 18 17/11/2020 18:51:50 NEWS AMERICAS

TVA TO SUPPLY GOOGLE AND VANDERBILT an investment company advised by Spain’s SB Energy acquired the California and Exus Management Partners, an investment Texas projects from Intersect Power. SB The TENNESSEE VALLEY AUTHORITY (TVA) has ANDûASSETûMANAGEMENTûlRMûFOCUSEDûONû agreed to build, own and operate the entered power purchase agreements (PPAs) renewable energy. projects, each of which has a long-term with Google and Tennessee’s Vanderbilt The purchase price was not disclosed. The power purchase agreement (PPA) or has University. project reached commercial operation in entered into contracts to sell the renewable Google will buy the entire output of xa 2018. Marathon Capital acted as Goldwind’s ENERGYûANDûRENEWABLEûENERGYûCERTIlCATESû new 100MW solar project in Obion County, SELL SIDEûlNANCIALûADVISERûPROVIDINGû (RECs). Tennessee. The tech company will use the marketing outreach, valuation, structuring, 4HEûlNANCINGûTRANSACTIONûISûPRICEDû power for its data centres in Clarksville, due diligence, and negotiation support higher than more typical renewables Tennessee and Hollywood, Alabama. The throughout the sale process. Goldwind PROJECTûlNANCINGûDEALSûBECAUSEûITûISû project is being developed by Florida’s Americas will continue to provide the providing capital to projects in late stage Origis Energy as part of TVA’s Green Invest project with long-term maintenance. development, prior to notice to proceed, programme, which aims to help commercial In September 2018 Goldwind Americas and involves more risk. and industrial (C&I) power buyers such as CLOSEDûONûTAXûEQUITYûlNANCINGûFROMû"(%û Google connect with renewable energy Renewables and Citigroup on the scheme. AEP CALLS FOR OHIO AND TEXAS WIND projects that move them toward long-term Goldwind Capital provided construction AND SOLAR sustainability goals. Origis will own and lNANCINGûFORûTHEûPROJECTû2ATTLESNAKEûSELLSû operate the project, which it plans to bring POWERûUNDERûAûLONG TERMûlXED PRICEûENERGYû AEP ENERGY PARTNERS, a unit of Columbus, online by the end of 2022. hedge. Ohio-based utility American Electric Power, In recent weeks TVA also entered into has issued a request for proposals (RFP) a PPA with Vanderbilt University for the SB ENERGY RAISES DEVELOPMENT FUNDING seeking offtake from new solar and new output of a 125MW facility to be built in wind facilities in Ohio and the Electric Tullahoma in partnership with Nashville Deutsche Bank, East West Bank and CIT Reliability Council of Texas (ERCOT). Electric Service have closed a US$150m senior development For the Ohio projects, the company is facility for SB ENERGY, SoftBank’s solar seeking power purchase agreements (PPAs) CIP BUYS HYDRO DEVELOPMENTS DEVELOPMENTûAFlLIATE of 10, 12, or 15 years for solar or wind SE US Holdings Three is the borrower facilities that begin operation between 2021 COPENHAGEN INFRASTRUCTURE PARTNERS (CIP) ONûTHEûLATEûDEVELOPMENTûPROJECTûlNANCING û and 2023. In ERCOT, the company is seeking has bought the 393MW Swan Lake and which will be used to fund utility-scale PPAs of 12 years or less for solar facilities 1,200MW Goldendale pumped storage SOLARûPROJECTSû4HEûlNANCINGûBACKSûAû that begin operation between 2021 and hydro development projects in Oregon and PORTFOLIOûOFûlVEû53ûSOLARûPOWERûPLANTSûWITHû 2023. Proposals with alternative terms will Washington. a combined capacity of more than 1.7GW. also be accepted. Notices of intentions to bid The projects were previously owned and in development under a joint venture between Rye Development (Rye) and National Grid. Rye will continue to lead Equinor reveals offshore development of the two projects until the start of construction. Swan Lake secured its 50-year Federal Energy Regulatory hub plan Commission (FERC) licence in 2019 while 'OLDENDALEûlLEDûANûAPPLICATIONûWITHû&%2#û „ UNITED STATES Renewables in June of 2020. Christian Skakkebæk, senior partner at EQUINOR has released details of its proposal (O&M) base. Development of the sites is CIP, said “with the long investment horizon to locate America’s first offshore wind tower contingent upon NYSERDA selecting Equinor’s of our funds, it enables us to participate manufacturing facility at the Port of Albany bid and PIIP. in large projects overseeing contracting, in upstate New York. Developed jointly with Equinor offered bids for phase two of Empire DE RISKING ûlNANCING ûCONSTRUCTIONûANDû manufacturers Marmen and Welcon, the port Wind near Long Island and Beacon Wind near operation”. CIP said studies have shown the would be used for manufacturing offshore wind Montauk Point. 0ACIlCû.ORTHWESTûWILLûNEEDûTHOUSANDSûOFû-7û towers and transition pieces (TPs), according to The first phase of Empire Wind is an 816MW of new generating capacity and storage as a statement. project that was named a winning bidder in coal is phased out of the grid and renewable The Port of Albany extension initiative is the state last year, and the Beacon site has a energy from wind and solar replaces them. part of the bid Equinor submitted in response potential development capacity of 2.4GW. Wind and solar do not produce energy to the New York State Energy Research and New York State has a goal to secure 70% of its 24 hours a day. Long duration storage, Development Authority’s (NYSERDA) latest electricity from renewable energy by 2030, and to particularly pumped storage hydro, will help offshore wind energy solicitation, which seeks have at least 9GW of offshore wind by 2035. The solve this challenge by storing the energy up to 2.5GW of offshore wind and multi-port state said it will decide on the winning bidders for the until it is needed at peak times. infrastructure investment plans (PIIPs). latest offshore procurement by the end of this year. The proposals comprise plans for In September, BP and Equinor formed a GOLDWIND SELLS RATTLESNAKE WIND manufacturing offshore wind components partnership for offshore wind in the US, making upstate at the Port of Albany and the Port of BP a 50% non-operating partner in the Empire Chicago-based GOLDWIND AMERICAS, a unit of Coeymans as well as making South Brooklyn Wind and Beacon Wind assets. That transaction China’s Xinjiang Goldwind Science and Marine Terminal the hub for construction is expected to close in early 2021. Technology, has sold the 160MW Rattlesnake activities and an operations and maintenance Alison Healey wind project in McCulloch County, Texas to

Project Finance International November 18 2020 19

03 Americas p10-24.indd 19 17/11/2020 18:51:51 were due by November 13 and responses to North America from Day One is in the electric distribution companies. The move the RFP are due by November 23. business of developing and delivering real ISûAûCRITICALûSTEPûFORûTHEûlNANCINGûPROCESS û offshore wind projects.” which is expected to be launched in 2021. CHABERTON GETS GREENBACKER Ocean Winds has 5.5GW of “committed The power purchase agreement (PPA) INVESTMENT offshore assets” comprising 1.5GW under on the project will run for 20 years. The construction and 4GW under development, CONTRACTûCOSTûWILLûBEû53-7H ûLOWERû Maryland renewable developer CHABERTON with the target of reaching up to 7GW of THANûTHEû53-7HûFORûTHEûSTATESûOTHERû ENERGY HOLDINGS has received a corporate- projects in operation or under construction pending offshore wind project, the 800MW level investment from Greenbacker’s and 10GW under advanced development Vineyard Wind scheme. Development Opportunities Fund I. by the middle of this decade, the company Credit Agricole has been advising on The investment will support the growth said. -AYmOWERûFORûOVERûAûYEARû4HEûAMOUNTû of the company and its development of a of the debt that will be put in place for portfolio of distributed generation solar FOREFRONT BUILDING ILLINOIS SOLAR -AYmOWERûREMAINSûTOûBEûDETERMINEDûANDû projects in the Mid-Atlantic region of the may require a reassessment of certain US. The size of the projects in the portfolio San Francisco distributed solar and storage project costs to see if equipment costs have will be 1MW–5MW. company FOREFRONT POWER is building a changed due to Covid-19. Greenbacker was launched earlier portfolio of six solar plants in Illinois, “The approval of these contracts furthers THISûYEARûTOûPROVIDEûmEXIBLEûCAPITALûTOû adding 6.6MW of capacity in McHenry and the Commonwealth’s development of an sustainable infrastructure developers. Williamson counties. offshore wind industry that will create Chaberton Energy was founded in 2020 Each of the projects received incentives local jobs, spur economic development primarily to develop distributed solar through the state’s adjustable block and provide Massachusetts ratepayers with generation assets in the mid-Atlantic, from programme (ABP), which was established clean, affordable and resilient energy,” origination to ready-to-build. by the state’s Future Energy Jobs Act to Massachusetts Governor Charlie Baker said. support the development of photovoltaic -AYmOWERû7INDûWASûSELECTEDûINû/CTOBERû COLLAB LAUNCHED FOR OFFSHORE distributed generation and community 2019 under a request for proposals (RFP) solar projects. and approved by the DPU after review by The governors of Maryland, North Carolina, The ABP enables new projects to sell an independent evaluator on May 17 2019. and Virginia have set up a three-state solar renewable energy credits (SRECs) EDP Renewables and Engie recently collaboration to advance offshore wind to local utilities to reduce the cost of the landed approval from local regulators to projects in the region called the Southeast power. The SRECs are then retired to count merge their offshore wind businesses in and Mid-Atlantic Regional Transformative toward Illinois’ renewable energy goals. the US into a joint venture known as Ocean Partnership for Offshore Wind Energy Three of the projects in the portfolio will Winds North America, which holds 50% of Resources (SMART-POWER). sell power to auto supplier AISIN Group, THEûEQUITYûINû-AYmOWER The entity will provide a framework for while the others will supply Huntley the states to cooperative, promote, and Community School District. Forefront NEVADA VOTES FOR 50% RENEWABLES develop offshore wind projects as well Power is a unit of Japan’s Mitsui. With the as the ancillary services needed for the latest projects Forefront has developed Voters in Nevada have approved an industry. The states are now expected to 22.9MW of solar in Illinois, representing amendment to the state constitution that nominate a leadership team for SMART- US$46.7m of investment. will require the state to get at least half its POWER. According to the United State electricity from renewable sources by 2030. Department of Energy (DOE), the Atlantic MAINE FLOATING OFFSHORE PROGRESSES The state’s previous renewable portfolio Coast offshore wind project pipeline is standard (RPS) mandated utilities to get estimated to support up to US$57bn in Project sponsor NEW ENGLAND AQUA VENTURES 25% of their electricity from renewables investments by 2030. has kicked off a search for vendors and by 2025. The ballot measure known as suppliers for the building of what is Question 6, or the Nevada Renewable EDP AND ENGIE JV FOR OFFSHORE EXPECTEDûTOûBEûTHEû53SûlRSTûDEMONSTRATIONû Energy Standards Initiative, was approved OFûCOMMERCIALûOFFSHOREûmOATINGûWINDû by 56% to 44%. The state must procure 22% EDP Renewables and Engie have landed technology. Developers plan to begin of its power from renewables from 2022 approval from local regulators to merge construction in 2022, with commercial and the percentage will increase over the their offshore wind businesses in the US operation in 2023. following eight years until it reaches 50%. into a joint venture to be known as OCEAN Mitsubishi subsidiary Diamond Offshore Legislation facilitating the adjustments will WINDS NORTH AMERICA. It is the 50% owner Wind and RWE Renewables joined the be implemented by July 2021 under the OFûTHEû-7û-AYmOWERûOFFSHOREûWINDû public-private partnership and committed measure. project, which saw its long-term contracts to investing US$100m in the project in approved this month by the Massachusetts August this year, while the US Department NORTHLAND GETS INTO NY RENEWABLES Department of Public Utilities (DPU). Ocean of Energy (DOE) will provide US$47m for Winds North America is a partner in the the scheme. Toronto’s NORTHLAND POWER has entered 2EDWOODû#OASTûmOATINGûOFFSHOREûWINDû the US renewable energy market with project in California. MASS APPROVES MAYFLOWER CONTRACTS the acquisition of three wind projects in /CEANû7INDSûCHIEFûEXECUTIVEûOFlCERû New York. Northland Power paid C$5.6m Spyros Martinis said: “OW will be a The Massachusetts Department of Public (US$4.2m) for the High Bridge, Bluestone, major element in creating the new clean, Utilities (DPU) has approved long-term and Ball Hill projects, each 100MW. sustainable, and prosperous economy that contracts between ROYAL DUTCH SHELL The company expects to incur Americans are demanding and OW North and OCEAN WINDS NORTH AMERICA‘s 804MW development cost for the projects this America can help to build that future. OW -AYmOWERûOFFSHOREûWINDûFARMûANDûLOCALû year. Northland said the projects position

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the company to actively participate in the #OUNTY û#ALIFORNIAû4HEûPROJECTûINCLUDESûlVEû AEP CALLS FOR WIND AND SOLAR renewables market in New York, which is hydroelectric powerhouses, two dams that expected to grow by 26GW by 2030. form storage reservoirs, and seven smaller AEP ENERGY PARTNERS, a unit of Columbus, diversion dams. PG&E decided to sell Crane Ohio-based utility American Electric Power, ORMAT’S PUNA BACK ONLINE Valley because it no longer serves as an has issued a request for proposals (RFP) economical source of generation for its seeking offtakes from new solar and new ORMAT TECHNOLOGIES‘ Puna geothermal has customers. wind facilities in Ohio and the Electric resumed commercial operation after it was “An increasingly competitive energy Reliability Council of Texas (ERCOT). DAMAGEDûANDûTAKENûOFmINEûBYûAûVOLCANOû market, lower forecasted generation needs For the Ohio projects the company is eruption in 2018. The plant is currently for PG&E’s bundled electric customers seeking power purchase agreements (PPAs) delivering up to 2MW to the grid. Ormat and the increasing cost of operating the of 10, 12, or 15 years for solar or wind expects to gradually ramp up production facilities are all factors in the company’s facilities that begin operation between 2021 to approximately 15MW by year-end 2020, decision to sell,” PG&E said. The utility and 2023. In ERCOT the company is seeking subject to the successful connection of an plans to launch a request for offers for PPAs of 12 years or less for solar facilities additional production well to the power an auction process that will begin in the that begin operation between 2021 and plant. spring. PG&E expects the transfer of the 2023. Proposals with alternative terms will Earlier this year, Ormat amended project to a new owner could take as long also be accepted. Notices of intention to bid its power purchase agreement with as three years to complete. are due by November 13 and responses to Hawaiian Electric for the project. The the RFP by November 23. amended PPA extends the tenor until WISCONSIN UTILITY TO ADD RENEWABLES 2052 with an increased contract capacity CLEARWAY CLOSES MULTIPLE DEALS OFû-7ûANDûAûlXEDûPRICEûOFû53ûPERû Wisconsin’s largest utility WEC ENERGY is MWh. planning to add more than 1.5GW of A unit of renewable energy developer The PPA stipulates there will be no renewable energy and 300MW of new gas- CLEARWAY ENERGY has entered into a series escalation in pricing regardless of changes lREDûPOWERûASûITûPREPARESûTOûRETIREû'7û of transactions including a distributed to fossil fuel pricing. The commercial OFûFOSSILûFUELûPROJECTSûOVERûTHEûNEXTûlVEû GENERATIONûRElNANCINGûANDûDROP DOWNû operation date (COD) of the new plant is years. deals with its parent company and is EXPECTEDûDURINGûTHEûlRSTûHALFûOFûû4HEû The company’s plan calls for 800MW of considering an investment in a 1.6GW existing PPA remains in effect, on current solar and 100MW of wind to be combined portfolio. terms, until the expansion is completed with 600MW of battery storage as it looks DG-CS Master Borrower has issued a and the new plant reaches its COD. Ormat’s to achieve a 55% reduction in carbon US$467m loan and a US$30m debt service ACQUISITIONûOFû0UNAûWASûPROJECT lNANCEDûINû emissions by 2025 and produce carbon- reserve letter of credit. Proceeds will repay 2005. neutral electricity by 2050. existing project-level debt at four assets, The utility has not yet disclosed its plan unwind related interest rate swaps in the PG&E TO SELL CALI HYDRO for procuring the new capacity. For its gas- amount of US$42m, and pay transaction lREDûPLANSûTHEûCOMPANYûWILLûPURCHASEûAû fees of US$9m. PACIFIC GAS AND ELECTRIC (PG&E) is preparing to 200MW share of Alliant Energy’s new West The new debt bears interest at 3.51% and launch a sale process for its 28.7MW Crane Riverside gas plant and build 100MW of will mature in 2040. Clearway acquired Valley hydroelectric project in Madera peaking plants. Clearway Energy Group (CEG)’s residual interest in the distributed generation partnerships and a contract related to the monetisation of renewable energy Offshore wind pipeline grows credits associated with assets within the partnerships for US$43.5m. „ UNITED STATES Renewables The partnerships and a contract for renewable energy credits are expected The US offshore wind industry is slated to see project possibilities in the Great Lakes region of to contribute asset cash available for precipitous growth in the coming years, with the country. DISTRIBUTIONû#!&$ ûONûAûlVE YEARûAVERAGEû the American Wind Energy Association (AWEA) Upcoming offshore wind auctions include: annual basis of approximately US$5.3m updating its outlook for wind energy across the z New York’s 2nd solicitation for up to 2,5000MW beginning January 1 2021. Clearway also US in the coming decade. Offshore wind is slated in Q4 2020. entered into agreements with CEG to to have 20GW of operational projects by 2029, z Maryland’s 2nd solicitation for up to 400MW in acquire 100% of the cash equity interests in according to AWEA, boosted by the election of Q4 2020. Langford Wind, a 160MW project in West Joe Biden to the presidency. z New Jersey’s 2nd solicitation for up to Texas under repowering, which will close The Northeast Coast will see the most activity, 2,400MW in Q4 2020. when the project starts operating in Q4. due to the welcoming geography of the region z A Rhode Island solicitation for up to 600MW The corporate capital commitment for the and ample wind resource. expected in H1 2021. transaction is expected to be US$64.3m The West Coast could see some activity, z Massachusetts’s 3rd solicitation for up to and the project is expected to contribute but may have to wait until floating offshore is 1,600MW in H2 2021. #!&$ûONûAûlVE YEARûAVERAGEûANNUALûBASISûOFû more mature because off the steep drop-off z Connecticut’s 4th solicitation for up to approximately US$8.5m. into the Pacific Ocean that makes it harder 1,000MW in H2 2021. Clearway also received an offer from CEG to install turbines. Pilot projects for floating z Maryland’s 3rd solicitation for up to 400MW to enter into partnership arrangements with offshore are continuing in Maine, with US sometime in 2021. an undisclosed third-party equity investor government support. There is also talk of Alison Healey to acquire a 100% cash equity interest in a 1.6GW portfolio of wind, solar and solar plus

Project Finance International November 18 2020 21

03 Americas p10-24.indd 21 17/11/2020 18:51:51 storage assets that will be completed between The non-recourse loan was provided by AGDC has not yet held formal negotiations Q4 2020 and Q4 2022 as well as CEG’s Fifth Third Bank. It will enable Ameresco with Alaska Gasline and LNG about taking remaining cash equity interest in Mesquite to draw proceeds for solar projects in over project development. Star, a 419MW wind project in Texas that construction as a bridge to permanent came online in June. Approximately 90% lNANCINGûORûSALEûUPONûCOMMERCIALû CHENIERE HURT BY LNG CARGO REFUSAL of the portfolio’s output is contracted with operation. primarily investment-grade counterparties At the end of Q3 Ameresco reported LNG developer CHENIERE ENERGY posted a and has a greater than 14-year blended US$1bn in contracted backlog representing wider Q3 loss compared with 2019, hurt average contract length. Clearway remains signed customer contracts for installation by customers under sales and purchase in discussions on the offer and expects or construction of projects and US$1.2bn agreements (SPAs) electing against taking to commit US$230m to US$240m to the of awarded projects that have not yet been delivery of cargoes from its US Gulf export transaction if it moves forward. contracted. projects. The company posted a loss of US$463m DOMINION ADDING SOLAR FIRM TO PROPOSE ALASKA LNG TAKEOVER or US$1.84 per share, wider than the loss of US$318m or US$1.25 per share in 2019. DOMINION ENERGY VIRGINIA has applied for Former governor of Alaska Bill Walker “Total margins decreased during regulatory approval to add a portfolio of has partnered with former ALASKA GASLINE the three months ended September new solar projects with a capacity of nearly DEVELOPMENT CORP (AGDC) chief executive 30, primarily due to the accelerated 500MW. Six of the projects totaling 416MW OFlCERû+EITHû-EYERûTOûLAUNCHûALASKA recognition of revenues in prior periods were selected for power purchase agreements GASLINE & LNG ûAûlRMûTHATûWILLûLOOKûTOûMOVEû related to elections by our long-term SPA (PPA) following a competitive solicitation the stalled US$38bn Alaska LNG project customers to not take delivery of LNG process and three will be owned by the utility. forward. cargoes that were scheduled to be delivered $OMINIONûISûACQUIRINGûTHEû-7û'RASSlELDû 4HEûPROJECTûHASûBEENûSIGNIlCANTLYû during the current period,” the company solar project in Chesapeake, Virginia from de-risked since securing more than 70 said. Cheniere recognised US$171m in lost Solar Access Development Group and Blue permits, according to Walker. Earlier this revenue for cargoes not taken during the Green Energy; the 20MW Norge solar project year AGDC, a public corporation of the QUARTERûANDû53MûFORûTHEûlRSTûNINEû in James City County from Clearway Energy; State of Alaska, said it was considering the months. and the 42MW Sycamore solar project SALEûOFûITSûASSETSûIFûITûCOULDûNOTûlNDûAûNEWû in Pittsylvania County from Open Road development lead for the proposed LNG CONTURA INKS COAL DIVESTMENTS Renewables and MAP Energy. export project and pipeline. It obtained $OMINIONûIDENTIlEDûTHEûSIXûPROJECTSûITû federal authorisation to construct and Tennessee-based CONTURA ENERGY will sell HASûSELECTEDûFORû00!SûINûAûREGULATORYûlLING û operate the Alaska LNG project on May 21. its Pennsylvania operations to IRON SENERGY providing project names but not the names AGDC took over as sponsor of the project HOLDING. The transaction is expected to close of individual developers. The projects include in 2016 after its original developers BP, before December 31 2020 and will see the Watlington Solar (20MW) in Halifax County, ExxonMobil, and ConocoPhillips, and transfer to Iron Senergy of the subsidiaries Pleasant Hill Solar (20MW) in the city of TransCanada dropped out amid rising costs. that hold Contura’s Cumberland and Suffolk; Chesapeake Solar (118MW) in the city of Chesapeake; Wythe Solar (75MW) in Wythe County; Cavalier Solar (170MW) in Wight County and Surry County; and PA mulling US$1bn toll Rivanna Solar (13MW) in Albermarle County. On October 9, Dominion Energy Virginia issued a request for proposals bridge P3 (RFP) soliciting bids for small-scale solar projects up to 3MW in size. Another RFP „UNITED STATES Transport for large-scale solar, onshore wind and energy storage projects is under way The Pennsylvania Department of Transportation gas and the state received diminished gas tax and a request for information (RFI) to (PennDOT) has won approval to charge tolls revenues. purchase or lease land suitable for large- on bridges and may launch a public-private The state had success with a prior bridge scale solar development was released partnership for one or more projects, according rehabilitation P3 in 2015, but that project did not in August. Dominion is advancing the to a report from the Pittsburgh Post-Gazette. have a toll component and was structured with projects as it works to comply with the The structure under consideration would see availability payments. Plenary Walsh Keystone Virginia Clean Economy Act (VCEA), which PennDOT seek proposals from private companies Partners signed on as the private partner for requires 100% of its electricity sales in the to design, upgrade and maintain major bridges the Pennsylvania Rapid Bridge Replacement Commonwealth to be sourced from clean across the state that need to be rehabilitated project, which involved the design, accelerated energy facilities by 2045. State regulators or replaced and would be good candidates for construction, financing, maintenance and will hold a hearing to consider Dominion’s tolling. rehabilitation of 558 structurally deficient bridges proposal February 17. Contractors would submit a proposal for an across the state over a 28-year contract term. individual bridge or several bridges and the The price was initially projected at US$899m AMERESCO CLOSES SOLAR FINANCE maintenance period would extend for 20 to 30 but increased to US$942m. The project was years. The state plans to use proceeds from a financed with US$721.4m of private activity %NERGYûEFlCIENCYûANDûRENEWABLEû deal to pay for other transportation projects. bonds (PABs), which were purchased by more energy developer AMERESCO has closed a Its budget for projects has been negatively than 40 different investors. construction loan facility for up to US$30m impacted by the pandemic as drivers used less Alison Healey TOûlNANCEûSOLARûPROJECTS

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Emerald mines and the associated coal MACQUARIE AND GCM TO BUY been revived to some degree with Joe reserves, mining permits and operations, ALASKA TELECOM Biden’s presidential win, but the ability infrastructure, equipment, and transloading of legislators to craft a plan that will get facilities. MACQUARIE CAPITAL and Chicago-based alternative enough votes from both houses of Congress The subsidiaries include Emerald ASSETûMANAGEMENTûlRMûGCM GROSVENOR have is likely to remain a major challenge. Contura, LLC; Cumberland Contura, LLC; agreed to acquire Alaska Communications The success of any plan is likely to hinge Contura Coal Resources, LLC; Contura Systems, a broadband service provider, for on Biden’s skill in bringing together a Pennsylvania Land, LLC; and Contura approximately US$300m, including debt. Congress so divided it has not yet been able Pennsylvania Terminal. Senergy will The companies will acquire Alaska to agree on coronavirus stimulus measures also assume up to US$169m of cash Communications for US$3.00 per share THATûWILLûBEûMOREûPRESSINGûASûHEûTAKESûOFlCEû commitments at the entities, including in cash, representing a premium of in January. debt. The transaction is subject to a number approximately 57% over the closing price The Trump administration tried multiple of conditions to closing, with the parties before the deal became public. Alaska times to get a package passed and came working to address all of these conditions. Communications may seek superior very close, but talks ultimately collapsed proposals from third parties for a period of amid rising tensions between the parties BROADBAND UTILITY MODEL WINS VOTES 30 calendar days through to December 3. on trade, the administration’s resistance to Macquarie Capital is serving as its own congressional investigations, and questions Voters in the cities of Denver, Berthoud, lNANCIALûADVISERûANDûASûlNANCIALûADVISERûTOû on preferred funding for the infrastructure and Englewood, Colorado, and Chicago, GCM Grosvenor. bill. Illinois have voted in favour of measures The transaction will result in Alaska This time around an infrastructure bill that could spur the development of Communications becoming a privately held is not expected to be limited to traditional municipal broadband and indicate a company and is expected to close in the road and bridge transactions but should potential move toward a utility model for second half of 2021. The transaction has also include funding for airports, highways, the service. FULLYûCOMMITTEDûDEBTûANDûEQUITYûlNANCINGû hospitals, schools, and technology such as In the Colorado cities voters approved the and is not subject to any condition with autonomous vehicles and charging stations, city opting out of a state law that prohibits REGARDûTOûlNANCINGû%QUITYûlNANCINGûWILLû panelists predicted on a K&L Gates town municipalities from investing in or building be provided by Macquarie Capital and GCM, hall seminar that took place in election their own broadband network, opening the through GCM’s Labor Impact Fund. week. possibility of a city-owned network in the Moody’s projects that Biden’s plan to future. Chicago voters indicated they are BRIGHTLINE RAIL POSTPONED “markedly increase federal infrastructure in favour of the city pursuing broadband spending” will lift demand for internet connectivity for all residents. The FORTRESS INVESTMENT GROUP‘s Brightline unit construction, telecoms and utilities, but cities have not yet laid out plans for how has postponed plans to build a rail link to his campaign proposal to raise corporate they will move forward with the election Las Vegas from Southern California after TAXESûWILLûREDUCEûCASHmOWûFORûTHOSEû RESULTSûFORûSPECIlCûPROJECTS failing to sell US$3.2bn in green bonds, The sectors. However, the ratings agency sees Bond Buyer reported. it as unlikely that Biden would make a MACQUARIE AND GCM TO BUY ALASKA “Unfortunately, there is not a lot move on corporate taxes in the short term BROADBAND of liquidity in the market and a lot of based on pandemic-related economic economic uncertainty at this moment,” conditions. Macquarie Capital and Chicago-based California Treasurer Fiona Ma said in an Biden has called for US$2trn of ALTERNATIVEûASSETûMANAGEMENTûlRMû'#-û email quoted in the report. “The project is infrastructure investment over four years, Grosvenor have agreed to acquire ALASKA postponed until market liquidity improves.” focusing on speeding up the transition COMMUNICATIONS SYSTEMS, a broadband service 4HEûPOSTPONEMENTûWASûCONlRMEDûBYû to cleaner energy for transportation and provider, for approximately US$300m, Brightline spokesman Ben Porritt. buildings, broadband expansion, and school including debt. In recent weeks Brightline made changes modernisation. The companies will acquire Alaska to its bond offering in an attempt to attract 3PECIlCûINITIATIVESûPROPOSEDûINCLUDEû Communications for US$3.00 per share investors, as investors questioned the strength providing every American city with 100,000 in cash, representing a premium of of the project’s green bond credentials and or more residents with zero-emissions approximately 57% over the closing price the broader business model for the project, public transportation options such as light before the deal became public. Alaska including ridership projections. The sponsor RAILûTHROUGHûmEXIBLEûFEDERALûINVESTMENTSû Communications may seek superior cut the size of the deal, added equity, Biden has emphasised improvement of proposals from third parties for a period of strengthened reserves, and added stricter roads and bridges, rail, aviation, ports, and 30 calendar days through to December 3. leverage limits on the Morgan Stanley-led inland waterways. Macquarie Capital is serving as its own offering. The California Infrastructure & “Biden will make sure that America lNANCIALûADVISERûANDûASûlNANCIALûADVISERû Economic Development Bank was to be has the cleanest, safest, and fastest rail to GCM Grosvenor. The transaction will conduit issuer on the bonds. California plans system in the world – for both passengers result in Alaska Communications becoming to take back the bond capacity and allocate and freight,” the president-elect promises a privately held company and is expected it to affordable housing projects and other on his Web site. The water sector is to close in the second half of 2021. The projects such as recycling facilities. also prioritised by Biden, who proposes transaction has fully committed debt and investments in the repair of water EQUITYûlNANCINGûANDûISûNOTûSUBJECTûTOûANYû MARKET HOPES FOR BIDEN pipelines and sewer systems, replacement CONDITIONSûWITHûREGARDûTOûlNANCINGû%QUITYû INFRASTRUCTURE SUCCESS of lead service pipes, the upgrade of lNANCINGûWILLûBEûPROVIDEDûBYû-ACQUARIEû treatment plants, and integration of Capital and GCM, through GCM’s Labor Hopes for a comprehensive federal EFlCIENCYûANDûWATERûQUALITYûMONITORINGû Impact Fund. infrastructure plan getting passed have technologies.

Project Finance International November 18 2020 23

03 Americas p10-24.indd 23 17/11/2020 18:51:51 TAMPA ISSUES P3 TRANSIT RFP an additional month to negotiate with the AUSTIN TRANSIT PLAN WINS VOTE Maryland Department of Transportation The City of Tampa, Florida has issued (MDOT) to salvage their US$5.6bn public- Voters in Austin, Texas have approved a request for proposals (RFP) seeking a private partnership before the bank takes a US$7.1bn transport initiative known private partner to develop a mass transit enforcement action that could mean as Project Connect that may include project that will connect the Tampa default. public-private partnerships for some of its International Airport with the Westshore, PLTP terminated its partnership components. downtown, and East Tampa regions. with the state on September 10, but Two ballot measures needed to advance The project will be procured using the state is contesting the legality of the project won support from the majority AûDESIGN ûBUILD ûlNANCE ûOPERATEûANDû the termination. The PLTP consortium, of voters. Proposition A called for a 4% maintain (DBFOM) model. The project comprising Fluor, Meridiam, and Star property tax hike that will be used to includes vehicles and system technology, America, previously won the court’s fund a high-capacity transit system while operation and maintenance facilities, permission for workers to walk off proposition B allows US$460m in debt and related civil infrastructure, construction due to an inability to resolve issuance towards transport improvements including road reconstruction. The city disputes with Maryland authorities, and such as sidewalks, bikeways, urban trails, expects to use a performance-based the Maryland Transit Administration and safety projects. availability payment structure over the (MTA) has since taken over hundreds of The dedicated property tax revenue operating period but will also consider subcontracts. The Purple Line is backed will be combined with funding paying milestone payments during the by US$313m in bonds and a US$875m from Austin’s Capital Metropolitan construction phase. Transportation Infrastructure Finance & Transportation Authority and directed In September, the city received an Innovation Act (TIFIA) loan. to to Austin Transit Partnership, a new unsolicited proposal from Hyperloop ORGANISATIONûTHATûWILLûOVERSEE ûlNANCEû Transportation Technologies for a bullet ABERTIS AND MANULIFE TO BUY ERC and implement Project Connect. The city train in the region. The city previously is expecting to receive federal funding received an unsolicited proposal from Spain’s ABERTIS and MANULIFE INVESTMENT for approximately 45% of the project’s Brightline to expand its passenger rail MANAGEMENT have agreed to acquire 100% total cost. Project Connect includes service to Tampa. Responses to the RFP are of the Elizabeth River Crossings (ERC) construction of three light rail lines, due by December 7 and the city plans to concession in Virginia from Macquarie and an underground tunnel, new park-and- choose a winner by January 25. The city Skanska. ride facilities, customer technology and expects the transit line to be in service in The concession operates four tunnels maintenance facility improvements, and 2026. and a highway in the area of Norfolk under creation of a rapid bus route. a contract with a remaining term of 50 RFI SEEKS LA PORT INPUT years. The sale agreement was closed with THIRTEEN COMPETE FOR UNI ADVISORY US$1.18bn of total equity, which is subject Los Angeles has issued a request for to change prior to close. The acquisition !ûTOTALûOFûTHIRTEENûlRMSûHAVEûRESPONDEDû information (RFI) inviting the private will be carried out through a consortium to a request for proposals (RFP) seeking sector to provide input to the Port of in which Abertis will hold a maximum of public-private partnership, infrastructure, Los Angeles as it looks to accelerate 68%, which may be reduced to a minimum and real estate advisory services for the the development and adoption of zero- of 51%. Manulife reached the agreement on eight campuses of Florida’s Miami Dade emission trucks. behalf of its subsidiary John Hancock Life College. Responses will inform mayor Eric Insurance Company. #OMPETINGûlRMSûINCLUDEû!ECOM û Garcetti’s plan to transition all trucks !BERTISûWILLûlNANCEûTHEûDEALûWITHûAû Aegis Project Controls, Avison Young transporting goods to the San Pedro Bay combination of committed bank facilities Florida, Brailsford Dunlavey, CH Johnson port complex to zero emissions by 2035. and cash, and the companies expect the Consulting, Deloitte, Ernst & Young, HRA Submissions should address approaches acquisition to close by year-end. ERC posted Advisors, Jones Day, KPMG, Rieth Jones to maximise the use of public and 2019 Ebitda of US$60m and carries more Advisors, Savills, and The Concourse private funding sources, describe new than US$1.1bn in debt. Group. asset management structures that can The ERC contract was valued at roughly 4HEûCOLLEGEûHASûNOTûYETûIDENTIlEDû accommodate the San Pedro Bay ports’ US$1.5bn when the project reached SPECIlCûPROJECTSûITûISûCONSIDERINGûFORû0Sû)Tû scale, incorporate proposals for charging lNANCIALûCLOSEûINûûWITHûAûPRIVATEû is looking for an adviser with experience and fuelling infrastructure, propose activity bond (PAB) and Transportation in assessing real estate portfolios to maintenance and procurement methods, Infrastructure Finance and Innovation Act identify project opportunities; developing and lay out a public-private partnership 4)&)! ûLOANûlNANCINGûPACKAGE plans to optimise and transform model to achieve the zero-emission Last year, Macquarie and Skanska hired assets; evaluating and executing P3s, transition. Responses to the RFI are due by RBC to begin shopping the asset, which alternative funding and construction January 7. BROUGHTûINûINTERESTûFROMûAûlRSTûROUNDûOFû mechanisms; advising on transactions, bidders in July. Australia’s Transurban including partner selection and lease or PURPLE LINE BONDHOLDER was among the interested parties. The sale negotiations; performing market FORBEARANCE EXTENDED acquisition of ERC is in line with Abertis’ feasibility studies and highest and best growth strategy in the US and is the USEûANALYSISûANDûPROVIDINGûLESSORLESSEEû US Bank, the bondholders’ trustee on company’s second major North American representation. Representatives from debt backing the Purple Line light rail acquisition in less than a year following the the college’s purchasing department transit (LRT) project, has extended its purchase of a controlling interest in the are reviewing the proposals and will forbearance on the debt to November 30. Red de Carreteras de Occidente (RCO) toll make recommendations to an evaluation The move gives PURPLE LINE TRANSIT PARTNERS road in Mexico in June. committee.

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Australia 26 India 31 Indonesia 32 New Zealand 34 Philippines 36 Singapore 37 Thailand 38 Vietnam 38

„ FRONT STORY AUSTRALIA - TELECOMS Towers sales loom large in Australia

Digital infrastructure is an attractive asset class for infrastructure investors The biggest telecoms companies in Australia have thus far held onto their infrastructure assets

BY ALEXANDRA DOCKREAY centres, subsea cables and exchanges); which the adviser was appointed in March and ServeCo, the retail business and this year. Telstra, the largest of three mobile owner of the active parts of the network OMERS Infrastructure, the investment network operators in Australia, has including the radio access network and arm of US$84.8bn Canadian pension fund announced a major restructuring that spectrum assets. Ontario Municipal Employees’ Retirement is due to lead to the sale of its towers The company has already hived off System, has formed a consortium with infrastructure portfolio in 2021. The infrastructure into a standalone entity Australian telecoms towers company carrot has been dangled in front of a called Telstra InfraCo, but this new Stilmark and its major US-based crowd of eager infrastructure investors structure will see that divided into two shareholder ATN International to pursue that were already forming their teams next year. While monetisation of the opportunities in the Australian telecoms ahead of Optus’ delayed telecom towers ROUGHLYû ûTOWERSûWILLûCOMEûlRST û sector. Stilmark has about 400 sites in sale, due to kick off at the start of 2021. Telstra has suggested the new structure its portfolio and development pipeline. Digital infrastructure is an attractive will enable the option for further The new platform named Symphony asset class for infrastructure investors, divestments. Consortium is poised for bidding. within the context of Covid-19 and long- Telstra intends to “maintain control of Axicom, owned by Macquarie, a fund of term given positive data demand trends, its strategic towers” as it seeks investment UBS Asset Management and UniSuper, is while other core infrastructure sectors from third parties. The book value for a local independent towerco with about have suffered demand destruction during the towers was A$280m at June 30 and 2,000 towers looking to grow its portfolio. Covid-19. Tower construction risk is low, the tower portfolio’s Ebitda for FY20 The investors acquired the Australian they have relatively low maintenance is estimated at A$193m–$205m. There portfolio of US independent towerco expenditure requirements, revenues are 5,570 mobile towers and 2,630 non- Crown Castle in 2015 for A$2bn. from leases to mobile carriers are stable, mobile towers, which Telstra says is the The whole telecoms company and independent tower owners can gain largest portfolio in the country. Vodafone New Zealand, including its new revenue streams by adding towers infrastructure, is already in the hands of in rural areas or in some cases, can lease The value of the portfolio could two infrastructure investors. Morrison & the towers to additional customers. #O MANAGEDûFUNDû)NFRATILûANDû"ROOKlELDSû Investors in towers would also partner the be in the region of A$1.5bn, fourth infrastructure fund, acquired the telecoms companies for investment in the or up to A$1bn equity with whole company for NZ$3.4bn in 2019. infrastructure assets to enable 5G. debt financing likely to be They are likely to make a play. Morrison & The biggest telecoms companies of required Co is reported to be talking to the Future Australia – Telstra and Optus – have Fund and Commonwealth Super Corp. held on to their infrastructure assets, Local fund manager AMP Capital after telcos all over Europe were selling Optus’ towers sale process is likely to is another candidate, having made them off in the last few years, and the come to market before Telstra’s. In both investments in towers abroad, and it US towers have long been mostly held by cases it is not certain what size of stake recently lent a A$130m senior stretch loan independent towercos. Sales of portfolios will be on the block. to Stilmark out of its APAC infrastructure in emerging markets of Asia and Africa Bank of America Merrill Lynch is debt strategy. have been common too. Deals over the lNANCIALûADVISERûTOû/PTUSûPARENTû3INGTEL û In the European markets giant tower last several years in Europe have shown based in Singapore. The sale launch was COMPANYû#ELLNEXû4ELECOMûISûAûPROLIlCû there is very healthy appetite among pushed back from an expected start in Q3. buyer and has appeared among the list a varied infrastructure crowd of fund The value of the portfolio could be in of hopefuls for Optus’ portfolio. It owns managers, institutional investors and the region of A$1.5bn, or up to A$1bn 103,000 towers in 12 European countries, independent towers companies, and with EQUITYûWITHûDEBTûlNANCINGûLIKELYûTOûBEû having just made an enormous €10bn THEûBROADûlELDû%BITDAûMULTIPLESûAREûHIGHû required, PFI heard from an interested acquisition of 24,600 towers from CK – with enterprise valuations passing 20x party. They added that potential investors Hutchison. Ebitda. are keen to get visibility on the tax Based on that deal’s pricing per tower, Telstra is proposing to split its group outcome of the asset carve-out and the Telstra’s 8,000 towers could be valued into three entities next year. The three necessary regulatory approvals, including in excess of €3bn or A$5bn. Enterprise entities would be InfraCo Fixed, the from the Foreign Investment Review valuations of more than 20x Ebitda have owner and operator of passive or physical Board. Also the length of the lease with been seen in Europe. Vodafone has sold infrastructure assets; InfraCo Towers, the Optus for the assets has not been clear. its 11,000 Italian towers at a multiple of owner and operator of passive or physical !ûBROADûlELDûOFûBIDDINGûGROUPSûHASû 24x this year to independent towerco MOBILEûTOWERûASSETSûTHEûDUCTS ûlBRE ûDATAû emerged ahead of the Optus deal, for INWIT.

Project Finance International November 18 202025

04 Asia Pacific p25-.indd 25 17/11/2020 18:49:47 facility named Eyre Peninsula Gateway in Australia,” said AEMO chief executive Hydrogen Project. The hydrogen plant Audrey Zibelman. AUSTRALIA is being developed by THE HYDROGEN UTILITY The Victorian Big Battery will be the (H2U), with MITSUBISHI HEAVY INDUSTRIES as largest in the southern hemisphere, double FRV BUYS NSW SOLAR technology partner. the size of Neoen’s Hornsdale Power The South Australia 2020/21 Budget has Reserve in South Australia. That was also Global solar developer FOTOWATIO RENEWABLE allocated A$37m (US$27m) to upgrade the developed using Tesla technology, with a VENTURES (FRV) has acquired the 143.5MW state-owned Port Bonython so that it can be -7-7HûlRSTûPHASEûCOMPLETEDû Metz solar farm in the New England region the point of export, AFR reports. previously and a 50MW/64.5MWh second of New South Wales from Shanghai-listed The two-stage hydrogen project will start phase completed in September. solar PV company Clenergy. The Metz with a A$240m demonstrator, integrating .EOENûPROJECT lNANCEDûTHEû(ORNSDALEû project has a PPA with federal government- a 75MW electrolysis plant that uses green BATTERYSûlRSTûANDûSECONDûSTAGESûCOMBINEDûINû owned energy company Snowy Hydro, energy and a 120 tonnes-per-day, or 40,000 November 2019, with Clean Energy Finance agreed in late 2018. Clenergy has obtained tonnes-per-year, ammonia production Corporation providing a A$50m 13-year loan all permits and the target was to start facility. This will be one of the largest and Australian Renewable Energy Agency construction before the end of 2020. The electrolysers for an Australian project. It providing an A$8m grant. Neoen invested PROJECTûHASûYETûTOûREACHûlNANCIALûCLOSE will supply domestic markets, with some A$141m of equity in the two stages. FRV, a global solar developer owned by trial exports to Japan and North Asia. Saudi Arabia’s Abdul Latif Jameel group, The second stage could take capacity to NSW GOVERNMENT BACKS RENEWABLES now has eight solar projects in Australia. 2,400tpa of green ammonia, becoming an AND STORAGE Clenergy had acquired the Metz project export-scale project. SA awarded the project FROMû)NlNERGYûINû a A$4.7m grant in 2018 and a A$7.5m loan. The New South Wales government has It emerged in October that FRV is Attilio Pigneri is the founder and chief launched an Electricity Infrastructure marketing an up to 50% shareholding in executive of H2U, and president-elect of Roadmap 20-year plan. Treasurer Dominic its Australian renewables portfolio, with the Australian Association for Hydrogen Perrottet said the roadmap will grow Credit Suisse advising. Operating assets Energy. Adelaide-based boutique advisory the economy, create jobs and deliver include the 69.75MW Goonumbla solar, lRMû7OODSû3TREETSû0ARTNERSûHASûBEENû an expected A$32bn (US$23.3bn) of 90MW Sebastopol solar and 56MW Moree collaborating on the project. private sector investment in electricity solar projects in New South Wales, and MHI in October invested NKr120m infrastructure by the end of the next the 125MW Lilyvale solar in Queensland. (US$13m) in a Norwegian company, decade. Development-stage projects include the Hydrogen Pro, that makes electrolysers and Energy Minister Matt Kean said the 106MW Winton solar farm in Victoria in September launched a new council – the roadmap will support the private sector to and the 115MW Chaff Mill solar in South Kobe/Kansai Hydrogen Utilization Council bring 12GW of renewable energy and 2GW Australia. – with various partners in Japan with the of storage, such as pumped hydro, online goal of developing the hydrogen industry. by 2030. The plan includes A$50m of grants NT LAUNCHES BATTERY TENDER to support pumped hydro projects. NEOEN WINS AEMO CONTRACT FOR The state plans to appoint a community Northern Territory government-owned BIG BATTERY trustee, which will tender long-term energy electricity producer TERRITORY GENERATION services agreements to underpin both has launched a tender to bring private French renewables developer NEOEN has generation and storage projects. investment into a planned A$30m won a major contract from the Australian The plan also aims to speed up approvals (US$21.6m) 35MW battery energy storage Energy Market Operator (AEMO), which will for transmission infrastructure in system (BESS) for the Darwin-Katherine underpin the planned 300MW/450MWh Renewable Energy Zones. New South Wales grid. Local businesses are invited to Victorian Big Battery in Geelong. The has just added a fourth proposed REZ to its participate in a two-part procurement, contract with AEMO is a 250MW grid plans, in the coal-focused Hunter region. ANDûPRE QUALIlEDûBIDDERSûWILLûBEûINVITEDû services contract until 2032. Under the The other REZs are New England, South- in December to participate in the second A$84m (US$60m) 11-year contract, the West and Central-West stage. Territory Generation plans to award battery will provide an automatic response The plan is to be enabled by the proposed the contract in early 2021. in the event of an unexpected network Electricity Infrastructure Investment The BESS is expected to pay for itself in outage. AEMO awarded it after running Bill 2020, which the state’s Legislative AROUNDûlVEûYEARS ûAFTERûOPERATIONSûSTARTû the System Integrity Protection Scheme Assembly passed on November 17. in the second half of 2022. The BESS will 2020 procurement process on behalf of The Clean Energy Investor Group supply power system services that existing the Victoria government. The battery will welcomed the roadmap. “This Roadmap is GAS lREDûGENERATIONûFULlLLSû4HEû.ORTHERNû also participate in the National Electricity a welcome plan for private sector investors, Territory is targeting 50% renewables by Market with remaining capacity. harnessing the power of private markets to 2030, and rooftop solar PV installations Tesla is to supply its Megapack accelerate NSW’s renewable energy goals have risen 45% on average each year since technology. AusNet is network partner and – all through providing policy certainty 2010. is sourcing components such as the power and distinct market signals,” chair Simon transformers. Neoen is targeting operations Corbell said. H2U’S HYDROGEN PROJECT INTO by the end of 2021. “The CEIG will be focused on working FEED STUDY “Neoen’s solution, developed with Tesla with the NSW Government on the detailed and AusNet Services, on a unit cost basis, DESIGNûOFûlNANCIALûINSTRUMENTSûPROPOSEDû The front-end engineering and design WASûAûSIGNIlCANTLYûMOREûCOST COMPETITIVEû in the plan to ensure investors can proceed (FEED) study is due to start in December and attractive market response than WITHûCONlDENCEûTOûDELIVERûTHEûLOWûCOSTû for a proposed green ammonia production other recent major battery developments capital required to make this plan a reality.”

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ASIA-PACIFIC GENERAL CORPORATE FUNDING ACTIVITY NOVEMBER 2 TO NOVEMBER 16 2020 Security type Issuer/Borrower Amount (m) Maturity Issue price Pricing Bank Energy, gas and water distribution Medium-Term Nts State Power Invest C¥2,300 Perpet. 100.000 N/A Ping An Bank/Bank of China Medium-Term Nts State Power Invest C¥2,000 Perpet. 100.000 N/A Postal Savings Bank Of China/Bank of Shanghai Medium-Term Nts Datang Shaanxi Power C¥2,000 Perpet. 100.000 N/A Guotai Junan Secs/China Construction Bank Medium-Term Nts Shenzhen Energy Group C¥3,000 10/11/25 100.000 3.950 Agricultural Bank of China/China Merchants Bank Medium-Term Nts State Power Invest C¥2,000 Perpet. 100.000 N/A China Everbright Bank/China Merchants Bank CP State Power Invest C¥3,000 21/04/21 100.000 2.500 Bank of China Islamic Finance Idiwan Solar RM1.31 11/11/21 100.000 Floats OCBC Al-Amin Bank Unsecured Bond China Datang C¥4,500 12/11/23 100.000 4.120 Everbright/Founder Financing Services/CSC Financial/ Huatai United/Guotai Junan/CITIC/Haitong Unsecured Bond China Datang C¥2,250 12/11/25 100.000 N/A Everbright/Founder Financing Services/CSC Financial/ Huatai United/Guotai Junan/CITIC/Haitong Islamic Finance BGMC BRAS Power RM24.32 11/11/21 100.000 Floats OCBC Al-Amin Bank Medium-Term Nts Huadian Power C¥2,000 Perpet. 100.000 N/A Bank of Shanghai CP Shenzhen Energy C¥2,000 12/05/21 100.000 2.900 Agricultural Bank of China Medium-Term Nts State Power Invest C¥2,000 Perpet. 100.000 N/A Ping An Bank Co Unsecured Bond China Natl Nuclear C¥2,000 16/11/22 100.000 3.780 CSC Financial/China Int/Haitong Secs/CITIC Senior Notes Taipower NT$4,000 13/11/25 100.000 .450 Hua Nan Commercial Bank Senior Notes Taipower NT$2,400 16/11/30 100.000 .560 Masterlink Secs Co CP State Power Invest C¥2,800 15/04/21 100.000 N/A Bank of Shanghai/Industrial & Comm Bank China CP Shanghai Electric C¥2,000 18/12/20 100.000 N/A Bank of Beijing/China CITIC Bank Infrastructure Firms Sr Unsecurd Nts Heeton Holdings S$28.9 13/11/23 100.000 6.800 Oversea-Chinese Banking CP Shandong Hi-Speed Grp Co C¥2,000 10/05/21 100.000 2.200 Bank of China Medium-Term Nts Nanjing Jiangning Econ C¥2,200 13/11/23 100.000 4.060 Bank of Hangzhou/Industrial & Comm Bank China St Enterprise Nanchang Rail Transit Grp Co C¥2,000 18/11/25 100.000 N/A Shenwan Hongyuan Secs Co Islamic Finance Prasarana Malaysia RM300 13/11/24 100.000 2.230 CIMB Investment Bank Islamic Finance Prasarana Malaysia RM300 13/11/25 100.000 2.470 CIMB Investment Bank Unsecured Bond Shandong Hi-Speed Grp Co C¥2,000 16/11/23 100.000 4.210 Huatai United/Zhongtai/CSC Financial/Shenwan Hongyuan Mining Ord/Common Shs. Duke Exploration A$8 — 0.250 — Morgansorate Ord/Common Shs. Myanmar Metals A$2.5 — 0.075 — — Ord/Common Shs. Diatreme Resources A$2.54 — 0.010 — — Ord/Common Shs. Blackearth Minerals Nl A$0.39 — 0.050 — — CP China Copper Co C¥2,000 11/05/21 100.000 3.400 Huaxia Bank/China Merchants Bank CP Jinneng Group C¥2,000 12/11/21 100.000 4.300 China Everbright Bank Guaranteed Bds J Resources Asia Pasifik Tbk Rp251,660 07/12/21 100.000 9.250 PT Indo Premier Secs/Trimegah Securindo Lestari PT Guaranteed Bds J Resources Asia Pasifik Tbk Rp163,090 27/11/23 100.000 10.250 PT Indo Premier Secs/Trimegah Securindo Lestari PT Ord/Common Shs. Dart Mining NL A$2.44 — 0.200 — Veritas Secs Limited Ord/Common Shs. Pursuit Minerals A$1.42 — 0.009 — CPS Capital Group Ord/Common Shs. Nex Metals Explorations A$4.27 — 0.059 — CP Shaanxi Coal & Chem Ind Grp C¥2,000 09/08/21 100.000 2.050 China Guangfa Bank/China Everbright Bank Unsecured Bond Yang Quan Coal Industry (Grp) C¥2,000 13/11/23 100.000 N/A Zhongtai Secs Co Ord/Common Shs. TNG A$12.49 — 0.100 Petrochemicals; Petroleum Refining Unsecured Bond Sinochem C¥4,000 05/11/22 100.000 3.950 Ping An/CSC Financial/China Int/CITIC/BOC Unsecured Bond Sinochem C¥2,000 05/11/23 100.000 N/A Ping An/CSC Financial/China Int/CITIC/BOC Ord/Common Shs. Warrego Energy A$4 — 0.210 — — Unsecured Bond Shaanxi Yanchang Petro (Grp) C¥1,500 13/11/23 100.000 4.250 Guotong/Ping An/China Int/CSC Financial/Huatai United/ — Guotai Junan/Haitong/CITIC Unsecured Bond Shaanxi Yanchang Petro (Grp) C¥1,500 13/11/22 100.000 3.850 Guotong/Ping An/China Int/CSC Financial/Huatai United/ Guotai Junan/Haitong/CITIC Islamic Finance Dialog Group RM500 Perpet. 100.000 4.150 AmInvestment Bank CP Sinochem C¥2,000 31/12/20 100.000 N/A China Guangfa Bank Telecommunications CP China United Network Commun C¥2,000 04/02/21 100.000 2.170 China Everbright Bank/Agricultural Bank of China CP China Telecom C¥3,000 11/12/20 100.000 1.200 Shanghai Pudong Development RevCred/Term Ln HKBN HK$5,500 11/11/25 100.000 Hong Kong IBOR China Constr (Asia)/Credit Agricole CIB/JPM Co +150.000 bp Source: Refinitiv

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04 Asia Pacific p25-.indd 27 17/11/2020 18:49:47 TASMANIA SUPPORTS GREEN Farm project in southern New South Wales The level of hydrogen production will HYDROGEN STUDIES due to Covid-19. depend on what offtake agreements are Akuo has informed the NSW planning reached. Kallis told PFI that the next two The Tasmanian government has announced department and in a notice to the local to three years will be focused on technical A$2.6m (US$1.9m) in grant funding for community said: “The pandemic has studies, community engagement, and supporting feasibility studies on three PLACEDûEXTREMEûlNANCIALûPRESSURESûONû OFFTAKEûNEGOTIATIONS ûBEFOREûTHEûlNANCINGû large-scale renewable hydrogen projects. international organisations, causing #)0ûWILLûBEûLEADINGûONûRAISINGûlNANCING The funding comes from the A$50m increased uncertainty for all businesses. On hydrogen pricing, Tallis explained Tasmanian Renewable Hydrogen Industry Akuo Energy is headquartered in France, that the targets spoke of in the Australian Development Funding Program, announced where the pandemic has been particularly market are to produce hydrogen at A$2 per in May. severe and as a result impacted global kilo at the production point, or another 4HEûlRSTûPROJECTûISû!USTRALIANûUTILITYû operations.” target is to deliver hydrogen to Japan at ORIGIN ENERGY‘s green hydrogen and Granite Hills Wind Farm’s proposed 53ûPERûKILOû(EûSAIDû(2!ûISûCONlDENTûTOû ammonia production facility at the Bell Bay capacity is 132MW, spread across 23 be competitive against those. Advanced Manufacturing Zone. It would TURBINESû)TûWASûDUEûTOûBEûAûSTATEûSIGNIlCANTû have export scale production capacity, at development, thus requiring the developer TRIANGLE AND PILOT JOIN IN SECOND OWP 420,000 tonnes per year of green ammonia to prepare an environmental impact and 500MW electrical load. statement, and it had also been referred to TRIANGLE ENERGY has agreed to take a 20% The second project is new company ABEL the federal government for assessment. share in the new Cliff Head Wind and Solar ENERGY@SûmAGSHIPûEXPORT SCALEû-7ûGREENû Project JV with PILOT ENERGY, to together hydrogen and methanol project, also at CIP JOINS WA MURCHISON assess the feasibility of Pilot’s planned the same Bell Bay industrial complex. It RENEWABLES HUB large-scale 1.1GW offshore and onshore would use 38 tonnes per day of hydrogen wind and solar scheme around the Cliff to produce methanol and make 6tpd of COPENHAGEN INFRASTRUCTURE PARTNERS (CIP) (EADûOILûlELDû4HEûRENEWABLESûASSETSûWOULDû hydrogen available for sale. Carbon dioxide has agreed to become the equity funding utilise existing oil and gas infrastructure. for the methanol production process is to partner with project proponent HYDROGEN Pilot will carry Triangle’s costs for the be derived from local wood waste, or from RENEWABLES AUSTRALIA (HRA) for the up to 5GW feasibility study. Pilot started the feasibility direct capture from the atmosphere. Murchison Renewable Hydrogen Project study in September and announced it The third is Australian iron ore miner in the mid-west of Western Australia. The would be seeking strategic co-investors. and pellet producer GRANGE RESOURCES‘ owners of the project SPV HRA started an The study will consider the viability of 90MW–100MW renewable hydrogen international roadshow in Europe to seek supplying energy for hydrogen production project to use hydrogen instead of natural a strategic equity partner in December. domestically or abroad. The renewables gas to provide the industrial heating at its However, they have ultimately drawn on an assets would connect with Western own Port Latta pelletising facility. existing relationship with CIP that started Power’s South West Integrated System for Outside of the A$2.6m in grants, Fortescue three years ago for another Australian electricity transmission. has also unveiled plan to build a 250MW, project. The offshore component is Australia’s 250,000 tpa green ammonia production The expected project cost would be in second proposed offshore wind farm, after facility at the Bell Bay industrial complex. excess of A$10bn (US$7.3bn), though it the 2.2GW Star of the South Wind Farm in 4HEû4ASMANIAû/FlCEûOFûTHEû#OORDINATORû is expected to be staged. Fund manager South Australia in the development stage. General will cooperate with Fortescue. CIP has around €12bn (US$14.2bn), under Triangle has agreed to buy a 78.75% There were 23 submissions in August to management. interest in offshore Perth Basin exploration THEûPROGRAMMESûlRSTûROUNDûTENDER ûWHICHû The Murchison project is an export- permit WA-481-P from Pilot Energy. Pilot has now closed. oriented green hydrogen development owns 60% and has signed a transaction Minister for State Growth Michael featuring up to 5GW of onshore wind and to buy out 40% partner Key Petroleum, Ferguson said the government will solar PV for power generation, electrolyser a condition of the deal with Triangle, be fast-tracking work on identifying technology and a desalination plant for which would take over operatorship. The hydrogen domestic offtake opportunities seawater. Key markets for the project WA-481-P permit’s area is adjacent to and in Tasmania, in areas such as transport, exports would be Japan and South Korea. CONTIGUOUSûWITHûTHEû#LIFFû(EADûOILûlELDû commercial applications and agricultural Advisers that have worked on the project offshore mid-west Western Australia, use. Metro Tasmania has been tasked with INCLUDEûTECHNICALûADVISERû730ûANDûLAWûlRMû where Triangle is already a producer under trialling electric and hydrogen buses within Finlaysons. another permit. the next two years. HRA signed a memorandum of Tasmania’s Lower House passed understanding in May with Australian Gas SOUTH AUSTRALIAN LNG IMPORT legislation earlier this month setting Infrastructure Group to run a feasibility study FACILITY ADVANCING a target to achieve renewable energy on technical and policy aspects of blending generation equivalent to 200% of its current hydrogen into the Dampier-Bunbury gas South Australian ports owner and energy needs by 2040. The government has transmission pipeline. Siemens has been operator FLINDERS PORTS has signed a SAIDûITûISûONûTRACKûTOûBEûûSELF SUFlCIENTû in discussions with HRA and is a potential project agreement with VENICE ENERGY, in renewable energy by 2022. provider of the electrolyser technology. the developer of the A$200m (US$145m) HRA’s owner-founders are Terry Kallis Outer Harbor LNG import facility in Port AKUO DROPS WIND PROJECT and Peter Sgardelis. Both are leading Adelaide. Flinders Ports is the operator OVER COVID-19 DEVELOPMENTûOFû!USTRALIASûlRSTûOFFSHOREû of Port of Adelaide. The companies wind farm project, the 2.2GW Star of the have agreed a concept design for two French global renewables developer AKUO South. CIP is also a partner with Kallis and operating berths and associated onshore ENERGY has dropped the Granite Hills Wind Sgardelis for the offshore wind. facilities.

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The facility is designed for the import Jemena plans to progressively increase acquisition of northern Australia of 80 petajoules per year of LNG, with a its Northern Gas Pipeline capacity from and Timor-Leste assets in May from MOOREDûmOATINGûSTORAGEûANDûREGASIlCATIONû 90 terajoules of gas per day to 1,000TJ/d, ConocoPhillips. unit. Venice Energy is targeting operations through compression and looping. From 2ElNITIVû,0#ûREPORTEDûINû/CTOBERûTHATû starting in late 2022. 2025, Jemena expects the NGP’s capacity ûLENDERSûJOINEDûTHISûRElNANCINGûINû Venice said earlier this year it was will reach 200TJ/d. Jemena plans to invest syndication. ANZ, CBA and MUFG were AIMINGûFORûAûlNALûINVESTMENTûDECISIONûBYû about A$5bn (US$3.64bn) increasing NGP’s mandated lead arrangers and bookrunners February 2021, but a spokesperson has capacity and extending it to connect the for the unsecured, dual-tranche loan that told PFI the target is now Q2 2021. Venice Beetaloo Basin in western Queensland to matures on January 30 2026. The loan, Energy lodged a development application the Wallumbilla Gas Hub in Queensland. split between a term loan Tranche A and with the State Commission Assessment The extended NGP would link up to a revolving credit Tranche B, offers an Panel at the end of October and expects Jemena’s proposed Galilee Gas Pipeline, interest margin of 200bp over Libor. the outcome in early 2021. The capital- a 585km line from the Galilee Basin to Lenders that joined were: China raising process will follow that approval. Wallumbilla Gas Hub. The 622km NGP, Everbright Bank, DBS Bank, DNB, Venice Energy has yet to determine the from Tennant Creek in NT to Mt Isa in Intesa Sanpaolo, ING, NAB, State Bank debt to equity ratio. Queensland, started commercial operations of India, SMBC, Bank of China, Credit “We are intending to implement a de- in January 2019. Suisse, Goldman Sachs Mortgage Co, aggregated delivery model, to ensure we Jemena managing director Frank Tudor United Overseas Bank, Westpac, Bank of maximise opportunities for local suppliers,” said: “While our MoU with Tamboran Communications, First Commercial Bank a Venice spokesperson said. gives us exclusivity, it also highlights the and RBC. Ashurst is legal adviser to Venice. importance of collaboration and we plan $ESIGNûANDûCONSULTANCYûlRMû!RCADISûHASû to make our infrastructure available to all AGIF PRICES BONDS been working with Venice Energy on the industry participants.” Additionally, Jemena project since 2018. Other advisers are is considering construction of a pipeline AGI FINANCE (AGIF) has priced A$750m ENVIRONMENTALûADVISORYûlRMû*"3'ûANDûû north from Beetaloo into Darwin once new (US$546m) of senior secured bonds in two Films, which offers 3D modelling. LNG trains or local demand centres have TRANCHES ûWRITESû)&2û!Nû!MûlVE YEARû been sanctioned, which Jemena believes mOATING RATEûTRANCHEûWASûPRICEDûATûPARûANDû JEMENA PARTNERS FOR NORTHERN could occur in the late 2020s. pays three-month BBSW plus 100bp, inside GAS PIPELINE EXPANSION guidance of 115bp area. An A$425m eight- SANTOS CLOSES SYNDICATED LOAN YEARûlXED RATEûTRANCHEûWASûPRICEDûATûPARûTOû Gas infrastructure company JEMENA has yield 1.8152%, equivalent to semi-quarterly signed a memorandum of understanding SANTOS has closed a US$750m syndicated coupon-matched asset swaps plus 120bp, with TAMBORAN RESOURCES, an Australian bank loan with a tenor of 5.25 years, inside 135bp area guidance. upstream company with a 25% working raised from new and existing lenders. The bonds have expected ratings of A3/ interest in a prospective project in the Santos said the loan was around three BBB+ (Moody’s/S&P). Goldman Sachs and Beetaloo/McArthur Basin in the Northern TIMESûSUBSCRIBEDû0ROCEEDSûWILLûRElNANCEû Westpac were lead managers. Australian Territory. a US$750m facility raised for Santos’ Gas Infrastructure Group (AGIG) is one of Woodside seeks Pluto LNG 2 infra investors „ AUSTRALIA LNG

WOODSIDE ENERGY is considering selling around had stopped talks due to the souring in Scarborough gas project during the second half 50% of its planned Pluto LNG Train 2 in Western diplomatic relations between China and of 2021. The aim is for first cargo from the two Australia, part of its stake in the Sangomar oil Australia this year. projects in 2026. field in Senegal, and some of the company’s Coleman said the planned 2021 sales will In March, Woodside had pushed back the infrastructure assets in Australia to investors, in help Woodside avoid having to sell new shares timeline and announced plans to add 20% order to raise funds for developing new projects. to fund its projects. upstream capacity compared with initial plans Woodside has already started to engage with The U$4.2bn Sangomar phase one project’s at Scarborough “at very modest capex with investors. target for first oil is 2023. Woodside owns virtually no cost impact on the downstream”. Woodside will target to reach equity holdings 31.89% and is due to buy a further 36.44% from Then in November, Western Australia and the of around 50% or less for Pluto train 2 and Cairn Energy during this quarter. The target is federal government’s Offshore Petroleum Joint around 40% for Sangomar. The sales are due to to reduce ownership to around 40% in 2021 to Authority offered two production licences for take place next year. reduce the capital spend by around A$1.2bn. the A$11bn-plus (US$8bn) Scarborough project, Last year, Woodside sounded out major oil Woodside owns 100% of Pluto LNG Train 2 off the Burrup Peninsula, which Woodside will companies to buy part of its 75% stake in the and 73.5% of Scarborough, alongside minority accept. The production licences account for Scarborough gas field, which will supply Pluto partner BHP with 26.5%. Selling down its share 11.1trn cubic feet of contingent resource dry LNG. However, due to the oil and gas price in Pluto LNG Train would reduce Woodside’s gas volume. Next, the partners will submit drop this year, that no longer makes sense, capital spend by around A$3bn. the pipeline licence application and field chief executive Peter Coleman said during an Woodside said it is on track to reach final development plan for Scarborough to the joint investor presentation. He told Reuters that investment decisions (FIDs) for the Pluto LNG authority. potential Chinese buyers including PetroChina 5m-tonnes-per-year second train and the Alex Dockreay

Project Finance International November 18 2020 29

04 Asia Pacific p25-.indd 29 17/11/2020 18:49:48 the largest gas infrastructure businesses in The debt, secured against the Abra lead- indicated it intends to fully participate, for Australia and is owned by CK Group. AGIF silver project in Western Australia, is split approximately A$8.66m. ISûTHEûlNANCINGûVEHICLEûFORû!USTRALIANû'ASû into a US$100m 5.75-year term loan and The proceeds will fund Iron Road’s share Networks, Dampier Bunbury Pipeline and a U$10m cost overrun facility. The term of Cape Hardy Stage I port development Multinet Gas Networks. loan pays 8% on drawn amounts, with a 2% costs, maintain the Central Eyre Iron ,ASTûWEEK û!')'ûCOMPLETEDûAûlNANCINGû commitment fee on undrawn amounts and Project (CEIP) mining lease, repay debt and amendment under which it will consolidate a 2.5% arrangement fee. The cost overrun be used for corporate expenses and costs of the three operating companies into a LOANûHASûAûlXEDûINTERESTûRATEûOFûûPERû the offer. COMMONûlNANCINGûVEHICLEû!')û&INANCEû year on drawn amounts. Abra Mining Iron Road is co-sponsor of the A$250m and all three operating companies will act entered into a royalty deed with Taurus for Cape Hardy port project in South as co-borrowers with cross-guarantees on a 1.125% net smelter return. Taurus and Australia’s Eyre Peninsula alongside existing debt facilities. While the maturities Galena agreed the terms of the debt in July. Macquarie Capital and Eyre Peninsula Co- of existing loans remain unchanged, Abra Mining’s owners are Galena operative Bulk Handling. Financial close is THEûCALCULATIONSûONûAPPLICABLEûlNANCIALû Mining and Toho Zinc Co. Toho, a Japanese targeted for Q3 2021. Iron Road is seeking covenants and guarantees are affected. producer of lead, committed to investing a strategic partner for the US$1.74bn CEIP, US$90m equity in Abra Mining in tranches. a 12m-tonne iron concentrate per year STANMORE COAL RAISES SECURED LOAN Galena retains 85.31% project ownership. development that will be able to use the Toho signed an offtake agreement for port for exports. STANMORE COAL has signed for a US$40m 40% of Abra’s production for 10 years. secured loan maturing June 30 2022 from The mine has a total estimated mineral SUBURBAN RAIL LOOP EARLY Golden Energy and Resources (GEAR). It has resource of 41.1m tonnes. Estimated capex WORKS FUNDED an upfront fee of 2%, plus an interest rate is A$170m (US$123m). To-date, 12% of the on drawn funds of 8% per year and 2% on mine’s development is complete at a cost The Government of Victoria has committed undrawn funds. The borrower is Stanmore of A$23m. A$2.2bn (US$1.61bn) of funding for the IP Coal. The lender GEAR controls Golden initial and early works on stage one of the Investments, which is a shareholder of WA ENVIRONMENT AUTHORITY BACKS Suburban Rail Loop project. These works Stanmore Coal. Non-binding agreements SANDS EXPANSION are to start in 2022. The funding will for the loan were signed in June. purchase land, upgrade roads and power The loan has guarantees from Stanmore The Environmental Protection Authority supply, build new sub-stations, relocate Coal and certain Stanmore subsidiaries. It is of Western Australia has recommended to and protect gas, water and other utilities, secured against all the borrower’s and the the state’s minister for environment the and deliver other vital works to prepare for guarantors’ assets, Stanmore Coal’s shares approval of TRONOX‘s A$220m (US$160m) major construction. in Stanmore Bowen Coal and mortgages Cooljarloo West titanium minerals The government will launch the call for over land and mining leases from Stanmore expansion project. The appeals period expressions of interest to start the tender IP Coal and Stanmore IP South. Stanmore is will close on November 25. The proposed for the early works package before the producing at its Isaac Plains East Mine and dredge mining project is to the west of, and end of 2020. The investment case for the has the Isaac Downs coal mine project still serves as a major expansion to, Tronox’s Suburban Rail Loop is due to be complete in approvals, with an estimated capacity to Cooljarloo mineral sands dredge mine. The by early 2021, providing further details on produce 35m tonnes of coal over a 16-year reserve at the Cooljarloo West dredge mine the delivery model. There is potential for life. is estimated at 2.6m tonnes of in-place PRIVATEûlNANCEûTOûBEûINCLUDED Stanmore raised the loan from GEAR after heavy minerals. The Suburban Rail Loop, Victoria’s biggest Taurus Funds Management gave notice in 4RONOXûlRSTûPROPOSEDûTHEûEXPANSIONû rail project in history, is a 90km rail loop both June that it would cancel a US$12m bonding project in May 2013 to the EPA WA, but above and below ground in the Melbourne facility and US$28m undrawn working then amended its proposal several times. metropolitan area, connecting to every major capital facility on September 16. The heavy mineral concentrate produced rail line and with three transport super-hubs Stanmore Coal last week signed a at Cooljarloo is transported south by to connect regional services. The Victorian memorandum of understanding with gas road to Tronox’s Chandala processing government established the Suburban Rail exploration company Blue Energy to develop plant for separation and processing. The Loop Authority in September 2019 to lead its a plan to capture, process and market waste mine and processing plant have been delivery. mine gas from Isaac Plains in the North operating for around 30 years. Tronox is There are four sections to be built over Bowen Basin. Blue has exploration tenements a US-headquartered mining and chemical decades costing tens of billions of dollars: overlapping with Stanmore’s project. The gas company. South-East, North-East, North-West and South- would be drained before mining in some of West. Stage one is the South-East section, Stanmore’s mining lease blocks, for sale to IRON ROAD STARTS CAPITAL-RAISING from Cheltenham to Box Hill. Advisers include Blue’s domestic gas customers. the Aurecon/Jacobs/Mott MacDonald Joint Mining company IRON ROAD, which has Venture (AJM) as technical adviser and KPMG ABRA MINE PROJECT FINANCE a multi-commodity deep sea port in as commercial adviser for the project. LOAN SIGNED development, has launched an up to A$13.9m (US$10m) capital-raising. Iron CANBERRA COURTS PPP IN REFINANCING ABRA MINING, owned by ASX-listed sponsor Road opened the deal on November 17, Galena Mining, has signed a US$110m offering 99m new shares at A$0.14 to The sponsors of the Australian Capital PROJECTûlNANCINGûFROMû4AURUSû-ININGû eligible shareholders on a 1-for-7 basis. The 4ERRITORYû,AWû#OURTSû000ûAREûRElNANCINGû Finance Fund No 2, a vehicle of metals offer closes on December 11. Iron Road’s the project debt, PFI has learned. The and mining specialist Taurus Funds largest shareholder, Sentient Fund IV, sponsor consortium is JURIS PARTNERSHIP. Management. managed by Sentient Equity Partners, has Macquarie Capital and Aberdeen Standard

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Investments hold the equity currently. Laing O’Rourke was an original sponsor with Macquarie. WestConnex in refinancing The A$172m (US$125m) of debt raised in December 2015 had a 3.5-year tenor. SMBC and Macquarie Corporate as NSW plans exit Holdings underwrote that senior debt and another unnamed lender joined in „ AUSTRALIA Transport syndication. According to PFI data, SMBC and AustralianSuper, with QBE Insurance, The SYDNEY TRANSPORT PARTNERS consortium is in WestConnex under a concession to 2060. RElNANCEDûTHEûPROJECTûWITHûAûNEWû!Mû the market with a refinancing of the WestConnex The 33km WestConnex is split into three loan in August 2019. toll road stage one project debt. UBS is running projects: New M4, the New M5 tunnels and the The 25-year availability-based design, build, the process, PFI has learned. M4-M5 Link Rozelle Interchange. The new M4 lNANCEûANDûMAINTAINû000ûCONCESSION ûSIGNEDû In October 2018, banks provided A$4bn twin tunnels, stage one, officially opened in July INû$ECEMBERû ûWASûTHEûlRSTû000ûTHEû (US$2.9bn) of non-recourse senior debt for the 2019. The M5 tunnels then opened in July 2020. territory government awarded. Completion of New M4 section, or stage one, of WestConnex. The last stage is due to open in 2023. stage one occurred in October 2018, and stage It was split evenly into A$2bn of three-year and The Sydney Transport Partners consortium, two was completed after delays in January A$2bn of five-year debt. IFR reported a 140bp which owns 51% of SMC, features Transurban 2020. The capital expenditure estimate at margin on the A$4bn loan. (50%), AustralianSuper (20.5%), Canada lNANCIALûCLOSEûWASû!M The lenders included Agricultural Bank of Pension Plan Investment Board (20.5%) and The project involved constructing a China, ANZ, Bank of China, and CBA as MLAs, Tawreed Investments, owned by Abu Dhabi new Supreme Court building with eight and other participating banks were Credit Investment Authority, (9%). courtrooms, and connecting it with the Agricole, Canadian Imperial Bank of Commerce, The consortium might be soon able to seek refurbished Magistrates Court, while adding Export Development Canada, Industrial & to raise its shareholding in Sydney Motorway various additional facilities including a Commercial Bank of China, ING Australia, Hana Corporation to 100%, using pre-emption rights. 110kV solar array. The concession expires Bank, Mizuho Bank, Bank of Nova Scotia, Societe The New South Wales government confirmed in in August 2043. Generale, Westpac, NAB and SMBC. early November that, following a strategic review As well as refinancing stage one’s debt, process, it intends to sell its 49%. DIF JOINS INLAND RAIL PPP TEAM that 2018 loan repaid a A$1.1bn acquisition In March, NSW started a scoping study to facility that part-funded the Transurban-led consider selling its 49% shareholding in the Dutch fund manager DIF has recently consortium’s A$9.26bn upfront acquisition WestConnex concessionaire, with RBC Capital joined the CAPSTONE consortium, alongside payment for a 51% equity stake in the Markets and Citigroup advising. The government CIMIC Group companies and Ghella, in the WestConnex operator Sydney Motorway would put the proceeds into new infrastructure bidding on the Inland Rail Gowrie-Kagaru Corporation (SMC). The NSW government building. PPP in Queensland. PFI previously revealed retained 49%. SMC will operate all of the Alex Dockreay the departures of John Holland and Samsung from this team, and the addition of Ghella. Infrastructure Development Co, the Green Growth Equity Fund managed The three consortia invited to the second OPEC Fund for International Development by Eversource Capital, and the Indian round of procurement have had access to and the Islamic Corp for the Development government-backed National Investment the request for proposals documents since of the Private Sector were the lenders on and Infrastructure Fund (NIIF). Ayana November 2. The three teams that received THEûlNANCINGûTOû,AKDHANAVIûSUBSIDIARYû&ENIû has 800MW of assets across the states the RFP are the G2KONNECT consortium Lanka Power, according to a press release of Andhra Pradesh and Rajasthan. CDC of Acciona, Ferrovial, Cintra, advised by from legal adviser Ashurst on November 13. launched Ayana in 2018 to develop utility- Macquarie Capital; REGIONERATE, a consortium 4HEûLIMITEDûRECOURSEûlNANCINGûWILLûBEû scale wind and solar in India. of Plenary, Clough, GS Engineering and used for the development, construction, Construction, Webuild (previously Salini operation and maintenance of a 114MW CCI APPROVES ORIX GREENKO Impregilo) and Lend Lease Services, advised heavy fuel oil power project at Feni in INVESTMENT by Plenary; and the Capstone consortium of Chattogram city. Lakdhanavi is the largest 0ACIlCû0ARTNERSHIPS û5', û#0"û#ONTRACTORS û independent power producer in Sri Lanka. The Competition Commission of India has DIF and Ghella advised by MUFG Bank. approved Japan-based Orix Corporation’s Australian Rail Track Corporation is due investment in at least a 20% stake in to award the PPP concession in 2022. The GREENKO ENERGY HOLDINGS. Orix will invest at 130km PPP section is understood to have a INDIA least US$980m to acquire the stake and project cost of A$3.55bn (US$2.58bn). will hand over its 873MW operational wind RENEW POWER SELLS WIND FARMS portfolio to Greenko as part of the deal. Greenko founding shareholders Anil RENEW POWER is reported to have sold a 300MW Kumar Chalamalasetty and Mahesh Kolli BANGLADESH portfolio of wind farms in Karnataka to AYANA are selling around 10.7% and the remainder RENEWABLE POWEr for Rs16bn (US$216m). The will be from primary issuance of shares. IPP FINANCED wind farms are in the districts of Raichur, The deal was signed in September and is Bijapur, Belgaum and Bellary. due to close this year. Power plant developer LAKDHANAVI has raised The shareholders of Karnataka-based IPP The deal values Greenko at US$5.75bn. US$64m from three lenders for its third !YANAûAREûTHEû5+SûDEVELOPMENTûlNANCEû Greenko’s operational capacity will swell power plant in Bangladesh. institution CDC Group, the UK-India joint to 6.5GW of Indian wind, solar and hydro

Project Finance International November 18 2020 31

04 Asia Pacific p25-.indd 31 17/11/2020 18:49:48 after completion. Singaporean sovereign acrylics value chain complex. ADNOC US$0.0519 for Akuo; US$0.063936 and wealth fund GIC is Greenko’s majority would be propane feedstock supplier. US$0.061758 for Marubeni; US$0.0798 and shareholder, and its shareholding will drop ADNOC and Borealis, through their joint US$0.0741 for Vena Energy; and US$0.028 to 57% from 65.8% because of dilution. Abu venture Borouge, were to join as partners and US$0.0894 for Engie. Dhabi Investment Authority owns 16.5% of to own the polypropylene complex. To &ORûTHEû3INGKARAKû-7ûmOATINGûSOLARû Greenko. power the chemical complex, the partners project in West Sumatra, the respective were considering co-investment in a wind bids are US$0.036826 and US$0.037302 KKR REFINANCES MAHARASHTRA SOLAR and solar park. for Acwa; US$0.03952 and US$0.03842 for Masdar; US$0.0617 and US$0.0595 for KKR’s Indian renewables platform Akuo; US$0.069424 and US$0.067918 for VIRESCENT INFRASTRUCTURE is raising a one- Marubeni; US$0.0919 and US$0.0885 for year Rs6.14bn (US83m) bridge loan to INDONESIA Vena Energy. RElNANCEûAûRECENTLYûACQUIREDû-7ûSOLARû As for the fourth scheme, which is ASSETûINû-AHARASHTRA ûREPORTSû2ElNITIVû FC ON JAWA 9 & 10 CFPP LOAN LOCATEDûINû+ALIMANTAN ûlNANCIALûBIDSûAREû LPC. Standard Chartered is sole MLA, understood only due to be submitted later bookrunner and underwriter, and BNP INDO RAYA TENAGA, the project company that this month. Paribas has joined the deal. The interest will operate the Jawa 9 & 10 units under The winning bidder in each project will rate on the loan is about 815bp above the the Suralaya independent power project be granted a 49% stake in the project and marginal cost of funds-based lending rate. )00 ûHASûREACHEDûlNANCIALûCLOSEûONûITSûDEBT will partner with PLN subsidiary Indonesia The project SPV is Solar Edge Power & The company has achieved all conditions Power, which will hold 51%. KPMG is IP’s Energy for the asset, which is split across precedent (CPs) and has already made its commercial adviser while Nah’R Murdono two locations in Beed district and Jalgaon lRSTûDISBURSEMENTûFROMûTHEû53BNû ,AWû/FlCEûANDû5-"2! 3TRATEGICû,EGALû district. Solar Energy Corporation of India  YEARûFACILITYûRAISEDûINû*ULYûTOûlNANCEû Solutions are its legal advisers. is the offtaker under a 25-year PPA that THEûDEVELOPMENTûOFûAû'7ûCOAL lREDûPLANTû started in March 2018 at a tariff of Rs4.43 that will use ultra-supercritical technology. PLN TO SWAP DIESEL FOR SOLAR per kWh. The sponsors are PLN subsidiary KKR’s new platform, Virescent )NDONESIAû0OWERû û"ARITOû0ACIlCû PLN is looking to replace some 200 diesel- Infrastructure, acquired the asset in subsidiary Barito Wahana Lestari (34%) and lREDûPOWERûPLANTSûWITHûSOLARûPOWERûBYû LATEû/CTOBERûWITHINûAûPORTFOLIOûOFûlVEû Korea Electric Power (Kepco, 15%). 2022, said PLN mega projects director operational solar assets with 317MW The loan facility was provided by Ikhsan Asaad. of capacity from Shapoorji Pallonji and lNANCIALûADVISERû$"3û+OREAû%XPORTû)MPORTû The move aims to increase use of Company. PFI records the name of the Bank, Korea Development Bank and Hana renewable energy and reduce power asset in Maharashtra as Muktinagar & Bank of South Korea; CIMB and Maybank of production costs, the director told the media. Parli. The other four assets are in Tamil Malaysia; Bank of China; and Bank Mandiri, The solar farms will have a capacity of Nadu. Virescent paid Rs15.54bn for the Bank Negara Indonesia and Exim Bank of 225MW and cost about Rp100trn (US$6.83bn). portfolio. Virescent’s investments are being Indonesia. “That is huge money,” the director was mainly facilitated by KKR’s Asia-focused DLA Piper was legal adviser to the quoted saying to the local media. INFRASTRUCTUREûFUNDû++2û!SIAû0ACIlCû sponsors while Milbank Tweed was He added that PLN plans to conduct Infrastructure Investors. adviser to the lenders. Doosan Heavy bidding for the conversion in December Industries & Construction is the contractor this year with a 2022 target for MEGA PETCHEM COMPLEX PUT ON HOLD for engineering, procurement and commencement of operation. construction. The conversion is part of PLN’s de- BASF, ADANI, BOREALIS and ABU DHABI NATIONAL dieselisation programme that is aimed to OIL COMPANY have put plans on hold for DETAILS OUT ON SOLAR SCHEME BIDS boost clean energy and lower production a US$4bn renewable energy-powered COSTSû)TûALSOûHASûPLANSûTOûREPLACEûDIESEL lREDû chemical complex on an Adani-owned Financial bids for three of the four solar WITHû,.' lREDûPLANTS site in Mundra, Gujarat. At the same energy projects under the Hijaunesia The state utility has some 2,025MW time as announcing completion of a joint Proyek programme of PLN have been of diesel plants that are targeted to be feasibility study, the partners said that opened. replaced with renewable energy. Phase two global economic uncertainties caused by For the Lampung 100MW solar and will involve 500MW and phase three will the Covid-19 pandemic have led them to storage project in Lampung province, the target the remaining 1,300MW. review the timing for the undertaking, respective base equity base technical (BEBT) despite “attempts to optimise the scope and alternate equity base technical (AEBT) BUMI GETS 10 MORE YEARS ANDûCONlGURATIONvû4HEûPARTNERSûWILLû bids per kilowatt hour are as follows: periodically explore market conditions and US$0.09075 and US$0.09173 for Acwa Bumi Resources, Indonesia’s top coal miner discuss the opportunity. Power; US$0.10194 and US$0.09945 for by output, has been granted a 10-year The project involved developing a world- Masdar; US$0.1528749 and US$0.1528202 permit extension to a mining concession in scale propane dehydrogenation plant, a for EDF; US$0.1605 and US$0.2195 for South Kalimantan by the Ministry of Energy propylene production plant and an acrylics Akuo; and US$0.1683 and US$1610 for & Mineral Resources (MEMR). value chain complex. The partners agreed Engie. Its subsidiary ARUTMIN INDONESIA has to start the feasibility study in October &ORûTHEû3AGULINGû-7ûmOATINGûSOLARû secured the extension to the permit, or 2019. project in West Java, the respective coal contract of works, which expired on The original sponsors of the project BEBT and AEBT bids are US$0.03748 and November 1. It now has until November were BASF and Adani, which would own US$0.03638 for Masdar; US$0.038885 and 1 2030 to continue to conduct its mining the propane dehydrogenation plant and US$0.039095 for ACWA; US$0.0542 and activities.

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Broadband project raises debt „ INDONESIA Telecoms

NET1 INDONESIA, a subsidiary of Net1 International Indonesia has 15MHz of bandwidth on the LTE- spectrum. The spectrum is described as being Holdings, has secured US$75.5m of debt enabled 450MHz band. more efficient in broadcasting signals over long financing for its US$96m broadband expansion This partnership with Gemcorp, OP Finnfund distances than the higher frequency spectrums, project in Indonesia, which is being developed Global Impact Fund 1 and Net1 marks Infraco according to a statement. through special purpose vehicle Mobile Internet Asia’s first project finance initiative in the Only 3% of Indonesia’s population of 261m Holdings (MIH). telecommunications sector, “adding diversity to has access to fixed broadband connectivity and The funds, in the form of loans with our infrastructure portfolio”, said Infraco Asia’s Net1 aims to provide that connectivity to more maturities under 10 years, were provided by CEO Allard Nooy. than 300,000 households over the next five a club of investors, not the usual commercial Gemcorp, an existing partner, is a global years. banks. They are Gem Capital (US$48m), InfraCo investment organisation specialised in emerging The installation will be in phases, and an Asia (US$15m), and OP Finnfund Global Impact markets whose focus is on sovereign and private equipment supplier is selected for each phase. Fund 1 (US$12.5m). Legal advisers are Norton credit lending. Infraco Asia, headquartered The supplier for the first phase is still to be Rose for the lenders and Shaw Smith for the in Singapore, is a commercially managed appointed. borrower. infrastructure investment company of the Private The company plans to install antennae for the “We are delighted with the additional support Infrastructure Development Group (PIDG). broadband connection in 1,000 locations with from our current lenders and shareholders, as OP Finnfund is Finland’s first global emerging one antennae per location across the country. well as from two new and important financing markets impact fund. It will focus on rural areas in provinces such as partners,” said JD Fouchard, chairman of Net1 The facility will support MIH’s investment West Kalimantan, Aceh, North Sumatra and International, which has investments in 4G LTE in Net1 Indonesia, which is the only operator South Sumatra. operations in the Philippines and Indonesia. Net1 in Indonesia licensed to operate the 450MHz Minerva Lau

!RUTMINûISûUNDERSTOODûTOûBEûTHEûlRSTû execute the process for all listed projects,” Prefecture, and Noshiro City, which were of seven old mining giants to “receive said public works and housing ministry selected by the government as promising the legal certainty” following the recent INFRASTRUCTUREûlNANCINGûDIRECTORûGENERALû candidate sites for promotion areas. passing of a revised Coal and Mineral Eko Djoeli Heripoerwanto. Mining Law. “We are directing the private sector to MARUBENI TO DEVELOP The revised law guarantees continued help build infrastructure that could support TAHARA BIOMASS operations for at least another 20 years economic growth. Meanwhile, the state (two 10-year contracts) for the mining and regional budgets will be allocated for A unit of MARUBENI is leading a consortium giants whose mining contracts will expire basic service infrastructure procurement,” that will develop a 75MW biomass power between 2020 and 2025. However, they are Eko told local media. The seven projects are plant in Tahara City, Aichi Prefecture, Japan. obligated to explore new reserves every among 158 infrastructure projects under The project, called Aichi Tahara Biomass year, compared with “being allowed”. The the PPP scheme, estimated to be worth Power Plant, is the SPV set up by Marubeni revised law also allows miners to explore around Rp1.31 quadrillion, according to Clean Power (37.5%), together with JAG Indonesian seas, whereas the previous law The Jakarta Post. International Energy (37.5%) and Osaka Gas limited offshore activity to within 12km of (25%). The power generated will be sold to the coast. Chubu Electric Power Power based on the The energy ministry is understood to be feed-in tariff (FiT). working on three derivative government JAPAN Construction is targeted to begin in regulations related to commercialisation, September 2021 and commercial operation spatial planning and land reclamation in JRE PLANS 1GW HOKKAIDO in aimed to commence in October 2024. THEûMININGûINDUSTRYû/FlCIALSûHAVEûUNTILû OFFSHORE WIND Marubeni Clean Power, formerly called June 10 next year to complete the task. Marubeni Thermal Power Co, develops and JAPAN RENEWABLE ENERGY (JRE) plans to develop operates thermal power generation and SEVEN PPP PROJECTS PLANNED IN 2021 an as much as 1GW offshore wind power biomass power generation. It is operating a farm off the coast of Ishikari Bay in woody biomass power plant with an output Indonesia’s Ministry of Public Works & Hokkaido, the northern island of Japan. of 32MW in Tsuruga City, Fukui Prefecture, Housing is planning to launch the bidding The company stated it is planning to build in addition to natural gas combined cycle in early 2021 for seven projects worth AûLANDINGûOFûAûTYPEûTHATûlXESûTHEûBASEûOFûTHEû thermal power generation and coal biomass Rp76.37trn (US$5.4bn) under a public- wind turbine to the seabed. The area has not CO lRINGûTHERMALûPOWERûGENERATION private partnership framework. They been designated by the government as one of comprise six toll roads and bridges and one the potential “promotion sites” for offshore MHI TO ISSUE GREEN BONDS drinking water system in Purwakarta, West wind projects but it seems that a number of Java. power developers are looking at it as well. MITSUBISHI HEAVY INDUSTRIES (MHI) has released “In 2021, we will start the procurement In addition to the Ishikari bay facility, JRE is MOREûDETAILSûONûITSûPLANûFORûAûlVE YEARû process for six roads that span 208.7km preparing to develop offshore wind schemes green bond issue aimed to support its and a drinking water system project. off the coast of Enoshima, Saikai City in operations in renewable and clean energy If everything goes smoothly, we could Nagasaki Prefecture, Happo Town in Akita projects.

Project Finance International November 18 2020 33

04 Asia Pacific p25-.indd 33 17/11/2020 18:49:48 The lead managers are Mitsubishi UFJ Morgan Stanley Securities (green bond structuring agent), SMBC Nikko Securities, Offshore wind is key Mizuho Securities, Nomura Securities, Daiwa Securities, and BofA Securities. „ JAPAN Renewables MHI is looking to raise ¥25bn (US$240m). The issue date is November 24 2020 and Offshore wind is key to Japan’s goal to become earlier identified – off Noshiro in Akita prefecture the maturity date November 21 2025. The carbon-neutral by 2050. Huge opportunities in the north-west of the country’s main island; off proceeds will go into new or existing projects abound in the nascent Japanese offshore wind Yurihonjo, also in Akita; and off Choshi in Chiba related to renewable energy or clean energy energy industry. The country and its government prefecture. The Yurihonjo site is divided into north such as wind, hydrogen and geothermal are moving slowly but steadily into developing and south areas. There is massive interest in power systems. The notes have received an renewables to replace nuclear energy. There are participating in these bids – both from local and AA– rating from Japan Credit Rating Agency. huge opportunities, specifically in the offshore international power developers. wind sector, but there are challenges as well There are a lot of activities not just around SOLAR DEALS AWARDED IN SIXTH ROUND that will face developers and financiers alike. one auction but potentially five auctions, said These issues were discussed at the PFI virtual Hirofumi Taba, a partner at Linklaters Tokyo. Japan’s Ministry of Economy, Trade & Industry roundtable on Japan Offshore Market held on Taba, who has been involved in discussions with (METI) has awarded a combined total of November 10. METI and MLIT, said there have been three key 368.8MW of solar photovoltaic bids out of the Japan has the seventh longest shoreline in developments and concerns in the Japanese 526.5MW it has received in the sixth round of the world and is estimated to have 300GW of offshore wind energy market. One involves its solar energy tender held last week. capacity for offshore wind energy. Japan’s Ministry longerterm discussions and another is the round It was aiming to procure a total of of Economy, Trade & Industry (METI) and Ministry one auctions. The third development is the recent 750MW capacity and the ministry has of Land, Infrastructure, Transport and Tourism amendment to the Feed-in Tariff (FIT) Act. capped bids for feed-in tariffs at ¥12 per (MLITT) have already started the first round of Offshore wind is expected to play a major role kilowatt hour (kWh). bidding for offshore wind projects with the Goto in the government’s energy policy, especially It received bids ranging from a low of ¥10/ site, which offers up to 21MW of capacity. Bids are following the statement of Japan’s prime minister kWh to a high of ¥12/kWh, with the average due to be submitted by December 24. Yoshihide Suga. He has pledged to “radically rate at ¥11.48/kWh. The rates are lower than The next phase of round one is expected to change” Japan’s policy on coal-fired power THOSEûRECEIVEDûINûROUNDûlVE ûWHICHûRANGEDû be launched this month for sites that have been generation, abolishing coal and being carbon between ¥10.99 and ¥13 per kWh. METI selected a total of 254 bids out of 321 it has received. Successful bidders Akita; and off Choshi in Chiba prefecture. year power purchase agreement (PPA) with include Canadian Solar, Ciel Terre Japan, The Yurihonjo site is divided into north and Electric Power Generation Enterprise (EPGE). Eneos Corp, JAG International Energy, south areas. Clean Venture 21 Corp, Renewable Japan, Bidders can propose capacity and feed-in PROPOSALS IN FOR NEW YANGON CITY ACA Clean Energy, Promedia Corp, tariffs for the projects, but each site is Eneglobal Corp and Toda Power. expected to have a capacity of 300MW– Myanmar has received 16 expressions of 400MW. The four sites will all be based on interest in the New Yangon City project, RENEWABLE JAPAN TO REFI WITH A BOND lXEDûFOUNDATIONS ûUNLIKEûTHEû'OTOûmOATINGû which is part of China’s Belt & Road Initiative offshore wind scheme that is out to tender (BRI). It entails public works and infrastructure RENEWABLE JAPAN (RJ) plans to raise a ¥12.7bn ANDûHASûAûlXEDûFEED INûTARIFFûOFûcûPERû construction, such as a Yangon River bridge, 53M ûBONDûISSUEûTOûRElNANCEû kWh. Bids for the Goto scheme are due roads, resettlement, an industrial park, water existing debt for its solar power project in by December 24 and the winner will be treatment, sewerage, a power plant and Ichinoseki City, Iwate prefecture. Barclays announced six months later. commercial and residential land. Securities is the lead bank. The interest is said to have come from The note issue has received a preliminary Japan, Singapore, Italy, Spain and France. rating of BBB by Rating & Investment The development proposal was drawn up Information (R&I) based on the assessment MYANMAR by China Communications Construction Co of the probability that the principal and and a Swiss challenge will be conducted. interest will be paid fully at maturity. THILAWA GROUP APPOINTS LTP LA CCCC’s proposal will be made public to The bonds, which will be issued via RJ allow interested parties to compete. If the Renewable Energy Project Bond VIII, are The Thilawa consortium, comprising winning bidder is not CCCC, it will have targeted to be issued on January 29 2021. Japanese conglomerates MARUBENI, MITSUI & TOûREIMBURSEûTHEû#HINESEûlRMûFORûCOSTSû The maturity date is August 20 2040. CO, and SUMITOMO CORP and local partner EDEN incurred, according to reports. GROUP, has appointed Shearman & Sterling OFFSHORE WIND AUCTION THIS MONTH as legal adviser to the Thilawa LNG-to- power (LTP) project in Yangon. Japan’s Ministry of Economy, Trade & Industry The companies received the notice to NEW ZEALAND (METI) and Ministry of Land, Infrastructure, proceed from the country’s Ministry of Transport and Tourism (MLITT) are expected Electricity and Energy (MOEE) in July, MORRISON & CO POSTPONES PIP to launch the next phase of round one bidding receiving the exclusive development rights I FUND SALE for offshore wind projects this month. for the project, which involves building, The sites will be off Noshiro in Akita OWNINGûANDûOPERATINGûAû'7ûGAS lREDû New Zealand headquartered fund manager prefecture in the north-west of the power plant and an onshore LNG storage Morrison & Co has postponed the sale country’s main island; off Yurihonjo, also in ANDûREGASIlCATIONûFACILITYû)TûWILLûHAVEûAû of its 2009-vintage PUBLIC INFRASTRUCTURE

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neutral by 2050. It remains challenging to restart construction risk. Any delay will result in a shorter Yasuda, senior vice-president of structured commissioning new reactors and in the absence revenue period, as developers will have 30 finance department at DBJ. of further technical innovation, offshore wind is years of use of the seawater, based on the new For Daniel Mallo, managing director and head the alternative, said Taba. maritime law passed two years ago. There is a of natural resources and infrastructure, Asia- Other policies of decarbonisation include requirement to establish a fund for the fishery Pacific for Societe Generale, Japan should be a coal-fired phase-out in the domestic market, and community and local community. Details have land of opportunity for them. He described Japan tightening of requirements for supporting coal not been finalised and are said to be subject to as being seven times the size of Taiwan in terms in other countries, but with 300GW of potential discussion post-awarding. of the power matrix and it is also accelerating its wind energy, offshore wind is the key as it has Another concern is the decommissioning energy transition. Thus he foresees opportunities. the size and scale, cost-effectiveness, economic cost for the fixed-bottom projects. It is currently However, there are concerns regarding impact and others. The Ministries are now estimated to be 70% of marine construction risks and concerns in costs. Curtailment and proceeding with auctions while still discussing costs. Based on feedback, it is considered high, transmission lines from the northern part of issues regarding auction guidelines. something that is recognised by the government Japan to Tokyo were issues highlighted during One of the issues being discussed and making officials. the discussion. On the amendment to the FIT Act, potential bidders unhappy is the ceiling price for Changes in shareholding structures have the new legislation will come into effect on April fixed-bottom projects that has been announced. also been clarified. “It is not the shareholding 1 2022. One of the changes is the introduction An adviser panel of METI has proposed a price necessarily in the project, but it is the role played of a feed-in premium (FiP) for renewable energy. cap of ¥29/KWh (US$0.277/KWh) for upcoming and how that is going to be used or deployed in The new mechanism will allow renewable power tenders in Akita and Chiba and the price cap particular projects,” said Taba. producers to sell their electricity in a spot market includes the cost of connecting to the grid The reliability of the technology will be at a premium to wholesale prices. – apparently an extra fee not always paid by an important part of the evaluation. There The market-driven feed-in premium will be developers in other countries. That is a big drop is a recognition that the natural conditions added to the market price. The idea behind this from ¥36, said Taba, adding that it sent some in Japan may not be the same as in Europe. is the integration of larger-scale generation shockwaves to the market. It indicates how much Japan has earthquakes and typhoons. facilities into the wholesale market. Also required METI and MLIT are expecting a reduction in the During the bidding process, share transfers is the upgrading of the electricity grid and tariff. are allowed – less than one-third during financial support nationwide, and some reserve There are concerns too on scheduled construction and one-half or less after for the decommissioning costs. commercial operations dates (CODs) and completion of construction, said Shinichi Minerva Lau

PARTNERS FUND (PIP I), a maturing NZ$160m Beatty. The PPP involved developing 1,000 Project costs are not public, and PFI (US$110m) fund that invests in social beds in two new on-campus residences and UNDERSTANDSûTHEûPOTENTIALûDEBTûlNANCINGû infrastructure PPPs, to a South Korean operating over 39 years the accommodation implications are not yet decided on. consortium. Several different events have at nine existing residences. Commissioning One of the LPs in PIP I has made a affected the sale process. was in 2018. statement about the process as it stands. A consortium of NH Investment Partners Separately, the PIP I fund has a new The New Zealand Social Infrastructure and KDB Infrastructure Investments Asset opportunity to invest additional capital in Fund (NZSIF) states that it will be investing Management Co came into the preferred augmentation projects for two of its PPPs a further NZ$7.5m into PIP1 to cover bidder position to buy PIP I earlier this – the New Zealand Schools Bundle 1 PPP, its share of the schools augmentations, year, after KPMG launched the auction known as Hobsonville Point Schools PPP, and will be using proceeds from the process around mid-2019. Amid the Covid- and New Zealand Schools Bundle 2 PPP. University of Wollongong PPP termination ûPANDEMIC ûTHEûSALEûWASûSIGNIlCANTLYû The Ministry of Education has committed toward funding that commitment. NZSIF delayed. The reported value the consortium to expansions of both and has asked PIP is a NZ$41m fund that was created for was bidding was A$560m (US$409m), I to arrange project funding and organise the public to be able to invest in PIP I. according to South Korean media. the expansions under the Change Notices The sovereign investor New Zealand At the asset level there are two important regime of the project agreements. Additional Superannuation Fund was another LP, events that have also disrupted the sale. equity funding is needed from PIP I’s limited which committed NZ$100m. A Morrison & Co spokesperson told PFI: partners (LPs) and where the LPs do not opt The other assets in PIP I are: 49.9% of “We have postponed the sale of the PIP I in, the PIP III fund will contribute that share. the Melbourne Convention Centre PPP; assets. Investors have been fully informed PIP I owns 100% of the Bundle 1 concession 100% of the Bendigo Hospital Workers’ and remain committed to the portfolio of and 90% for Bundle 2. Accommodation PPP and 100% of the investments.” The portfolio for sale is set These augmentations relate to three Auckland Prison PPP. to be one PPP lighter, but two of the other schools. The project sponsor must PPPs have obtained augmentations. add capacity for 270 more students at The University of Wollongong has Hobsonville Point Primary School, for the decided to exercise its right of termination bundle 1 PPP. For the bundle 2 PPP, at PAKISTAN for the student accommodation PPP and to the Rolleston school, the sponsor should buy back the accommodation units. This build capacity for 700 more students, and GOVT TO RETENDER M-6 TOLLROAD should occur in early 2021. The university at Wakatipu school another 600 students has made this decision, which is within the and design a concept for a new double The Pakistani government has decided to rights of its contact, due to the damaging gym facility. For all three schools, the re-tender the M-6 expressway project or impacts of Covid-19 on the student sponsors should also provide temporary the Sukkur–Hyderabad Motorway project, accommodation market. PIP I owns 50% of accommodation for the construction due to poor responses. The government, the PPP concessionaire, alongside Balfour phases. through the National Highways Authority,

Project Finance International November 18 2020 35

04 Asia Pacific p25-.indd 35 17/11/2020 18:49:48 received only one indication of interest, WHICHûOPTEDûFORûPRE BIDûQUALIlCATIONû for the Sukkur–Hyderabad Motorway, Govt sets conditions for according to reports. The expressway, estimated to cost Rs175bn (US$1.1bn) and launched under a Malampaya extension public private partnership (PPP) framework, is considered an important part of the „ PHILIPPINES Gas China-Pakistan Economic Corridor (CPEC). The government is said to be currently The Philippine government is reported to have would have common ground on which topics to evaluating its options and has been holding set at least eight conditions to be met for the discuss; so that we – the department – could discussions with the International Finance Malampaya consortium to be able to seek an ensure that we can get the best terms for the Corp and the Asian Development Bank, which extension to their Service Contract (SC) 38 or the national government,” Pulido said, according to are believed to be its transaction advisers. licence of the US$4.5bn Malampaya deep-water- local papers. There are a number of options said to be being gas to power project. The consortium comprises He added that based on preliminary studies evaluated, and one proposal involves dividing SHELL PHILIPPINES EXPLORATION (SPEX, 45%), and evaluations done by the DoE and the the project into three packages. UDENNA CORP (45% acquired from Chevron), Malampaya consortium, the depletion of gas The proposed motorway is a 306km six- and PHILIPPINE NATIONAL OIL CO-EXPLORATION CORP from the field may not happen for the next six to lane high-speed toll road that would start (PNOC-EC, 10%) seven years, or around 2027, slightly longer than from Hyderabad (at the end of the Karachi– DoE assistant secretary Leonido J Pulido the previously expected 2025. Hyderabad Motorway M-9) and terminate at III told local media that the eight-point The energy official also added even if the Naro Canal (the start of the Sukkur–Multan negotiating terms with the Malampaya Malampaya gas field will eventually have a Motorway M-5). consortium will look into: 1) the remaining new operator, the government requires that reserves in the gas field; 2) the banked gas; the consortium members will continually 3) the development opportunity or the work pursue development in the areas within SC 38 programme that will be necessary in order for – including those in the Malampaya East, Iloc, PHILIPPINES the Department of Energy (DOE) to evaluate Nido and the Linapacan plays. the proposals of the consortium members; “All of these fields have varying possibilities ST RAPHAEL CFPP JV CANCELLED 4) the split or royalty sharing between the of success in geological terms. The talk about government and the project contractor; 5) the potential of each area and each one has its SEMIRARA MINING AND POWER CORPORATION (SMPC) the decommissioning plan; 6) the asset own estimated potential volume of petroleum – has cancelled its joint venture agreement disposal; 7) the price of the gas in the event of whether in the form of natural gas, condensate with MERALCO POWERGEN CORPORATION (MGen) licence extension; and 8) the corporate social or oil,” Pulido said. He said that Malampaya East for the development of the St Raphael responsibility (CSR) programmes that must be has prospects estimated at 140 billion cubic feet, POWERûPLANT ûAû-7ûCOAL lREDûPOWERû carried out by the consortium. and the government is hoping that this area will plant in Calaca, Batangas. “This proposal was necessary in our view, so be further developed. The JV, called St Raphael Power the DOE and the members of the consortium Minerva Lau Generation Corporation (SRPGC), was set up in 2016 but the sponsors have not managed to make progress due to a FGEN LNG SIGNS EPC DEAL Construction is scheduled to number of hurdles that included legal commence within this year, as soon First issues related to the approval of the power FGEN LNG, a special purpose vehicle set up Gen’s unit “secures the requirements, supply agreements (PSAs) of Manila Electric by First Gen for its LNG business, has including enhanced work and safety Company, MGen’s parent. I signed the engineering, procurement and protocols to minimise the impact of In a disclosure to the Philippine Stock construction (EPC) contract for the interim Covid-19 on the personnel and local Exchange, SMPC indicated that the joint offshore LNG terminal in Batangas with the community”. venture deal is deemed terminated as of local unit of an Australia-based McDonnell The company is currently bidding out November 9 2020, and that it “shall re- Dowell. AûCONTRACTûTOûCHARTERûAûmOATINGûSTORAGEû acquire all the equity shareholdings of The interim offshore terminal will ANDûREGASIlCATIONûUNITû&325 ûFORûTHEû MGen in SRPGC”. They had a 50:50 equity allow FGen LNG and partner Tokyo Gas imported fuel. It has added one more shareholding structure for the proposed IPP. to speed up their ability to introduce the name to the earlier shortlisted three imported LNG to the country as early the bidders. They are BW Gas; GasLog LNG EDC RECEIVES SECOND third quarter of 2022. The facility will Services; Hoegh LNG Asia; and new GEOTHERMAL CEPNS serve the natural gas requirements of addition Dynagas, an LNG maritime EXISTINGûANDûFUTUREûGAS lREDûPOWERûPLANTS û transportation company based in Athens, ENERGY DEVELOPMENT CORPORATION (EDC) of INCLUDINGûTHOSEûOFûAFlLIATESûANDûTHIRDû Greece. THEû,OPEZû'ROUPûHASûRECEIVEDûAûCERTIlCATEû parties. At the same time, the company is OFûENERGYûPROJECTûOFûNATIONALûSIGNIlCANCEû McDonnell Dowell plans to tap into looking to supply natural gas to the (CEPNS) for its Bacon-Manito geothermal First Balfour as a major subcontractor economic zones and industrial parks in expansion project that is expected to for the onshore gas receiving facility the country, expanding its distribution GENERATEû-7û4HISûISûITSûSECONDûCERTIlCATEû and the multi-purpose jetty mechanical network. It is reported to be planning 4HEûlRSTû#%0.3ûWASûGRANTEDûINû.OVEMBERû and instrumentation installation works, to introduce LNG at the First Philippine last year for the proposed Mahanagdong Jonathan Russell, First Gen executive vice- Industrial Park, which is in the geothermal brine optimisation plant, which PRESIDENTûANDûCHIEFûCOMMERCIALûOFlCER ûTOLDû Calabarzon (Cavite-Laguna-Batangas-Rizal- could have an output of 18.7MW. the media. Quezon) industrial region. The terminal

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will be built at the First Gen Clean fund the project in compliance with the Energy Complex in Batangas City, about requirements set out in Section 5.4(c) 50km from the industrial park. of the BOT law implementing rules and SINGAPORE regulations. All the necessary documents TWO LNG PLANS GET EPNS CERTS have been submitted to NEDA-ICC to PACIFICLIGHT POWER REFINANCES ESTABLISHûTHEûCOMPANYSûQUALIlCATIONS vû The Philippines’ Department of Energy it said. PACIFICLIGHT POWER has raised a S$1bn $O% ûHASûSEPARATELYûISSUEDûCERTIlCATESûOFû Megawide issued the statement in (US$740m) debt facility that will take out ENERGYûPROJECTûOFûNATIONALûSIGNIlCANCEû response to local newspaper reports that debt that funded the development of an (CEPNS) to two LNG schemes. Aû4RANSPORTATIONû$EPARTMENTûOFlCIALû 800MW combined-cycle gas turbine (CCGT) One is for the Ps37.553bn (US$783m) had indicated that Megawide’s proposal facility on Jurong Island in Singapore. The Batangas Clean Energy project of LUCIO for the Ninoy airport project was non- lenders consortium is led by Maybank and TAN and its American partner GEN X compliant with “needed documentary is joined MUFG, Sumitomo Mitsui Trust ENERGY. The project involves integrated requirements which could prove that Bank and Standard Chartered. investments for an onshore LNG import THEûCONSORTIUMûISûlNANCIALLYûCAPABLEûTOû 4HEûLOANûPACKAGE ûITSûTHIRDûRElNANCING û terminal as well as anchor power pursue the airport expansion project”. includes a S$613m term loan facility and projects. Megawide reiterated that GMR credit support and working capital facilities 4HEûENERGYûDEPARTMENTûSPECIlEDûTHATû Infrastructure of India has not withdrawn of S$207m and US$100m with maturity THEû%0.3ûCERTIlCATIONSûFORûTHEû"ATANGASû from the project and remains its dates of December 2026. Norton Rose was Clean Energy LNG import facility and the partner. In a disclosure to the exchange, LEGALûCOUNSELûFORûTHEûLENDERSû0ACIlC,IGHTû proposed combined-cycle power plant -EGAWIDEûCONlRMEDûTHATû'-2ûISûTAKINGû Power is owned 70:30 by FPM Power projects had been issued separately. The a 40% stake in the partnership for the Holdings and Petronas Power, respectively. 3mtpa onshore LNG import terminal, proposed upgrade and development of It generates close to 10% of Singapore’s targeted to be completed in 2025, will be NAIA. power supply and has been operating since sited close to the distilleries of the Tan It added that GMR, its equity partner 2013. group – Tanduay and Asia Brewery – at in Mactan-Cebu International Airport, Pinamucan Ibaba in Batangas City. was one of the leading and largest HYFLUX PUT UNDER COURT-APPOINTED Upon completion of the import airport operators in the world. The MANAGEMENT terminal, the LNG facility will Mactan-Cebu Airport, located on the provide fuel to 1,100MW of gas- #EBUû)SLANDûINûTHEû6ISAYAS ûISûTHEûlRSTû HYFLUX will be placed under a court- lREDûPOWERûGENERATINGûFACILITIES û airport PPP and is the second busiest appointed judicial manager, Singapore’s which will be designed to cater to international airport in the country. It high court ruled this week, two years the future requirements of the Tan- was awarded in 2014 and commenced AFTERûTHEûCOMPANYûlLEDûFORûlNANCIALû owned distilleries as well as the JG operation in 2018. restructuring. The decision is seen as a Summit petrochemical complex of the The two partners raised debt step forward for the company, which Gokongwei group in Batangas. lNANCINGûOFû0SBNûABOUTû53M û has not been able to conclude any rescue 4HEûOTHERûCERTIlCATEûISûFORûTHEûmOATINGû based on a 70:30 debt-to-equity ratio. agreement since 2018. STORAGEûREGASIlCATIONûUNITû&325 ûIMPORTû BDO Capital was the lead arranger and 2ESTRUCTURINGûlRMû"ORRELLIû7ALSHûHASû facility of EXCELERATE ENERGY of Texas, lenders were BDO Unibank, Bank of the been appointed as the judicial manager 53!û)TûISûTARGETINGûTOûBEûTHEûlRSTûPLAYERû Philippine Islands, Development Bank ANDûHEûWILLûLEADû(YmUXSûRESTRUCTURING û to bring LNG into the Philippines by of the Philippines, Land Bank of the with no involvement from the company targeting to have it operational in the Philippines, Metropolitan Bank & Trust, management team including founder Olivia second quarter of 2022. It intends to and Philippine National Bank. Lum. allow third-party access (TPA) on its LNG “They are currently operating and/ "ORRELLIûWASûlNANCIALûADVISERûTOûTHEû import terminal, making its facility or developing key international unsecured working group of 19 creditors available to not just one captive customer gateways such as the Delhi Indira led by BNP Paribas, Mizuho Bank, and but to other industrial users that will Gandhi International Airport, GMR Standard Chartered Bank. The group, which require gas. Goa International Airport and the is estimated to hold more than S$930m The CEPNS will entitle the two Crete International Airport in Greece. 53M ûOFû(YmUXSûDEBT ûHASûDEMANDEDû schemes to a streamlined process of GMR’s airport assets serve more than JUDICIALûMANAGEMENTû(YmUXûALSOûOWESû securing permissions, which should be 100 million passengers per year,” about S$900m to 34,000 retail investors completed within 30 days, as sanctioned Megawide said. It added that GMR’s holding its perpetual and preference shares under Executive Order No 30 issued by lNANCIALûFUNDAMENTALSûWEREûhSTRONGû (PnPs). President Rodrigo Duterte in 2017. and it possesses the capability to fully (YmUXûHASûENJOYEDûûEXTENSIONSûOFû lNANCEvûALLûPROPOSEDûPHASESûOFûTHEû.!)!û debt moratoriums over 2.5 years, with MEGAWIDE ASSURES ON NAIA FINANCING rehabilitation project. the judge giving it the opportunity to The project is estimated to cost conclude a rescue package among the MEGAWIDE CONSTRUCTION is capable of 0SBNû53BN ûANDûDEBTûlNANCINGû number of suitors that included Indonesian SUSTAININGûTHEûlNANCINGûREQUIREMENTSûOFû will be based on a 70:30 debt-to-equity conglomerate Salim Group and UAE the Ninoy Aquino International Airport ratio. The proposal is now with the utilities company Utico. (NAIA) rehabilitation in different phases, National Economic and Development "UTûTHEû(YmUXûBOARDûFAILEDûTOûCLOSEû the company declared in a statement to Authority Board’s Investment a deal that would have put funds into the exchange. Coordination Committee, whose the company. The situation has become h4HISûINCLUDESûPROVIDINGûSUFlCIENTû APPROVALûWILLûGIVEûTHEûlNALûGREENLIGHTûTOû WORSEûASû(YmUXûANDûITSûCURRENTûANDû equity and obtaining debt in order to the Megawide-GMR consortium. former directors are now being probed for

Project Finance International November 18 2020 37

04 Asia Pacific p25-.indd 37 17/11/2020 18:49:49 suspected false and misleading statements farm in Ninh Thuan province, about and breaches of disclosure rules. 350km north of Ho Chi Minh City. “The moratorium must end at some THAILAND It is acquiring the asset from Mekong point, it is not intended to continue Wind, which is owned by Singapore- INDElNITELY vû*USTICEû!EDITû!BDULLAH ûWHOû HSR PROJECT SEEKS LEGAL ADVISER based Armstrong South East Asia Clean presided over the case, said during a court Energy Fund. The acquisition amount hearing on Monday, as reported in local The CHAROEN POKPHAND consortium is said was not disclosed but the total project media. to be in the process of selecting a legal cost was estimated at US$60m and adviser for its lenders for the debt funding about US$45m of non-recourse debt was TOûlNANCEûTHEû"TBNû53BN ûHIGH SPEEDû thought to have been raised via Bank for rail project linking three airports. Investment and Development of Vietnam TAIWAN The consortium, comprising CP, Bangkok (BIDV). Expressway and Metro, China Railway 4HISûISûTHEûCOMPANYSûlRSTûWINDû ORSTED TO ISSUE OFFSHORE BONDS Construction Corporation, Ch Karnchang farm in the country. Phase I (7.9MW) of and Italian-Thai Development, won the the development reached commercial ORSTED plans to make its second green bond bid to develop a 220km rail link that will operations in October 2017 and Phase II ISSUEûINû4AIWANESEûDOLLARSûTOûlNANCEûTHEû shuttle passengers between the airports – (31.5MW) in December 2018. development of the 900MW Changhua 1 Bangkok’s Suvarnabhumi and Don Muang Closing of the Dam Nai Wind and 2a offshore wind projects. international airports to U-Tapao airport, acquisition transaction is expected to be It aims to raise up to NT$15bn near Pattaya. achieved in Q1 of 2021. (US$524m) in maturities of seven, 10 HSBC and Siam Commercial Bank, the Aboitiz Power of the Philippines ANDûûYEARSû4HEûlNALûSIZES ûTRANCHESû lNANCIALûADVISERSûTOûTHEûCONSORTIUM ûAREû was initially interested in the asset but and pricing are likely to be determined raising up to 75% of the project cost, and dropped the plan. Scatec Solar, which when bookbuilding closes. BNP Paribas, potential lenders include multilaterals and last month acquired SN Power, said it Cathay United Bank, and CTBC Bank are export credit agencies from China and supports the investment and the project mandated lead arrangers. Japan, in addition to commercial bank economics meets its return thresholds. The bonds will be issued by Orsted Wind lenders. Power TW Holding, the Danish-based MAINSTREAM SIGNS 500MW holding company of Orsted’s activities OFFSHORE DEAL in Taiwan, and guaranteed by Orsted. The company is rated Baa1 with a stable VIETNAM MAINSTREAM RENEWABLE POWER has signed a outlook by Moody’s, BBB+ with a stable joint development agreement with local outlook by S&P, and BBB+ with a stable AES APPOINTS LA FOR SON MY 2 LTP partner ADVANCE INFORMATION TECHNOLOGIES outlook by Fitch. The bond proceeds CORPORATION (AIT) to co-develop a 500MW will presumably be used for the equity AES CORP and partner PETROVIETNAM have offshore wind project in Ben Tre component. appointed Shearman & Sterling as legal province. /RSTEDûISûlNALISINGûITSû53BNûLIMITEDû adviser to the proposed US$2.8bn Son My AIT is a specialist in providing EPC RECOURSEûlNANCINGûFORûTHEû-7û 2 LNG-to-power project. The two partners services to power projects and is Changhua 1 schemes. Financial advisers WILLûJOINTLYûDEVELOPûAû'7ûGAS lREDû also a developer of renewables. It is CTBC and HSBC have put together a group power plant and an LNG terminal. The US AIMINGûTOûREACHûlNANCIALûCLOSEûANDû of banks that includes BNP Paribas, Credit company recently signed a memorandum start construction by 2023–24 with Agricole, OCBC, Societe Generale, Siemens of understanding (MoU) with Vietnam’s commencement of operation by 2025–26. Bank, SMBC and Standard Chartered; and Ministry of Industry and Trade (MOIT) to The project received its site survey 4AIWANESEûlNANCIERSû#ATHAYû"ANK û%û3UNû strengthen cooperation on the Son My 2 licence last year and it has also Bank, and KGI Bank as well as Cathay Life IPP in Binh Thuan province. completed a feasibility study, said Insurance and Taiwan Life Insurance. Mainstream. It has submitted a power It has lined up export credit agencies, SN POWER BUYS DAM NAI WIND development plan (PDP) application namely, the Netherlands’ Atradius, South to the ministry of industry and trade, Korea’s KSure and the UK’s UKEF. The SN POWER is acquiring DAM NAI WIND POWER, WHICHûISûINûTHEûPROCESSûOFûlNALISINGûTHEû lenders have Linklaters as legal adviser. which owns and operate a 39.4MW wind government’s PDP for 2021–2030. Are your colleagues as well-informed as you?

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38 Project Finance International November 18 2020

04 Asia Pacific p25-.indd 38 17/11/2020 18:49:49 NEWS EMEA

Western Europe  UK  Eastern Europe  Middle East  Africa 52

„ FRONT STORY EUROPE - TELECOMS Fibre and 5G rule telco market

Europe’s telecoms market has seen a flurry of activity as investors rush in Asset owners are making the most of the region’s push towards a higher level of connectivity

BY JORDAN BINTCLIFFE Orange is also in the midst of selling a SUBSCRIBEDûTOûBYûAûPENSIONûFUNDûMANAGEDû STAKEûINûITSû/RANGEû#ONCESSIONSûBUSINESS û BYûTHEûREALûASSETSûANDûPRIVATEûMARKETSû %UROPESûTELECOMSûMARKETûHASûSEENûAûmURRYû WITHûBINDINGûBIDSûEXPECTEDûINû*ANUARYû0&)û DIVISIONûOFû5"3û!SSETû-ANAGEMENTû7HITEû OFûACTIVITYûINûRECENTûMONTHSûASûINVESTORSû  û7ITHûANûEXPECTEDûENTERPRISEûVALUEûOFû û#ASEûALSOûASSISTEDûTHEûGROUPûONûTHATûDEALû rush to make the most of the region’s AROUNDûõBN ûTHEûNETWORKûBRINGSûTOGETHERû !LTITUDEû)NFRAû(OLDINGûISûTHEûCONTROLLINGû PUSHûTOWARDSûAûHIGHERûLEVELûOFûCONNECTIVITYû THEûMûlBRE TO THE HOMEû&44( ûCURRENTû COMPANYûOFûTHEû!LTITUDEû'ROUPSûINFRAû THROUGHûlBREûANDûWIRELESSûINFRASTRUCTUREû ANDûFUTUREûOUTLETSûBELONGINGûTOûLOCALû activities. assets. authorities. 3PANISHûTELECOMSûCOMPANYû4ELEFONICAû &RENCHûMULTINATIONALûTELECOMSûCOMPANYû )Nû&RANCE ûlBRE OPTICûCOMPANYû!LTITUDEû ISûMAKINGûAûCONCERTEDûPUSHûINTOûTHEûlBREû /RANGEûHASûAûNUMBERûOFûDEALSûUNDERû )NFRAûWILLûCLOSEûONûAûDEBTûPACKAGEûFORûITSû MARKETûWITHûPLANSûTOûCREATEûAûõBN ûû WAYû4HEûGROUPSû0OLISHûSUBSIDIARYûISû õMû#OTEûD/RûANDû,ANDESû&44(ûPROJECTSû &44(ûJOINTûVENTUREûWITHû!LLIANZû'ROUPûTOû SEEKINGûAûCO INVESTORûFORûAûROLL OUTûOFûlBREû BEFOREûTHEûENDûOFû.OVEMBERû,ENDERSûONû DEPLOYûlBREûNETWORKSûINûUNDER SERVEDûRURALû infrastructure to 600,000 households in THEûDEALûINCLUDEû.ATIXIS û3OCIETEû'ENERALE û ANDûSEMI RURALûAREASûINû'ERMANYû0&)û  mid- and low-competition areas with non- .ORD,"ûANDû3ABADELL ûACCORDINGûTOûAûSOURCEû 4HEû*6ûWILLûBEûlNANCEDûTHROUGHûAû BINDINGûBIDSûDUEûBYûTHEûENDûOFû.OVEMBER û INVOLVEDû#OTEûD/RûANDû,ANDESûWILLûBEû VARIETYûOFûSOURCESûINCLUDINGûAûLONG TERMû ACCORDINGûTOûAûSOURCEû&INALûBIDSûWILLûBEû lNANCEDûASûAûSINGLEûPACKAGE ûGEAREDûATû SUBORDINATEDûLOANûASûWELLûASûNON RECOURSEû DUEûTOWARDSûTHEûENDûOFûTHEûYEARûORûINûEARLYû around 70:30. EXTERNALûlNANCINGû)TûWILLûBEûROUNDEDûOUTû  ûTHEûSOURCEûADDEDû4HEûOVERALLûVALUEûOFû 4HEûDEBTûPACKAGEûWILLûBEûSTRUCTUREDûASûAû WITHûõMûOFûSHAREHOLDERSûEQUITYûFROMû the deal is unclear although the source put MINI PERMû4HEûCONTRACTûANDûTENORûLENGTHû 4ELEFONICAûANDûõBNûFROMû!LLIANZ ûVIAû ITûASûSUB õBN AREûUNCLEAR ûALTHOUGHûLENDERSûUSUALLYûWANTû DIFFERENTûINSTRUMENTSû4HEûINVESTMENTSûWILLû /RANGEû0OLSKAûINû/CTOBERûSHAREDû AûTAILûOFûFOURûTOûSEVENûYEARSûAFTERûCONCESSIONû BEûSPREADûOUTûOVERûSIXûYEARSû4HEûCOMPANYû an information memorandum with a EXPIRY ûTHEûSOURCEûSAIDû!LTITUDEû)NFRAûISû aims to deliver connections to over two hSIGNIlCANTûNUMBERûOFûINTERESTûPARTIESv û RECEIVINGûlNANCIALûADVICEûFROMû(0 ûWITHû million homes and to create a network CEO Julien Ducarroz said on a Q3 results 7HITEûû#ASEûASûLEGALûADVISER more than 50,000km in length. CALLû0ROJECTû.EBRASKAûWILLûBEûlNANCEDûOFFû !LTITUDEû)NFRAûSPECIALISESûINûNETWORKSûINû Europe’s tower market is seeing THEûCOMPANYSûBALANCEûSHEETûINûAû&IBER#Oû LOWûTOûMEDIUM DENSITYûAREASû#OTEûD/Rû ACTIVITY ûWITHû(ONGû+ONG HEADQUARTEREDû SPECIALûPURPOSEûVEHICLEû4HISûWILLûPROVIDEû ANDû,ANDESûAREûBEINGûDEVELOPEDûASûhCALLSû #+û(UTCHISONûINûADVANCEDûTALKSûTOûSELLû GREATERûmEXIBILITYûNEEDEDûAHEADûOFû0OLANDSû FORûDEMONSTRATIONûOFûLOCALûCOMMITMENTSvû ITSû%UROPEANûTELECOMSûASSETSûTOû#ELLNEXû PLANNEDû'ûAUCTION ûTHEûEXACTûTIMINGûOFû ORû!-%, ûWHICHûMEANSû!LTITUDEûKEEPSû 4ELECOMû4OTALûPROCEEDSûAREûEXPECTEDûTOû WHICHûISûYETûTOûBEûRELEASED OWNERSHIPûOFûTHEûNETWORKûANDûEFFECTIVELYû BEûõBN ûINCLUSIVEûOFûMINORITYûPARTNERSû 4HEûDEALûWILLûBEûlNANCEDûBYûBANKSûANDû rents it to telecoms operators such as SHARESû#ELLNEXûWILLûPAYûõBNûINûCASHû WITHûTHEûEQUITYûCO INVESTOR ûWHICHûWILLûBUYû Orange. ANDûAûFURTHERûõBNûWITHûTHEûISSUEûOFû AûûSTAKEûINûTHEûBUSINESSû/RANGEû0OLSKAû #ONTRACTûLENGTHSûTENDûTOûBEûnûYEARSû NEWûSHARES ûGIVINGû#+û(UTCHISONûANû ISûCONTEMPLATINGûAûFUTUREûlBREûROLL OUTû DEPENDINGûONûHOWûEXPENSIVEûTHEûNETWORKû APPROXIMATEûûSTAKEûINû#ELLNEXSûCAPITALûATû TOûAûPIPELINEûOFûMûCUSTOMERSû0ROJECTû ISûTOûBUILDûANDûWHETHERûAûSUBSIDYûORûPUBLICû CLOSINGû#ELLNEXûWILLûlNANCEûTHEûDEALûWITHû .EBRASKAûWILLûSEEûITûSHIFTû ûOFûTHESEû lNANCIALûSUPPORTûISûAVAILABLE ITSûEXISTINGûCASHûANDûAVAILABLEûLIQUIDITY INTOûTHEû&IBER#O !LTITUDEû)NFRAûINûMID ûlNANCEDû #+û(UTCHISONSû%UROPEANûUNITû#+û 4HEûCOMPANYûSEESûlBREûASûBEINGûCOREûTOû ITSû4ARN ET 'ARONNEûBROADBANDûNETWORKû (UTCHISONû'ROUPû4ELECOMû(OLDINGSûWILLû ITSûSTRATEGYû)NTERNETûPENETRATIONûISûAROUNDû WITHûAûSIMILARûlNANCIALûSTRUCTUREû)TûHADûAû DISPOSEûOFûITSûINDIRECTLYûHELDûTELECOMSû ûINû0OLANDûVERSUSûûINûTHEûRESTûOFûTHEû SOFTûMINI PERMûWITHûAû YEARûLEGALûTENORû INFRASTRUCTUREûASSETSûINû%UROPEû4HEûDEALû %5 ûGIVINGûTHEûCOMPANYûPLENTYûOFûSPACEû BACKEDûBYûAû YEARûCONCESSIONû)TûWASû WILLûSEEû#ELLNEXûACQUIREû ûTOWERûSITESû TOûGAINûAûFOOTHOLDû/RANGEû0OLSKAûINTENDSû geared at 75:25. and could also see it rolling out up to 5,250 TOûBUILDûANûOPENûNETWORK ûTARGETINGûTHEû !LTITUDEû)NFRAûINû3EPTEMBERûSAIDûITû SITESûOVERûTHEûCOMINGûEIGHTûYEARSû4HEû low and medium-competition areas to INTENDSûTOûINVESTûMOREûTHANûõBNûTOû ROLL OUTûWOULDûREQUIREûAûFURTHERûõBNû GAINûBOTHûRETAILûANDûWHOLESALEûCUSTOMERSû EXPANDûlBREûNETWORKSûOVERûTHEûCOMINGû investment. 4HEûhOPENûNETWORKvûSTRUCTUREûWILLûENABLEû THREEûYEARSû)TûHASûû0UBLICû)NITIATIVEû #ELLNEXûWILLûGAINûAûPRESENCEûINû3WEDEN û /RANGEû0OLSKAûTOûSELLûUSEûOFûTHEûNETWORKûTOû .ETWORKSû0). ûANDûMOREûTHANûûMILLIONû $ENMARKûANDû!USTRIAûASûAûRESULTûOFûTHEûDEALû wholesale clients. PLUGSû)TûAIMSûTOûCONNECTûûMILLIONûBYû WITHû  û  ûANDû ûSITES ûRESPECTIVELYû &INANCIALûCLOSEûISûEXPECTEDûINûTHEûlRSTû 2023. 4HEûCOMPANYSû)TALIANûTOWERûPORTFOLIOûWILLûRISEû HALFû,AZARDûISûPROVIDINGûlNANCIALûADVICEû !LTITUDEû)NFRAû4RESû(AUTû$EBITû4($ û TOû ûFROMû ûSITESûPREVIOUSLY ûANDû TOû/RANGEû0OLSKAûONûTHEûDEAL ûAûSOURCEû WHICHûSTRUCTURESûANDûOPERATESûTHEûlBREû ITSû5+ûTOWERûNUMBERSûWILLûINCREASEûTOû û SAIDû,AZARDûANDû/RANGEû0OLSKAûDECLINEDûTOû NETWORKS ûTHEûSAMEûMONTHûRAISEDûõMû FROMû û)TûWILLûGAINûAûFURTHERû ûTOWERû comment. INûEQUITYûANDûJUNIORûDEBTû4HEûEQUITYûWASû SITESûINû)RELAND ûRISINGûTOû ûINûALL

Project Finance International November 18 2020 39

05 EMEA p39-54.indd 39 17/11/2020 19:35:07 !FTERûTHEûSALE û#ELLNEXûWILLûENTERûAû YEARû (+BNûINû ûUPûûANDûûFROMû 4HEûDEALûISûTRANSFORMATIONALûFORû#ELLNEX û SERVICEûAGREEMENTûTOûPROVIDEû#+û(UTCHISONû  ûRESPECTIVELY INCREASINGûITSûNUMBERûOFûTOWERSûTOûAROUNDû with telecoms services and support an 4HEûTWOûHAVEûREACHEDûSUBSTANTIALû  û)TûWILLûINCREASEûTHEûCOMPANYSû accelerated 5G network roll-out through a AGREEMENTûONûTHEûKEYûCOMMERCIALûTERMS û ADJUSTEDû%BITDAûTOûõBNûFROMûõBNû BUILT TO SUITûEXPANSIONûPROGRAMME THEYûSAID ûALTHOUGHûNOûBINDINGûAGREEMENTû 2EVENUESûWILLûRISEûBYûõBNûTOûAûTOTALû #+û(UTCHISONû'ROUPû4ELECOMû(OLDINGSû HASûBEENûREACHED õBNûAFTERûTHEûCOMPLETIONûOFûTHEûPLANNEDû WASûFORMEDûINûûTOûCONSOLIDATEûTHEû 4HEûPURCHASEûWILLûBEûCOMPLETEDûACROSSûSIXû ROLL OUTSû#ELLNEXSûSALESûBACKLOGûWILLû group’s European operations, 3 Group TRANSACTIONSûOVERûTHEûNEXTûûMONTHSûWITHûTHEû INCREASEûBYûõBNûTOûõBNûASûAûRESULTûOFû %UROPE ûANDû(UTCHISONû4ELECOMMUNICATIONSû individual components closed on a staggered the deal. (ONGû+ONGûUNDERûONEûHOLDINGûENTITY ANDûPER COUNTRYûBASISû4HEûDEALSûFORûTHEû)RELAND û #ELLNEXûWASûADVISEDûBYû!:û#APITALû )TûALSOûHOLDSûTHEûGROUPSû%UROPEANû 3WEDENûANDû$ENMARK BASEDûASSETSûAREûEXPECTEDû ANDû(3"#ûASûlNANCIALûADVISER ûANDû TOWERûASSETSûVIAû#+û(UTCHISONû.ETWORKSû TOûCLOSEûINûTHEûlRSTûHALFû!CQUISITIONûCLOSEûOFûTHEû BYûLAWûlRMû#LIFFORDû#HANCEû0RICEû (OLDINGS ûANDûISûACTIVEûACROSSûEIGHTû !USTRIANûANDû)TALIANûASSETSûISûEXPECTEDûINûTHEû 7ATERHOUSEû#OOPERSûPROVIDEDûTAXû COUNTRIESû4HEûUNITûREPORTEDûREVENUESû SECONDûHALFûOFû ûANDûCLOSINGûOFûTHEû5+ûASSETSû DUEûDILIGENCEûANDû!RTHURû$û,ITTLEûWASû OFû(+BNû53BN ûANDû%BITDAûOFû ISûEXPECTEDûINûTHEûlRSTûHALFûOFû commercial adviser.

the partnership agreement that will see SOLARûPHOTOVOLTAICû06 ûPROJECTSûTHATûBEGANû #ALYCEû$EVELOPPEMENTûDEVELOPûûPROJECTSû OPERATIONSûPRE û4HEûMOVEûPAVESû EUROPE INûTHEû'RANDû%ST û(AUTS DE &RANCE ûANDû0AYSû THEûWAYûFORûCUTSûTOûPURCHASEûCONTRACTSû de la Loire regions. CONCLUDEDûBETWEENûûANDûûFORû06û EC CONSIDERS 60GW OFFSHORE WIND 2OMANDEû%NERGIEûWILLûACQUIREûûOFû PLANTSûOFûK7ûORûLARGER SIXûOFûTHEûPROJECTSûINûANûEARLYûSTAGEûOFû )FûITûCOMESûINTOûEFFECT ûTHEûAMENDMENTûTOû 4HEû%UROPEANû#OMMISSIONû%# ûISûCONSIDERINGû development, 100% of seven others in Sû&INANCEû"ILLûWILLûAFFECTûAROUNDûû Aû'7ûTARGETûOFûOFFSHOREûWINDûCAPACITYûBYû ADVANCEDûDEVELOPMENTûANDûANOTHERûALREADYûINû PURCHASEûOBLIGATIONSû4HEûNEXTûSTAGEûOFûTHEû  ûFOLLOWEDûBYû'7ûBYû ûACCORDINGû OPERATIONû)TûWILLûALSOûACQUIREûûOFûONEûOTHERû PROCESSûISûFORû&RANCESû3ENATEûTOûEXAMINEû TOûAûDRAFTûOFûTHEû%#SûSTRATEGYûFORûOFFSHOREû INûITSûLATEûSTAGESûANDûNEARINGûOPERATIONû4HEû the amendment. RENEWABLEûENERGY û2EUTERSûREPORTED DEALûISûEXPECTEDûTOûBEûlNALISEDûINûTHEûCOMINGû 4HEûAMENDMENTûAIMSûTOûREVISEûTHEûFUTUREû 4HEûSTRATEGYûALSOûTARGETSû'7ûOFûWAVEû WEEKSû2OMANDEû%NERGIEûSUPPLIESûELECTRICITYû tariff of the contracts “in order to reduce ANDûTIDALûENERGYûCAPACITYûBYûû)TûISûDUEû INû&RENCH SPEAKINGû3WITZERLANDûANDûHASûOVERû THEIRûPROlTABILITYûTOûAûLEVELûCORRESPONDINGû TOûBEûPUBLISHEDûONû.OVEMBERûû4HEûBLOCSû -7ûOFûRENEWABLEûENERGYûPRODUCTIONû TOûAûREASONABLEûRETURNûONûCAPITALv ûTHEû EXISTINGûCAPACITYûSTANDSûATû'7 CAPACITYûINû3WITZERLANDûANDû&RANCE AMENDMENTûREADSûh)TûTHUSûAIMSûTOûPUTû 3OMEûõBNûOFûINVESTMENTûWOULDûBEû 4HEûCOMPANYSûELECTRICITYûDISTRIBUTIONû ANûENDûTOûAûSITUATIONûOFûEXCESSIVEûANDû needed to meet the targets, the document network is more than 10,500km. UNJUSTIlEDûREMUNERATIONvûRELATEDûTOûTHEû SUGGESTSû#OUNTRIESûEXISTINGûPOLICIESûONLYû Founded in 2011, wind developer OBLIGATIONûTOûPURCHASEûTHEûSOLARûPOWER ENABLEû'7ûOFûOFFSHOREûCAPACITYûBYû û #ALYCEû$EVELOPPEMENTûHASûPREVIOUSLYû 4HEûAMENDMENTûPROVIDESûAûhSAFEGUARDû ANDûSOûWOULDûALSOûNEEDûTOûBEûREVAMPED COMMISSIONEDû-7ûOFûCAPACITYûANDûHASû CLAUSEvûTOûTHEûBENElTûOFûINSTALLATIONSûTHATû 4HEûDRAFTûSUGGESTSûTHATûGUARANTEESûORû AûPIPELINEûEXCEEDINGû'7 WOULDûHAVEûTHEIRûPRODUCTIONûVIABILITYû POWERûPURCHASEûAGREEMENTSûCOULDûBEûUSEDû COMPROMISEDûBYûTHEûLAW TOûSUPPORTûTHEûROLL OUTû4HEû%UROPEANû TOTAL/LHOIST TO DEVELOP PV h!TûTHEûREQUESTûOFûTHEûPRODUCER ûTHEû 5NIONSûõBNû#OVID ûRECOVERYûFUNDû MINISTERSûOFûENERGYûANDûOFûTHEûBUDGETû COULDûALSOûBEûUSEDûTOûSUPPORTûNEWûPROJECTS &RENCHûRENEWABLESûDEVELOPERûTOTAL QUADRAN WILLûTHUSûBEûABLEûTOûTAKEûINTOûACCOUNTû WILLûDEVELOPû-7ûOFûPHOTOVOLTAICû06 û the situation of each installation and CAPACITYûFORû"ELGIANûMINERALûPRODUCERû CONSEQUENTLYûDElNEûSUITABLEûARRANGEMENTSû LHOIST at eleven of its sites in France, allowing the continued operation of these FRANCE COVERINGûAROUNDûûOFû,HOISTSûELECTRICITYû INSTALLATIONS vûITûREADSû4HEûTARIFFûREVISIONû REQUIREMENTSûINûTHEûCOUNTRY WILLûAFFECTûAPPROXIMATELYûûOFûSOLARû CSM BANKS DUE Four of the plants are for on-site self- purchase contracts under the decrees of CONSUMPTIONû4HEû06ûPLANTSûWILLûBEû *ULYûû û*ANUARYûûûANDû!UGUSTû 4HEûLEADûBANKSûONûTHEûõBNû-7û ENTEREDûINTOû#2%SûNEXTûCALLûFORûTENDERSû 31 2010. #OURSEULLES SUR -ERû#3- ûOFFSHOREûWINDû with the aim of winning a feed-in tariff to 4HEûAMENDMENTûADDSûTHATûITûTARGETSûAû lNANCINGûAREûBELIEVEDûTOûBEûINûPLACEû%$&û SUPPORTûTHEûDEVELOPMENTSû4HEYûWILLûBEû hLIMITEDûNUMBERûOFûOLDûPURCHASEûCONTRACTSû HOLDSûûOFûBOTHûPROJECTS ûWITHû%NBRIDGEû COMMISSIONEDûBYû FORûWHICHûTHEûREMUNERATIONûISûEXCESSIVE û ANDû#00ûHOLDINGûTHEûOTHERûHALFû".0û0ARIBASû %NGIE û%$& û.EOENûANDû4OTALûWEREû ITûDOESûNOTûINDUCEûANYûNEWûRISKûONûTHEû ISûADVISINGû%$&ûHASûBEENûROTATINGûTHEûLEADû AMONGûTHEûWINNERSûOFû-7ûOFûWINDûANDû lNANCINGûOFûNEWûRENEWABLEûENERGYû BANKSûONûITSûTHREEûOFFSHOREûDEALSûINû&RANCEû SOLARûINûTHEû&RENCHû-INISTRYûOFû%COLOGICALû PROJECTSû.EWûRENEWABLEûENERGYûPROJECTSû nû#3- û&ECAMPûANDû3AINTû.AZAIRE 4RANSITIONSûMOSTûRECENTû#2%ûAUCTIONû4OTALû AREûTHEREFOREûBASEDûONûSOLIDûPURCHASEû WONû-7ûOFûSOLARûCAPACITY ûBRINGINGûITSû CONTRACTSûTHATûCANNOTûBEûCALLEDûINTOû ROMANDE/CALYCE PLAN 646MW WIND TOTALûWONûOVERûALLû#2%ûAUCTIONSûTOû-7û QUESTIONv nûTHEûSECONDûLARGESTûOFûANYûOFûTHEûBIDDERS 0UBLICûEXPENDITUREûAMOUNTSûTOûõBNûPERû 3WISSûRENEWABLEûPOWERûGENERATORûROMANDE YEARûFORûTHEûCONTRACTSûAFFECTEDûnûMOREûTHANû ENERGIE and CALYCE DEVELOPPEMENT have signed MINISTERS ADOPT PV TARIFF CUTS AûTHIRDûOFû&RANCESûANNUALûEXPENDITUREûINû an agreement for the development of a SUPPORTûOFûRENEWABLEûENERGIESûnûWHICHû -7ûPORTFOLIOûOFûWINDûFARMSûINû&RANCEû French ministers this week voted to adopt PRODUCEûLESSûTHANûûOFûTHEûCOUNTRYSû 4HEû&RENCHûARMûOFû2OMANDEû%NERGIEûSIGNEDû PLANSûTOûRETROACTIVELYûCUTûTHEûTARIFFSûOFû ELECTRICITYûPRODUCTION

40 Project Finance International November 18 2020

05 EMEA p39-54.indd 40 17/11/2020 19:35:07 NEWS EMEA

4HEûPROPOSEDûCUTSûHAVEûNOTûBEENû h4HEûGOVERNMENTûMAYûTHEN ûONûAû RETROACTIVEûCUTSûWILLûENTERûINTOûFORCEûnûORû RECEIVEDûWELLûBYûTHEûINDUSTRYû3OLARûINDUSTRYû CASE BY CASEûBASISûANDûSUBJECTûTOûPROPERû INDEEDûHOWûTHEYûWOULDûLOOKûIFûTHEYûDIDû ASSOCIATIONû%NERPLANûCALLEDûTHEMûhANûABUSEû EVIDENCEûSUBMITTEDûBYûTHEûPRODUCERS ûISSUEû 4HEûNEXTûSTAGEûOFûTHEûPROCESSûISûFORû&RANCESû OFûPOWERv additional ministerial orders to ‘soften’ 3ENATEûTOûEXAMINEûTHEûWIDERû&INANCEû"ILLûASû h4HEûPRINCIPLEûOFûUNILATERALûANDû THEûRULESûOFûTHEûlRSTûABOVEûMENTIONEDû well as the amendment, following which RETROACTIVEûQUESTIONINGûOFûAûCONTRACTûBYûTHEû MINISTERIALûORDERv THEû.ATIONALû!SSEMBLYû.! ûWILLûBEûABLEûTOû GOVERNMENTûISûTOTALLYûUNACCEPTABLE vûITûSAID )TSûUNCLEARûHOWûEXACTLYûTHISûWOULDûWORK û MAKEûMODIlCATIONS Enerplan said that the government’s Canton adds, as the criteria mentioned in )FûTHEû.!ûDOESûMAKEûCHANGES ûAûJOINTû ARGUMENTSûAREûNOTûCONVINCING ûSAYINGû THEûAMENDMENTûCONCERNINGûTHEûEXCEPTIONSû COMMITTEEûCOMPRISINGû.ATIONALû!SSEMBLYû h4HEYûAREûBASEDûONûVAGUEûNOTIONSûWITHû TOûTHEûhNEWvûFEED INûTARIFFûREMAINûQUITEû ANDû3ENATEûMEMBERSûWOULDûBEûFORMEDûTOû AûCOMPLETELYûANACHRONISTICûCOMPARISONû vague. reach an agreement on the contentious BETWEENûTHEûCOSTûOFûSOLARûTODAYûANDûTHATûOFû 4HEûNEWûRULESûREMAINûTOûBEûDElNEDû PROVISIONSû/NCEûTHEûJOINTûCOMMITTEEû TENûYEARSûAGOv although Canton notes that the amendment REACHESûANûAGREEMENTûTHEûBILLûISûPASSEDû h)FûSOLARûENERGYûISûSOûEFlCIENTûTODAY ûITû PUTSûTHEûFOCUSûONûTHEûhPRODUCERvûRATHERû 4HEûBUDGETûLAWûISûUSUALLYûTHENûCHALLENGEDû ISûBECAUSEûTHEREûWEREûPIONEERûCOMPANIESû THANûTHEûh06ûPLANTvûFORûTHEûASSESSMENTûOFû BEFOREûTHEû&RENCHû#ONSTITUTIONALû#OURTûINû WHICHûTOOKûTHEûRISKûOFûINVESTINGûTENûYEARSû THEûhlNANCIALûVIABILITYvûOFûTHEûASSETS ûWHICHû LIGHTûOFûTHEûCOUNTRYSûCONSTITUTIONALûRULES AGOûATûTHEûTIMEûOFûTHEûlNANCIALûCRISISv WOULDûBEûDECISIVEûTOûGRANTûANYûDEROGATION ûORû &RENCHûSTATEûOWNEDûUTILITYû%$&ûINTENDSû RELAXATION ûOFûTHEûLAW to defend its case for remuneration for “One could imagine that the government -7ûOFûPROJECTSûOWNEDûBYûITSûSUBSIDIARYû could refuse a derogation on the ground GERMANY %$&û2ENEWABLESûTHATûWOULDûBEûAFFECTEDûBYû that, even if one or more of the producer’s the planned cuts. 06ûPLANTSûAREûCONCERNEDûBYûTHEû@LOWEREDû TRIANEL BUYS ABO’S WIND h7EûDOûNOTûCONSIDERûTHATûWEûENJOYEDûINû FEED INûTARIFF ûANDûTHOSEû06ûPLANTSûWOULDû EXCESSIVEûREMUNERATION vûTHEûGROUPSûSENIORû NOTûBEû@lNANCIALLYûVIABLEûANYMOREûASûAû TRIANEL ERNEUERBARE ENERGIENû4%% ûHASû EXECUTIVEû60û8AVIERû'IRREûSAIDûONûAûRESULTSû result of the new conditions, the loss would ACQUIREDûAû-7ûONSHOREûWINDûPLANTû CALLûRECENTLYûh!NDûWEûINTENDûTOûDEFENDûOURû BEûCOMPENSATEDûBYûTHEûPROlTSûMADEûFROMû INû"RANDENBURGûFROMûDEVELOPERûABO WIND. case with the French authorities when the OTHERûASSETSûOFûTHEûSAMEûPRODUCER vû#ANTONû #OMMISSIONINGûOFûTHEû3PREEAUûPROJECTû DETAILEDûPARAMETERSûAREûKNOWNv SAID ûANDûhSOûTHEREûWOULDûBEûNOûDEROGATIONû INûTHEûMUNICIPALITYûOFû3PREENHAGENûISû 4HEûDETAILSûOFûTHEûREVISIONSûAREûNOTû ALLOWEDûINûTHEûENDv EXPECTEDûBYûTHEûENDûOFû KNOWNûYET ûANDûTHEYûMAYûNOTûBEûDISCLOSEDû h!NDûFROMûAûMOREûGENERALûPOINTûOFûVIEW û 4HEûACQUISITIONûOFû3PREEAUûBRINGSû4%%Sû BEFOREû*ANUARY ûHEûSAIDû&RANCESûNEWû ITûISûDIFlCULTûTOûIMAGINEûTHATûONEûPRODUCERû PORTFOLIOûTOû-7ûOFûPHOTOVOLTAICûANDû BUDGETûLAWûISûDUEûTOûBEûPUBLISHEDûINûTHEû at a time would knock at the door of -7ûOFûWINDûCAPACITYû4%%ûISûBACKEDû OFlCIALûGAZETTEûBEFOREû$ECEMBERûûANDû THEû%CONOMYûANDORû%NERGYû-INISTRYûTOû BYûûOFû'ERMANYSûMUNICIPALûUTILITIES û ISûLIKELYûTOûBEûIMPLEMENTEDûBYûMINISTERIALû ARGUEûITSûCASEûANDûREQUESTûTHATûAûSPECIlCû WHICHûAREûINVESTINGûABOUTûõMûINûTHEû ORDERûBYûTHEûSPRING ministerial order, regarding such or such DEVELOPMENTûANDûEXPANSIONûOFûTHEIRû 4HEûPROCESSûFROMûTHEREûISûYETûUNCLEAR û 06 PLANT ûBEûISSUED vû#ANTONûSAIDûh4HISû RENEWABLESûPORTFOLIOûINû'ERMANY BUTûhTHEûAMENDMENTûSUGGESTSûTHATûTHEû WOULDûBEûTERRIBLYûTIME CONSUMINGûûûû 'ERMANûDEVELOPERû!"/û7INDûEARLIERû producers would have to raise their hand BESIDESûTHIS ûPRODUCERSûMAYûINITIATEûJUDICIALû THISûYEARûTOOKûACTIONûAGAINSTûAûREGIONALû if the new feed-in tariff threatens the proceedings to challenge the ministries’ COUNCILûOVERûITSûAPPLICATIONûFORûAû-7û lNANCIALûSUSTAINABILITYûOFûTHEIRûINVESTMENT DECISIONûREGARDINGûSUCHûORûSUCHûPROJECTv WINDûPROJECTûINûTHEûSTATEûOFû(ESSEûnûWHICHû ASSETS vû3EBASTIENû#ANTON ûAûPARTNERûATû"-(û $ESPITEûTHEûBILLûBEINGûSENTûONûTOûTHEû ITûSOLDûTOû4%%ûINû!UGUSTûû!"/û7INDû !VOCATSûSAID 3ENATE ûITûISûNOTûGUARANTEEDûTHATûTHEû WASûDENIEDûAPPROVALûFORûTHEûSIX TURBINEû

EMEA GENERAL CORPORATE FUNDING ACTIVITY NOVEMBER 2 TO NOVEMBER 16 2020 Security type Issuer/Borrower Amount (m) Maturity Issue price Pricing Bank Energy, Gas, and Water Distribution Term Loan Terna €200 02/11/22 100.000 N/A IMI - Intesa Sanpaolo Rev Cred Fac Vattenfall Treasury €2,000 06/11/23 100.000 N/A — Ord/Common Shs. Plutus Powergen £6 — 0.002 — Allenby Capital/Turner Pope Invests (TPI) Infrastructure Firms Rev Cred Fac Curium Sas €80 02/05/27 100.000 N/A Barc/DB/JPM/Nomura Term Loan B Curium Sas $265 02/11/27 100.000 LIBOR +425.000 bp Barc/DB/JPM/Nomura Term Loan Curium Sas $325 02/11/28 100.000 LIBOR +775.000 bp Barc/DB/JPM/Nomura Rev Cred Fac Morgan Sindall Group £150 04/11/23 100.000 N/A Undisclosed Advisor Term Loan Cadeler €75 09/11/23 100.000 N/A — Term Loan Cadeler €20 N/A 100.000 N/A — Senior Notes Empresa Nacional de Autopistas $400 19/05/48 100.000 4.000 Bank of America Merrill Lynch Mining Term Loan Polimetall AO $125 05/11/26 100.000 N/A Societe Generale Ord/Common Shs. Kavango Resources £2.15 — 0.030 — — Petrochemicals; Petroleum Refining Ord/Common Shs. Advance Energy £0.3 — 0.002 — — Telecommunications Ord/Common Shs. Turkcell Iletisim Hizmetleri 1,677.5 — 15.250 — Goldman Sachs/Credit Suisse Source: Refinitiv

Project Finance International November 18 2020 41

05 EMEA p39-54.indd 41 17/11/2020 19:35:07 .ENTERSHAUSENûPROJECTûINûTHEû(ERSFELD 2OTENBURGûDISTRICTûBASEDûONûALLEGEDû CONmICTSûWITHûSPECIESûPROTECTION ûITûSAID Warnow Tunnel up for refi 4HEûDEVELOPERûHASûBEENûWORKINGûONû .ENTERSHAUSENSûDEVELOPMENTûFORûlVEûYEARSû „ GERMANY Transport and said it met all the requirements for the PROJECTûTOûBEûAPPROVEDû!"/û7INDûSAIDûTHATû Australian toll road operator ATLAS ARTERIA is case. That has improved in recent years with BETWEENûûANDû ûANûAVERAGEûOFûû considering restructuring the debt on its Warnow Atlas Arteria reporting an average of around TURBINESûWEREûINSTALLEDûINû(ESSEûPERûYEARû Tunnel project near Rostock in Mecklenburg- 13,000 daily in 2019. BUTûTHATûTHEûNUMBERûHASûSINCEûCOLLAPSED Vorpommern. The operator wants to restructure Project sponsor Macquarie Atlas Roads was !"/û7INDûDEVELOPSûWIND ûSOLAR ûANDû the debt in order to “underpin sustainable spun out of the Macquarie infrastructure group in BIOGASûPROJECTSûWORLDWIDEû)TûHASûDEVELOPEDû distribution flows”, it said. 2018, becoming Atlas Arteria and later acquiring ANDûSOLDûOVERû'7ûOFûCAPACITYûSINCEû û Warnow is meeting its bank covenants but the outstanding 30% interest in Warnow from ACCORDINGûTOûITSûWEBSITEû!ROUNDûHALFûOFûTHATû net cashflows are being swept to lenders for Bouygues. TOTALûWASûBUILTûONûAûTURNKEYûBASIS debt reduction. Atlas Arteria reported net Atlas Arteria said the Covid-19 pandemic debt of €140.4m on the project in the first half. caused a 9.1% traffic reduction in the first half UNIPER LNG REGAS ON HOLD The sweep has brought the debt total down although it has since recovered to pre-Covid somewhat from €146m in the first half of 2019. levels. Traffic has shown a strong recovery UNIPERûISûREVIEWINGûPLANSûFORûANû,.'û The deal was originally financed by lead following the easing of movement restrictions REGASûTERMINALûINû7ILHELMSHAVEN ûCITINGû arrangers Deutsche Bank, NordLB, and KFW from the end of April. Warnow’s revenues shrunk RELUCTANCEûBYûMARKETûPLAYERSûTOûMAKEû in 2000 with a €154m, 25-year debt package. by 7.3% and Ebitda was €4.3m in the first half, BINDINGûBOOKINGSûFORûIMPORTûCAPACITIESû Another 10 commercial banks were brought down 13.5% from 2019. DURINGûANûOPENûSEASONûROUNDûh.UMEROUSû into the deal including Landesbanks and some The Warnow Tunnel, also known as the MARKETûPLAYERSûTOOKûPARTûINûTHEûPROCEDUREû international lenders such as ING and DePfa, as Warnowquerung, is a 700-metre tunnel under ANDûEXPRESSEDûGENERALûINTEREST ûBUTûNOTû well as the EIB, which guarantees 25% of the the Warnow river 240km north-west of Berlin. ENOUGHûOFûTHEMûHAVEûMADEûTHEIRûBOOKINGû debt. It provides a route across the river that reduces INTENTIONSûBINDING vû5NIPERûSAIDûINûAû The Macquarie/Bouygues-developed road travel times and avoids congestion and a longer statement. opened in 2003 but by 2004 was facing some route through the city centre. The concession .EWûOPTIONSûFORû,.'û4ERMINALû difficulties after reporting traffic volumes of only expires in 2053. 7ILHELMSHAVENû'MB(û,4E7 ûINCLUDEû 25%–40% of its 20,000-vehicles-per-day base Jordan Bintcliffe using it as an import terminal for ENVIRONMENTALLYûFRIENDLYûGASûORûHYDROGEN û Uniper said. through structural improvements in the THEûCONSTRUCTIONûOFûlVEûPHOTOVOLTAICû -ITSUIû/3+û-/, ûANDû5NIPERSûPROJECTû PLANNINGûPROCESSû!MONGûCHANGESûAREûTHEû PROJECTSûLOCATEDûINûCENTRALû'REECEû4HEYûAREû COMPANYû,4E7 ûHADûSIGNEDûAû YEARû suspension of a regulation that limited EXPECTEDûTOûBECOMEûOPERATIONALûWITHINûSIXû charter contract for a 263,000m3ûmOATINGû ONSHOREûWINDûTURBINESûTOûAûHEIGHTûOFûû months. STORAGEûANDûREGASIlCATIONûUNITû&325 ûTHATû metres. .%(SûlVEûPROJECTSûWEREûAWARDEDû WOULDûHAVEûSERVEDûTHEûTERMINALû4HEû&325û 4HEû)!!ûWILLûENABLEûCERTAINûPROJECTSûTOû YEARûlXEDûTARIFFSûINûTHEû*ULYûûAUCTIONû WASûTOûBEûBUILTûBYû$AEWOOû3HIPBUILDINGû APPLYûFORûTHEûCOSTûOFûINVESTIGATIONSûTOûBEû CONDUCTEDûBYûTHEû'REEKû2EGULATORYû -ARINEû%NGINEERINGû$3-% û3-"#ûWASû COVEREDû'ERMANûOFFSHOREûWINDûINDUSTRYû !UTHORITYûOFû%NERGYû.%(ûWASûADVISEDûBYû ADVISINGûONûlNANCINGûTHEûPROJECT BODYû7!"ûWELCOMEDûTHEûNEWûTARGETûFORû +,#û,AWû&IRMûANDû4UVû(ELLASû,ONDON 7ILHELMSHAVENûISû'ERMANYSûONLYû PROVIDINGûPLANNINGûSECURITYûTOûTHEûINDUSTRYû BASEDû.%(ûDEVELOPS ûBUILDSûANDûOPERATESû deep-sea port and has infrastructure for BUTûCRITICISEDûTHEûLACKûOFûAûCONTRACTûFORû RENEWABLEûENERGYûASSETSûWITHûAûFOCUSûONû OFmOADINGû,.'ûTANKERSûOFûALLûSIZESû27%ûISû DIFFERENCEû#F$ ûMODELûINCLUDEDûINûTHEû SOLARûANDûWINDû)TûISûBACKEDûBYû53 BASEDû STILLûPUSHINGûAHEADûWITHûITSû'ERMANû,.'û act, which regulates the tender design for investors. 4ERMINALûINû"RUNSBUETTEL ûAûJOINTûVENTUREû FUTUREûOFFSHOREûWINDûPROJECTS 0IRAEUSû"ANKûHASûPROVIDEDûlNANCINGûFORû PROJECTûINVOLVINGû$UTCHûGASûNETWORKû 7!"ûNOTEDûTHEûLACKûOFûAûhCOHERENTû MOREûTHANû'7ûOFûRENEWABLEûCAPACITYû operator Gasunie, German tank storage CONCEPTûFORûIDENTIFYINGûOTHERûENERGYû %ARLIERûTHISûYEARûITûPROVIDEDû#UBICOû PROVIDERû/ILTANKINGû'MB(ûANDû$UTCHû GENERATIONûAREASûINûWHICHûGREENûHYDROGENû 3USTAINABLEû)NVESTMENTSûWITHûAûõMûDEBTû STORAGEûCOMPANYû6OPAKû,.'û(OLDING ISûTOûBEûGENERATEDûFROMûOFFSHOREûWINDvû PACKAGEûTOûRElNANCEûTHREEû'REEKûWINDû 7!"ûANDûFELLOWûINDUSTRYûBODYû"7/ûBOTHû FARMSûITûHADûACQUIREDû#UBICOûACQUIREDû GERMANY GOES FOR 40GW OFFSHORE ADVOCATEûFORûAû#F$ûMODEL ûWHICHûTHEYûSAYû %OLIKIû:ARAKAû2ACHIû'KIONIû%NERGY ûTHEû WIND WILLûHELPûREDUCEûELECTRICITYûGENERATIONûCOSTSû owner of the three operational wind farms, BYû FROMû5NDERFOCû(OLDINGS 'ERMANYSûPARLIAMENTûHASûSETûAûNEWû TARGETûOFû'7ûOFûOFFSHOREûWINDûENERGYû SOLARCENTURY SEEKS SOLAR SITES CAPACITYûBYûûANDûANûINTERIMûTARGETûOFû '7ûBYûû4HEû"UNDESTAGûAGREEDûANû GREECE 4HEû5+SûSOLARCENTURY has made AMENDMENT ûINTRODUCEDûBYûTHEû&EDERALû applications for three sites on which to -INISTRYûOFû%CONOMICû!FFAIRSûû%NERGYû PIRAEUS BACKS PV DEVELOPûAû-7ûSOLARûFARMûINû'REECE "-7) ûTOûTHEû/FFSHOREû7INDû%NERGYû!CTû 4HEûCOMPANY ûWHICHûISûABOUTûTOûBEû OUTLININGûTHEûNEWûCAPACITYûTARGETS 'REEKûBANKû0IRAEUSûWILLûPROVIDEûõMûINû ACQUIREDûBYû3TATKRAFT ûANNOUNCEDûITSûENTRYû 4HEû"-7)ûINTRODUCEDûTHEû)NVESTMENTû DEBTûlNANCINGûFORû-7ûOFûSOLARûCAPACITYû INTOûTHEûCOUNTRYûINûLATEû/CTOBERûWITHûTHEû !CCELERATIONû!CTû)!! ûWHICHûAIMSûTOûSPEEDû INû'REECEûDEVELOPEDûBY NATIONAL ENERGY acquisition of development-stage solar THEûEXPANSIONûOFûONSHOREûWINDûENERGYû HOLDINGS (NEH)û4HEûPACKAGEûWILLûlNANCEû PROJECTSûOFû-7 ûACCORDINGûTOûITSûWEBSITE

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4WOûOFûTHEûPOTENTIALûSITESûAREûINû&ARSALA û &EBRUARYû/PERATIONSûAREûEXPECTEDûTOûBEGINû h7EûINTENDûTOûGROWûTHISûPIPELINEûTHROUGHû 4HESSALY ûWHILEûTHEûTHIRDûSITEûISûINû6OUZIû INûEARLYû further development, acquisition of assets INûCENTRALû'REECEû4HEûPROJECT ûWHEREVERûITû "N-ûISûDEVELOPINGûTHEû-7û/WENINNYû and via co-development and partnership ISûBUILT ûWILLûHAVEûCAPEXûOFûABOUTûõMû ûWINDûPROJECTûINû#OUNTYû-AYO ûAûû OPPORTUNITIES vû0ETERû$UFF û0#2%ûDIRECTOR û 3TATKRAFTûTHISûWEEKûAGREEDûTOûACQUIREû JOINTûVENTUREûWITHûFELLOWûSEMI STATEû WROTEûONû,INKED)Nû$UFFûANDûCO FOUNDERû 3OLARCENTURYûANDûITSû'7ûGLOBALûSOLARû %LECTRICITYû3UPPLYû"OARDû%3" û%3"ûINû *USTINû"ROWNûSETûUPûTHEûCOMPANYûINû PIPELINEûPIPELINEûFORûaMûFROMû3COTTISHû /CTOBERûAPPROACHEDûTHEûMARKETûTOûlNANCEû Omnes made the investment via its %QUITYû0ARTNERS û6ANTAGE0OINTû#APITALû ITSûPORTIONûOFûTHEûPROJECT ûISSUINGûAûPROJECTû #APENERGIEû)6ûRENEWABLEûENERGYûFUNDû 0ARTNERS û:OUKû#APITAL ûANDû'RUPOû%CO INFORMATIONûMEMORANDUMûFORûTHEûõMû #APENERGIEû)6ûHASûRAISEDûOVERûõMûSOûFARû PROJECTSûNON RECOURSEûlNANCING and has a focus on wind and solar power. BIDS DUE ON EGNATIA CONCESSION 4HEûINVESTMENTûINû0#2%ûISûTHEûFUNDSûlFTHû BROOKFIELD RP LINES UP WIND SALE INVESTMENTûTHISûYEAR 4HEûSEVENûSHORTLISTEDûBIDDERSûFORûTHEû %GNATIAû/DDOSûMOTORWAYûCONCESSIONû 4ORONTO LISTEDûBROOKFIELD RENEWABLE PARTNERS M20 ROAD/RAIL PPP CONSULTATION WEREûlNALLYûABLEûTOûSUBMITûBINDINGûOFFERSû "ROOKlELDû20 ûISûSELLINGûTHEûREMAINDERûOFû FROMûEARLIERûTHISûMONTHûASûTHEûlNALûDRAFTû ITSû)RISHûWINDûOPERATIONSûANDûEXPECTSûTOû !ûPUBLICûCONSULTATIONûOFûOPTIONSûFORûTHEûUPû CONTRACTûISûlNALISEDûANDûPUBLISHED complete the sale in 2021, CEO Connor TOûõBNû.-û#ORKn,IMERICKû000ûPROJECTû 4HEûSHORTLISTEDûBIDDERSûAREû!.!3û 4ESKEYûSAIDûONûANûANALYSTûCALL ISûDUEûTOûSTARTûONû.OVEMBERû ûWITHûAû )NTERNATIONALû$IOLKOSû'%+û4ERNAûANDû "ROOKlELDû20ûHASûISSUEDûAûTEASERûFORûTHEû NUMBERûOFûROADûANDûRAIL BASEDûOPTIONSû %GISû-ACQUARIE OWNEDû&REYJAû(OLDINGSû SALE ûWHICHûINCLUDESû-7ûOFûOPERATIONALû shortlisted and under consideration for 2OADISû4RANSPORTATIONûANDû!KTORû assets along with a development pipeline their engineering, environment, and #ONCESSIONSû3ICHUANû#OMMUNICATIONSû OFûOVERû-7 ûANDûITSû)RISHûTRADINGûANDû economic effects. )NVESTMENTû'ROUPûANDû$AMCOû%NERGYûANDû OPTIMISATIONûPLATFORMû+0-'ûANDû".0û 0UBLICûCONSULTATIONûRUNSûUNTILû$ECEMBERû 6INCIû(IGHWAYS û6INCIû#ONCESSIONSûANDû 0ARIBASûAREûLEADINGûTHEûSALEû"ROOKlELDû20û û,IMERICKû#ITYûANDû#OUNTYû#OUNCILûISû -YTILINEOSû(OLDINGS INûûCOMPLETEDûAûõMûRElNANCINGûOFû PROGRESSINGûTHEûDEVELOPMENTûOFûTHEû.-û 4HEûDEADLINEûHADûALREADYûBEENûPUSHEDû ITSû)RISHûWINDûASSETSûWITHû!)" û#)"# û%$# û PROJECTûINûPARTNERSHIPûWITHû#ORKû#OUNTYû BACKûSEVERALûTIMESûDUEûTOûVARIOUSû .ATIXISûANDû3ABADELL #OUNCIL û#ORKû#ITYû#OUNCIL û4RANSPORTû PROCUREMENTûISSUESû4ERMSûWEREûRECENTLYû 4HEû%UROPEANû#OMMISSIONûRECENTLYûGAVEû )NFRASTRUCTUREû)RELANDûANDûTHEû$EPARTMENTû changed on the contract to include the APPROVALûFORû-ITSUBISHIû5&*û,EASEûû&INANCEû OFû4RANSPORT IMPOSITIONûOFûlNANCIALûPENALTIESûIFûSPONSORSû -5&* ûANDû!RJUNû)NFRASTRUCTUREû0ARTNERSû )RISHûPRIMEûMINISTERû,EOû6ARADKARûINû HAVEûNOTûALREADYûSECUREDûPROJECTûlNANCINGû !)0 ûACQUISITIONûOFûTHEû-7û"ALLYHOURAû EARLYûûCONlRMEDûINûAûPARLIAMENTARYû AGREEMENTSû3OMEûBIDDERSûHAVEûOPPOSEDû WINDûFARMûINû#OUNTYû#LARKûANDûTHEû DEBATEûTHATûTHEû-û,IMERICKn#ORKû the change, as it was not a requirement -7û3LIEVECALLANûWINDûFARMûINû#OUNTYû PROJECTûWILLûBEûCARRIEDûOUTûASûAû000û,OCALû WHENûBIDDINGûlRSTûBEGANûINû ûWITHû #LAREûFROMû"ROOKlELDû20 AUTHORITIESûANDûSTATEûAGENCYû4RANSPORTû THEûMOVEûSAIDûTOûBEûUNFAIRLYûCREATINGûhTWO "ROOKlELDû20ûDEVELOPEDûANDûlNANCEDû )NFRASTRUCTUREû)RELANDûBEGANûLOOKINGûFORû SPEEDvûBIDS THEû"ALLYHOURAûANDû3LIEVECALLANûPLANTS û DESIGNûCONSULTANTSûFORûTHEûPROJECTûINûû 3IGNIlCANTûCAPITALûWILLûBEûREQUIREDûFORû WHICHûBEGANûOPERATIONSûINû&EBRUARYûANDû 4HEûKMûPROJECT ûESTIMATEDûTOûCOSTûUPûTOû the upgrading and repairing of the road, !UGUSTû ûRESPECTIVELYû4HEûSALEûPRICEû õBN ûWILLûBEûANûUPGRADINGûOFûTHEûEXISTINGû WHICHûWASûCOMPLETEDûINûûCOSTINGû WASûõMûWITHû"ROOKlELDû20ûREPORTINGû .ûROUTEû)TûWILLûBEû)RELANDSûLARGESTûROADû õBNû"IDDERSûAREûCOMPETINGûTOûlNANCE û PROCEEDSûOFûõM 000ûFORûOVERûûYEARS OPERATEûANDûMAINTAINûTHEûKMûMOTORWAYû 3ENIORûDEBTûlNANCINGûOFûõMûWASû ONûAû YEARûCONCESSIONû!LPHAû"ANKûISû RAISEDûINûûFROMû-5&'ûASûLEADûARRANGER û THEûlNANCIALûADVISER ûWHILEû&ORTSAKIS û HEDGEûPROVIDER ûSECURITYûANDûFACILITYûAGENT û $IAKOPOULOUSû-YLONOGIONNISûû!SSOCIATESû 3-"# ûANDû%XPORTû$EVELOPMENTû#ANADAû NORWAY &$-!û,AWû3ERVICES ûISûADVISINGûONûLEGALû 4HEûPROJECTSûRECEIVEû)RELANDSû YEARû2%&)4û ANDû!VARISûANDû.OVUSûONûTECHNICALûADVICE ûSUBSIDYûSCHEMEû.ORDEXûPROVIDEDûTHEû FRED OLSEN TEAMS UP FOR 4.5GW TURBINES OFFSHORE ,ONDON BASEDû!)0SûSUBSIDIARYû!RJUNû !LLIANCEû5+ûûANDû-5&*ûACQUIREDûPROJECTû FRED OLSEN and HAFSLUND ECO have agreed a IRELAND COMPANIESû"ALLYHOURAû7INDûANDû##7&,û 50:50 offshore wind partnership with plans VIAûJOINTLYûHELDû306û!!5+û-5,û(OLD#O TOûBIDûFORûUPûTOû'7ûOFûCAPACITYûINûû BNM PICKS EIB/BOI FOR RESS WIND 4HEYûWILLûCOOPERATEûONûSUBMITTINGûAûPRE OMNES BUYS INTO SOLAR DEVELOPER application for development of offshore )RISHûSEMI STATEûUTILITYûBORD NA MONAû"N- û WINDûPROJECTSûATûTHEû3ORLIGEû.ORDSJOûANDû HASûMANDATEDûTHEû%UROPEANû)NVESTMENTû 0ARIS BASEDûPRIVATEûEQUITYûCOMPANYûOMNES 5TSIRAû.ORDûSITESûWHENûBIDDINGûFORûTHEû "ANKû%)" ûANDû"ANKûOFû)RELANDû"O) ûTOû has acquired a controlling stake in solar .ORWEGIANûCONTINENTALûSHELFûBEGINSûINû LENDûONûITSûõMû#LONCREENûWINDûPROJECTû developer POWER CAPITAL RENEWABLE ENERGY 2021. INû)RELAND ûAûSOURCEûSAIDû4HEû-7û 0#2% ûINû)RELAND h4HEûCOMBINATIONûOFû(AFSLUNDû%COSû #LONCREENûPROJECTûWONûAû YEARû2ENEWABLEû 0#2%ûHASûAûPROJECTûPIPELINEûOFû-7û competencies as power producer and grid %LECTRICITYû3UPPORTû3CHEMEû2%33 ûSUBSIDYû INû)RELANDûANDûINû!UGUSTûTHEûCOMPANYûWONû OPERATORûWITHû;&REDû/LSENS=ûEXPERIENCEû MECHANISMûEARLIERûTHISûYEAR  YEARûSUPPORTûFORûFOURûOFûITSûPROJECTSû WITHINûDEVELOPMENTûOFûRENEWABLEûANDû "N- ûTHEûSOLEûOWNERûOFûTHEûPROJECT ûINû UNDERûTHEûCOUNTRYSû2%33ûSCHEMEû4HEûFOURû OFFSHOREûPROJECTSûGIVESûTHEûPARTNERSHIPû EARLYû/CTOBERûBROKEûGROUNDûATûTHEûSITEû4HEû PROJECTSûAMOUNTûTOû-7û)NûTHEûLONG AûUNIQUEûPOSITIONûTOûCONTRIBUTEûTOûTHEû UTILITYûISûINITIALLYûlNANCINGû#LONCREENûON TERM û0#2%ûWILLûAIMûTOûBUILD OUTû-7ûOFû REALISATIONûOFûANûOFFSHOREûWINDûINDUSTRYûINû BALANCEûSHEETû&INANCIALûCLOSEûISûTARGETEDûFORû CAPACITYûINûTHEûCOUNTRY .ORWAY vûAûSTATEMENTûSAID

Project Finance International November 18 2020 43

05 EMEA p39-54.indd 43 17/11/2020 19:35:08 WITHûHYDROGEN ûTHEû3PANISHû!SSOCIATIONûOFû #OGENERATIONû!COGEN ûSAIDûINûAûSTATEMENT FX risk open on Rv 555 4HEûAUCTIONûISûBEINGûHELDûUNDERûTHEû FRAMEWORKûOFûTHEû)NTEGRATEDû.ATIONALû „ NORWAY Transport %NERGYûû#LIMATEû0LANû5PûTOûûOFûPOWERû PRODUCEDûBYûCOGENERATIONûISûSELF CONSUMEDû The three pre-qualified bidders on the NKr10bn Highways, Acciona Concesiones, and Implenia on-site in factories and the other half is (US$974m) Rv 555 Sotrasambandet road PPP Switzerland. PROXIMITYûSELF CONSUMPTION û!COGENûSAIDûnû will submit initial clarifications on their proposals The bidders were shortlisted in May and FORûEXAMPLEûATûNEARBYûINDUSTRIALûSITES early next month with one key risk still said to be since then they have begun the tender work )TûISûEXPECTEDûTHATûCOGENERATIONûhWILLûBEû outstanding, the FX risk. and obtain further knowledge of the scope ALLOWEDûTOûHYBRIDISEûWITHûOTHERûRENEWABLEû Norway’s road authority Vegvesen is keen and deliverability of the project. A clarification TECHNOLOGIES ûSUCHûASûPHOTOVOLTAICSv û that the financing will be in Norwegian kroner phase was held with four meetings held with !COGENûSAIDû4HEûBODYûALSOûHOPESûFORû but it is widely perceived that the local market is each supplier. However the FX question is still COGENERATIONûTOûBEûhANûALLYûFORûTHEûFUTUREû not liquid enough for a debt deal this size with overhanging the process. INTEGRATIONûANDûENERGYûSYSTEMSûANDûTHEû infrastructure style tenors. The alternative would The availability-based Rv 555 project will DEVELOPMENTûOFûTHEûHYDROGENûECONOMYvû be to fund in euros but the question would then involve financing, building and operating the )TûSAIDûh#OGENERATIONûPLANTSûCANûALREADYû be who would take the currency risk. road for 25 years. It is expected to be awarded in OPERATEûWITHûHYDROGENûMIXTURESûINûTHEû In mid-2018 Skanska reached financial close the first half of 2021. The project will consist of GASûNETWORK ûWITHûPRODUCTIONûSYSTEMSûANDû in kroner on the Rv3/Rv25 road PPP but this a 1km suspension bridge; a 9km four-lane road; LOCALûMIXINGûOFûHYDROGEN ûANDûWITHûû was a much smaller deal at NKr2.6bn. SEB and 11km of tunnels; 14km of pedestrian and cycle HYDROGENv Swedish export credit agency SEK provided the paths; 19 short underpass tunnels; 22 bridges; 3PAINSûGOVERNMENTûANNOUNCEDûPLANSû debt. and 23 tunnel portals. The project will upgrade TOûAUCTIONû'7ûOFûRENEWABLESûCAPACITYû The pre-qualified consortia for Rv 555 are the existing two-lane Sotra connection, where BEFOREûTHEûENDûOFûTHEûYEARûSEEûSEPARATEû SOTRA LINK, represented by FCC Construccion, the bridge is the only access to the Oygarden STORYûINûTHISûISSUE  with Salini Impregilo, SK Engineering & municipality. Cogeneration production in 2020 has Construction, and Macquarie Corporate After Rv 555, Vegvesen is preparing the up to BEENûAFFECTEDûBYûTHEû#OVID ûPANDEMICû Holdings; ITIAS, represented by Itinera, with NKr7bn E10/Rv 85 80km road in the far north of 4HEûYEARûISûEXPECTEDûTOûENDûWITHûAûROUGHLYû ASTM and IHI Corporation; and VIA SOTRA, the country for tender. ûDROPûINûPRODUCTIONûCOMPAREDûWITHûû represented by Vinci Concessions, with Vinci Rod Morrison 0RODUCTIONûDROPPEDûBYûûINû-ARCHûANDû !PRILûBEFOREûREBOUNDEDûTOûûGROWTHû OVERûPRE #OVID ûlGURES ûANDûFALLINGûAGAINû .ORWAYSûGOVERNMENTûINû*UNEûISSUEDûAû WHICHûRECENTLYûREACHEDûAûõBNûCLOSEû BYûûINû/CTOBERû!COGENûREPRESENTSû ROYALûDECREEûMAKINGûITûPOSSIBLEûTOûSUBMITû #))6ûHASûAûTARGETûFUNDûSIZEûOFûõBNû#)0û MOREûTHANûûBUSINESSûGROUPSûFROMûTHEû licence applications for offshore wind DECLINEDûTOûCOMMENTû#)0ûWASûADVISEDûBYû cogeneration and industrial sectors, among POWERûPROJECTSûINûTHEûAREASûFROMû*ANUARYûû 7ATSONû&ARLEYûû7ILLIAMSûANDû&)(û0ARTNERSû others. 4HEû KM2û5TSIRAû.ORDûISûNORTH WESTûOFû &ORESTALIAûWASûADVISEDûBYû#LIFFORDû#HANCE 3TAVANGERûANDûWILLûBEûSUITABLEûFORûmOATINGû )Nû*ULY û#)0ûCLOSEDûONûAû YEAR ûõMû ANCALA BUYS ENCE RENEWABLES STAKE WINDûPOWER ûTHEûGOVERNMENTûSAIDû4HEû NON RECOURSEûPROJECTûlNANCINGûCREDITû  KM2û3ORLIGEû.ORDSJOû))ûRUNSûALONGû FACILITYûFORûITSû-7û-ONEGROSûPORTFOLIOû 3PANISHûCOMPANYûENCE ENERGIA Y CELULOSA has .ORWAYSûMARITIMEûBORDERûWITHû$ENMARKû OFûûWINDûPROJECTSûINû!RAGONû0&)û û AGREEDûTOûSELLûAûûSTAKEûINûITSû3PANISHû ANDûISûSUITABLEûFORûBOTTOM lXEDûWINDû -ONEGROSûISûPARTûOFûTHEûõBNû#OPENHAGENû RENEWABLESûUNITû%NCEû%NERGIAûTOû5+ BASEDû power. )NFRASTRUCTUREû)))ûENERGYûINFRASTRUCTUREû infrastructure investment fund ANCALA fund, acquired from Forestalia in PARTNERSû4HEûDEALûVALUESûTHEûCOMPANYû 3EPTEMBER ATûõMûINCLUDINGûõMûOFûDEBTû%NCEû $EBTûPROVIDERSûINCLUDEû""6! û3ABADELLû WILLûRETAINûCONTROLûOFûTHEûSUBSIDIARYûWITHû SPAIN ANDû"ANKIAûWITHûõMûTICKETSûEACHû!".û AûûSTAKEû4HEûDEALûDOESûNOTûINCLUDEûITSû !-2/ûANDû"ANKINTERûWITHûõMûEACHûANDû ûSTAKEûINûTHEû-7û0UERTOLLANOûSOLARû CIP/FORESTALIA TEAM UP FOR 1GW WIND 5NI#REDITûWITHûTHEûREMAININGûõMû4HEû thermal plant. PROJECTSûHAVEûPOWERûPURCHASEûAGREEMENTSû 4HEûPRICEûISûõMûFORûAûûSTAKE û COPENHAGEN INFRASTRUCTURE PARTNERS #)0 û 00!S ûFORûûYEARSûFROMûTHEûBEGINNINGûOFû WITHû%NCEûRECEIVINGûõMûATûTHEûTIMEûOFû and FORESTALIA have agreed to co-invest in OPERATIONSûANDûCOVERINGûTHEûMAJORITYûOFû DEALûCLOSEûANDûUPûTOûõMûLINKEDûTOûTHEû Aû'7ûPORTFOLIOûOFûûWINDûFARMSûUNDERû OUTPUTûGENERATED û#)0ûSAIDû-ONEGROSûWILLû DEVELOPMENTûOFûTHEûPORTFOLIOûOFûRENEWABLESû DEVELOPMENTûINûTHEû3PANISHûPROVINCEû PRODUCEûABOUTû47HûOFûPOWERûANNUALLY û FORûAûCAPITALûGAINûOFûUPûTOûõM OFû4ERUELû!LLûOFûTHEûPLANTSûHAVEûGRIDû WITHûAROUNDû47HûEXPECTEDûTOûBEûSOLDû %NCEûHASûBEGUNûAûPROCESSûTOûSELLûITSûû CONNECTIONûRIGHTSûANDûAREûBEINGûPROGRESSEDû UNDERûTHEû00! STAKEûINûTHEû0UERTOLLANOûSOLARûTHERMALû TOWARDSûlNANCIALûCLOSE ûWHICHûISûEXPECTEDû PLANTû4HEûCOMPANYûACQUIREDûTHEûPLANTûINû INûAPPROXIMATELYûTWOûYEARS GOVT PLANS COGEN AUCTION .OVEMBERûûFORûõM &ORESTALIAûHASûDEVELOPEDûTHEûPROJECTS ûWHICHû %NCEûOPERATESû-7ûOFûRENEWABLEû HAVEûNOTûBEENûINVOLVEDûINûPUBLICûAUCTIONSû 3PAINSûGOVERNMENTûISûPREPARINGûTOû CAPACITYûINCLUDINGû-7ûOFûPHOTOVOLTAICSû 4HEûAGREEMENTûWILLûSEEûTHEûCOMPANYûCONTINUEû IMMINENTLYûISSUEûAûCALLûFORû'7ûOFû 06 ûANDûFOURûBIOMASSûPLANTSûTOTALLINGû to provide development services, taking the COGENERATIONûCAPACITYûUNDERûEFFORTSûTOû -7û4HEûCOMPANYûINTENDSûTOûENTERûTHEû PROJECTSûTOûCLOSEûANDûINTOûCONSTRUCTION DECARBONISEûINDUSTRIALûINVESTMENTûINûTHEû PROJECTSûINTOû3PAINSûUPCOMINGûRENEWABLESû #)0ûMADEûTHEûINVESTMENTûVIAûITSû COUNTRYû4HEûNEW ûHIGH EFlCIENCYûCAPACITYû AUCTIONSû3PAINûISûPLANNINGûAUCTIONSûOFûATû #OPENHAGENû)NFRASTRUCTUREû)6û#))6 ûFUND û WILLûBEûCOMPATIBLEûWITHûRENEWABLEûGASûORû LEASTû'7ûOFûRENEWABLEûCAPACITYûBYûTHEû

44 Project Finance International November 18 2020

05 EMEA p39-54.indd 44 17/11/2020 19:35:08 NEWS EMEA

ENDûOFûTHEûYEARûSEEû3PAINûlLEûINûTHISûISSUE  settlement in the water sector gave some COMFORTûTOûUTILITYûINVESTORS ûANDû70$ûISû ELAWAN RAISES PV DEBT SWEDEN EXPECTEDûTOûWAITûUNTILûITûSEESûTHEûRESULTSûOFû 2)) ûINûTHEûENERGYûSECTORû!ûFAVOURABLEû ELAWAN ENERGY HASûRAISEDûAûõMûLOANûTOû DOWNING BACKS CLOUDBERRY WIND SETTLEMENTûWOULDûCREATEûAûBETTERûSALESû lNANCEûITSû-7û#AMPANARIOûSOLARû06û ENVIRONMENTûFORû70$ ûAûSALEûTHATûCOULDû PROJECTûINûTHEû!LBACETEûREGIONû,ENDERSû /SLO BASEDûDEVELOPERûCLOUDBERRY CLEAN RAISEûaBN INCLUDEû"ANCOû3ABADELL û"ANKIA û!BANCAû ENERGY and DOWNING will partner on the 70$ûISûSPLITûINTOûFOURûDISTRIBUTIONû #ORPORACIONû"ANCARIA ûANDû"ANCOû0ICHINCHAû CONSTRUCTIONûANDûOWNERSHIPûOFûTHEû-7û NETWORKûOPERATORSû$./S ûnû3OUTH Espana. 2EWINDû6ANERNûSHALLOWûWATERûOFFSHOREû 7EST ûWITHûAûREGULATEDûASSETûVALUEû2!6 û 4HEûDEVELOPMENTûINCLUDESûTHEû WINDûPROJECTûINûSOUTHERNû3WEDENû,ONDON OFûaBN û3OUTHû7ALESûaBN û%ASTû CONSTRUCTIONûOFûlVEûADJACENTû06û HEADQUARTEREDû$OWNINGûANDû#LOUDBERRYû -IDLANDSûaBN ûANDû7ESTû-IDLANDSû PLANTSûOFû-7ûEACHû4HEûPLANTSûAREû ENTEREDûANûEXCLUSIVITYûAGREEMENTûWITHû aBNû/FGEMûWANTSûTHEû2))/ ûPRICEû EXPECTEDûTOûBEûOPERATIONALûBYû1ûû $OWNINGûTOûBUYûAûhSIGNIlCANTûMAJORITYû CONTROLSûTOûBEGINûINû!PRILûûFOLLOWINGû &RENCHûBUILDERû%IFFAGESûLOCALûENERGYû INTERESTvûINûTHEû,AKEû6ANERNûPROJECTû4HEû THEûlNALûDETERMINATIONSûBUTûTHEûPROCESSû SUBSIDIARYûWASûAWARDEDûTHEûENGINEERING û DEALûISûEXPECTEDûTOûCLOSEûINûTHEûlRSTûHALF COULDûBEûDELAYEDûBYûAPPEALSûFROMûTHEû PROCUREMENTûANDûCONSTRUCTIONû%0# û #LOUDBERRYSûESTIMATEDûVALUEûREALISATIONû utilities. CONTRACTûINû/CTOBER FORûTHEûDEVELOPMENTûOFûTHEû-7û )TûWILLûBEûINTERESTINGûTOûSEEûIFûTHEû5+û 4HEûCONTRACTûISûWORTHûOVERûõMû PROJECTûISûAROUNDû53M ûINCLUDINGû GOVERNMENTûENCOURAGESûINDUSTRY STYLEû %IFFAGEûINûTHEûlRSTûHALFûOFûTHISûYEARûBUILTû #LOUDBERRYSûPROJECTûDEVELOPMENTûFEE ûITû BIDDERSûORûISûSTILLûHAPPYûWITHûINFRASTRUCTUREû %LAWANSû-7û4ORRIJOSû06ûPLANTûINû SAIDû!PPROXIMATELYûONE THIRDûOFûTHEûVALUEû FUNDûINVESTORSûJOININGûTHEûFRAYûFORûANOTHERû .OVESû%LAWANûWASûADVISEDûONûTHEûDEBTû ISûEXPECTEDûTOûBEûPAIDûINûTHEûlRSTûHALFûOFû REGULATEDûUTILITYû4HEûUTILITYûREGULATORSû lNANCINGûBYû7ATSONû&ARLEYûû7ILLIAMSû  ûPENDINGûlNALûGRIDûCONlRMATION û HADûBEENûUSINGûTHEûLATESTûlVE YEARûPRICINGû 4HEûLENDERSûWEREûADVISEDûBYû#UATRECASASû and the remainder at commissioning in rounds to push down returns to utilities. &ORMERLYûKNOWNûASû'ESTAMPû7IND û%LAWANû n !DDITIONALLY ûTHEûGOVERNMENTûISû HASûDEPLOYEDûAROUNDû'7ûOFûRENEWABLEû #LOUDBERRYûINû3EPTEMBERûMADEûAûCASH INTRODUCINGûLEGISLATION ûTHEû.ATIONALû CAPACITYûSINCEû AND SHAREûOFFERûTOûACQUIREû3CAN6INDû û 3ECURITYûû)NVESTMENTû"ILL ûREQUIRINGû WHICHûISûDEVELOPINGûTHEûPROJECTûINûTHEû BUSINESSESûTOûNOTIFYûAUTHORITIESûABOUTû IBERDROLA PICKS GREEN HYDROGEN EPC NORTHERNûPARTûOFû,AKEû6ANERNû#LOUDBERRYû foreign investment in sensitive industries WILLûISSUEûMûSHARESûATû.+RûPERû including nuclear, communications, data 3PANISHûWINDûENERGYûGROUPûIBERDROLA has SHARE ûMAKINGûAûCASHûPAYMENTûOFûAû INFRASTRUCTURE ûENERGYûANDûTRANSPORTû CHOSENû.ELû(YDROGENû%LECTROLYSERûASûITSû MAXIMUMû.+RMû53  ûANDû 4HATûSAID ûTHEûGOVERNMENTûISûINTRODUCINGû SUPPLIERûFORûAû-7ûGREENûHYDROGENûPLANTû REVERSINGû3CAN6INDûSûEXISTINGûSALESûCREDITû a cross government group to attract INû0UERTOLLANOû4HEûCOMPANYûWILLûSUPPLYû TOû#LOUDBERRY FOREIGNûINVESTMENTûINTOûTHEû5+û4HEû THEûELECTROLYSERûFORûTHEûõMûPROJECT û #LOUDBERRYûHASûBEENûINVOLVEDûINûTHEû /FlCEûFORû)NVESTMENTûWILLûLOOKûTOûUNLOCKû WHICHûISûBEINGûDEVELOPEDûASûAûJOINTûVENTUREû PROJECTSûDEVELOPMENTûSINCEûITSûINCEPTIONû investment in sectors such as infrastructure WITHû&ERTIBERIAûANDûISûEXPECTEDûTOûBEGINû INûû4HEûPROJECTûWASûLATERûSOLDûTOûTHEû DEVELOPMENTûANDûRENEWABLEûENERGY operations in 2021. 3CAN6INDûûCONSORTIUMûhFORûMOREûDETAILEDû 4HEûHYDROGENûFACILITYûWILLûCONSISTû PLANNINGv û#LOUDBERRYûSAID DOGGER FC DUE OFûAû-7ûSOLARûPHOTOVOLTAICû $OWNINGûHASûMOREûTHANûaBNûOFû PLANT ûAûLITHIUM IONûBATTERYûSYSTEMû ASSETSûUNDERûMANAGEMENTû4HEûDEALû 4HEûSIGNINGûDATEûFORûTHEûaBNû'7û WITHû-7HûSTORAGE ûANDûTHEû WITHû#LOUDBERRYûISûONEûOFûAûhSTRINGûOFû $OGGERû"ANKûOFFSHOREûWINDûPROJECTû HYDROGENûPRODUCTIONûUNITû(YDROGENû OPPORTUNITIESvûTHATû$OWNINGûISûFOCUSINGûONû lNANCINGûISûNOWûDUEû3PONSORSû33%ûANDû PRODUCEDûATûTHEûSITEûWILLûBEûUSEDûINû INûTHEû.ORDICûRENEWABLESûSECTOR %QUINORûHAVEûBOUGHTûûBANKSûINTOûTHEûDEALû &ERTIBERIASûNEARBYûAMMONIAûFACTORYûTOû ANDûSOLDûAûûSTAKEûINûTHEûPROJECTû4HEû manufacture green fertilisers. lNANCINGûWILLûFUNDûTHEûlRSTûTWOûPHASESûOFû 4HEûJOINTûVENTUREûISûALSOûLOOKINGûINTOûTHEû THEûSCHEMEûANDûTHEûSPONSORSûAREûEXPECTEDû DEVELOPMENTûOFû-7ûOFûGREENûHYDROGENû UK TOûMOVEûFAIRLYûQUICKLYûTOûlNANCEûTHEûTHIRDû CAPACITYûATû&ERTIBERIAûPLANTSûINû0UERTOLLANOû '7ûPHASEûINûTHEûNEWûYEARûUSINGûAû #IUDADû2EAL ûANDû0ALOSûDEûLAû&RONTERAû WPD SALE FOR NEXT YEAR SIMILARûTEMPLATEû-ASDARûISûEXPECTEDûTOûJOINû (UELVA ûBYûû4OTALûINVESTMENTûREQUIREDû THEûDEALûBYûTAKINGûAûûEQUITYûSTAKE ISûAROUNDûõBN 4HEûFORMALûSTARTûOFûTHEûSALEûOFûTHEûWESTERN .ELû(YDROGENû%LECTROLYSERûISûAûDIVISIONûOFû POWER DISTRIBUTIONû70$ ûBUSINESSESûOWNEDû TRIG PICKS UP EAST ANGLIA ONE STAKE .ORWEGIANûHYDROGENûTECHNOLOGYûPROVIDERû BYû53ûUTILITYû00,ûISûEXPECTEDûTOûSTARTûNEXTû .EL YEARûAFTERûTHEûlNALûDETERMINATIONûBYû 2ENEWABLESûFUNDû42)'ûHASûBOUGHTûAûû )BERDROLAûINTENDSûTOûINVESTûõBNûINû ENERGYûREGULATORû/FGEMûONûTHEû2))/ û STAKEûINûTHEû-7û%ASTû!NGLIAû/NEû RENEWABLEûENERGYûPRODUCTIONûANDûPOWERû price controls are revealed for power and OFFSHOREûWINDûFARMûDEVELOPEDûBYû3COTTISHû GRIDSûBYûûASûDEMANDûFORûCLEANûPOWERû gas transmission, due at the end of this 0OWER ûWITHûFUNDSûRUNûBYûITSûINVESTMENTû CONTINUESûTOûGROW ûITûSAIDûINû.OVEMBERû YEARû)NTERESTEDûBIDDERSûINCLUDEû-ACQUARIE û MANAGERû)NFRA2EDûBUYINGûAûFURTHERûû )BERDROLAûWANTSûTOûINCREASEûITSûINSTALLEDû $ALMORE û)BERDROLA û#+)ûANDû%NEL ûPLUSûAû 4HEûSALESûPRICEûWASûNOTûDISCLOSEDûBUTûISû SOLARûANDûWINDûCAPACITYûûTIMESûOVERû whole host of infrastructure funds. RUMOUREDûTOûBEûAROUNDûaMû BYû ûANDûITSûOFFSHOREûWINDûPOWERû 4HEûPRICEûREVIEWûFORûTHEûPOWERû 4HEûSTAKEûHASûBEENûBOUGHTûFROMû')' û BYûûTIMESû-EETINGûTHOSEûGOALSûWOULDû DISTRIBUTIONûNETWORKûOPERATORSû$./S ûWILLû WHICHûHELDûAûûINTERESTû')'ûBOUGHTûITSû BOOSTûITSûTOTALûGENERATIONûPORTFOLIOûTOû NOTûKICKûINûUNTILûû"UTûTHEûRECENTLYû STAKEûLASTûSUMMERûFROMû3COTTISHû0OWERû '7 PROPOSEDûBETTER THAN EXPECTEDûREGULATORYû FORûaBNûANDûFUNDEDûITûWITHûAûaBNû

Project Finance International November 18 2020 45

05 EMEA p39-54.indd 45 17/11/2020 19:35:08  YEARûHOLDCOûLOANûPRICEDûATûBPûTOûYEARû GORE STREET GETS NEW BATTERIES PROVIDESûAûFULLû%6ûmEETûSOLUTIONûFORûBUSû lVE ûBPûTOûYEARûûANDûTHENûBPû4HEû OPERATORS ûSERVINGûAROUNDûûOFûTHEû%6ûBUSû DEBTûlNANCINGûINCLUDESûAûaMû/&4/ûLOANû ,ISTEDûENERGYûSTORAGEûFUNDûGORE STREET has MARKETûINûTHEû5+ ONûTOPûANDûaMûOFûANCILLARIESû4HEûLOANû BOUGHTûAûPORTFOLIOûOFû-7û5+ûOPERATING û )Nû*UNE û:ENOBEûSIGNEDûAûaMû WILLûREMAINûINûPLACEû).' û'OLDMANû3ACHS û CASH GENERATINGûENERGYûSTORAGEûASSETSû RECEIVABLES TYPEûlNANCINGûBANKEDûONû ,LOYDS û-5&' û3ANTANDERûANDû3-"#ûFUNDEDû FROMû!NESCOûFORûaMûVIAûCASHûANDûTHEû ELECTRICûVEHICLEû%6 ûCHARGINGûCONTRACTSû the loan. issuance of new shares. FORûSIXûBUSûDEPOTSûWITHû.AT7ESTû:ENOBEû 4HEûPORTFOLIOûCOMPRISESû-7ûOFû CURRENTLYûSERVICESûMOREûTHANûûELECTRICû FINAL BIDS DUE FOR HUMBER GATEWAY OPERATINGûENERGYûSTORAGEûASSETSûACROSSûTHEû BUSES ûWITHûAûFURTHERûûELECTRICûVEHICLESû 5+ûINûlVEûPROJECTSûWITHûûUNDERLYINGû INûTHEûPIPELINEûBYûSUMMERûû &INALûROUNDûBIDSûAREûDUEûTHISûWEEKûFORû STORAGEûASSETSûINû'REATERû-ANCHESTER û 4HEûlVEûTOû YEARû.AT7ESTûLOANSûPROVIDEû THEûûSTAKEûINûTHEû-7û(UMBERû #HESHIREûANDû$ERBYSHIREûPLUSûOTHERû CHEAPûPRICINGûTOûTHEûSECTORû:ENOBEûRECEIVESû 'ATEWAYûOFFSHOREûWINDûFARMûINûTHEû5+û locations. a service charge for providing overnight .ORTHû3EAû"LACK2OCK û'REENCOATû5+û7IND û 4HEûBATTERYûENERGYûSTORAGEûSYSTEMSûATû CHARGINGûTOûTHEûBUSESûVIAûAû4ELSAûBATTERYû .ORGESû"ANKûANDû2EDû2OCKûAREûSTILLûSAIDû ALLûSITESûWEREûPROVIDEDûBYû"9$û!NESCOû and for providing software services. During TOûBEûLOOKINGûATûTHEûDEALû-ORGANû3TANLEYû WASûTHEû%0#ûPROVIDERûANDûWILLûCONTINUEû THEûDAYûITûCANûSUPPLYûSERVICESûTOûTHEûGRIDû)Nû ISûADVISINGûTHEûSELLER û27% ûWHICHûWILLû to provide asset management services for ADDITION û:ENOBEûOWNSûTHEûBATTERIESûONûTHEû CONTINUEûTOûHOLDûû4HISûWILLûBEûTHEû the portfolio, and is engaged with the fund BUSESûANDûCANûlNANCEûTHEûCHASSISûPARTûOFû FOURTHûANDûlNALûBIDDINGûROUNDû ONûTERMSûTOûSUBSEQUENTLYûPROVIDEûAûFULLû THEûNEWûBUSES !NALYSTSûATû2"#ûSUGGESTEDûAûSALESûPRICEû revenue optimisation service. /NCEûAûDEPOTûISûOPERATINGûTHEûDEBTûCANûBEû OFûaMûPERû-7ûCOMPAREDûWITHûTHEûaM DRAWNûDOWNûFORûTHEûASSETû4HEûlRSTûDEPOT û -7ûONûTHEûRECENTûSALEûBYû33%ûOFûAûû INCH CAPE UP FOR CFD AUCTION FORû3TAGECOACHûINû'UILDFORD ûISûOPERATINGû STAKEûINûTHEû-7û7ALNEYûPROJECTûFORû UNDERûAûSEVEN YEARûCONTRACTû!BELLIOûHASûAû aMûTOû'REENCOATû(UMBERû'ATEWAYûISû )TûISûEXPECTEDûTHATûTHEû'7û)NCHû#APEû SCHEMEûINû,ONDON û.ATIONALû%XPRESSûHASû THREEûYEARSûYOUNGERûTHANû7ALNEYû"OTHû OFFSHOREûWINDûPROJECTûWILLûBEûSUBMITTEDû TWOûINûTHEû7ESTû-IDLANDS ûTHEûLOCALûCOUNCILû SCHEMESûAREûBACKEDûBYûTWOûRENEWABLEû TOûNEXTûYEARSûCONTRACTûFORûDIFFERENCEû#F$ û HASûONEûINû.EWPORTûANDû&IRSTû'ROUPûHASû OBLIGATIONûCERTIlCATESû2/#S û auction. ESBûHASûJOINEDûTHEûPROJECTûASûAû WONûINû9ORKSHIREû:ENOBEûISûLOOKINGûTOû ûPARTNERûWITHû#HINASû3$)#û0OWER RED ADDûMOREûDEPOTSûTHATûCOULDûBEûlNANCEDûBYû FRV TO SEEK BATTERY PF ROCK POWERû%3"ûSAIDûh7EûAREûCONTINUINGûTOû ADDITIONSûTOûTHEû.AT7ESTûFACILITYû!NDûITûISû REVIEWûTHEûPROJECTSûDEVELOPMENTûSTRATEGYû LOOKINGûTOûSUPPLYûSIMILARûSERVICESûTOûTHEû FOTOWATIO RENEWABLE VENTURES (FRV), part of and consider options regarding future DELIVERYûVEHICLEûSECTOR !BDULû,ATIFû*AMEELû%NERGY ûISûTOûBUILDûITSû lNANCINGûANDûROUTEûTOûMARKETû"UTûYES ûITûISû :ENOBEûRAISEDûAûaMûLOANûFROMû SECONDû5+ûBATTERYûSTORAGEûPROJECTûINûAûJOINTû VERYûLIKELYûTHATûWEûWILLûENTERûTHEûNEXTû#F$û 3ANTANDERûINûEARLYûûONûITSûBATTERYû VENTUREûWITHûITSûPARTNERû(ARMONYû%NERGY û AUCTIONvû ASSETS ûWITHûaMûlNALLYûDRAWNûDOWNû THEûû-7-7Hû#ONTEGOûSCHEMEûNEARû %3"ûWASûRUMOUREDûTOûBEûTAKINGûAûSTAKEû LASTû.OVEMBERû)Nû*UNE ûITûANNOUNCEDûAû "URGESSû(ILLûINû7ESTû3USSEXû4HEûTEAMûISû INûEARLIERûTHISûYEARûBUTûTHEûDEALûSEEMEDû PARTNERSHIPûWITHû%$&ûTOûJOINTLYûTRADEûANDû EXPECTEDûTOûLOOKûATûTHEûPOSSIBILITYûOFûRAISINGû TOûBEûOFFûINû*ULYûASû%3"ûWASûLOOKINGûTOû OPTIMISEû-7ûOFûITSûBATTERYûPORTFOLIOû PROJECTûlNANCEûONûTHEûASSETûINûTHEûNEWû BIDûTHEûSCHEMEûINTOûTHEûNEXTûCONTRACTûFORû :ENOBESûOPERATIONALûBATTERYûASSETSûAREû YEAR DIFFERENCEû#F$ ûAUCTIONûANDû2EDû2OCKû INû#LAREDOWN û!YLESFORDûANDû+INGSû"ARNû 4HEûaMûPROJECTûWILLûUSEûû4ESLAû WASûFOLLOWINGûAûMOREûMERCHANTûPROJECTû 4HEû%$&ûDEALûEXTENDSû:ENOBESûACCESSû -EGAPACKûLITHIUM IONûBATTERIES ûUTILISINGû APPROACHû,ASTûYEAR û%3"ûBOUGHTûAûûSTAKEû TOûTHEûWHOLESALEûMARKETûANDûBALANCINGû 4ESLASû!UTOBIDDERû!)ûSOFTWAREûFORûREAL TIMEû INû%$&Sû.EARTûNAû'AOITHEû-7ûOFFSHOREû MECHANISMûBYûUTILISINGû%$&SûTRADINGûDESKû TRADINGûANDûCONTROLû4HEûSCHEMEûWILLûBEû PROJECTûANDûTHENûREACHEDûlNANCIALûCLOSEû )TûINCLUDESûCONTRACTSûFORûSUPPLYûANDûOFFTAKEû FULLYûMERCHANTûBUTûWILLûRELYûONûTHEûARTIlCIALû ONûTHEûaBNûPROJECTûlNANCINGû4HEûTWOû OFûENERGY INTELLIGENCEûSOFTWAREûTOûMAXIMISEûITSû 3COTTISHûSCHEMESûAREûCLOSEûTOûEACHûOTHERûATû 4HEûCOMPANYûRAISEDûaMûINûEQUITYûLASTû revenues. the edge of the Firth of Forth. YEARûFROMû*%2!ûANDû4EPCOû0OWERû'RIDû0W#û #ONSTRUCTIONûWILLûSTARTûINû$ECEMBERû 3-"#ûHADûBEENûADVISINGû2EDû2OCKûONûTHEû ADVISEDûONûTHEûLATESTûEQUITYûFUND RAISINGû ANDûWHENûlNISHEDûTHEûFACILITYûWILLû SCHEMEûWHENûITûBIDûTHEû)NCHû#APEûPROJECTû BEûONEûOFûTHEûLARGESTûBATTERYûPLANTSû INTOûTHEûLASTû#F$ûROUNDûLASTû3EPTEMBERûANDû MEGA SCOTS ONSHORE PROJECTS INûTHEû5+û4HEûJOINTûVENTURESûlRSTû WASûNOTûSUCCESSFULû3OCIETEû'ENERALEûCOULDû ANNOUNCED SCHEMEûISûTHEû-7û-7HûBATTERYû BEûINVOLVEDûNOWû!DAMû%ZZAMELûISûNOWûTHEû PLANTûATû(OLESû"AY û$ORSET ûWHICHûHASû PROJECTûDIRECTORûONûTHEûSCHEMEû%ZZAMELû COMMUNITY WINDPOWER (CWP)ûHASûlLEDûAû BEENûOPERATINGûSINCEû*UNEû)TûHASûBEENû WASûAûPROJECTûMANAGERûTHISûYEARûFORû%$&û PLANNINGûAPPLICATIONûFORûTHEû-7û3COOPû PARTICIPATINGûINûTHEû%0%8ûSPOTûMARKET û ONûITSû.EARTûNAû'AOITHEû.N' ûSCHEMEû (ILLûWINDûFARMûINû$UMFRIESûANDû'ALLOWAY û INûTHEûlRMûFREQUENCYûRESPONSEû&&2 ûANDû 3INCEûTHEûLASTûAUCTIONûTHEûSCHEMEûHASûBEENû 3COTLANDû4HEûaBNûSCHEMEûWILLûINCLUDEû INûTHEû"ALANCINGû-ECHANISMû4HEûSITEû UPSIZEDûFROMû-7ûTOû'7 ENERGYûSTORAGEûANDûTHEûTALLESTûWINDûTURBINESû WASûTHEûlRSTûTOûGOûLIVEûINûTHEû.ATIONALû INû3COTLANDûnûûTURBINESûOFûUPûTOûû Grid’s new wider access application INFRACAPITAL PUTS £150M INTO ZENOBE METRES ûTWOû METREûMACHINES ûû PROGRAMMINGûINTERFACEû!0) ûFORûTHEû METREûMACHINESûANDûFOURûATûûMETRES "ALANCINGû-ECHANISM -'ûFUNDûMANAGERû)NFRACAPITALûHASû Danish developer EUROPEAN ENERGY is 4HEûJOINTûVENTUREûHASûIDENTIlEDûSEVENû committed £150m to ZENOBE ENERGY, an PARTNERINGûWITHûLOCALûCOMPANYû,OCOGENû PROJECTSûINûTHEû5+û)TûISûEXPECTEDûTOûLOOKû OWNERûANDûOPERATORûOFûBATTERYûSTORAGEû TOûDELIVERûANû-7ûONSHOREûWINDû TOûPROJECT lNANCEûEACHûSCHEMEûINITIALLYûASû and provider of services to electric vehicle PORTFOLIOûINû3COTLANDûOVERûTHEûNEXTûlVEû STANDALONEûPROJECTSû,AWûlRMû"RACEWELLû OPERATORSû:ENOBEûHASûMOREûTHANû-7û YEARSû%DINBURGH BASEDû,OCOGENûISûRUNûBYû ADVISEDû&26ûONûTHEû#ONTEGOûSCHEME OFûCONTRACTEDûGRID SCALEûBATTERIESûANDû !NDREWû,YLEû

46 Project Finance International November 18 2020

05 EMEA p39-54.indd 46 17/11/2020 19:35:08 NEWS EMEA

ûSTAKESûINûTWOû7HEELABRATORûSCHEMESûnû &ERRYBRIDGEûûANDûûnûATûAûMULTIPLEûOFûXû Scots drop fixed offshore sites %BITDA ûITûHASûSETûANûAGGRESSIVEûBENCHMARKû FORûTHEû7HEELABRATORûASSETSû!ûWINNERûISû „ UK Renewables DUEûTOûBEûANNOUNCEDûBYûYEAR END

The Scottish government has dropped two Scottish Government’s statement that 11GW of NE WTE BIDDER WAIT 1GW fixed foundation sites in Solway Firth and offshore wind deployment is possible by 2030 Moray Firth in the final Sectoral Marine Plan means there is much work to do, but this is a 4HEûANNOUNCEMENTûOFûTHEûTHREEûBIDDERSûFORû for Offshore Wind Energy. This leaves five fixed milestone moment for the decade ahead. THEûaM û  TONNES PER YEARûWASTE sites totaling 7GW in the plan, although each of “We are, however, disappointed that some TO ENERGYû7T% ûPLANTûINûTHEûNORTH EASTû these – in the north-east, east and three off Islay areas in the draft Sectoral Marine Plan have not of England could wait until the proposed – have various issues. Fifteen sites are now in the been taken forward at this stage. If we are to SHORTLISTEDûTEAMSûSUBMITûTHEûlNALûMAKE UPû plan, down from 17. deliver on those stretching climate targets, it’s OFûTHEIRûLINE UPSûONû.OVEMBERûû/NEûTEAMû Applications for the ScotWind site leasing imperative that we use every tool in our armoury that failed to make the cut is said to have round will close on March 31. Project sponsors and continue to work together to find creative APPEALEDûTHEûDECISIONû-ARKETûRUMOURSû say the plan will favour floating offshore wind solutions to the further deployment of the SUGGESTû#OVANTA û-66ûANDû6EOLIAûHAVEûNOTû schemes in the longer term at the expense of cheap, popular renewable energy technologies YETûMADEûITûTOûTHEûSHORTLISTLû fixed schemes in the nearer term, But Crown which are already delivering environmental and 4HEûPROJECTûWILLûTAKEûWASTEûFROMû3UEZSû Estate Scotland said “the areas identified offer economic benefits across Scotland.” TRAINSûONEûANDûTRAINSûOFûITSû3OUTHû4YNESIDEû clear opportunities for both fixed and floating The aim of the leasing round is to deliver PROJECTûWHENûTHOSEûCONTRACTSûRUNûOUTû wind technologies”. Crown Estate Scotland will another 8GW–10GW of offshore wind, which +0-'ûANDû$,!û0IPERûAREûADVISINGûTHEû confirm the final arrangements on January 15 for will see the Scottish capacity target increase SEVENûLOCALûCOUNCILSûINVOLVEDû(ARTLEPOOLû submitting applications. to 17GW–19GW, the bulk of which should be "OROUGHû#OUNCILûISûLEADINGûTHEûDESIGN û The ScotWind bid round is expected to attract delivered by 2030. Ten of the 15 sites have water BUILD ûlNANCING ûCOMMISSIONING ûTESTINGû big offshore wind players, including GIG/RIDG, depths in excess of 60m and therefore lend ANDûOPERATIONûOFûTHEû7T%ûSCHEMEûONûBEHALFû Iberdrola, Shell and Total. Last week, a new SSE/ themselves to floating offshore wind projects. OFûITSELFûANDû$ARLINGTON û$URHAMû#OUNTY û CIP/Marubeni team was announced as one of This first ScotWind round will therefore lead to -IDDLESBROUGH û.EWCASTLE û2EDCARûANDû the bidders. the development of some of the first commercial- #LEVELAND ûANDû3TOCKTON ON 4EES Ben Miller, senior policy manager at the scale floating wind projects in the world. !NOTHERûLARGE SCALEûSCHEMEûHASûBEENû Scottish Renewables trade body said: “The Rod Morrison PROPOSEDûINûTHEûAREAû0$û0ORTSûHASûSIGNEDû an agreement with environmental CONSULTINGûCOMPANYû7ENTWORTHû#LEANû OFTO TR7 ROUND INTO GEAR BEINGûDEVELOPEDûBYû%XETER BASED LOW CARBON 0OWERû,IMITEDû7#0 ûFORûAû TPA û TOTALLINGû-7û4HEûPOWERûWILLûBEûUSEDûBYû -7ûPROJECT ûTHEû4EESPORTû2ENEWABLEû /FGEMûHASûSTARTEDûTHEûNEXTûROUNDûOFûOFFSHOREû 4ESCOûWITHûADDITIONALûSUPPLIESûGOINGûTOûTHEû %NERGYû#ENTRE ûONûLANDûOWNEDûBYûTHEûPORT TRANSMISSIONû/&4/ ûTENDERS ûROUNDûSEVENû42 û GRIDû4HEûFARMSûWILLûBEûBUILTûNEXTûYEARûANDû 4HEûTENDERûPROCESSûFORûTHEû-7û-ORAYû%ASTû WILLûBEûINû%SSEX û!NGLESEYûANDû/XFORDSHIRE GIGACLEAR SYNDICATION CLOSED PROJECTûDEVELOPEDûBYû%$02ûANDû%NGIEûANDûTHEû ,OWû#ARBON ûHEADEDûBYû-ARKû*AMES û -7û4RITONû+NOLLûSCHEMEûDEVELOPEDûBYû SAIDûITûWILLûREMAINûCLOSELYûINVOLVEDûINû 3YNDICATIONûOFûTHEûaMûLOANûBACKINGû )NNOGYûWILLûBEGINûONû.OVEMBERûû/FGEMûHASû THEûPROJECTSûDURINGûCONSTRUCTIONûANDûINû GIGACLEAR ûTHEûRURALûlBRE TO PREMISESû APPOINTEDû3MITHû3QUAREû0ARTNERSûINûCONSORTIUMû operation through the provision of asset PROVIDERûOWNEDûBYû)NFRACAPITAL ûHASûCLOSEDû WITHû#ENTRUSûANDû#%0!ûASûITSûADVISERû)TûISûDUEû MANAGEMENTûSERVICESûTOûMAXIMISEûTHEû )TûISûNOTûCLEARûYETûHOWûMUCHûWASûSOLDûDOWNû TOûHOLDûAûWEBINARûINFORMATIONûEVENTûONûTHEû OPERATIONALûANDûlNANCIALûPERFORMANCEûFORû ORûWHOûJOINEDûBUTûSOMEûREPORTSûSUGGESTû TENDERûTHISû&RIDAY û.OVEMBERûû EACHûOFûTHEûSOLARûPARKSû4ESCOûANNOUNCEDû most of the loan was sold down. )NûTHEûCURRENTû42ûROUND û4RANSMISSIONû LASTûYEARûITûISûTOûBUYûRENEWABLEûPOWERûFROMû !".û!-2/ û3ANTANDER û,LOYDSûANDû #APITALû0ARTNERSû4#0 ûHASûWONûTHEû-7û lVEûONSHOREûWINDûFARMSû4ESCOûHASûALREADYû .AT7ESTûUNDERWROTEûTHEûDEALûINûTHEûSPRINGû "EATRICEûPROJECTû$IAMOND ûAû-ITSUBISHI#HUBUû lTTEDûûSTORESûWITHûSOLARûPANELSû)TûSAYSûITû PRE #OVIDûANDûITûISûBELIEVEDûITûWASûmEXEDû %LECTRICûJOINTûVENTURE ûHASûWONûTHEû'7û NOWûHASûTHEûLARGESTûUNSUBSIDISEDûPOWERû 4HEûSEVEN YEARûBULLETûDEALûISûPRICEDûATû (ORNSEAû/NEûSCHEME ûTHEûBIGGESTû/&4/û PURCHASEûAGREEMENTû00! ûPORTFOLIOûINûTHEû BPûSTEPPINGûUPûTOûBP ûWITHûFEESûATû SOûFARû4HEû-7û%ASTû!NGLIANûSCHEMEûISû 5+ BPû4HEûaMûREVOLVERûINûTHEûDEALûISû STILLûBEINGûTENDEREDû(OWEVER ûASûINDIVIDUALû PRICEDûATûBPû#ASHûSWEEPSûKICKûINûAFTERû /&4/SûGETûBIGGER ûTHEûGOVERNMENTûANDû FINAL BIDS DUE FOR WHEELABRATOR lVEûYEARSûATû ûANDûTHENûATûûTHEû REGULATORSûAREûLOOKINGûATûNEWûWAYSûOFûFUNDINGû NEXTûYEARû4HEREûISûAûaMûUNCOMMITTEDû THEûTRANSMISSIONûLINKSû4HEû$EPARTMENTû &INALûBIDSûFORûTHEûWHEELABRATOR waste ACCORDIONûFACILITYûONûTOPûOFûTHEûLOANû5PûTOû FORû"USINESS û%NERGYûû)NDUSTRIALû3TRATEGYû TOûENERGYû7T% ûASSETSûAREûDUEûINûMID ûOFûTHEûLOANûCANûBEûHEDGED "%)3 ûISûLEADINGûAûREVIEWûINTOûTHEûOFFSHOREû $ECEMBERû&3) û%QUITYûANDû#ORYûAREûSTILLû transmission regime that could lead to a new SAIDûTOûBEûINûTHEûRUNNINGûALONGSIDEûPOSSIBLYû NSMP SYNDICATION LAUNCHED DUE collective approach, as opposed to the single #+) ûALTHOUGHûITûISûUNCLEARûIFû#+)ûWOULDûBEû ASSETû/&4/ûAPPROACH interested in taking a 50% stake in some of 3ANTANDERûISûDUEûTOûLAUNCHûSYNDICATIONû the assets. OFûTHEûaMûSEVEN YEARûLOANûBACKINGû TESCO SIGNS LOW CARBON PPA &3)ûHASûALREADYûSECUREDû33%SûûSTAKEû THEûRElNANCINGûOFûTHEûCURRENTûaMû INûPROJECTSûDEVELOPEDûINûJOINTûVENTUREûBYû NORTH SEA MIDSTREAM PARTNERSû.3-0 ûLOANû 3UPERMARKETûCHAINûTESCO has signed up 33%ûANDû7HEELABRATORû7ITHûFUNDSûRUNûBYû &INANCIALûADVISERû2"#ûPUTûTHEûDEALûTOûTHEû TOûBUYûPOWERûFROMûTHREEûSOLARûSCHEMESû &3)ûHAVINGûSUCCESSFULLYûBIDûaMûFORû33%Sû MARKETûINû&EBRUARYûPRE #OVID ûSEEKINGûAû

Project Finance International November 18 2020 47

05 EMEA p39-54.indd 47 17/11/2020 19:35:08 NEWûaMnaMûLOANûWITHûREDUCEDû PRICINGû"UTûSINCEû#OVIDûTHEûDEALûHASûBEENû tightened, with cash sweeps added and CE Oltenia targets 2GW reduced leverage. 3ANTANDERûHASûUNDERWRITTENûTHEûLOANûBYû „ ROMANIA Power ITSELFû4HEûDEBTûISûBACKEDûBYûTHEûCURRENTû CONTRACTUALûREVENUESûFROMûTHEû4EESSIDEû Romania’s second largest energy company CE to Romania’s Modernisation Fund for a further GASûPROCESSINGûPLANT ûTHEû3Tû&ERGUSûGASû OLTENIA will develop 700MW of solar projects €700m – which will be earmarked specifically reception and processing facilities, and the and a 1.3GW gas-fired power plant as part of a for the new projects. The decarbonisation plan 3HETLANDû)SLANDSûREGIONALûGASûEVACUATIONû €3.5bn restructuring and decarbonisation plan, will involve the company phasing out its coal and SYSTEMû3)2'%3  CEO Daniel Burlan told local reporters. mining operations and selling off or outsourcing 4HEûSPONSOR û+UWAITSû7RENû(OUSE û The eight solar farms and gas plant will be certain assets. BOUGHTûTHEûASSETûINûMID ûFORûaBNû rolled out over the next five years, partially The company has reported a loss in five ANDûTHENûSOLDûAûûSTAKEûTOû*0û-ORGANû financed with proceeds from the restructuring for of the last eight financial years. It is separate !SSETû-ANAGEMENTû4HEûCURRENTûMANDATEDû which Oltenia is currently in negotiations with the from Distributie Oltenia, an electricity and gas LEADûARRANGERSûAREû!".û!-2/ û3ANTANDER û state and European Commission, whose decision supply business recently acquired by Macquarie -5&' û#REDITû!GRICOLE û3OCIETEû'ENERALE û on state aid should come by the end of the year. Infrastructure and Real Assets (MIRA) from 3-"#ûANDû(3"#û4HEûLEADûARRANGERSûAREû According to the local press, the government Czech group CEZ. As well as the solar and gas #)"# û,LOYDS û-EDIOBANCA û2"3ûANDû7ELLSû will provide up to €1.3bn in funding, €250m of projects, the decarbonisation plan includes the &ARGOû)NTERESTûONûTHEûCURRENTûLOANûISû which has already been paid as emergency funds rehabilitation of a 10MW hydro plant. due to Covid-19, while Oltenia is also applying Peter Collins THAMES PRICES HIGH-YIELD

THAMES WATERûPRICEDûITSûaMû YEARûNON SOLARûJOINTûVENTUREû4HEûLETTERûOFûINTENTû CALLûLIFEûHIGH YIELDûBONDûOFFERINGûATûû WASûSIGNEDûONû3EPTEMBERûûBUTûDUEûTOû last week, following initial price thoughts LITHUANIA hEXTERNALûCONDITIONSvûHADûBEENûUNABLEûTOû of low 5s. conclude the contract. 4HEûDEAL ûISSUEDûTHROUGHû4HAMESû7ATERû SECOND OFFSHORE WIND TENDER 4HEû*6ûWILLûINCLUDEûTHEûDEVELOPMENTûOFû +EMBLEû&INANCEû"" ûWILLûRElNANCEûDEBTû PLANNED GREENlELDûPROJECTSûASûWELLûASûACQUISITIONSû at the regulated holdco level, which sits OFûEXISTINGûPROJECTS ûTHOUGHûNOûNEWûDETAILSû ABOVEûTHEûlRMSûSECURITISATIONûRING FENCEûINû ,ITHUANIAûISûPLANNINGûAûSECONDû-7û WEREûDISCLOSEDû4WOû-7ûPROJECTSûAREû ITSûCAPITALûSTRUCTUREû4HERESûJUSTûONEûBONDû OFFSHOREûWINDûFARMûSOONûAFTERûTHEûlRSTû UNDERSTOODûTOûHAVEûBEENûINûPLANNINGûSINCEû ISSUEûOUTSTANDINGûATûTHATûLEVELûnûTHEûaMû PROJECTûGOESûTOûAUCTIONûINû&EBRUARYû û the original letter of intent was signed, OFûû*ULYûS VICE MINISTERûOFûENERGY Rytis Kevelaitis told WHICHûMARKEDû$EKPOLSûENTRYûINTOûTHEûSOLARû h'ENERALLY ûPEOPLEûSEEûFAIRûVALUEûINûTHEû ANûOFFSHOREûWINDûCONFERENCEûINû+LAIPEDAû 06ûMARKET HIGHûS ûSOû)04SûAREûALSOûREmECTINGûAûNEWûISSUEû YESTERDAY PREMIUM vûSAIDûAûHIGH YIELDûBANKERûh0EOPLEû 4HEûNEWûPROJECTûWILLûBEûTENDEREDûAûYEARû TAURON ISSUES Z1bn GREEN BOND AREûTRIANGULATINGûFAIRûVALUEûFROMûTHEû!NGLIANû or two later. Lithuania’s legal framework 7ATERûHOLDCOûnûTHEû/SPREYûû-ARCHûS û FORûOFFSHOREûWINDûSUPPORTûISûLIKELYûTOûUSEû 0OLISHûUTILITY TAURONûHASûISSUEDû:BNû WHICHûAREûTRADINGûINûTHEûLOWûSv AûhTWO SIDEDvûCONTRACT FOR DIFFERENCEû#F$ û õM ûOFû%3' LINKEDûlVE YEARûUNSECUREDû *OINTûPHYSICALûBOOKRUNNERSûWEREû".0û structure, it is understood. BONDSûTOûDEVELOPûAûWINDûANDûSOLARûPORTFOLIOû 0ARIBAS û(3"# û-ORGANû3TANLEYûANDû2"# $EPARTINGûSLIGHTLYûFROMûTHEûSYSTEMûUSEDû 3ANTANDERûWASûTHEûCOORDINATOR ûLEADû INûTHEû5+ûANDûNEIGHBOURINGû0OLAND ûTHEû ARRANGERûANDûBOOKRUNNER ûWITHûTHEû%"2$û TRADITIONALûPRICEûGUARANTEEûWILLûBEûMATCHEDû ANOTHERûHEADLINEûINVESTORû4HEûMULTILATERALû BYûAûPAYMENTûGUARANTEEûFROMûTHEûSPONSORSû INVESTEDûTHEûEQUIVALENTûOFûõM ûJUSTû ALBANIA TOûENSUREûCERTAINTYûONûBOTHûSIDESû4HEûLAWû under a quarter of the total. ISûSTILLûBEINGûDEBATEDûINûPARLIAMENT ûANDûAû 4HEûBONDS ûLISTEDûONûTHEû7ARSAWûSTOCKû AUCTION PLANNED FOR 100MW centre-right coalition government won an EXCHANGE ûWEREûPRICEDûATûBPûOVERû7IBORû SOLAR FARM election last month. WITHûAûSIX MONTHûINTERESTûPERIODû!ûCENTRALû ,ITHUANIANûUTILITYû)GNITISûHASûSTRUCKûAû PARTûOFû4AURONSûWIDERûDECABORNISATIONû !LBANIAûISûSETûTOûLAUNCHûAûTENDERûFORûAû partnership with European offshore wind STRATEGYûISûTOûREPLACEûITSûAGEINGûCOAL lREDû -7ûSOLARûFARM ûTHEûTHIRDûRENEWABLESû GIANTSû%$02ûANDû%NGIEûTOûCOMPETEûINû û PLANTSûWITHûAû-7ûSOLARû06ûPORTFOLIOûANDû AUCTIONûINûTHEûCOUNTRYSûNASCENTûMARKETû WITHûTHEûSCHEMEûVALUEDûATûõBNû!ûRECENTû -7ûONSHOREûWINDûPORTFOLIOûBYûû"Yû (ALFûTHEûCAPACITYûWILLûBEûCONTRACTEDûUNDERûAû STUDYûPUTûTHEûCOUNTRYSûTOTALûOFFSHOREû  ûTHEûCOMPANYûAIMSûTOûGENERATEûMOREû POWERûPURCHASEûAGREEMENTû00! ûWITHûTHEû POTENTIALûATû'7 THANûûOFûITSûENERGYûFROMûZEROûANDûLOW other half sold on the open market. emission sources. 4HISûISûSIMILARûTOûTHEû-7û+ARAVASTAû 4AURONûWILLûDEVELOPûITSûOWNûPROJECTSûASû SOLARûFARM ûAWARDEDûTOû6OLTALIAûINû*UNEû well as acquire later development-stage FORûAûBIDûOFûõ-7H ûTHEûLOWESTûINû POLAND PROJECTSû4HEûCOMPANYûSPECIlEDûONSHOREû THEû"ALKANSûSOûFARûANDûLESSûTHANûHALFûTHEû wind in its communications despite the ORIGINALûCEILINGûPRICEûOFûõ-7Hû4HEû00!û EXTENSION ON 500MW SOLAR JV TALKS RISEûOFû0OLANDSûOFFSHOREûWINDûSECTORû with state transmission operator Oshee is Utilities tend to target large-scale long- FORûûYEARSû4HEû%"2$ûHELPEDûTOûSTRUCTUREû 4WOû0OLISHûCOMPANIES û01CYBERATON and TERMûCONTRACTEDûASSETSûSOû4AURONûCOULDû THEû+ARAVASTAûAUCTIONûANDûASSOCIATEDû DEKPOL ûHAVEûSIGNEDûANûEXTENSIONûTOûSETûAû VERYûWELLûGETûINVOLVEDûFURTHERûDOWNûTHEû regulation. MID $ECEMBERûDATEûTOûCONCLUDEûAû-7û line.

48 Project Finance International November 18 2020

05 EMEA p39-54.indd 48 17/11/2020 19:35:08 NEWS EMEA

4HEûCOMPANYûMAYûNOTûUSEûTHEûFUNDSûFORû STRUCTUREûSIMILARûTOûTHATûOFûTHEû5+ û0OLANDû &INTELûLASTûYEARûRAISEDûõMûOFûPROJECTû ANYûCOAL RELATEDûPROJECTSûORûITSûCOAL FOCUSEDû AND ûITûISûUNDERSTOOD û,ITHUANIAû$IRECTLYû lNANCINGûFORûTHEû-7û+OSAVAûWINDû SUBSIDIARIESû/THERû%3'ûCONDITIONSûONûTHEû PROCUREDûPROJECTSûCOULDûRECEIVEûAûlXEDû FARMûINû3ERBIA ûITSûLARGESTûPROJECTûATûTHEû BONDûISSUEûMEANûTHATû4AURONûWILLûFACEûHIGHERû CEILINGûPRICEûOFûõûPERû-7HûASûLONGûASûTHEû time, from Erste Group, UniCredit and lNANCINGûCOSTSûIFûITûDOESûNOTûMEETûCERTAINû SUMûTOTALûDOESûNOTûEXCEEDûõ-7H THEû!USTRIANû$EVELOPMENTû"ANKû)Nû û SUSTAINABILITYûTARGETS ûNEEDINGûTOûACHIEVEûANû 2OMANIANûSTATE OWNEDûPOWERûCOMPANYû ITûSUCCESSFULLYûCOMPLETEDûTHEûlRSTûINITIALû

average 2% reduction in CO2 emissions and an (IDROELECTRICAûISûPLANNINGûAû-7ûOFFSHOREû PUBLICûOFFERINGû)0/ ûONûTHEû"ELGRADEû ûINCREASEûINûRENEWABLEûCAPACITYûANNUALLYû WINDûFARMûBYûûINûWHATûWILLûBEûTHEûlRSTû 3TOCKû%XCHANGEûSINCEû ûRAISINGûABOUTû 4AURON ûALONGûWITHû0'% û%NEA ûANDû+'(-û OFûITSûKINDûINûTHEû"LACKû3EAû4HEûGOVERNMENTû 53MûTOûlNANCEûNEWûRENEWABLESû 0OLSKAû-IEDZ ûHAVEûSIGNEDûAûLETTERûOFûINTENTûTOû WILLûBEûHOPINGûTOûTARGETûMOREûINVESTORSûFROMû VENTURESû3INCEû û&INTELûHASûDEVELOPEDû TRANSFERûOWNERSHIPûOFû0OLANDSûlRSTûPLANNEDû %UROPEûANDû!SIAûWITHûTHEûNEWûLAW ûWHICHû WINDûPROJECTSûINû3ERBIAûTHROUGHû-+û nuclear power plant to the government. SHOULDûBEûlNALISEDûBYûTHEûENDûOFûTHEûYEAR &INTELû7IND ûAûJOINTûVENTUREûWITHû3ERBIANû VERTICALLYûINTEGRATEDûCONGLOMERATEû-+û PACIFICO TO REFI WIND FARMS Group.

PACIFICO RENEWABLES YIELD has secured RUSSIA EXCLUSIVEûACCESSûTOûAû-7ûWINDû PORTFOLIOûINû0OLANDûDEVELOPEDûBYûANûAFlLIATEû AMUR GCC PF DUE FOR NEW YEAR TURKEY COMPANYûINûANTICIPATIONûOFûAûPLANNEDûDEBTû RElNANCING SIBUR ISûSETûTOûLAUNCHûTHEûPROJECTûlNANCINGû OFFSHORE WIND AUCTION SCRAPPED 0ACIlCOû%NERGYû0ARTNERS ûTHEûSTRATEGICû FORûTHEû53BNû!MURûGASûCHEMICALû PARTNERûANDûPROJECTûDEVELOPER ûWILLûTRANSFERû COMPLEXû'## ûINûû#HINASû3INOPECû 4HEûEXPECTEDûRE LAUNCHûOFû4URKEYSûOFFSHOREû THEûTHREEûWINDûFARMSûANDûTHEIRûEXISTINGû ISûEXPECTEDûTOûJOINûTHEûSCHEMEûANDû WINDûTENDERûHASûBEENûABANDONEDûDUEûTOû PROJECTûDEBTû:MûõM ûPROVIDEDûBYû TAKEûAûûSTAKEû#ONSTRUCTIONûSTARTEDû AûLACKûOFûINVESTORûAPPETITE û0&)ûHASûLEARNTû "AYERISCHEû,ANDESBANKûPRICEDûATûûPERû INû!UGUSTû,INDE û.)0)GASPERERABOTKA û !û'7ûSCHEMEûWASûORIGINALLYûTENDEREDû YEARûWITHûHEDGINGûUNTILû*UNEû 5NIVATIONû4ECHNOLOGIES û#HEVRONû0HILLIPSû INûûBEFOREûBEINGûCANCELLEDûANDûWASû 4HEûCOMPANYûHOLDSûSUBORDINATEDûDEBTû ANDû,YONDELL"ASELLûAREûINVOLVEDûONûTHEû EXPECTEDûTOûGOûBACKûTOûAUCTIONûSOMETIMEû OFûõMûTHATûWILLûBEûRElNANCEDûWITHûAû TECHNOLOGYûSIDEû'AZPROMBANKûANDû).'ûAREû THISûYEARûBUT ûDUEûTOûLACKûOFûFOREIGNûINVESTORû SEPARATEûRIGHTSûISSUEû4HEûRElNANCINGûTERMSû advising. INTERESTûANDûWITHûAûLACKûOFûEXPERIENCEûINû FORûTHEûLARGERûLOANûWILLûINCLUDEûAûFOUR YEARû 4HEûSCHEMEûWILLûPRODUCEûMûTONNESû THEûLOCALûMARKET ûTHEûPROJECTûHASûBEENû TENORûUNTILûTHEûENDûOFûûANDûANûINTERESTû OFûPOLYETHYLENEûANDû ûTONNESûOFû SIDELINEDûANDûISûUNDERSTOODûTOûNOûLONGERûBEû RATEûOFû POLYPROPYLENEûPERûYEARû)TûWILLûUSEûETHYLENEû AûPRIORITYûFORûTHEûGOVERNMENT 0ACIlCOû2ENEWABLESûWILLûTHENûACQUIREû ANDûLIQUElEDûPETROLEUMûGASû,0' ûFROMû 4HEûCANCELLATIONûCOMESûDESPITEûTHEûTHREE FULLûEQUITYûOWNERSHIPûOFûTHEûWINDûFARMSûnû 'AZPROMSû!MURûGASûPROCESSINGûPLANTû YEARûEXTENSIONûOFûAûTECHNICALûCOOPERATIONû ALREADYûATûANûADVANCEDûCONSTRUCTIONûSTAGEû '00  agreement on offshore wind with the nûONCEûTHEYREûFULLYûBUILTûINû-ARCHûû 4HEûõBNûPROJECTûlNANCINGûBACKINGû $ANISHûGOVERNMENTûINû-ARCHû #APEXûISûõM '00ûWASûSIGNEDûEARLIERûTHISûYEARû'00ûWILLû 4URKEYûHASû'7ûOFûOFFSHOREûWINDû 4HEûSCHEMESûBENElTûFROMûAûCOMBINATIONû SENDûMETHANEûTOû#HINAû4HEû'00ûPROJECTû POTENTIAL ûBUTûTHEûSECTORûHASûBEENûSTYMIEDû OFû0OLANDSû YEARûINmATION LINKEDûSTATEû lNANCINGûISûBACKEDûBYûANûAVAILABILITYû BYûTHEûCOUNTRYSûONGOINGûECONOMICûCRISISû SUPPORTûMECHANISMûANDûAûTHREE YEARûlXEDû PAYMENTûSTRUCTUREû4HEûlNANCINGûISû and concerns over risk allocation in the price power purchase agreement, while SPLITûINTOûAûõBNû YEARûLOANûFROMû PROJECTûCONTRACT ûWHICHûFOLLOWSûTHEûSAMEû SOMEûOFûTHEûPOWERûWILLûBEûSOLDûONûTHEûOPENû %UROPEANûANDû*APANESEûBANKSûCOVEREDûBYû MODELûASûONSHOREûWINDûANDûSOLARû06û$UEûTOû MARKETû3ULLIVANûû#ROMWELLûANDû$ENTONSû %ULERû(ERMESûANDû3!#% ûAûõBNû YEARû THEûADDEDûCOMPLEXITYûANDûSCALEûOFûOFFSHOREû AREûPROVIDINGûLEGALûCOUNSELûTOûTHEûBUYERû UNCOVEREDûLOAN ûAûõBNû YEARû#HINESEû PROJECTS ûONEûSOURCEûTOLDû0&)ûTHATûAûSWITCHû WHILEû$.6û',ûISûTECHNICALûADVISER BANKûLOAN ûANDûAûõBN2BSBNû53BN û TOûAû000ûMODELûWOULDûBEûPREFERABLEûTOû 2USSIANûBANKûLOANûONE THIRDûCOVEREDûBYû attract the right kind of investors. 2USSIANûEXPORTûCREDITûAGENCYû%XIAR 4HEû$ANISHû%NERGYû!GENCY ûWITHû which the technical cooperation ROMANIA agreement was signed, has estimated THATûhIMMEDIATEûOPPORTUNITIESvûFORû OFFSHORE WIND AUCTIONS PLANNED SERBIA OFFSHOREûWINDûINû4URKEYûAREûBETWEENû '7ûANDû'7 ûAûNUMBERûTHATûCOULDû 4HEû2OMANIANûSENATEûHASûPASSEDûAûLAWû FINTEL GETS MEGA WIND APPROVAL INCREASEû4HEûAGENCYûISûASSISTINGûTHEû promoting offshore wind investments 4URKISHûAUTHORITIESûINûDEVELOPINGûITSû ASûTHEûCOUNTRYûSEEKSûTOûTAKEûADVANTAGEû FINTEL ENERGIJA ûTHEû"ELGRADE LISTEDûSUBSIDIARYû framework for the sector in terms of OFûITSûCOASTALûWINDûRESOURCESû4HEûLAWûISû OFû)TALYSû&INTEL ûHASûRECEIVEDûAPPROVALûFROMû POLICY ûSTRATEGYûANDûSOLUTIONSûBASEDûONû STILLûBEINGûDEBATEDûBYûTHEû#HAMBERûOFû THEû3ERBIANûCITYûOFû3UBOTICAûFORûITSûPLANNEDû ITSûOWNûEXPERIENCES $EPUTIESûBUTûITûINCLUDESûAûSUBSIDYûSCHEMEû -7ûONSHOREûWINDûFARM FORûPROJECTSûANDûTENDERûPROCEDURESûFORû 4HEûAPPLICATIONûWASûlLEDûTHROUGHû YEKA SOLAR BIDS IN JANUARY PROCURINGûDEVELOPERS ûTHOUGHûPROJECTSûCANû ANOTHERûSUBSIDIARY û-AESTRALEû2INGû4HISû ACCESSûSUBSIDIESûTHROUGHûDIRECTûLICENSINGû ISûANûEARLYûBUTûIMPORTANTûlRSTûSTEPûFORûTHEû "IDSûFORûTHEûUPCOMINGû'7û9%+!ûSOLARû ASûWELLû3UCCESSFULûBIDDERSûWILLûBEûGRANTEDû PROJECT ûWHICHûWASûlRSTûANNOUNCEDûBYû TENDERûINû4URKEYûAREûNOWûEXPECTEDûINû CONCESSIONSûBASEDûONûLOWESTûPRICEûOFFERS &INTELû%NERGIJAûINû&EBRUARYûûALONGûWITHû *ANUARY ûAûMARKETûSOURCEûINFORMEDû0&)û !ûFEASIBILITYûSTUDYûISûLOOKINGûINTOûTHEû TWOûSMALLERûPROJECTSûOFû-7ûEACH û,IPARûû 4HISûWOULDûREPRESENTûAûDELAYûOVERûTHEûLASTû POSSIBILITYûOFûAûCONTRACT FOR DIFFERENCEû and Lipar 2. ANNOUNCEDûTIMELINEûnûWHICHûWOULDûHAVEû

Project Finance International November 18 2020 49

05 EMEA p39-54.indd 49 17/11/2020 19:35:08 seen the tender launched at the end of 3EPTEMBER 4HEûTENDERûISûFORûMOREûTHANûû First IWTP emerges SEPARATEûPROJECTSûRANGINGûFROMû-7ûTOû -7 ûINCLUDINGûROOFTOPûRESIDENTIALûANDû „ SAUDI ARABIA Utilities COMMERCIALûANDûINDUSTRIALûSCHEMESû4HEû CEILINGûPRICEûISûEXPECTEDûTOûSTARTûSLIGHTLYû Saudi Water Procurement Company (SWPC) investors will be attracted to the deals as the HIGHERûTHANûTHEû53ûPERûK7HûACHIEVEDû has issued an expressions of interest (EoI) construction risk is modest and the proposed BYû+ALYONûANDû(ANWHAû1#ELLSûFORûTHEû'7û document for the first independent water concession period is long at 50 years. One risk 9%+!ûSOLARûFARMûINû transmission pipeline (IWTP) scheme, the is the geological risk of the land over which the 4URKISHûDEVELOPERû+ALYONûISûINûFACTû 1,400km, 685,000m3/day Riyadh–Qassim pipes will run. TARGETINGûlNANCIALûCLOSEûONûITSû'7û9%+!û scheme. The request for pre-qualification is Synergy Consulting, DLA Piper and Fichtner SOLARûPROJECTûTHISûYEARû!ûNEWûTEAMûOFû due in January and the request for proposals are advising on the first batch of three schemes lNANCIERSûISûINûPLACEûLEDûBYû5+û%XIMûAFTERû will then follow a couple of months later. in the programme – Riyadh–Qassim, the 600km, (ANWHAûEXITEDûTHEûPROJECTûANDûWITHûITûTHEû SWPC said the IWTP schemes are the first 650,000m3/day Jubail–Buraydah scheme, and POTENTIALûlNANCINGûFROMû+EXIMû standalone water transmission pipeline projects the 300km, 400,000m3/day Ras Mohaisan– to be implemented in the world using a PPP Makkah project. framework. The government has set up the There are five other projects in the programme Water Transmission & Technologies Company – the 100km, 900,000m3/day Rayis–Rabigh UKRAINE (WTTCO) to run the kingdom’s network, scheme, the 100km, 600,000m3/day Rabigh– supervise the IWTPs and privatise some of the Jeddah scheme, the 250km, 300,000m3/day POWERCHINA SIGNS US$1bn WIND JV assets. SWPC will, however, procure the new Jazan scheme, the 546km, 497,000m3/day water transmission projects in the kingdom. Tabuk Ula scheme, and the 350km, 200,000m3/ POWERCHINA HASûSIGNEDûAûJOINTûVENTUREû The schemes will be large, perhaps around day RAK–KF scheme. agreement with local developer WINDFARM US$1bn. It is expected infrastructure type Rod Morrison TOûBUILDûANû-7ûONSHOREûWINDûFARMû in Ukraine that will operate without ANYûSUBSIDYû4HEûJOINTûIMPLEMENTATIONû CONSISTSûOFûTHREEû-7ûPLANTSûANDûAû-7û 3AMBA û3AUDIû"RITISH û3AUDIû&RANSI û+F7û agreement signed last week saw the SCHEME ûALLûOFûWHICHûAREûSIGNEDûTOû YEARû )0%8 û(3"# û3TANDARDû#HARTEREDûANDû COMPANIESûPLEDGEû53BNûTOWARDSûTHEû power purchase agreements. 3-"#û SCHEMEû4HEûMERCHANTûPOWERûSTRATEGYû 2EVENUESûAREûDOLLAR LINKEDûWITHû will see the developers forgo the generous guarantees from the government for SEC MOVES TO A RAB MODEL 5KRAINIANûFEED IN TARIFF ûWHICHûPAYSûAROUNDû THEûFULLûLENGTHûOFûTHEû00!Sû4HEYûWEREû õ-7HûFORûRECENTûPROJECTSû)TûWOULDûBEû lNANCEDûPRIMARILYûBYûTHEû)&#û6OLTALIAûISû SAUDI ELECTRICITY COMPANY (SEC) will THEûlRSTû5KRAINIANû)00ûTOûDOûSO TAKINGûAûMAJORITYûINTERESTûINûTHEûPROJECTSû IMPLEMENTûAûREGULATORYûASSETûBASEDû2!" û 0OWER#HINAûWILLûMANAGEûCONSTRUCTIONû TOûGAINûEXPERIENCEûANDûBECOMEûAûCLEANû model as a mechanism to regulate its OFûTHEûPROJECT ûWHILEû6ESTASûCOULDûBEûTHEû power generator in Jordan in its own revenues from 2021 as part of a wide- TURBINEûSUPPLIERûBUTûNOûDEALûHASûBEENû RIGHTû)TûSUBMITTEDûAûBIDûFORûAû-7ûSOLARû ranging corporate shake-up announced. CONlRMEDû!NûINTERCONNECTIONûAGREEMENTû scheme in Jordan in 2017 and again in For 2020, it will implement an operating WILLûBEûSIGNEDûWITHûSTATEûUTILITYû5KRENERGO ûDURINGûTHEûCOUNTRYSûRENEWABLEû revenue cap model mechanism to 7IND&ARMûCONSISTSûOFûh5KRAINIANû auctions. regulate its required revenue to cover ENERGYûSECTORûVETERANSv ûINVOLVEDûINûTHEû 3%#SûTOTALûOPERATINGûANDûlNANCINGûCOSTS û INSTALLATIONûOFûSOMEûOFûTHEûCOUNTRYSû INCLUDINGûTHEûDISTRIBUTIONûOFûDIVIDENDSûTOû earliest and largest schemes as well as ALLûITSûSHAREHOLDERSûINCLUDINGûTHEû0UBLICû $4%+SûRECENTû0RIMORSKAYAûWINDûFARMû SAUDI ARABIA )NVESTMENTû&UNDû0)&  3HOULDûTHISûNEWûPROJECTûCOMEûTOûFRUITION ûITû !SûPARTûOFûTHISûCORPORATEûSHAKE UP û WILLûOVERTAKEû2OMANIASû-7û&ANTANELE QURAYYAH REFI BIDS IN 3%#ûHASûSIGNEDûANûAGREEMENTûWITHûTHEû #OGEALACûPROJECTûASûTHEûLARGESTûONSHOREû GOVERNMENTûTOûCONVERTûSTATEûLIABILITIESû WINDûFARMûINû%UROPEû4HEûPROJECT ûWHICHû 4HEûSPONSORSûOFûTHEû1URAYYAHû'7ûGAS WORTHû32BNû53BN ûINTOû HASûBEENûPLANNEDûFORûOVERûAûYEAR ûWILLû lREDûPOWERûPLANTûHAVEûTAKENûBANKûBIDSû AûSUBORDINATEDûPERPETUALûlNANCIALû BEûLOCATEDûINûTHEû$ONETSKûREGIONûINûTHEû FORûRElNANCINGûTHEûPROJECTûDEBTûONûTHEû INSTRUMENTûTOûSTRENGTHENûITSûBALANCEû -ANHUSHûANDû.IKOLSKEûDISTRICTS SCHEMEû!#7!û0OWERûHASû û3AMSUNGû SHEETû4HEûSHARIA COMPLIANTûPERPETUALû #4û û-%.!û)NFRASTRUCTUREû&UNDû û EQUITY LIKEûINSTRUMENTûWILLûCARRYûAûû ANDûUTILITYûCLIENTû3AUDIû%LECTRICITYû#OMPANYû PROlTûRATEûANDûAûREDEMPTIONûOPTION ûITû 3%# û said in a statement. JORDAN 4HEû YEARûPROJECTûlNANCEûPACKAGEû h7ITHûTHEûSIGNINGûOFûTHEûAGREEMENTû FROMûûISûSPLITûAMONGû+EXIMûWITHû and the implementation of the approved VOLTALIA TAKES 70% SOLAR STAKE 53M ûAû53BNû)SLAMICûTRANCHE û reforms, in addition to the cancelling (ERMESûWITHû53M û53û%XIMûWITHû of the government fees imposed on the &RENCHûRENEWABLESûDEVELOPERûVOLTALIA 53M ûANDûCOMMERCIALûBANKSû COMPANY û3%#ûWILLûBEûBETTERûABLEûTOûFULlLû HASûTAKENûAûûINTERESTûINûAû-7ûFOUR 53Mû4HEûPRICINGûONûTHEû)SLAMICû ITSûOBLIGATIONS vû+HALEDûBINû3ALEHûAL 3ULTAN û PROJECTûSOLARûPORTFOLIOûINû*ORDANûITûHADû TRANCHEûCAMEûINûATûBPnBPûANDûONû CHAIRMANûOFû3%# ûSAIDûINûTHEûSTATEMENTû AûPARTûINûBUILDINGû4HEûPLANTSûBECAMEû THEûDOLLARûBANKûTRANCHEûATûBPnBPû 4HISûCONVERSIONûISûCONSIDEREDûNON DILUTIVEû OPERATIONALûINûn ûWITHû6OLTALIAûTHEû 4HEûCOMMERCIALûBANKSûONûTHEûCURRENTû ANDûWILLûTHEREFOREûHAVEûNOûIMPACTûONû3%#Sû %0#ûANDû/-ûPROVIDERû4HEûPORTFOLIOû DEALûAREû!RABû.ATIONALû"ANK û.#" û EXISTINGûSHAREHOLDERSû

50 Project Finance International November 18 2020

05 EMEA p39-54.indd 50 17/11/2020 19:35:08 NEWS EMEA

SEC LOOKS AT NEW CCGT IPPS 4HEûPROJECTûWILLûBEûDEVELOPEDûINûTWOû PHASES ûWITHûTHEûlRSTû32M û53M û 3AUDIû%LECTRICITYû#OMPANYû3%# ûHASû 100,000 m3DAYûPHASEûEXPECTEDûTOûSTARTû UAE asked its panel of advisers to prepare operations in the third quarter of 2022. FORûAûPOSSIBLEûNEWûADVISORYûTENDERû)Tû 4HEûCONCESSIONûRUNSûFORûûYEARSû&UNDINGû EGA SET TO SELL POWER ASSETS ISûBELIEVEDûTHEûSTATE OWNEDûUTILITYûISû ISûBELIEVEDûTOûHAVEûCOMEûFROMû!Lû2AJHIû LOOKINGûATûPROCURINGûNEWûCOMBINED 4HEû M3DAYûSECONDûPHASEûWILLû EMIRATES GLOBAL ALUMINIUM (EGA) is considering CYCLEûGASûTURBINEû##'4 ûINDEPENDENTû BEûDEVELOPEDûWHENûTHEûlRSTûPHASESû selling its power assets linked with its POWERûPROJECTSû)00S û4HEûPROGRAMMEû OPERATIONALûCAPACITYûEXCEEDSûTHEûUSAGEû TWOûLARGE SCALEûSMELTERSûINû*EBELû!LIûINû COULDûTOTALûUPûTOû'7 ûALTHOUGHû RATESû-IZUHO û7HITEûû#ASEûANDû73û!TKINSû $UBAIûANDû4AWEELAHûINû!BUû$HABIûTOû4AQAû PRESUMABLYûTHISûWOULDûBEûUNDERTAKENû ADVISEDû370# #ITIGROUPûISûBELIEVEDûTOûBEûADVISINGû%'!û in phases. ANDû"ANKûOFû!MERICA!LDERBROOK û4AQA 4HEû2ENEWABLEû%NERGYû0ROJECTû TRSDC PLANS MEGA LOAN 3TATE OWNEDû-UBADALAûANDû!$û0OWERû $EVELOPMENTû/FlCEû2%0$/ ûISûPROCURINGû HOLDûSIGNIlCANTûSTAKESûINû%'!ûANDû4AQA û RENEWABLEûSCHEMESûINûTHEûKINGDOMûBUTû THE RED SEA DEVELOPMENT CO (TRSDC) is plans RESPECTIVELYû4HEû*EBELû!LIûPOWERûPLANTûHASû BASELOADûANDûmEXIBLEû##'4ûGENERATIONû TOûlNALISEûAû YEARû32BNû53BN û AûCAPACITYûOFû'7ûANDû4AWEELAH û'7û MIGHTûBEûNEEDEDûTOOû%ARLIERûTHISûSUMMERû LOANûBYûTHEûENDûOFûTHEûYEARûTOûPARTLYû !ûFURTHERû-7ûISûBEINGûADDEDûATû*EBELû!LIû !BUû$HABIûUTILITYû%7%#ûSIGNEDûTHEû'7û FUNDûITSû32BNûOFûCAPITALûSPENDINGûBYû VIAûAûNEWû3IEMENSûMACHINE &UJAIRAHûû##'4û)00ûPROJECTûlNANCINGûWITHû  ûASûITûEXPECTSûTOûENDûûWITHû !LLûNEWûSTANDALONEûPOWERûPROJECTSûAREû -ARUBENIû4HISûSCHEMEûWILLûMAKEûUSEûOFû AROUNDû32BNûWORTHûOFûCOMMITTEDû developed using the model of the private THEûLATESTûHIGHLYûEFlCIENTûGASûTURBINESû4HEû CONTRACTS ûCHIEFûEXECUTIVEû*OHNû0AGANOû sector holding 60% and state companies PROJECTûCOSTûFORûlVEû'7ûPROJECTSûWASû TOLDû2EUTERSû4HEûREMAININGûFUNDINGû û4HEûPOWERûISûSOLDûTOûSTATEûUTILITYû JUSTûOVERû53BN NEEDEDûFORûTHEûlRSTûPHASEûWILLûCOMEû %7%#û4HISûSALE ûHOWEVER ûISûBELIEVEDûTOûBEû SEC procured a range of IPPs earlier this FROMûPROJECTûOWNERû0UBLICû)NVESTMENTû BASEDûONû4AQAûHOLDINGû ûPRESUMABLYû decade and then in late 2016 asked for &UNDû0)&  BECAUSEûTHEûOFFTAKERûISûANûONEûINDUSTRIALû EXPRESSIONSûOFûINTERESTûFROMûDEVELOPERSû )Nû3EPTEMBER ûTHEû!#7!û0OWER USER ûALBEITûSTATE OWNEDû4HEûALUMINIUMû ONûITSû -7û00ûGAS lREDûPOWERû %NERGYû#HINAûTEAMûWONûTHEû53BNû PRICEûTHISûYEARûHADûCRASHEDûAFTERû#OVIDûBUTû PLANTûNEARû2IYADHû4HATûSCHEMEûWASûONEû UTILITIESûPROJECTûONûTHEû423$#ûSCHEMEû ISûNOWûBACKûTOû53 ûAûTONNEû OFûAûNUMBERûOFûPOWERûPROJECTSû3%#ûHADû 0)&ûISûPROVIDINGûAûGUARANTEEûONûTHEûDEBTû ONûITSûBOOKSûATûTHEûTIMEû)TûHADûTWOûNEWû REPAYMENTSû3TANDARDû#HARTERED û!Lû2AJHI û DUBAI WTE SET TO REACH FC )00SûnûTHEû -7û$HUBAûûSCHEMEû &RANSI û-IZUHOûANDû3AUDIû"RITISHûWILLû ANDûTHEû -7û4AIBAûSCHEMEûnûANDû PROVIDEûTHEû53BNûOFûPROJECTûDEBTû4HEû 4HEû$UBAIûWASTE TO ENERGYû7T% ûPROJECTû ANû -7ûEQUIPMENTûSUPPLIER LEDû scheme will provide solar power, water, ISûSETûTOûREACHûlNANCIALûCLOSEûTHISûYEARû DEALû"UTûSINCEûTHENûLITTLEûHASûBEENûHEARDû district cooling, waste-water, municipal FOLLOWINGûOFlCIALûAPPROVALûOFûTHEûSCHEMEûBYû OFûITSû)00ûPROGRAMMEûANDûINSTEADûTHEû solid waste, pipelines for all the utilities 3HEIKHû-OHAMMEDû"INû2ASHIDû!Lû-AKTOUMû focus in the kingdom has shifted to new ANDû)#4ûDATAûCENTREûSERVICESûTOûTHEûNEWû LATEûLASTûMONTHû(EûSAIDûONû4WITTERûONû RENEWABLEûSCHEMES LEISUREûCITYûCOMPLEXûINûONEûINTEGRATEDû /CTOBERûûh4ODAYûWEûWEREûBRIEFEDûONû PROJECT THEû$UBAIûPROJECTûFORûENERGYûPRODUCTIONû QIDDIYA GETS NEW CEO 0AGANO ûAûFORMERûMANAGINGûDIRECTORûATû BYûTREATINGûWASTEûATûAûCOSTûOFû$HBNû4HEû ,ONDONSû#ANARYû7HARFû'ROUP ûSOUGHTûTOû PROJECTûACCOMMODATESûAûTHOUSANDûGARBAGEû 0HILIPPEû'ASûHASûBEENûAPPOINTEDûASûTHEû ALLAYûFEARSûTHATûTHEû2EDû3EAûENVIRONMENTû TRUCKSûPERûDAYûANDûGENERATESûSUFlCIENTû NEWûCHIEFûEXECUTIVEûOFlCERûFORûTHEûQIDDIYA COULDûSUFFERûONCEûTHEûPROJECTûISûCOMPLETEDû ENERGYûFORû ûHOMESûûû$UBAIûISûAû INVESTMENT CO (QIC), the developer of an INû ûSAYINGûITûWASûNOTûAIMEDûATûCATERINGû CLEANûCITYûûûûITSûENERGYûISûCLEANûûûûANDû ENTERTAINMENTûCITY ûREPLACINGû1IDDIYASû for a mass market. “Even in the full ITSûNEIGHBOURHOODSûAREûCLEANûûûûANDûITSû FOUNDINGû#%/û-ICHAELû2EININGER BUILD UPûBYûûnûWHENûWEûHAVEûBUILTûTHEû ENERGYûRESOURCESûMUSTûREMAINûCLEANv 'ASûHASûBEENûWITHûTHEû7ALTû$ISNEYû ENTIREûDEVELOPMENTûnûWEûWILLûBEû ûTOû 4HEûBANKûGROUPûFORûTHEûPROJECTûlNANCINGû COMPANYûFORûûYEARS ûMOSTûRECENTLYûASû MûVISITORSûPERûYEARûMAX vûHEûSAID ONûTHEûSCHEMEûWASûASSEMBLEDûAûYEARû PRESIDENTûANDûMANAGINGûDIRECTORûOFû7ALTû AGOû#REDITû!GRICOLE û+F7û)0%8 û-IZUHO û $ISNEYû!TTRACTIONSû*APANûANDû$ISNEYLANDû JUBAIL 3B BID RUMOURS 3IEMENS û3OCIETEû'ENERALE û3-"#ûANDû )NTERNATIONALû!#7!û0OWERûANDû!Lû&ANARû 3TANDARDû#HARTEREDûAREûBELIEVEDûTOûBEûTHEû AREûCURRENTLYûBIDDINGûFORûTHEûUTILITYû Local market rumours suggest Utico could BANKSûBACKINGûTHEû53MûSCHEMEû4HEû PROJECTûATûTHEûCITYûANDûAûDECISIONûWASû HAVEûSUBMITTEDûAûCOMPETITIVEûBIDûONûTHEû lNANCINGûWILLûBEûAû YEARûDEALûWITHûHALFû DUE ûALTHOUGHûITûCOULDûNOWûBEûDELAYEDû 570,000m3û*UBAILû"ûINDEPENDENTûWATERû THEûDEBTûPROVIDEDûBYû*")#ûANDûTHEûRESTûSPLITû SLIGHTLYûBYûTHEûNEWûAPPOINTMENTû1)#ûISû PROJECTû)70 ûFOLLOWEDûBYû6EOLIAûANDû%NGIE ûBETWEENûAû.EXI COVEREDûTRANCHEûANDû OWNEDûBYûTHEû0UBLICû)NVESTMENTû&UNDû 4HEûSUBMISSIONSûWENTûINûEARLIERûTHISû UNCOVEREDûDEBTû3-"#ûISûADVISING ITOCHU, 0)&  month and the commercial offers will (ITACHIû:OSEN û"ESIXûANDû$UBAIû(OLDINGûAREû BEûOPENEDûSHORTLYûONCEûTHEûTECHNICALû in the sponsor group. TAIF STP GETS TO FC EVALUATIONûISûCOMPLETEDû"IDSûWEREû 4HEûSCHEMEûWILLûPROCESSûMûTONNESûOFû SUBMITTEDûBYû!QUALIA(!!#/!LFANAR û WASTEûPERûYEARûANDûPRODUCEûNEARLYû-7û COBRA INSTALACIONES Y SERVICIOS and local %NGIE.ESMA!LAJLAN û5TICOûANDû6EOLIA OFûPOWERû4HEûDEALûWILLûBEûONEûOFûTHEû COMPANYûTAWZEA HAVEûREACHEDûlNANCIALû !LJOMAIH!LKIFAH lRSTûFORû*")#ûINû$UBAIûSINCEûTHEûlNANCIALû CLOSEûONûTHEû4AIFûINDEPENDENTûSEWAGEû û3YNERGYû#ONSULTING û$,!û0IPERûANDû CRISISû)TûISûBACKEDûBYûTHEûGOVERNMENTûOFû TREATMENTûPLANTû)340 ûPROJECTûPROCUREDû !TKINSûAREûADVISINGûTHEûCLIENTûANDûOFFTAKERû $UBAI ûALTHOUGHûTHEûSCHEMEûISûFORûTHEû BYû3AUDIû7ATERû0ARTNERSHIPSû#OMPANYû ONûTHEûSCHEME û3AUDIû7ATERû0ARTNERSHIPû MUNICIPALITYû4HEûPROJECTûWILLûBEûBACKEDûBYû 370#  #OMPANYû370#  waste-gate fees and a power offtake with

Project Finance International November 18 2020 51

05 EMEA p39-54.indd 51 17/11/2020 19:35:09 $%7!û4HEûPOWERûELEMENTûWILLûBEûTHEû ENGIE QUITS OLKARIA VI TENDER POWERûPURCHASEûAGREEMENTû00! ûSIGNEDû MAINûPAYMENTûSTREAMûATûAROUNDûûOFûTHEû INû&EBRUARYûûFORûûYEARSû0HANESûWASû revenues. ENGIE has dropped out of the tender for AWARDEDûTHEûPROJECTûINûûFOLLOWINGû THEû-7û/LKARIAû6)ûGEOTHERMALûPROJECTû a tender process involving 21 other DHAFRA FC DUE INû+ENYA û0&)ûHASûLEARNEDû!Nû%NGIEû BIDDERSû.ATSONSûISûTHEûLOCALûDEVELOPMENTû SPOKESPERSONûEXPLAINEDûITûWASûDUEûTOûhTHEû PARTNERû2,3&ûHASûBEENûBACKEDûBYû+F7û Financial close on EDFJINKO@Sû'7û!Lû group’s decision to focus on a restricted since its launch in 2017. $HAFRAûSOLARû06ûPROJECTûISûDUEûSHORTLYû NUMBERûOFûGEOGRAPHIESv 4HEûTEAMûANDûCLIENTû%7%#ûAREûSTICKINGû &IVEûBIDSûWEREûSHORTLISTEDûFROMû/RMATû TOûTHEûPRE #OVIDûBPûLOANûPRICINGûONûTHEû 4ECHNOLOGIESû)TOCHUû3UMITOMOû%NELû 53MûCONSTRUCTIONûLOANûBRIDGEûTOûBONDû 'REENû0OWERûANDûAûFOUR COMPANYû MOZAMBIQUE lNANCINGû"ANKSûGOINGûINTOûTHEûLOANûWILLû CONSORTIUMûOFû%NGIEû%NERGIEû3ERVICES û BEûONûTHEûSUBSEQUENTûBONDûISSUE ûWHICHû 4OYOTAû4SUSHOû#ORPORATION û+YUDENû ROVUMA LNG SLOWS DOWN WILLûHELPûTHEIRûOVERALLûRETURNû4HEûBANKSû )NTERNATIONALûANDû$,û+OISAGATû4EAû%STATEû AREûBELIEVEDûTOûBEû-IZUHO û-5&' û3-"# û )TûISûUNDERSTOODûTHATûTHEûCONSORTIUMûWILLû $EVELOPMENTûWORKûONûTHEû%XXON LEDû #ITIGROUP û(3"# û#REDITû!GRICOLEûANDû proceed without Engie. 2OVUMAû,.'ûPROJECTûISûSAIDûTOûHAVEû 3TANDARDû#HARTERED 4HEûNEXTûSTAGEûOFûTHEûTENDERûWASûMEANTû SLOWEDûINûTHEûCOUNTRY ûRAISINGûFEARSûTHEû TOûBEûLAUNCHEDûINû*UNEûBUTûHASûBEENû SCHEMEûMIGHTûBEûONûHOLDûFORûSOMEûTIMEû HASSYAN PB DUE DELAYEDûDUEûTOû#OVID û/NCEûSELECTED û EXXONMOBIL@Sû-OZAMBIQUEûMANAGINGû MOSTûLIKELYûINû ûTHEûPREFERREDûBIDDERû DIRECTOR û*OSû%VENS ûTOLDûTHEû-OZAMBIQUEû Local reports suggest UTICOûHASûBEENû WILLûENTERûAûJOINTûVENTUREû306ûWITHû+EN'ENû 'ASû3UMMITûRECENTLYûANYûDECISIONû CONlRMEDûASûTHEûWINNERûOFûTHEû(ASSYANû nûWHICHûWILLûTAKEûUPûTOûAûûSTAKEûnûANDû ONûPRESSINGûAHEADûWITHûTHEû53BNû INDEPENDENTûWATERûPROJECTû)TûBIDû lNANCE ûCONSTRUCT ûOWNûANDûOPERATEûTHEû M TONNES PER YEARûSCHEMEûhDEPENDSûONû 53M3ûONûTHEûM GALLONS A DAYû PLANTûONûAû"//4ûBASIS how the market develops in the coming BASEûBIDûANDû53ûONûTHEûALTERNATEû /LKARIAû6)ûWILLûBEûSIGNEDûTOûAû YEARû MONTHSûANDûYEARSvûANDûITûREMAINSû M GALLONS A DAYûBIDû4HEûRIVALû!#7!û STEAMûSUPPLYûAGREEMENTûWITHû+EN'ENûnû NECESSARYûTOûhASSESSûTHEûFEASIBILITYûOFûTHEû TEAMûBIDû53ûANDû53 û WHICHûISûPART LISTEDû ûONûTHEû.AIROBIû PROJECTv RESPECTIVELYû5TICOûISûBACKEDûBYû!))" û STOCKûEXCHANGEûnûANDûAû YEARûPOWERû Last month, it was reported that the !PICORP û)S$"ûANDû3IEMENSû"ANK ûANDûISû PURCHASEûAGREEMENTû00! ûWITHû+ENYAû %0#ûCONTRACTORûONûTHEûSCHEME ûTHEû*'# û BEINGûADVISEDûBYû3YNERGYû#ONSULTINGû)TûISû 0OWERûANDû,IGHTINGû#OMPANYû#ONSTRUCTIONû &LUORûANDû4ECHNIP&-#ûCONSORTIUM ûWASû BELIEVEDû-UBADALAûISûDUEûTOûJOINûTHEû5TICOû ISûEXPECTEDûTOûBEûCOMPLETEDûWITHINûTHREEû ASKEDûTOûREPRICEûITSûBIDûONûTHEûSCHEMEû team. YEARSûOFûlNANCIALûCLOSE (OWEVER ûTHEûPROJECTûMAYûBEûFACINGûMOREû )NûITSû(ûlNANCIALûRESULTS û%NGIEûSAIDûITû fundamental issues given its size and the WASûFOCUSINGûONûhSIMPLIFYINGûTHEûGROUPvû CURRENTûSTATEûOFûTHEûGLOBALûENERGYûMARKETû ANDûEXITINGûûCOUNTRIESûBYûTHEûENDûOFû %XXON-OBILûHASûITSûOWNûISSUESûTHISûYEARû KENYA û)TûISûALSOûMERGINGûTHEûREGIONALû WITHûLOWûOILûPRICESû)TSûSHAREûPRICEûHASû ORGANISATIONSûOFûITSû!FRICANûANDû-IDDLEû%ASTû HALVEDûINûû)TSûCURRENTûDEVELOPMENTû CONSULTANTS SOUGHT FOR BUSINESSûUNITS ûASûWELLûASûITSû!SIA 0ACIlCûANDû FOCUSûISûONûITSû53BNû'UYANAûOILûlELDû LNG-TO-POWER #HINESEûBUSINESSES ûAûPROCESSûTHATûSHOULDû development. BEûCOMPLETEDûINûEARLYû 4HEû2OVUMAûSPONSORSûAREû%XXON-OBIL û +ENYAû%LECTRICITYû'ENERATIONû#OMPANYû %NI û#.0# û+OGASûANDû'ALPû4HEû2OVUMAû +EN'EN ûHASûLAUNCHEDûAûREQUESTûFORû SCHEMEûRELIESûONûTHEûPROJECTûSPONSORSû EXPRESSIONSûOFûINTERESTûFROMûCONSULTANTSû OFFTAKINGûTHEû,.'ûFROMûTHEûMEGAû TOûCOMPLETEûAûFEASIBILITYûSTUDYûINTOûTHEû MALAWI SCHEMEû!ûYEARûAGOûITûEMERGEDûTHATû DEVELOPMENTûOFû,.'ûINFRASTRUCTUREûANDû THEûSIZEûOFûTHEûDEBTûPACKAGEûONûTHEû AûNEWûGAS lREDûPOWERûPLANTû+ENYASû LIQUIDITY SUPPORT FOR 46MW SOLAR scheme had increased to more than government is moving forward with plans FARM 53BNûFROMû53BNûFOLLOWINGûTHEû to create a domestic natural gas market to RETENDERINGûPROCESSûONûTHEû%0#ûCONTRACTû DIVERSIFYûITSûPOWERûBASEûANDûFORûINDUSTRIALû 4HEû!FRICANû4RADEû)NSURANCEû!GENCYû 4HEûPROPOSEDûlNANCINGûNOWûINCLUDESûAû use. !4) ûHASûPROVIDEDûlNANCINGûTHROUGHûITSû LARGERûSHAREHOLDERûLOANûFROMûTHEû%XXON 4HEûENTIREûNATURALûGASûINFRASTRUCTUREû 2EGIONALû,IQUIDITYû3UPPORTû&ACILITYû2,3& û led sponsor group. PROJECTûTHATûWILLûBEûSUBJECTûOFûTHEûFEASIBILITYû TOûTHEû-7û.KHOTAKOTAûSOLARûFARMûINû STUDYûWILLûCONSISTûOFûAûGASûIMPORT ûSTORAGEû -ALAWI ûlNANCEDûINû*ANUARYû4HEû2,3&û ANDûREGASIlCATIONûFACILITYûTHEûCONVERSIONû WILLûPROVIDEûLIQUIDITYûCOVERûTOû$UBAI OFûABOUTû-7ûOFûHEAVYûFUELûOILû(&/ û BASEDûPROJECTûSPONSORûPHANES GROUP for SENEGAL thermal power plants to natural-gas; the ûYEARSûASûTHEûSECONDûPROJECTûTOûRECEIVEû DEVELOPMENTûOFûAûNEWûGAS lREDûPLANTûANDû 2,3&ûBACKINGûAFTERû'IGAWATTû'LOBALSû FAR SELLS OUT OF SNE SANGOMAR the operations and maintenance of the -7ûSOLARû)00ûINû"URUNDI PROJECTûFORûûYEARS 0HANESûPROJECTûWASûlNANCEDûWITHû 3MALLû!USTRALIANûOILûINDEPENDENTûFAR has 4HEûSELECTEDûCONSULTANT ûASûWELLûASû DEBTûFROMûTHEû$&#û4HEûCOMPANYû SOLDûITSûûSTAKEûINûTHEû53BNû3.%û PERFORMINGûSITEûIDENTIlCATIONûANDûPROJECTû RAISEDû53MûINûPARTNERSHIPûWITHûTHEû 3ANGOMARûOFFSHOREûOILûSCHEMEûTOû)NDIASû due diligence, will determine whether %UROPEANûINVESTMENTûFUNDûRESPONS!BILITYû ONGCûFORû53MûATûDEALûCOMPLETIONû TOûPROCUREûTHEûINFRASTRUCTUREûVIAû000ûORû 2ENEWABLEû%NERGY ûWHICHûPROVIDEDû /.'#ûWILLûREIMBURSEû&!2SûSHAREûOFû THROUGHûTHEûMOREûTRADITIONALû%0#ûORû%0# û EQUITYûTOûTHEûSCHEMEû.KHOTAKOTAûISûTHEû WORKINGûCAPITALûFORûTHEûPROJECTûFROMû MODELSû%O)SûAREûDUEûBYû.OVEMBERû RECIPIENTûOFû-ALAWISûlRSTûRENEWABLESû *ANUARYûûûFORû53Mû)TûWILLû

52 Project Finance International November 18 2020

05 EMEA p39-54.indd 52 17/11/2020 19:35:09 NEWS EMEA

ECA-backed solar farms financed „ ANGOLA Renewables

An international consortium of developers, DLA Piper and McDermott, Will & Emery “When it comes to power projects, the LCOE contractors and advisers has financed an export- advised the development consortium should be start and end of all conversations – credit backed 370MW solar portfolio in Angola, while Norton Rose Fulbright advised the not tariffs,” he told PFI. “The LCOE is the proof which is being developed using an EPC model government. of concept here – how cheap is the plant to rather than as an IPP. The consortium consists of developer SUN operate, how cheap is it to finance? The math is The seven-project portfolio raised €560m AFRICA, a US developer and EPC contractor simple.” over 18-years from from Swedish Export Credit Grupo MCA, with module supplier Hitachi ABB The portfolio is broken down between two Corporation (SEK), which provided €480m and Power Grids, NEXTracker and Hanwha Q Cells in larger projects of 180MW and 100MW, a 60MW the Development Bank of South Africa (DBSA) its first African project. The role of MCA – which project, two 20MW projects and two other the remaining €80m. Swedish Export Credit has operated in Angola for years – was said to be smaller-scale hybrid plants. All of them will be Agency (EKN) provided coverage on SEK’s crucial to the project’s success. commissioned within 24 months. tranche – about 85% of the total – as did South Sun Africa originally developed the projects Asked whether the company would be likely Korea’s K-Sure with €100m. The recipient of the in 2017 but decided a year later to pursue a to pursue more EPC-style power projects rather loan is the Angolan government, which will own non-IPP strategy to mitigate the currency and than the traditional IPP route, Krneta said “only the project. long-term risks in Angola’s power sector. Nikola time will tell. Covid has changed a lot, but IPP Loan signing actually occurred in May, with a Krneta, the company CEO, explained that is not the be-all and end-all for Africa’s energy first advanced disbursement in July. Construction this strategy ensured a lower levellised cost solutions.” The project was completed under the began earlier this month. of electricity (LCOE) and allowed the projects US’s Prosper Africa’s advocacy programme, “one ING was lead arranger, advised by Clifford to function without the backing of a power of the key elements” of the project’s success. Chance. Lisbon-based Miranda & Associates, purchase agreement (PPA). Peter Collins

ALSOûPAYûCONTINGENCIESûTOû&!2ûCAPPEDûATû REDUCEûOURûINTERESTûINûTHEûPROJECTûANDûWEû PLANTûINû,IMPOPOûPROVINCE û2EUTERSû 53MûUPûTOûûIFûCERTAINûCONDITIONSû HAVEûESTABLISHEDûAûlNANCINGûPATHûWHICHû REPORTS ûFOLLOWINGûTHEûEXITûOFû3OUTHû are met. FUNDSû+OSMOSûCAPITALûOBLIGATIONSûTOûlRSTû !FRICANûINVESTORSûTHISûWEEKûANDûPROJECTû )Nû*ANUARY û&!2ûRECEIVEDûUNDERWRITTENû GASû4HISûENABLESû+OSMOSûTOûRETAINûITSû CO SPONSORû+OREAû%LECTRICû0OWERû#Oû COMMITMENTSûFORûAû53MûSENIORû CURRENTûEQUITYûSTAKEûTHROUGHûTOûPRODUCTION vû +EPCO ûANDûITSûSUBSIDIARIESûLASTûWEEK SECUREDûRESERVE BASEDûLENDINGû2", ûONû SAIDû+OSMOSû#%/û!NDYû)NGLISûASû0HASEûûOFû h!SûPERûOURûPOLICYûTHATûWEûWILLûNOTû THEûPROJECT ûWITHû".0û0ARIBAS û'LENCOREû THEûSCHEMEûMAKESûhGOODûPROGRESSv DEVELOPûANYûNEWûCOALûPOWERûPROJECT ûWEû ANDû-ACQUARIEû"ANKûEACHûPROVIDINGû 4OûlNANCEûITSûPORTION û+OSMOSûANDû"0û are in process of the withdrawal from the 53MûATû,IBORûPLUSûBPû"UTûSINCEû WILLûSELLûTHEûmOATINGûPRODUCTION ûSTORAGEû PROJECTûWITHûTHEû'OVERNMENTûOFû3OUTHû then the appetite for new oil investments ANDûOFmOADINGû&03/ ûVESSELûTOûAûSPECIALû !FRICA vûAû-ARUBENIûSPOKESMANûSAIDûINû HASûBEENûHITûBYû#OVID û%ARLYûINûTHEû PURPOSEûVEHICLEûBYû1û!BOUTû53Mû RESPONSEûTOûQUESTIONSûFROMû2EUTERS û YEARû&!2ûLOSTûITSûARBITRATIONûAGAINSTû OFûNETûPROCEEDSûWILLûGOûTOû+OSMOSûANDû without providing further detail. 7OODSIDEûOVERûITSûACQUISITIONûOFûAûû THEû&03/ûWILLûBEûLEASEDûBACKûTOûTHEû 4HEûPROJECTûISûALLûBUTûDEADûINûTHEûWATERû STAKEûINûTHEûPROJECTûFROMû#ONOCO0HILLIPSû SCHEMEûWHILEûTHEû306ûCOVERSûITSûFUTUREû ANDûSIGNALSûTHEûPOSSIBLEûENDûOFûTHEûLINEû FORû53MûINû SPENDINGûnûPRESENTINGûMOREûCOSTûSAVINGSû FORûCOALûINû3OUTHû!FRICA 4HEûREMAININGûSTAKEHOLDERSûONû FORû+OSMOS +EPCOSûWITHDRAWALûANDûTHEûLOSSûOFûITSû THEûM BARRELûSCHEMEûAREûOPERATORû 4HEûCOMPANYûWILLûALSOûRElNANCEûITSû BILLION DOLLARûINVESTMENTûPLEDGEûnûWHICHû 7OODSIDE û ûANDûSTATEûOILûCOMPANYû loans to national oil companies under PRECEDEDûTHEûEXODUSûOFûTHEûREMAININGû 0ETROSENû7OODSIDEûSAIDûLASTûWEEKûITûWILLû AGREEMENTSûWITHûCOMMERCIALûBANKSû STAKEHOLDERSûnûFOLLOWEDûTHEûû sell part of its stake in the scheme after INûûWHICHûISûEXPECTEDûTOûYIELDû ANNOUNCEMENTSûTHATû.EDBANK û3TANDARDû HAVINGûBOUGHTûOUTû#AIRNû%NERGYSûû 53Mû0HASEûûWILLûLARGELYûBEûFUNDEDû "ANKûANDû2ANDû-ERCHANTû"ANKûnûALLû STAKEûINû!UGUSTûFORû53Mû,UKOILûHADû THROUGHû0HASEûûCASHmOWSû"YûLEVERAGINGû UNDERSTOODûTOûBEûINVOLVEDûINû4HABAMETSIû BEENûINûLINEûTOûBUYûTHEû#AIRNûSTAKEûFORû ALLûTHEûMAJORûINFRASTRUCTUREûFROMû0HASEû û nûWOULDûNOûLONGERûlNANCEûNEWûCOALû 53MûBUTû7OODSIDEûSTEPPEDûIN CAPITALûCOSTSûFORû0HASEûûHAVEûFALLENûANDû POWERû!BSAûBANKûWASûTHEûONLYû3OUTHû EXPECTEDûRETURNSûHAVEûRISENû0HASEûûWILLû !FRICANûCOMMERCIALûLENDERûLEFT KOSMOS SCRAPS TORTUE LNG SALE DOUBLEûPRODUCTIONûTOûMûTONNESûPERûYEARû +EPCOû#%/û+IMû*ONG GAPûHADûSAIDû +OSMOSûPOSTEDûAû1ûNETûLOSSûOFû53M û EARLIERûTHISûMONTHûTHATûTHEûCOMPANYûANDû KOSMOS ENERGY has scrapped selling down its ORûANûADJUSTEDûLOSSûOFû53M ITSûSUBSIDIARIESûWILLûSTOPûPURSUINGûNEWû ûINTERESTûINûTHEû'REATERû4ORTUEû!HMEYIMû OVERSEASûCOALûPOWERûPROJECTSûWITHûTHEû ,.'ûPROJECTûINû3ENEGALûANDû-AURITANIA û EXCEPTIONûOFûTHEû*AWAûûANDûûCOALû)00ûINû THEûCOMPANYûSAIDûINûITSû1ûRESULTSû)NSTEAD û )NDONESIAûANDû6UNGû!NGûûCOALûPLANTûINû +OSMOSûWILLûSEEKûADDITIONALûlNANCINGû SOUTH AFRICA 6IETNAM ALONGSIDEûPROJECTûPARTNERû"0ûRATHERûTHANûSELLû #OMPOUNDINGûTHEûISSUE û3OUTHû!FRICASû down to 10% ownership in a deal that was DEVELOPERS EXIT COAL IPP BIGGESTûSTATEûPENSIONûFUNDûMANAGERûTHEû EXPECTEDûTOûCLOSEûTHISûYEAR 0UBLICû)NVESTMENTû#ORPORATIONû0)# ûANDû h7ITHûTHEûPROSPECTûOFûENHANCEDûFUTUREû MARUBENI has pulled out of the planned THEû)NDUSTRIALû$EVELOPMENTû#ORPORATIONû returns, now is not the optimal time to -7û4HABAMETSIûCOAL lREDûPOWERû )$# ûTOLDû2EUTERSûTHEYûWOULDûNOûLONGERû

Project Finance International November 18 2020 53

05 EMEA p39-54.indd 53 17/11/2020 19:35:09 SUPPORTûTHEûPROJECT ûWHICHûWASûPLANNEDû lBRE TO THE HOMEû&44( ûANDûlBRE TO THE ANûINFRASTRUCTUREûASSETû4HEûPIPEûRUNSû to come online in 2021. BUSINESSû&44"  FROMûTHEû,AKEû!LBERTûOILlELDSûTOûTHEûPORTû 4HABAMETSIûWASûAWARDEDûTOû OFû4ANGAûINû4ANZANIASûNORTH EASTûREGIONû -ARUBENIûINûTHEû/CTOBERûûNEW 4HREE QUARTERSûOFûTHEûROUTEûWILLûRUNû COALû)00ûPROGRAMMEûALONGûWITHû!#7!û THROUGHû4ANZANIA 0OWERSû-7û+HANYISAûPROJECTû UGANDA /ILûCOMPANIESûHAVEûBEENûLOOKINGûTOû (AVINGûENDUREDûLEGALûCHALLENGESûFROMû BRINGûINFRASTRUCTUREûINVESTORSûINTOûTHEIRû environmental groups throughout 2017, INVESTORS TO BE SOUGHT FOR EACOP infrastructure assets and the process has THEûPLANTSûWEREûTHOUGHTûTOûBEûBACKûONû ACCELERATEDûTHISûYEARûGIVENûTHEû#OVIDû TRACKûBEFOREûTHEûEXODUSûOFûBANKSûFROMû 4HEûSPONSORSûOFûTHEû53BNû KMû PROBLEMSû,ASTûWEEK û!USTRALIANûOILû COAL TO POWERûPROJECTS %ASTû!FRICANû#RUDEû/ILû0IPELINEû MAJORû7OODSIDEûSAIDûITûWASûLOOKINGûTOû %!#/0 ûFROMûTHEû,AKEû!LBERTûOILû BRINGûlNANCIALûINVESTORSûINTOûITSû0LUTOû AIIM AND STOA INVEST IN FIBRE lELDSûAREûLOOKINGûATûBRINGINGûlNANCIALû ,.'ûûSCHEMEûINû!USTRALIAûRATHERûTHANû COMPANY investors into the scheme to cover FARMûDOWNûTOûOTHERûOILûCOMPANIESû)Tû 4ULLOWSûûSTAKEû4OTALûlNALLYû HADûSOUNDEDûOUTûMAJORûOILûCOMPANIESû !FRICANû)NFRASTRUCTUREû)NVESTMENTû BOUGHTûLASTûWEEKû4ULLOWSûSTAKEûANDû TOûINVESTûBUTûDUEûTOûTHEûOILûANDûGASûPRICEû -ANAGERSû!))- ûANDû&RENCH OWNEDû ITSû5GANDANûASSETSûFORû53M ûPLUSû DROPûTHISûYEAR ûTHATûNOûLONGERûMAKESû 34/!ûHAVEûINVESTEDû2BNûõM ûINû 53MûWHENûTHEûlNALûINVESTMENTû SENSE ûCHIEFûEXECUTIVEû0ETERû#OLEMANû 3OUTHû!FRICANûOPENûACCESSûlBREûNETWORKû DECISIONû&)$ ûISûREACHEDûONûTHEû,AKEû said. operator METROFIBRE NETWORK. !LBERTûSCHEMEû4OTALûNOWûHASûûWITHû 4OTALûISûLOOKINGûTOûGETûTHEû%!#/0û !))-SûINVESTMENTûSTANDSûATû2M û #HINESEûCOMPANYû#.//#ûHOLDINGûTHEû SCHEMEûlNANCEDûQUICKLY ûALTHOUGHû WHILEûTHEû3OUTHû!FRICANû(OUSINGû rest. THEûPROJECTûISûLIKELYûTOûBEûAûû )NFRASTRUCTUREû&UNDû3!()& ûINVESTEDûINû 4ULLOWûISûSELLINGûOUTûDUEûTOûITSû DEALû!ûlNALûINVESTMENTûDECISIONû -ETRO&IBRESûCAPITALûEXPANSION ûWHICHûISû corporate issues and the state of the &)$ ûISûDUEûTHISûYEAR ûALTHOUGHûMOREû TARGETEDûATû2BNûOVERûTHREEûYEARSû34/! û ENERGYûMARKETSûTHISûYEARû4OTALûSAIDûTHEû REALISTICALLYûITûWILLûPROBABLYûBEûEARLYû WHICHûISûOWNEDûBYû#AISSEûDESû$EPOTSûANDû DEALûGIVESûITûACCESSûTOûTHEû,AKEû!LBERTûOILû NEXTûYEARû3TANDARDû"ANKûANDû3-"#û !&$ ûISûPROVIDINGûINCREMENTALûFUNDINGû lELDûASSETûhFORûLESSûTHANû53ûAûBARRELûINû AREûADVISINGûONûTHEûDEBTûlNANCINGû 4HEûINVESTORSûJOINûEXISTINGûSTAKEHOLDERSû LINEv .INEûCONTRACTORSûAREûCURRENTLYû 3ANLAMû0RIVATEû%QUITYûANDû!FRICANû (OWEVER ûOTHERûTYPESûOFûINVESTORSûCANû COMPETINGûFORûTHREEûPIPE LAYINGû 2AINBOWû#APITALû-ETRO&IBREûOPERATESûINû BEûBOUGHTûINTOûlNANCINGûTHEûPIPELINE û CONTRACTSûFORû%!#/0

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54 Project Finance International November 18 2020

05 EMEA p39-54.indd 54 17/11/2020 19:35:42 LEGAL REPORT 2020

IN THIS SECTION 56 Global review 64 Americas 57 League tables 67 Asia Pacific 60 Project list 70 EMEA

06 Legal Report 2020 p55-72.indd 55 17/11/2020 19:00:58 FEATURES

TOP FIRMS BOOST DEAL NUMBERS

DESPITE THE IMPACT OF COVID-19, MANY OF THE TOP GLOBAL LAW FIRMS HAVE SIGNIFICANTLY INCREASED THE NUMBER OF DEALS WORKED ON COMPARED WITH THE PREVIOUS YEAR. POWER, TRANSPORT AND OIL & GAS DEALS UNSURPRISINGLY CONTINUE TO DOMINATE, WITH OFFSHORE WIND HAVING A NOTABLE YEAR AND MANY TELECOMMUNICATIONS DEALS ALSO CLOSING. BY PETER COLLINS.

It would be an understatement to call 2020 a Dentons, which marginally increased its ranking “challenging” year but, despite the world coming despite no increase in deals, will hope for a boost to somewhat of a halt due to the novel coronavirus from the arrival of partners Thomas Doermer and PANDEMIC ûTHEû2ElNITIVû0ROJECTû&INANCEû Tim Heitling and associates Annekathrin Markert )NTERNATIONALû0&) ûANNUALûLEGALûSURVEYûSHOWSûTHATû and Daniel Neudecker from Baker McKenzie. deals have continued to close at a strong pace. -EANWHILE û0INSENTû-ASONSûnûWHICHûHASûCLIMBEDû 4HEûSURVEYûCHARTSûlRMSûADVISINGûTHEûLENDERSûANDû the global rankings into the top half – will hope to THEûSPONSORSûOFûINTERNATIONALLYûSIGNIlCANTûDEALSû build on this momentum with the appointment with a value more than US$500m closed between of Leeds-based Melanie Grimmitt as its new global September 2019 and 2020. head of energy in October. In the US, the legal #LIFFORDû#HANCE ûTHEûTOPûRANKEDûLAWûlRMûINû MOVESûWEREûDOMINATEDûBYûTHEûMAJORûPLAYERSûINûTHEû 2020, led the pack with 40 global deals, nine renewables sectors – a theme that is explored in MOREûTHANûINûTHEûPREVIOUSûYEARû/THERûTOPûlRMSû more detail in this report. such as Allen & Overy, with 35 global deals, !CROSSûTHEû%-%!ûANDû!SIA 0ACIlCûREGIONS ûLAWû Linklaters with 26, and White & Case with 33 lRMSûHAVEûSTRENGTHENEDûTHEIRûOFFSHOREûWINDû increased their share, the latter nearly doubling credentials through a number of deals in the ITSûûDEALûTOTALûANDûCONSEQUENTLYûJUMPINGûTOû sector. In the UK, Linklaters advised the lenders third in the global rankings. ONûBOTHûTHEûaBNû.EARTûNAû'AOITHEû.N' ûANDû Baker McKenzie broke into the top 10 with a aBNû3EAGREENûOFFSHOREûWINDûlNANCINGSû4HEû5+û total of 10 deals – interestingly, all on the lender’s lRMûALSOûLEDûTHEû53Mû!KITAûANDû.OSHIROû SIDEû(OGANû,OVELLSûANDû7ATSONû&ARLEYû7ILLIAMSû PROJECTûINû*APANûWITHûLOCALûlRMSû-ORIû(AMADAû both shot up the rankings with seven deals each, & Matsumoto and Nishimura & Asahi providing #-3ûJOININGûTHEMûFURTHERûUPûTHEûTABLEûHAVINGû THEMûWITHûVALUABLEûEXPERIENCEûONû*APANSûlRSTû DOUBLEDûITSûDEALûTOTALûFROMûTHREEûTOûSIXû&RESHlELDSû COMMERCIALûOFFSHOREûWINDûlNANCINGû4HEûTRANSFERû came in right below CMS at 17th, having also OFûKNOWLEDGEûANDûBESTûPRACTICESûTOûLOCALûlRMSû IMPROVEDûSIGNIlCANTLYûONûITSûûRANKINGû INûmEDGLINGûOFFSHOREûWINDûSECTORSûISûAûSUBJECTûOFû It was a slightly less positive picture for some discussion in this year’s survey. OFûTHEûOTHERû53 BASEDûlRMS û-ILBANKûWITHû û Clifford Chance advised the sponsors on NnG Latham & Watkins 23, and Shearman & Sterling ANDûONûTHEû53BNû.ORTHERûPROJECTûINû"ELGIUM û 11, having fallen down the rankings, while the ANDûADVISEDûTHEûLENDERSûONûTHEûõBNû&ECAMPû 5+Sû!SHURSTû ûALSOûSLIPPEDûFROMûEIGHTHûTOûTHû OFFSHOREûWINDûSYNDICATIONûINû&RANCEûANDûTHEû ANDû$,!û0IPERû ûFELLûOUTûOFûTHEûTOPûû 53BNû&ORMOSAû))ûlNANCINGûINû4AIWAN The regional breakdowns naturally offer a more 4HEûlRMûAPPEAREDûONûSEVERALûTELECOMSûDEALSû nuanced picture. Sydney-headquartered Allens INû&RANCE ûTHEû.ETHERLANDS ûANDûTHEû5+û(ERBERTû led the Asia tables with seven deals, tied with 3MITHû&REEHILLS û,ATHAMûû7ATKINS û7HITEûû King & Wood Mallesons and Linklaters. Despite Case and Linklaters were also big players in the their poorer global showing, Latham & Watkins telecommunications sector, which saw more than and Milbank still led the Americas with 15 and twice the number of deals close, 10, compared 13 deals, respectively. Clifford Chance, Allen & with last year, four. The oil and gas sector saw a Overy and Linklaters were the top three in EMEA, mURRYûOFû-!ûDEALS ûESPECIALLYûINûTHEû53 ûWHEREû representing no change on last year despite White the likes of Orrick, Milbank, Kirkland & Ellis and û#ASEûCLOSINGûTHEûGAPûSIGNIlCANTLYûWITHûûDEALSû Latham & Watkins featured most prominently. in fourth place – one below third-placed Linklaters. The latter also advised on a number of power 3OMEûNOTABLEûPEOPLEûMOVESûACROSSûlRMSû M&A deals in the US and Mexico. may shake up the rankings next year. Milbank &INALLY ûTHEûTRANSPORTûSECTORûHADûAûHEALTHYû WILLûCERTAINLYûHOPEûTOûBENElTûFROMûTHEûRECENTLYû AMOUNTûOFû-! ûlNANCINGûANDûRElNANCINGûDEALSû announced arrival of Clifford Chance partners across all regions. The US$752m Almaty ring road Barbara Mayer-Trautmann and Markus Muhs, 000ûlNANCINGûINû+AZAKHSTAN ûADVISEDûONûBYû!LLENû WHOûAREûBOTHûJOININGûTHEû53ûlRMSû-UNICHûOFlCEû û/VERYûANDû7HITEûû#ASE ûWASûTHEûCOUNTRYSûlRSTû with their substantial acquisition, structured and a notable success story for the country and lNANCINGûANDûCROSS BORDERûEXPERTISEû the sector.

56 Project Finance International November 18 2020

06 Legal Report 2020 p55-72.indd 56 17/11/2020 19:00:58 LEGAL REPORT

Despite the year being clouded by the can be seen by the high volume of deals still unprecedented disruption of a global pandemic, being closed and this development is explored LAWûlRMSûnûLIKEûTHEûPROJECTûlNANCEûSECTORûINû in more detail in this issue with a focus on general – have adapted well and swiftly. This Asia.„

GLOBAL - OCTOBER 2019 TO SEPTEMBER 2020

Firm Sponsors Lenders Total Mannheimer Swartling Advokatbyra 1 0 1 Clifford Chance 15 25 40 Blanke Meier Evers 1 0 1 Allen & Overy 19 16 35 Tsar and Tsai Law Firm 0 1 1 White & Case LLP 21 12 33 Simmons & Simmons 0 1 1 Linklaters 8 18 26 Dias Carneiro Advogados 0 1 1 Latham & Watkins 8 12 20 Hunton Andrews Kurth LLP 0 1 1 Norton Rose Fulbright 1 16 17 Mattos Filho Veiga Filho Marrey Jr 1 0 1 Milbank LLP 6 9 15 Mohsin Tayebaly & Co 0 1 1 Shearman & Sterling LLP 1 10 11 Pinheiro Guimaraes 0 1 1 Herbert Smith Freehills 10 1 11 Arias Fabrega & Fabrega 0 1 1 Baker Mckenzie 10 0 10 Legance Avvocati Associati 1 0 1 Ashurst 5 4 9 L&L Partners 1 0 1 Allens 3 4 7 Claro y Cia 1 0 1 King & Wood Mallesons 3 4 7 Heuking Kuehn Lueer Wojtek 1 0 1 Watson Farley & Williams LLP 4 3 7 Rothschild & Morgan PC (GA) 1 0 1 Hogan Lovells 4 3 7 De Pardieu Brocas Maffei 1 0 1 CMS 3 3 6 McMillan LLP 0 1 1 Freshfields Bruckhaus Deringer 2 3 5 Pioneer Legal 0 1 1 Simpson Thacher & Bartlett 0 5 5 Stibbe Avocats Luxembourg 1 0 1 Kirkland & Ellis 3 2 5 Mori Hamada & Matsumoto 1 0 1 Torys 2 3 5 Afridi & Angell 1 0 1 King & Spalding 5 0 5 Al-Tamimi & Co 0 1 1 Skadden 3 1 4 Borden Ladner Gervais LLP 1 0 1 McCarthy Tetrault 2 2 4 Amicus Legal 1 0 1 Orrick Herrington & Sutcliffe LLP 4 0 4 Mijares, Angoitia, Cortes y Fuentes 1 0 1 Jones Day 2 2 4 Posse, Herrera & Ruiz 1 0 1 Cyril Amarchand Mangaldas 0 4 4 Jones Walker LLP 0 1 1 Vinson & Elkins LLP 4 0 4 Aequitas 0 1 1 Sullivan & Cromwell 3 0 3 Sheppard, Mullin, Richter & Hampton 1 0 1 Gilbert + Tobin 1 2 3 Davies Ward Phillips & Vineberg LLP 0 1 1 Pinsent Masons 3 0 3 Stikeman, Graham, Keeley & Spiegel 1 0 1 Machado Meyer Sendacz & Opice 2 1 3 McGuireWoods LLP 0 1 1 Gibson Dunn & Crutcher 3 0 3 Sidley Austin LLP 1 0 1 NautaDutilh 0 2 2 Morales & Besa 1 0 1 Blake Cassels & Graydon 1 1 2 Albuquerque & Associados 1 0 1 Lee and Li 1 1 2 Bracewell LLP 1 0 1 DLA Piper LLP 2 0 2 Covington & Burling 1 0 1 Bredin Prat 2 0 2 Gandhi & Associates 1 0 1 BonelliErede 2 0 2 RIAA Barker Gillette 1 0 1 Stocche Forbes Advogados 2 0 2 Bae Kim & Lee 1 0 1 Squire Patton Boggs LLP 2 0 2 Shin & Kim 0 1 1 Shardul Amarchand Mangaldas & Co 1 1 2 Gonzalez Calvillo SC 1 0 1 Gowling WLG 2 0 2 Ritch Heather y Mueller SC 0 1 1 Osler Hoskin & Harcourt LLP 1 1 2 Weilmuenster & Wigginton (IL) 0 1 1 Dentons 1 1 2 Estudio Luis Echecopar Garcia 0 1 1 Loyens & Loeff 1 1 2 Nagashima Ohno & Tsunematsu 0 1 1 Lee & Ko 2 0 2 Osler 1 0 1 Kim & Chang 0 2 2 Husch Blackwell Sanders LLP 1 0 1 Nishimura & Asahi 1 1 2 Weil & Associes 0 1 1 Greenberg Traurig 0 2 2 Wilson Sonsini Goodrich & Rosati 0 1 1 Garrigues 0 2 2 Kummerlein, Simon & Partner 1 0 1 Morgan Lewis & Bockius 1 1 2 Addleshaw Goddard 0 2 2 Gianni Origoni Grippo Cappelli & Partners 0 1 1 Olaniwun Ajayi 1 0 1 Templars Law Firm 0 1 1 Corrs Chambers Westgarth 1 0 1

Project Finance International November 18 2020 57

06 Legal Report 2020 p55-72.indd 57 17/11/2020 19:00:58 ASIA-PACIFIC OCTOBER 2019 TO SEPTEMBER 2020 AMERICAS - OCTOBER 2019 TO SEPTEMBER 2020

Firm Sponsors Lenders Total Firm Sponsors Lenders Total Allens 3 4 7 Latham & Watkins 6 9 15 King & Wood Mallesons 3 4 7 Milbank 6 7 13 Linklaters 2 5 7 White & Case 6 5 11 White & Case 4 2 6 Shearman & Sterling 1 9 10 Allen & Overy 3 2 5 Norton Rose Fulbright 0 8 8 Clifford Chance 2 3 5 Allen & Overy 4 3 7 Ashurst 3 2 5 Clifford Chance 2 5 7 Cyril Amarchand Mangaldas 0 4 4 Baker Mckenzie 5 0 5 Herbert Smith Freehills 3 1 4 Kirkland & Ellis 3 2 5 Gilbert + Tobin 1 2 3 Torys 2 3 5 Baker Mckenzie 3 0 3 King & Spalding 5 0 5 Lee and Li 1 1 2 McCarthy Tetrault 2 2 4 Shardul Amarchand Mangaldas 1 1 2 Orrick Herrington & Sutcliffe 4 0 4 Lee & Ko 2 0 2 Sullivan & Cromwell 3 0 3 Kim & Chang 0 2 2 Machado Meyer Sendacz & Opice 2 1 3 Latham & Watkins 0 1 1 Gibson Dunn & Crutcher 3 0 3 NautaDutilh 0 1 1 Vinson & Elkins 3 0 3 Freshfields Bruckhaus Deringer 1 0 1 Simpson Thacher & Bartlett 0 3 3 Watson Farley & Williams 0 1 1 Skadden 1 1 2 DLA Piper 1 0 1 Blake Cassels & Graydon 1 1 2 Milbank 0 1 1 Linklaters 2 0 2 Corrs Chambers Westgarth 1 0 1 Stocche Forbes Advogados 2 0 2 Blanke Meier Evers 1 0 1 Squire Patton Boggs 2 0 2 Hogan Lovells 1 0 1 Gowling WLG 2 0 2 Tsar and Tsai Law Firm 0 1 1 Osler Hoskin & Harcourt 1 1 2 Mohsin Tayebaly 0 1 1 Jones Day 2 0 2 Pinsent Masons 1 0 1 Greenberg Traurig 0 2 2 L&L Partners 1 0 1 Garrigues 0 2 2 Pioneer Legal 0 1 1 Morgan Lewis & Bockius 1 1 2 Amicus Legal 1 0 1 Ashurst 1 0 1 Gandhi & Associates 1 0 1 Dias Carneiro Advogados 0 1 1 RIAA Barker Gillette 1 0 1 Hunton Andrews Kurth 0 1 1 Shearman & Sterling 0 1 1 Mattos Filho Veiga Filho Marrey Jr 1 0 1 Bae Kim & Lee 1 0 1 Pinheiro Guimaraes 0 1 1 Shin & Kim 0 1 1 Arias Fabrega & Fabrega 0 1 1 Claro y Cia 1 0 1 Freshfields Bruckhaus Deringer 0 1 1 BonelliErede 1 0 1 DLA Piper 1 0 1 Dentons 1 0 1 McMillan 0 1 1 Borden Ladner Gervais LLP 1 0 1 Mijares, Angoitia, Cortes y 101 Fuentes Posse, Herrera & Ruiz 1 0 1 Jones Walker 0 1 1 Sheppard, Mullin, Richter & 101 Hampton Davies Ward Phillips & Vineberg 0 1 1 Stikeman, Graham, Keeley & Spiegel 1 0 1 McGuireWoods 0 1 1 Sidley Austin 1 0 1 Morales & Besa 1 0 1 Gonzalez Calvillo 1 0 1 Ritch Heather y Mueller SC 0 1 1 Herbert Smith Freehills 1 0 1 Estudio Luis Echecopar Garcia 0 1 1 Hogan Lovells 1 0 1 Osler 1 0 1 Husch Blackwell Sanders 1 0 1 Wilson Sonsini Goodrich & Rosati 0 1 1

58 Project Finance International November 18 2020

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EMEA - OCTOBER 2019 TO SEPTEMBER 2020

Firm Sponsors Lenders Total Simpson Thacher & Bartlett 0 2 2 Clifford Chance 11 17 28 Addleshaw Goddard 0 2 2 Allen & Overy 12 11 23 Gianni Origoni Grippo Cappelli 011 Linklaters 4 13 17 & Partners White & Case 11 5 16 Mannheimer Swartling Advokatbyra 1 0 1 Norton Rose Fulbright 1 8 9 Milbank 0 1 1 Herbert Smith Freehills 6 0 6 BonelliErede 1 0 1 CMS 3 3 6 Simmons & Simmons 0 1 1 Watson Farley & Williams 4 2 6 Legance Avvocati Associati 1 0 1 Hogan Lovells 2 3 5 Heuking Kuehn Lueer Wojtek 1 0 1 Latham & Watkins 2 2 4 Rothschild & Morgan PC (GA) 1 0 1 Freshfields Bruckhaus Deringer 1 2 3 De Pardieu Brocas Maffei 1 0 1 Ashurst 1 2 3 NautaDutilh 0 1 1 Bredin Prat 2 0 2 Stibbe Avocats Luxembourg 1 0 1 Pinsent Masons 2 0 2 Weilmuenster & Wigginton (IL) 0 1 1 Jones Day 0 2 2 Weil & Associes 0 1 1 Loyens & Loeff 1 1 2 Kummerlein, Simon & Partner 1 0 1 Skadden 2 0 2 Vinson & Elkins 1 0 1 Baker Mckenzie 2 0 2

Project Finance International November 18 2020 59

06 Legal Report 2020 p55-72.indd 59 17/11/2020 19:00:59 PROJECT LIST OCTOBER 2019 TO SEPTEMBER 2020

Project Name Country Cost (US$m) Sector Sponsors counsel Lenders counsel Subsidiary roles Ichthys LNG Project Australia 34000 Oil & gas Allen & Overy Herbert Smith Freehills, Latham — & Watkins, NautaDutilh Amur Gas Processing Plant Project Russian Fed 21063.4 Oil & gas Herbert Smith Freehills, Freshfields Bruckhaus Deringer, — White & Case Linklaters Corpus Christi Liquefaction Project United States 17700 Oil & gas Sullivan & Cromwell Norton Rose Fulbright, Skadden — Jubail Refinery and Petroleumchemical Saudi Arabia 14000 Industrial Allen & Overy, White Linklaters — Plant Project (Satorp) & Case JFK International Airport Redevelopment United States 13000 Transportation Allen & Overy — Project Cameron LNG Export Project United States 10785 Oil & gas Sullivan & Cromwell Latham & Watkins, White & Case — Roy Hill Iron Ore Mine Project Australia 10000 Mining Herbert Smith Freehills Allen & Overy — Mead Township Petroleumchemical Ethane United States 10000 Oil & gas Baker Mckenzie — — Cracker Complex Project NSW Poles and Wires Asset Privatization Australia 8819.2 Power — Gilbert + Tobin — Project (TransportationGrid and AusGrid) Sydney Metro & Southwest Rail Project Australia 8480 Transportation Allens King & Wood Mallesons — Project Galaxy Utd Arab Em 7960 Oil & gas Ashurst, Clifford Chance, Linklaters, Simpson Thacher & — Latham & Watkins Bartlett Open Fiber 100Mbps Broadband Network Italy 7718.75 Telecommunications White & Case Gianni Origoni Grippo Cappelli — Project & Partners Ras Az Zawr Fertiliser Plant Project Saudi Arabia 7500 Industrial Baker Mckenzie, White Allen & Overy — & Case Transportation-Sumatra High Grade Indonesia 6725.925926 Transportation Allen & Overy Linklaters — Highway Project Sabine Pass 5 Project United States 5800 Oil & gas Latham & Watkins Norton Rose Fulbright — Sydney North West Rail Link Project Australia 5630.72 Transportation Allens King & Wood Mallesons — Nigeria LNG [NLNG] Carrier Vessels Nigeria 5400 Oil & gas Allen & Overy, Latham & Templars Law Firm, White & Case — Acquisition Watkins, Olaniwun Ajayi North Marmara Highway Project Turkey 5000 Transportation White & Case Clifford Chance — Port of Melbourne Acquisition Australia 4897.44 Transportation Allen & Overy King & Wood Mallesons — Coastal GasLink Pipeline Project Canada 4716.644036 Oil & gas Blake Cassels & Norton Rose Fulbright — Graydon Freeport LNG Train 3 Project United States 4615.789 Oil & gas White & Case Kirkland & Ellis — West Gate Tunnel Project (Western Australia 4557.34 Transportation White & Case Clayton Utz Distributor Road) Camago and Malampaya Natural Gas Philippines 4500 Oil & gas Freshfields Bruckhaus Ashurst — Project Deringer Pembina Petroleumchemical Facility Project Canada 4500 Petroleum Ashurst Norton Rose Fulbright, White — & Case Seagreen Offshore Wind Project UK 3891.3399 Power Linklaters Norton Rose Fulbright, White — & Case Changfang and Xidao Wind Farm Projects Taiwan 3608.401851 Power Baker Mckenzie, White Lee and Li, Linklaters, Watson — [CFXD] & Case Farley & Williams Suralaya Coal-Fired Power Plants (Java 9 Indonesia 3500 Power DLA Piper , White & Milbank — & 10) Project Case Project Violin France 3250 Power Allen & Overy, Bredin Linklaters — Prat Cross River Rail Project Australia 2831.916042 Transportation Ashurst, Corrs Allens Clayton Utz Chambers Westgarth Project Snowball Sweden 2829.6 Power Mannheimer Swartling Latham & Watkins, Milbank — Advokatbyra WPD Yunlin County Wind Power Project Taiwan 2795.51136 Power Blanke Meier Evers, Tsar and Tsai Law Firm, White — Hogan Lovells, & Case Linklaters Fecamp Offshore Wind Farm Project France 2663.52 Power Clifford Chance Ashurst, Linklaters — BreBeMi Project Italy 2640.96 Transportation Bonelli Erede, White Allen & Overy, Ashurst, Linklaters, — & Case Norton Rose Fulbright, Simmons & Simmons Neart Na Gaoithe Offshore Wind Farm UK 2631.130364 Power Allen & Overy, Clifford Chance — Project Linklaters Mitcham-Frankston (EastLink) Toll Road Australia 2603.76 Transportation King & Wood Mallesons Allens — Project Puma II Pulp Mill Project Brazil 2280 Industrial Clifford Chance, Mattos Dias Carneiro Advogados, Hunton — Filho Veiga Filho Andrews Kurth Marrey Jr TPF II/Rolling Hills Portfolio United States 2060 Power Milbank Latham & Watkins — Formosa II Offshore Wind Project Taiwan 2029.1232 Power Clifford Chance, Lee Linklaters — and Li, White & Case Calpine Geysers Geothermal Power Plant United States 2010 Power White & Case Latham & Watkins — Project Woodfibre LNG Export Project Canada 2000 Oil & gas Milbank — 2x330 MW Thar Block II Power Station Pakistan 2000 Power Pinsent Masons Linklaters, Mohsin Tayebaly & Co — Project

60 Project Finance International November 18 2020

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PROJECT LIST OCTOBER 2019 TO SEPTEMBER 2020

Project Name Country Cost (US$m) Sector Sponsors counsel Lenders counsel Subsidiary roles

Amadeus Dissolving Wood Pulp Project Brazil 1823 Industrial Linklaters, Machado Allen & Overy, Pinheiro — Meyer Sendacz & Opice Guimaraes Huemul Portfolio Project Chile 1800 Power Milbank Shearman & Sterling — Long Beach Container Terminal Acquisition United States 1780 Transportation Gibson Dunn & Crutcher, Shearman & Sterling — Project Sullivan & Cromwell Condor Energia Renovable Platform Project Chile 1700 Power Milbank Shearman & Sterling — Parnaiba V Power Plant Brazil 1685.134 Power Stocche Forbes Machado Meyer Sendacz & Opice — Advogados A15 Maasvlakte-Vaanplein Motorway Netherlands 1658.55 Transportation Allen & Overy Norton Rose Fulbright — Project Rayong Gas-Fired Power Plant Project Thailand 1656 Power Baker Mckenzie Linklaters — AES Panama Generation Holdings Portfolio Panama 1535 Power Clifford Chance Shearman & Sterling , Arias — Project Fabrega & Fabrega Granite Generation Refinancing Project United States 1500 Power Milbank Shearman & Sterling — Cascade Power Project Canada 1500 Power Torys McCarthy Tetrault — Mistral Wind Refinancing Project [Ventient] Spain 1457.751915 Power Allen & Overy Linklaters — Wataynikaneyap Power Canada 1455.0466 Power — McCarthy Tetrault — Transportationmission Project Bowie Acquisition Project United States 1435 Oil & gas Kirkland & Ellis Milbank — Silvertown Tunnel Project United 1407.2809 Transportation Allen & Overy Hogan Lovells Ashurst, Pinsent Kingdom Masons Nice Cote d' Azur Airport Privatization France 1406.172 Transportation Legance Avvocati Allen & Overy — Project Associati Meade Pipeline Acquisition Project United States 1370 Oil & gas Orrick Herrington & Latham & Watkins — Sutcliffe , Squire Patton Boggs Kandla-Gorakhpur LPG Pipeline Project India 1366.095153 Oil & gas L&L Partners Shardul Amarchand Mangaldas — Cochrane Coal-Fired Project Chile 1363.7 Power Claro y Cia — FPSO Almirante Barroso MV32 Project Brazil 1350 Oil & gas King & Spalding Norton Rose Fulbright — Project Broadway Subway Canada 1319.4 Transportation Gowling WLG Osler Hoskin & Harcourt — A49 Motorway Expansion PPP Project Germany 1298.22 Transportation Heuking Kuehn Lueer Clifford Chance, Norton Rose — Wojtek Fulbright Grupa Azoty Polypropylene Facility Project Poland 1296.528289 Industrial CMS Clifford Chance, White & Case — Project Arthur UK 1272.2 Power Clifford Chance Allen & Overy, Linklaters — Topolobampo Ammonia Plant Project Mexico 1250 Oil & gas Milbank Freshfields Bruckhaus Deringer — University of Iowa Utility System P3 Project United States 1183 Power Jones Day, Shearman & Allen & Overy — Sterling Hurontario Light Rail Transportationit (LRT) Canada 1141.9875 Transportation Bonelli Erede, DLA Piper Torys — Project , Dentons, McCarthy Tetrault, Osler Hoskin & Harcourt G-Rail Acquistion Project Australia 1140 Power Ashurst Clifford Chance, White & Case — Asterix Fibre to the Home Project France 1124 Telecommunications Clifford Chance, White & Case — Rothschild & Morgan PC (GA) Boralex Sainte Christine Refinancing Project France 1114.691808 Power De Pardieu Brocas Linklaters — Maffei Norther Offshore Wind Farm Project Belgium 1100.3 Power Loyens & Loeff Clifford Chance, Jones Day, White — & Case ITR Chicago Ohio Turnpike Highway Project United States 1095 Transportation Orrick Herrington & Shearman & Sterling — Sutcliffe GSM-R Project France 1084.6 Transportation Hogan Lovells, White Allen & Overy — & Case Ferrocarril Central Railway P3 Project Uruguay 1070 Transportation Baker Mckenzie Clifford Chance — Rhode Island State Energy Center United States 1068 Power Latham & Watkins Kirkland & Ellis — Acquisition Project Patullo Bridge Replacement Structure Canada 1051.761701 Transportation Gowling WLG McMillan Farris Vaughan Wills Project & Murphy Kangnam Beltway Project South Korea 1051.228655 Transportation Lee & Ko Kim & Chang — Toowoomba Second Range Crossing Project Australia 1046.88 Transportation Ashurst Allen & Overy — Cedar Project [Alpha Trains] Germany 1022.3883 Transportation Watson Farley & Allen & Overy — Williams Eastern Creek Data Center Project (Project Australia 1018.5786 Industrial Gilbert + Tobin King & Wood Mallesons — Zali) Arun III Hydroelectric Power Plant Project Nepal 985.6366623 Power In House Cyril Amarchand Mangaldas, — Pioneer Legal Borkum Riffgrund West 2 Project Germany 980.5952 Power Skadden — EuroFiber Refinancing Project Netherlands 964.31858 Telecommunications Allen & Overy Clifford Chance — A9 Badhoevedorp-Holendrecht Motorway Netherlands 941.545 Transportation Stibbe Avocats Allen & Overy, Clifford Chance, — PPP Project Luxembourg NautaDutilh Liefkenshoek Rail Tunnel Project Belgium 935.9489 Transportation Allen & Overy, Freshfields Clifford Chance, Linklaters, — Bruckhaus Deringer Loyens & Loeff

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Project Name Country Cost (US$m) Sector Sponsors counsel Lenders counsel Subsidiary roles

Scale Data Centres Project UK 932.365 Social Baker Mckenzie Clifford Chance —

Equinix and GIC Project Netherlands 929.1 Telecommunications Clifford Chance — Ocean Breeze Wind Acquisition Project Germany 921.7814258 Power Linklaters, Watson Clifford Chance — Farley & Williams Akita and Noshiro Offshore Wind Power Japan 920.2171713 Power Linklaters, Mori Hamada Nishimura & Asahi — Projects & Matsumoto Indian Oil Adani Gas Private Ltd Project India 902.4151789 Petroleum In House Cyril Amarchand Mangaldas — Meghnaghat Combined Cycle Gas Fired Bangladesh 900 Power Baker Mckenzie Clifford Chance — Power Plant Project Fujairah 3 Gas-Fired Power Project [F3] Utd Arab Em 900 Power Afridi & Angell, Al-Tamimi & Co, Norton Rose — Clifford Chance, Fulbright Herbert Smith Freehills, White & Case

Umm Al-Quwain Reverse Osmosis Scheme Utd Arab Em 900 Water In House Norton Rose Fulbright — [Naqa] Fryslan Near-Shore Wind Farm Project Netherlands 877.1 Power Clifford Chance Allen & Overy — Energia del Pacifico Project El Salvador 877 Power White & Case Norton Rose Fulbright — CPV Three Rivers Project United States 875 Power King & Spalding, Milbank — Latham & Watkins Project Saint Malo France 870.4 Telecommunications Herbert Smith Freehills Allen & Overy — Gigaclear Project UK 861.575 Telecommunications CMS Clifford Chance — Altus Power Solar Portfolio Project United States 850 Power Kirkland & Ellis — Goreway Thermal Power Plant Project Canada 841.8152598 Power Borden Ladner Gervais Torys —

Ramagundam Fertilizer and Chemical India 820.7571206 Petroleum Amicus Legal Cyril Amarchand Mangaldas — Limited Urea Project Ostwind 1 and 2 Wind farm Projects Germany 811.125 Power — Hogan Lovells — Project Battleship Australia 809.3 Transportation Herbert Smith Freehills Ashurst Project Alion Spain 802.854 Telecommunications Herbert Smith Freehills Latham & Watkins — Autopista Urbana Norte Project Mexico 801.7 Transportation Mijares, Angoitia, Greenberg Traurig — Cortes y Fuentes John Agyekum Kufuor (JAK) FPSO Ghana 800 Oil & gas Herbert Smith Freehills Norton Rose Fulbright — Refinancing Project Project Traveler United States 781 Petroleum King & Spalding Latham & Watkins — Veolia District Energy Acquisition Project United States 770 Power White & Case Latham & Watkins — Taweelah Reverse Osmosis [RO] Scheme Utd Arab Em 770 Water Clifford Chance, Hogan Norton Rose Fulbright — Lovells, White & Case Cucuta-Pamplona Highway 4G PPP Colombia 765 Transportation Jones Day, Posse, Milbank — Herrera & Ruiz Dhamra LNG Import Terminal Project India 760 Oil & gas Clifford Chance Clifford Chance — Wink to Webster Pipeline Project United States 760 Oil & gas Latham & Watkins, Jones Walker , Milbank — Vinson & Elkins Big Almaty Ring Road PPP Project Kazakhstan 752 Transportation White & Case Aequitas, Allen & Overy Gide Loyrette Nouel Cove Mountain Solar 1, Cove Mountain Solar United States 747.932 Power King & Spalding Norton Rose Fulbright — 2 and Hunter Solar Project Project Monet Portugal 745.9 Power Bredin Prat Linklaters — ContourGlobal Power Acquisition Mexico 724 Power Linklaters Latham & Watkins — Deutsche Glasfaser Fibre-Optic Roll-Out Germany 718.38 Power Clifford Chance Freshfields Bruckhaus Deringer, — Project [Goethe 3] Simpson Thacher & Bartlett Highlander Solar Project United States 716.938 Power Sheppard, Mullin, Milbank — Richter & Hampton Highway 407 East Extension Project Canada 714.591968 Transportation McCarthy Tetrault, Davies Ward Phillips & Vineberg — Torys Niagara Region Wind Project Canada 709.8557872 Power Stikeman, Graham, Blake Cassels & Graydon — Keeley & Spiegel Sao Paulo Brownfield Toll Roads Upgrade Brazil 700.5 Transportation Stocche Forbes —— Project Advogados Autopista al Rio Magdalena 2 Highway Colombia 700 Transportation Baker Mckenzie, Vinson Clifford Chance — Project & Elkins EdgeConnex Datacenter Portfolio Project United States 700 Social Allen & Overy Latham & Watkins — ELL Luxembourg Acquisition Project Germany 695.8696 Social Clifford Chance CMS — [Electron] Tipton West Expansion Project Australia 693.8 Oil & gas King & Wood Mallesons Allens — Silver State South Solar Project United States 693.6 Power Squire Patton Boggs Simpson Thacher & Bartlett — Macarthur Windfarm Project Australia 690.8 Power Allens — — North Tarrant Expressway Extension Project United States 690.2 Transportation Gibson Dunn & Greenberg Traurig, — Crutcher McGuireWoods Stonepeak New England Power Project United States 688 Power Sidley Austin Shearman & Sterling — Czech Grid Holding Acquisition Facilities Czech Republic 682.98 Oil & gas Allen & Overy Clifford Chance — Project

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PROJECT LIST OCTOBER 2019 TO SEPTEMBER 2020

Project Name Country Cost (US$m) Sector Sponsors counsel Lenders counsel Subsidiary roles

Celeo Transportationmission Line Portfolio Chile 682.4 Power Morales & Besa Garrigues, Milbank — Project Mankato Energy Center Acquisition Project United States 680 Power Orrick Herrington & Morgan Lewis & Bockius Sutcliffe Al Kharsa Solar Power Project Qatar 670 Power Albuquerque & Clifford Chance, Dentons DLA Piper Associados, Allen & Overy, Bracewell Chhattisgarh East-West Rail Corridor India 657.1625017 Transportation Shardul Amarchand Cyril Amarchand Mangaldas — Project Mangaldas & Co Jubail Phase 3A Independent Water & Saudi Arabia 650 Power Covington & Burling Hogan Lovells — Power Project Pinyon Pines I & Pinyon Pines II Projects United States 649.629 Power Gibson Dunn & Simpson Thacher & Bartlett — (Alta Wind VII & Alta Wind IX) Crutcher Upper Trishuli 1 Hydro Power Plant Project Nepal 647.4 Power Gandhi & Associates, Shearman & Sterling — RIAA Barker Gillette Busan Ring Road PPP Project (Mandeok- South Korea 642.026 Transportation Bae Kim & Lee Shin & Kim — Centum) IEnova Solar Project Mexico 641 Power Gonzalez Calvillo SC, Allen & Overy, Ritch Heather y — Latham & Watkins Mueller SC Nairobi Solar Refinancing Project Spain 630.5941018 Power Linklaters Clifford Chance, Watson Farley — & Williams Bolt Energy Storage Portfolio Project United States 620 Power Latham & Watkins Shearman & Sterling — Dongbukseon City Railroad Project South Korea 608.5548 Transportation Lee & Ko Kim & Chang — Vale Azul II Combined Cycle Gas-Fired Brazil 604.946 Power Machado Meyer —— Power Plant Project Sendacz & Opice CAKUA Gas Compression Project Mexico 600.8559 Oil & gas Allen & Overy Clifford Chance, Garrigues — Race Bank Offshore Transportationmission United 587.79 Power Pinsent Masons, Watson Addleshaw Goddard — Owner Project Kingdom Farley & Williams Project Tidal United 586.7433 Social Clifford Chance CMS, Weilmuenster & Wigginton — Kingdom (IL) Windpark Zeewolde Project Netherlands 583.284 Power Norton Rose Fulbright Clifford Chance — Arkona-Becken Sudost Offshore Wind Farm Germany 581.7950147 Power Skadden CMS — Stake Sale [Project Explorer] Project Artico Brazil 581 Oil & gas Herbert Smith Freehills White & Case — TransportationGrid Transportationmission Australia 575.5 Power King & Wood Mallesons Gilbert + Tobin — Network Maintenance Project Red Vial 4 Road Refinancing Project Peru 575 Transportation Baker Mckenzie Estudio Luis Echecopar Garcia, — Clifford Chance Ishinomaki Biomass Power Plant Project Japan 575.1696454 Power Nishimura & Asahi Nagashima Ohno & Tsunematsu — Gulf Coast Ammonia Plant Project United States 574.384 Industrial Hogan Lovells, King & White & Case — Spalding, Vinson & Elkins Armow Wind Project Canada 574 Power Osler Torys — Maverick Creek Wind Project United States 570.578 Power Husch Blackwell Norton Rose Fulbright — Sanders Swedegas and Weum Refinancing Project Sweden 569.3851704 Petroleum — Weil & Associes — [Nordion] Arkona-Becken Sudost Offshore Wind Farm Germany 569.3650662 Power Skadden CMS — Stake Sale [Project Explorer] GSRP Portfolio Solar Project United States 565 Power Allen & Overy, Skadden Latham & Watkins — Gulf Wind RePowering Project United States 564.212 Power Orrick Herrington & Wilson Sonsini Goodrich & Rosati — Sutcliffe Walney Offshore Transportationmission United 560.43834 Power Pinsent Masons, Watson Addleshaw Goddard — Asset Acquisition Project [Project Whale] Kingdom Farley & Williams Project Pizzaro Spain 544 Power In House Watson Farley & Williams , Jones — Day South Texas Midstream Project United States 538.1 Oil & gas Kirkland & Ellis Simpson Thacher & Bartlett — Project Illini United States 528 Telecommunications White & Case Shearman & Sterling — GuD Herne Project Germany 527.7478 Power White & Case Clifford Chance — Telefonica Deutschland Cell Sites Germany 524 Telecommunications CMS, Kummerlein, Linklaters — Acquisition Project Simon & Partner Empark Acquisition Portugal 523.925 Transportation Vinson & Elkins Allen & Overy — Deurganck Dock Container Terminal Belgium 520.56 Transportation Allen & Overy, Clifford Linklaters — Refinancing Project Chance Ruta 2 Mcal Jose F Estigarribia & Ruta 7 Dr Paraguay 520 Transportation White & Case Clifford Chance — Gaspar Rodriguez de France Expansion Hills M2 Motorway Upgrade (Expansion) Australia 509.416 Transportation Herbert Smith Freehills Allens — Project UTE Marlim Azul Project Brazil 501.5225702 Power Baker Mckenzie White & Case Machado Meyer Sendacz & Opice Outlaw Wind Farm Acquisition Project United States 500.5 Power Morgan Lewis & Milbank — Bockius Project Skyfall UK 500 Oil & gas Herbert Smith Freehills — —

Project Finance International November 18 2020 63

06 Legal Report 2020 p55-72.indd 63 17/11/2020 19:00:59 FEATURES

AMERICAS LEGAL MOVERS AND SHAKERS THIS YEAR’S NORTH AMERICAN LEGAL MOVES WERE DOMINATED BY THE MAJOR PLAYERS IN THE RENEWABLES SEGMENT OF PROJECT FINANCE, A SCENARIO THAT HAS BEEN REPEATED FOR THE PAST SEVERAL YEARS. BY ALISON HEALEY AND NIC STONE.

/NEûOFûTHEûMOSTûPROLIlCûHIRINGûlRMSûWASû ONû%NVIRONMENTALû1UALITYû#%1 ûWHEREûHEû Bracewell, adding three partners in power and was the country’s top National Environmental RENEWABLESû4HEûlRMûHIREDûRENEWABLEûENERGYû 0OLICYû!CTû.%0! ûLAWYERûANDû"OSSHARDTûJOINEDû ATTORNEYû$ANIELLEû6ARNELLûFROMû*ONESû$AYûASûAû FROMûTHEû$EPARTMENTûOFû*USTICEû$/* ûWHEREûSHEû partner in its Washington power practice. Varnell was an assistant chief in the environment and has represented clients on mergers, acquisitions, natural resources division and a litigator for the ANDûPROJECTûDEVELOPMENTûINûTHEûENERGYûANDû federal government. Both attorneys will focus on infrastructure sectors, including more than 8GW advising clients in renewable energy, resource of wind generation, 6GW of solar, and 4GW of development, transport and infrastructure. nuclear assets. 4WOûATTORNEYSûFROMû$,!û0IPERûJOINEDû Another key Washington addition was tax Covington this year, including one for the ATTORNEYû$ONû,ONCZAK ûWHOûJOINEDûFROMû"AKERû 7ASHINGTONûOFlCEûANDûTWOûFORûTHEû.EWû9ORKû Botts as a partner. He advises on tax matters OFlCEû!NDREAû#HAMBERSûWILLûBEûBASEDûINû related to US and international mergers, 7ASHINGTONûWHILEû*OSEPHû4ATOûANDû#HARLESû ACQUISITIONS ûANDûJOINTûVENTURES ûANDûHASû #ARROLLûJOINEDûINû.EWû9ORKû#HAMBERSûREPRESENTSû EXPERIENCEûSTRUCTURINGûRENEWABLEûENERGYûPROJECTSû CLIENTSûINûENERGYûMATTERSûBEFOREûTHEû&EDERALû ELIGIBLEûFORûTHEûPRODUCTIONûTAXûCREDITû04# ûORû %NERGYû2EGULATIONû#OMMISSIONû&%2# û3HEû INVESTMENTûTAXûCREDITû)4#  focuses on rate-making and tariffs applicable to In New York, Bracewell hired Martha wholesale electric energy markets and natural Kammoun as a partner in its power practice. gas pipelines transportation services, and the Kammoun was co-general counsel at Starwood interconnection of renewables. Energy and previously worked at O’Melveny & Tato and Carroll represent sponsors, equity Myers and Dewey & LeBoeuf in New York as well INVESTORS ûlNANCIALûINSTITUTIONSûANDûGOVERNMENTSû ASû!BOUSLEIMANûû0ARTNERSûINû"EIRUTû3HEûFOCUSESû on energy and infrastructure development and on advising domestic and international private lNANCINGû4ATOûFOCUSESûONûPOWER ûOILûANDûGAS û EQUITYûFUNDS ûSPONSORSûANDûlNANCIALûINSTITUTIONSû LNG, renewables, water, and mining, while ONûACQUISITIONSûANDûlNANCEûWITHûAûPARTICULARû Carroll has spent more than 30 years working focus on energy and infrastructure investments. ONûTHEûACQUISITION ûDISPOSITION ûlNANCING ûANDû Bracewell lost energy partner Dale Smith restructuring of renewable and other energy and to Mayer Brown in Houston. Smith represents INFRASTRUCTUREûPROJECTS energy industry clients in traditional oil and gas 4HEû#LARKû(ILLûLAWûlRM ûHEADQUARTEREDûINû transactions and the monetisation of water assets. Detroit, Michigan, named Steven Shparber as a (EûJOINEDû-AYERû"ROWNSûCORPORATEûANDûSECURITIESû member of its environment, energy, and natural practice, where he will continue to represent resources practice group in Washington. Shparber upstream and midstream clients in energy and provides counsel to new participants in wholesale ENERGYûlNANCE power markets and advocates for new market 3EVERALûlRMSûMADEûKEYûHIRESûFORûTHEIRû opportunities on behalf of independent power Washington DC practices. Mayer Brown expanded producers and renewable energy trade groups. ITSûPROJECTûlNANCEûANDûINFRASTRUCTUREûCAPABILITIESû He was previously an energy lawyer for three WITHûTHEûARRIVALûOFû-ARKû7ILLIAMS ûWHOûJOINEDûTHEû years at Nelson Mullins Riley and Scarborough, lRMûASûAûPARTNERûINûTHEûCORPORATEûANDûSECURITIESû WHEREûHEûWASûNAMEDûPARTNERûINû*ANUARYû0RIORû practice. Williams was previously at Morgan TOûTHATûHEûWASûCOUNSELûTOû0*-û)NTERCONNECTIONû ,EWISûû"OCKIUSû&ORûNEARLYûûYEARSûHEûADVISEDû ANDûANûADVISERûTOûTHEû&EDERALû%NERGYû2EGULATORYû ONûELECTRICITYûANDûGASûINVESTMENTS ûlNANCINGS û #OMMISSIONSû&%2#S û/FlCEûOFû!DMINISTRATIVEû mergers, acquisitions, securities and restructuring ,AWû*UDGES transactions for clients in the electric power and natural gas industries. 3EATTLE û7ASHINGTON BASEDû0ERKINSû#OIEûHIREDû Edward Boling as a partner and Stacey Bosshardt ASûSENIORûCOUNSELûINûTHEûlRMSûENVIRONMENT û One of the most prolific hiring firms was energy and resources practice in Washington. Bracewell, adding three partners in power "OLINGûJOINEDûFROMûTHEû7HITEû(OUSEû#OUNCILû and renewables

64 Project Finance International November 18 2020

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On the West Coast, Sheppard Mullin Richter COUNSEL û#ONSTANZAû0ELAYOûASûAûSPECIALIST ûANDû & Hampton hired Elliot Hinds as a partner in Gustavo Ramirez as head of the Canada desk. the corporate practice and as a member of the 4HEûlRMSûOFlCESûAREûINû3ANTIAGO ENERGY ûINFRASTRUCTUREûANDûPROJECTûlNANCEûTEAMû “The value that differentiates us is our in Los Angeles. Hinds was previously a partner delivery of a service that matches the quality at Crowell Moring and focuses on the energy ANDûSTANDARDûOFûAûLARGEûLAWûlRM ûBUTûFROMûAû sector, with emphasis on renewable energy, smaller platform that is closer to the client, and ELECTRICûPOWERûANDûENERGYûSTORAGE ûANDûPROJECTû which allows us to offer counsel that is made- agreements. TO MEASUREûANDûWITHûAûmEXIBILITYûOFûFEESûTHATû 4HEûYEARûSAWû!SHURSTûOPENûANûOFlCEûINû,OSû MAKESûUSûlTûTOûTHEûINDIVIDUALûSTRUCTUREûOFûEACHû Angeles to build on its capacity to deliver business,” partner Agustin Walker said. ONûMAJORûPROJECTSûINûTHEû53û0ARTNERû!NNAû Chile is likely to require a lot of legal work in Hermelin will act as managing partner of the the coming years, as the country embarks on a OFlCE ûWHICHûWILLûFOCUSûONûPROJECTûlNANCEû path toward a new constitution in 2022. work in the transport and social infrastructure "ROQUELû!BOGADOSûOPENEDûASûAûNEWûlRMûINû sectors. 0ERUûTHISûYEARû4HEûlRMûWILLûOPERATEûACROSSûAû Vinson & Elkins said its head of renewables range of practice areas, including infrastructure, and sustainable energy and infrastructure public works, and public-private partnerships. practices Kaam Sahely would relocate to Austin, 4HEûLAWûlRMûCOMPRISESûlVEûPARTNERSû*EANû0AULû Texas in a move is aimed at “enhancing the Calle Casusol, who heads the infrastructure, group’s capabilities to serve clients in one of the PUBLICûWORKS ûANDû000ûPRACTICEûASûWELLûASûTHEû nation’s clean technology centers”. REGULATIONûANDûCOMPLIANCEûPRACTICEû&RANCISCOû Winston & Strawn formed a new &RANCOû0¶REZ ûWHOûISûINûCHARGEûOFûTHEûLITIGATIONû ENVIRONMENTAL ûSOCIAL ûANDûGOVERNANCEû%3' û ANDûCONmICTûSOLUTIONûPRACTICEûANDûOVERSEESû advisory team in an effort that brought the state contracts practice, advising clients together various geographies. Co-chaired by ONûFORMULATINGûPROJECTûBIDSû!LBERTOû,ASTRESû Houston-based partners Mike Blankenship Basurto, who heads the criminal law practice; ANDû%RICû*OHNSON ûTHEûTEAMûWILLûHELPûBOARDSû &RANCOû6ELAZCOû)MPARATO ûWHOûHEADSûTHEûENERGY û and management teams oversee the complete mining, and natural resources practice as well spectrum of ESG-related legal and business as the immigration and labour law practices; issues. The team will also include Chicago and Luis Eduardo Cuba Velaochaga, who focuses partners Mike Melbinger, Eleni Kouimelis, on labour law, mining, energy and natural Cardelle Spangler and Rex Sessions, with of RESOURCES ûASûWELLûASûARBITRATIONûANDûCONmICTû counsel Stephanie Sebor; New York partner Tara resolution. 'REENBERGûANDû,ONDONûPARTNERSû0ETERû#ROWTHERû “We identify and evaluate our clients’ risks or and Anthony Riley. PROBLEMS ûDElNEûTHEûOBJECTIVESûTOûBEûACHIEVEDû In the infrastructure space, transportation and select the best strategies and tools for and public-private partnership attorney Karen mitigation, offering counsel and defence, as (EDLUNDûHASûJOINEDû!MERICANû4RIPLEû)û0ARTNERSû well as post-process monitoring in order to !4) ûAû.EWû9ORK BASEDûINVESTOR ûDEVELOPERû ACHIEVEûSATISFACTORYûRESULTS vûTHEûlRMûSAIDûINûAû and manager of infrastructure assets. Hedlund statement. JOINEDûTHEûlRMûASûANûOPERATINGûADVISERû3HEû In Argentina, Dentons launched a advised on the Gateway programme connecting COMBINATIONûWITHûLOCALûLAWûlRMû2ATTAGANû .EWû*ERSEYûANDû.EWû9ORK ûWORKEDûASûCHIEFû Macchiavello Arocena to be branded Dentons COUNSELûANDûDEPUTYûADMINISTRATORûOFûTHEû&EDERALû Rattagan Macchiavello Arocena. As a result 2AILROADû!DMINISTRATIONû&2! ûANDûASûAûPARTNERû of the move, Dentons now has a presence in at Nossaman. Earlier this year American Triple 24 countries across the Latin American and )û0ARTNERSûWASûSELECTEDûASûAûûINVESTOREQUITYû Caribbean region. Rattagan Macchiavello OWNERûOFû.EWû9ORKSû*&+û)NTERNATIONALû!IRPORTû Arocena is less than 15 years old and has 4ERMINALSûûANDûûREDEVELOPMENTûPROJECT operated across practices including corporate ,ATINû!MERICASûPROJECTûlNANCEûLEGALû and M&A, energy, environment and natural landscape was again characterised by expansion RESOURCES ûBANKINGûANDûlNANCE ûCOMPLIANCEû of operations and an increased focus on growing and anti-corruption, government relations, industries, which even saw a number of new infrastructure, labour law, litigation and dispute lRMSûEMERGEûINûTHEûREGION resolution, pharmaceuticals, and tax. 0ERHAPSûTHEûBESTûEXAMPLEûSAWûFORMERû “Dentons’ launch in Argentina enables us to LAWYERSûATû#HILESûLARGESTûlRM û#AREY ûLAUNCHûANû meet client needs in another priority market for environment and natural resources-focused law OURûCLIENTS vûSAIDû%LLIOTTû0ORTNOY ûGLOBALû#%/ûOFû lRMûCALLEDû,AWGICû!BOGADOSû&ELIPEû-ENESES û Dentons. So far in 2020, Dentons has launched Agustin Walker, and Sebastian del Campo are Dentons Bingham Greenebaum and Dentons THEûFOUNDINGûPARTNERSû4HEûlRMûWILLûSPECIALISEû #OHENûû'RIGSBY ûTHEûlRSTûSTEPûINûFORMINGûAû in environmental law, water, energy, mining, NATIONALûLAWûlRMûINûTHEû5NITEDû3TATESûASûPARTû agribusiness, corporate, and infrastructure OFû$ENTONSûh0ROJECTû'OLDENû3PIKEvû4HEûlRMû ANDûPROJECTûDEVELOPMENTû/THERûHIRESûINCLUDEû has launched Dentons Kensington Swan in !NDRESû6ERDUGOûANDû#RISTIANû&RANZûASûSENIORû New Zealand, Dentons Lee in South Korea, and

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06 Legal Report 2020 p55-72.indd 65 17/11/2020 19:00:59 $ENTONSû*IM¶NEZûDEû!R¶CHAGAûINû5RUGUAY ûANDû ANDûPROJECTûlNANCING ûINCLUDINGûINûTHEû OPENEDûANûOFlCEûINû3Tû,UCIA infrastructure and energy sectors. %XISTINGûlRMSûEXPANDEDûTHEIRûOPERATIONSûINû 0ERUVIANûNATURALûRESOURCESûANDûENVIRONMENTAL THEûREGIONû3PAIN BASEDûLAWûlRMû#UATRECASASû FOCUSEDûLAWûlRMû#ILLONIZû6ALINCIAûû%YZAGUIRREû TAPPEDû#HILEANûLAWYERû#RISTI¯Nû#ONEJEROû Abogados tapped Oscar Eyzaguirre as a new 2OOSûASûAûPARTNERûTOûLEADûTHEûlRMSûNEWû PARTNERû%YZAGUIRREûJOINEDûFROMû#REDICORPû OFlCEûINû3ANTIAGOûDEû#HILEû2OOSûSPECIALISESûINû Capital, where he worked as the regional general international arbitration. He was previously a MANAGERûANDûLEGALûDIRECTORûFORû0ERU ûANDûWASû partner at Cuatrecasas from 2007 to 2013, after secretary of the board of directors of Credicorp working as counsel at the ICC International #APITALû0ERUû(EûPREVIOUSLYûSERVEDûASûTHEûLEGALû #OURTûOFû!RBITRATIONûINû0ARISûANDûASûAûLAWYERûATû and compliance manager for Deutsche Bank’s OTHERûLEADINGûINTERNATIONALûLAWûlRMSûSUCHûASû 0ERUVIANûANDû#HILEANûOFlCESûANDûWORKEDûASû 3HEARMANûû3TERLINGû(EûJOINEDûFROMû0HILIPPIû SENIORûASSOCIATEûFORûlVEûYEARSûATû-IRANDAûû 0RIETOCARRIZOSAû&ERREROû$5ûû5RºA ûWHEREûHEûWASû !MADOûALONGSIDEû&ERNANDOû6ALENCIAûANDû$IEGOû a partner. #ILL¿NIZ ûTHEûlRMSûFOUNDINGûPARTNERS Greenberg Traurig expanded its Latin Garrigues hired Adriana Espinosa to head !MERICAû0RACTICEûINûTHEûlRMSû-EXICOû#ITYû THEûlRMSûINFRASTRUCTUREûPRACTICEûINû#OLOMBIAû OFlCEûWITHûTHEûADDITIONûOFûPARTNERû2ODRIGOû ASûAûPARTNERû%SPINOSAûJOINEDû'ARRIGUESûFROMû Orozco Waters and four associates. The team #OLOMBIANûlRMû!RRIETAû-ANTILLAûû!SOCIADOS û JOINSû'REENBERGû4RAURIGûFROMû/ROZCOû7ATERSû where she headed the infrastructure practice as Abogados, where Orozco Waters was the a partner. With the incorporation of Espinosa, FOUNDERû(EûISûJOINEDûINûTHEûMOVEûBYû6ICTORû 'ARRIGUESûOFlCEûINû"OGOT¯ûNOWûHASûSEVENû &ELIPEû#ALLARISAû2IVERA û!LFONSOû-ALAG¿Nû partners and more than 50 professionals ,OZANO û%DGARû&ERNANDOû/ROZCOû#EBALLOS û covering the main areas of business law. The ANDû*OS¶û-ANUELû,¿PEZû#ASTROû4HEûGROUPûHASû lRMûHASûOFlCESûINû"RAZIL û#HILE û0ERU û-EXICOû experience in public-private partnerships and Colombia in Latin America. „

New York skyline at night © Juliengrondin | Dreamstime.com

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LAW FIRMS ADJUST TO NEW NORMAL

IT HAS BEEN 10 MONTHS SINCE THE SARS-COV2 VIRUS STARTED DOMINATING AND DISRUPTING LIVES AND BUSINESSES, INCLUDING LOCKDOWNS. DESPITE THE NO-FLIGHT MEASURES, LAW FIRMS IN ASIA- PACIFIC ARE ADAPTING WELL AND TRANSACTIONS ARE CONTINUING, ALTHOUGH AT SLOWER PACE. BY MINERVA LAU AND ALEXANDRA DOCKREAY.

Singapore This was echoed by lawyers spoken to “I have been working from home and go into the stressing that it’s still good to have face-to-face OFlCEûMAYBEûONCEûAûWEEKûORûEVENûLESSûFREQUENTLYû MEETINGSû)Nû3INGAPORE ûAûGROUPûOFûUPûTOûlVEû It works pretty well for the type of work we people, and soon up to eight, is allowed; and up do,” Bill McCormack, Singapore-based partner at to 100 people with masks and social distancing 3HEARMANûû3TERLING ûTOLDû0&) are allowed for social and religious gatherings, With a slight easing of movement restrictions as well, as conferences and exhibitions. The in the city state, McCormack said that he would PROJECTûlNANCEûWORLD ûINûGENERAL ûHASûNOTûBEENû GOûTOûTHEûOFlCEûMOREûOFTENûFORûCOLLABORATIONûWITHû affected as much as some other practices. other members of the team. However, he would “It is the nature of our work. We are do client work from home. often working on a large-scale energy or Many clients are outside Singapore anyway. INFRASTRUCTUREûPROJECTûTHATûMAYûGOûONûFORûYEARS û So the lawyers work from home by default and and everyone recognises that we have to carry THEûlRMûHASûORGANISEDûTWOûSEPARATEûTEAMSûFORû on despite the pandemic,” said McCormack. business services staff – Team A and Team B – The Covid-19 and working from home WHICHûAREûALLOWEDûTOûGOûTOûTHEûOFlCEûONûALTERNATEû ENVIRONMENTûHASûMADEûLAWûlRMSûREVIEWûTHEIRû weeks, under business continuity plan guidelines working conditions. Some have set up an ad- issued by Singapore’s ministry of health and hoc team or task force to study the impact manpower and other government agencies. and implication of Covid-19 on changing That statement, however, is not his alone. REQUIREMENTSûINûTHEûOFlCEûASûMANYûAREûABLEûTOû Every lawyer, and every banker, spoken too was effectively work from home. Is there a need for MOSTLYûATûHOME ûADJUSTINGûTOûTHEûNEWûNORMALûASûAû BIGGERûOFlCESûORûSHOULDûTHEREûBEûMOREûSPACEûFORû result of the Covid-19 pandemic that has gripped collaboration meetings, and so on. THEûWORLDûSINCEû*ANUARYûTHISûYEARû3INGAPOREû In addition, the task force will be looking at WASûAMONGûTHEûlRSTûCOUNTRIESûINû%ASTû!SIAûTHATû THEûFALLOUTûOFû#OVID ûMEASURESûONûPROJECTS û implemented a lockdown, with the government BOTHûOPERATINGûPROJECTSûANDûTHOSEûUNDERû INTRODUCINGûCIRCUITûBREAKERû#" ûMEASURESûTOû construction. Clients are understood to be mitigate the spread of the SARS-COV2 virus. Many seeking advice on the implications of Covid-19 LAWûlRMSûHAVEûTHEIRûREGIONALûOFlCESûINû3INGAPORE û MITIGATIONûRELATEDûMEASURESûANDûFORCEûMAJEUREû ANDûTHEûNO mYINGûRESTRICTIONûHAMPEREDûTHEûWAYû CLAIMS ûNOTûJUSTûARBITRATIONûWORKû,ITIGATIONû business has been done in normal situations. lawyers are coming into the picture, working Clearly, the halt in travel in the region has TOGETHERûWITHûCONSTRUCTIONûLAWYERSûANDûPROJECTû GREATLYûAFFECTEDûTHEûWAYûlRMSûHAVEûBEENûDOINGû LAWYERSû0OWERûPURCHASEûAGREEMENTSû00!S û their business. One area heavily affected is impacted by Covid-19 are expected to be opened business development. In Asia, despite the SARS- and renegotiated. COV2 virus crisis, a personal connection means a 3OMEûlRMSûHAVEûBIGûLITIGATIONûTEAMSûANDû lot more than the virtual discussions via zoom or SOMEûHAVEûBIGûCAPITALûMARKETSûTEAMSû&IRMSû video conference that have replaced face-to-face with a big litigation presence will be more && ûMEETINGS ûANDûTHATûHASûHADûANûIMPACTûONû successful at the moment, said one lawyer. At negotiations. the same time, sponsors are also looking for “I used to travel every week, literally every ADDITIONALûLINEûOFûCREDIT ûSAIDû*AMESû(ARRIS ûAû week overseas last year. A lot of that was deal- PARTNERûATû0INSENTû-ASONû!CCORDINGûTOûHIM û related as it was a very busy year for us, but I lenders such as the Asian Development Bank also do a lot of client visits to keep connected !$" ûANDû)NTERNATIONALû&INANCEû#ORPû)&# ûINû and looking to support them developing new existing deals are being approached by the business. That stopped. So that whilst Zoom sponsors for additional working capital that ISûTHEûNEWûNORM ûITûISûDElNITELYûNOTûQUITEûTHEû will cover operating costs and those under same,” said Martin David, principal and head of construction. !SIAû0ACIlCû0ROJECTSûATû"AKERûû-C+ENZIEû7ONGû There was an observation of a number of big & Leow. DEALSûTHATûAREûhAGGRESSIVELYûPRICEDvûBYûlRMSû

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06 Legal Report 2020 p55-72.indd 67 17/11/2020 19:01:08 THATûSITûOUTSIDEûTHEûCOREûGROUPûOFûlVEûORûSIXû GOINGûFORTHû!USTRALIANûPROJECTSûLAWYERSûWILLû GO TOûREGIONALûPROJECTSûlRMS ûASûTHEYûTRYûTOû in general spend around half of the working keep their business alive at a time when deals WEEKûINûTHEûOFlCEû#LIENTûINTERACTIONSûAREûJUSTû HAVEûDElNITELYûSLOWEDû0RICEûISûTHEIRûMAINû starting to pick up again, though only with DIFFERENTIATORûGIVENûTHEIRûLACKûOFûPROlLEûINûTHEû some clients, and there will be some Christmas market. period gatherings on a much smaller scale than The new norm has shown one thing. Deals previously. Regarding the shift to undertaking can still be done without travel. Technology negotiations via video conferencing, according means that transactions can be done remotely. TOû!NDREWû'RIFlTHS û3YDNEY BASEDûPARTNERûATû A good example is the development and (ERBERTû3MITHû&REEHILLS ûINûSOMEûINSTANCESû lNANCINGûOFûTHEû-7ûNATURALûGAS lREDû lawyers at deal tables pushed harder on certain COMBINED CYCLEûPOWERûPLANTûOFû2ELIANCEû0OWERû positions, where normally they would not in- ANDû*%2!ûINû"ANGLADESHû"AKERûû-C+ENZIE û person. Therefore, deals are often taking longer legal adviser to the sponsors, managed to to negotiate. lNALISEûALLûCOMMERCIALûCONTRACTS ûNEGOTIATED û !NOTHERûPROJECTSûPARTNERûSAIDûTHAT ûWHILEû AGREEDûANDûSIGNEDûTHEûlNANCINGûDOCUMENTSûFORû mostly deals progressed at the usual speed what is a complex deal without being able to this year with fully virtual communications, travel, said David. “We need to embrace the new SOMETIMESûlNANCINGûDEALSûTOOKûLONGERûASû norm and let’s hope it forces deal execution to lenders displayed more conservative approaches BEûMOREûCOST EFFECTIVEûANDûEFlCIENT vûHEûSAID to risk allocation. They have concerns over new ,AWûlRMSûAREûGEARINGûFORûTHEûGROWINGû risks, such as the increasingly realistic prospect demand for LNG-to-power transactions, in of negative base rates. addition to the massive interest in solar and On fee structures, in the last few years it WINDûENERGYûPROJECTSû3HEARMANûû3TERLING û has become commonplace for clients to push WHICHûHASûLOSTû,.'ûLAWYERSû!NTHONYû0ATTENûANDû for success-contingent pricing, based on bid Lachlan Clancy to King & Spalding, has brought OUTCOMESû4HISûPERSISTSû!ND û0INSENTû-ASONSû in Angela Heywood Bible from Houston, and Melbourne-based infrastructure and energy PROMOTEDû*EAN ,OUISû.EVESû-ANDELLIûTOûPARTNER lNANCEûPARTNERû*EREMYû+INGûSAID ûhTHEREûHASû &IRMS ûSUCHûASû33 û"- û+3ûANDûOTHERSûAREû been downward pressure on fees for some time, forming partner-led teams that are dedicated to and the move toward ‘deconstructed’ mandates, LNG transactions. And they have to work with where clients unpack the various services power partners as LNG is replacing coal in most lawyers provide and may appoint a different OFûNEWûPOWERûPLANTûPROJECTSûBEINGûANNOUNCEDû lRMûFORûEACHûASPECTv recently, excluding renewables – which are h"OTHûTRENDSûHAVEûACCELERATEDûINûû&IRMSû taking the region by storm. are pursuing technology-based solutions to 4HEûLAWûlRMSûSPOKENûTOûSOûFARûHAVEûNOTû bring down the overall cost of legal services, indicated any downsizing and some, such SUCHûASûNEWûSOFTWAREûPLATFORMSûUSINGûARTIlCIALû ASû$,!û0IPER ûAREûEXPANDINGû6INCENTû3EAH û intelligence for large-scale due diligence,” King THEûlRMSûPARTNERûINûITSûlNANCEûANDûPROJECTSû said. practice, said he has hired four associates There has been a good deal of rates-based recently and is likely to hire one more. The work coming from handling Covid-prompted lRMûHASûBEENûBUSYûWITHûPROJECTSûMAINLYûINû additional advisory services on in-construction Bangladesh, Myanmar and Indonesia. DEALS ûWHICHûISûPOSITIVEûFORûlRMSû&EEûPRICINGû is said to now be broadly similar to 2019. Australia There was a shortlived period in the earlier In a relatively remote corner of the world, DAYSûOFû#OVIDûWHEREûSOMEûlRMSûWEREûMAKINGû Australia has isolated itself by cutting off aggressively priced pitches, amid concerns that international travel since March 2020, while THEûPANDEMICûWOULDûDRYûUPûWORKmOW state governments have also imposed bans This year has not seen much partner hiring on interstate travel for much of 2020. Those activity in Australia, compared with the last interstate restrictions have started to ease off THREEûTOûFOURûYEARS ûWITHûlRMSûACROSSûTHEûBOARDû in Q4 2020. Lawyers in Sydney have been able either freezing new recruitment or at least TOûGOûINTOûTHEIRûOFlCESûFORûMOSTûOFûTHEûYEAR ûBUTû LIMITINGûITûASûAûPANDEMICûRESPONSEû'RIFlTHSû Melbourne has experienced a protracted second SAIDûhûHASûBEENûANûODDûYEARûFORûNOTûBEINGû lockdown and lawyers still cannot attend their ABLEûTOûPLANûAHEADû&ORûSENIORûLAWYERSûTHEREûHASû OFlCESûINû.OVEMBER been a reasonably normal workload for 2020. 4HREEûOFûTHEûLAWûlRMSû0&)ûSPOKEûWITHûSAIDû It was probably more of a rough trot for more THEûSHIFTûINûmEXIBLEûWORKINGûISûIRREVERSIBLEûANDû JUNIORûMEMBERSûOFûTEAMS ûGIVENûLOTSûOFûADVICEû for clients has been urgent and needed to be done by the senior level.” Sydney-based Allen & Overy partner and !USTRALIAûHEADûOFûDEBTûANDûPROJECTSû!DAMû On fee structures, in the last few years it has become 3TAPLEDONûSAIDûhûHASûBEENûQUITEûAûBUSYû commonplace for clients to push for success- year despite the turmoil. We have seen a bit contingent pricing OFûAûDECREASEûINûGREENlELD ûANDûANûINCREASEû

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INûRElNANCINGSûANDûBROWNlELDûDEALS ûEITHERû TECHNOLOGYû,%4 ûANDûGREENûHYDROGENû&ORû,%4û expansions or secondary market transactions.” and green hydrogen the work is very early 0&)ûALSOûHEARDûTHEREûHASûBEENûMOREûWORKûTHISû stage, often advising clients on establishing YEARûADVISINGûONûPROJECTSûINûTHEûDELIVERYûPHASE a presence in Australia and assessing the 000ûLAWYERSûEXPECTûAûRELATIVELYûTYPICALûmOWû regulatory environment. of deals into 2021, with Sydney Metro Western 3TAPLEDONûSAIDûh!LLENûû/VERYûSETûUPûANû 3YDNEYû!IRPORTûANDû3YDNEYû-ETROû7ESTû000Sû international working group for hydrogen, as ANDûTHEû&RANKSTONû(OSPITALû2EDEVELOPMENTû we seek to stay at the forefront of this industry to be in procurement, the ongoing advisory off the back of our strengths in renewables and ONû)NLANDû2AILû000 û4RANSURBANSûUNSOLICITEDû ,.'û7EûRECENTLYûWONûAûSIGNIlCANTûMANDATEûINû proposal for the M7 and the augmentation of Australia.” Canberra Light Rail. 0ROVIDINGûADVICEûONûCONNECTIONûRISKSûINTOû 4HEûGOVERNMENTSûMAJORûPUSHûFORûBUILDINGû Australia’s electricity networks has been new infrastructure to stimulate economic important throughout the year. In another RECOVERYûSHOULDûPROVIDEûAûBOOSTûTOûBOTHû000û regulatory upheaval, the government has and design and construction advisory work. proposed reforms to the money-lending With the ongoing glut of infrastructure exemption for Australia’s foreign investment PROJECTS ûESPECIALLYûALONGûTHEûEASTERNûSEABOARD û laws during 2021. This will be a relevant contractor capacity issues are likely to lead to a hurdle for foreign entities lending to national LOTûOFûACTIVEûADVISORYûINûTHEûPROJECTûDELIVERYûANDû security businesses, which include owners of construction completion stages. critical electricity, port, water or gas assets, Energy teams continue to position for buildings occupied by defence or intelligence THEûGLOBALûENERGYûTRANSITIONûTHEIRûFOCUSûONû agencies, data centres hosting sensitive data and renewables is growing. Lawyers are starting to telecommunications networks. look at what is next in the energy transition 3TAPLEDONûSAIDûh7EVEûALREADYûSTARTEDû after solar and wind. This year, Australia has some work for clients where we are looking seen increased interest in batteries, and plenty ATûEXISTINGûDEBTûSTRUCTURESûTOûSEEûWHATû&)2"û of secondary market trades in renewables. approvals their lenders may need to obtain +INGûSAIDû0INSENTû-ASONSûlNANCEûANDû ANDûPLANNINGûAHEADûFORûRElNANCINGSû&ORûSOMEû PROJECTSûTEAMûISûPOSITIONEDûFORûTHEûEMERGENCEû secured debt-raisings, the reforms will mean an in Australia of waste-to-energy, energy storage additional workstream, with some delays and BOTHûBATTERYûANDûHYDRO ûLOWûEMISSIONSû added costs.” „

The Singapore city skyline around Marina Bay, with the Esplanade Bridge in the foreground.© Matthew Weinel | Dreamstime.com

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OFFSHORE WIND OFFERS A LEGAL PIPELINE AS EUROPE PUSHES FOR MORE AMBITIOUS DECARBONISATION TARGETS, OFFSHORE WIND CONTINUES TO GROW AS AN ATTRACTIVE ASSET CLASS. AUCTIONS AND SUPPORT MECHANISMS THAT HAVE PROVEN SO SUCCESSFUL IN WESTERN EUROPE ARE NOW BEING ADOPTED IN NASCENT SECTORS FURTHER EAST, PROVIDING NEW OPPORTUNITIES FOR SEASONED LEGAL ADVISERS. BY PETER COLLINS AND JORDAN BINTCLIFFE.

&ORûLAWYERSûFAMILIARûWITHûTHEûOFFSHOREûWINDû “The existing auction system is not fully markets of Western Europe, their experience ADJUSTEDûTOûTHEûNEEDSûOFûOFFSHOREûPROJECTS vû should prove to be a valuable asset to the East, said Ciolkowski, as the larger, more expensive as the Baltic States signal their strong intent to OFFSHOREûPROJECTSûWILLûTYPICALLYûREQUIREûLONGERû develop the wind potential of their northern tenors and offtake agreements, which the coastlines. offshore wind law provides with 25-year 0OLANDûPLANSûTOûSUPPORTû'7ûNEXTûYEAR û contracts. Lithuania will auction 700MW in 2023 and Europe’s commercial banks are comfortable another 700MW in 2025, and the governments of with the market and ready to get involved. Estonia and Latvia have signed a memorandum The long tariff period is encouraging, but some OFûUNDERSTANDINGû-O5 ûONûTHEûJOINTûDEVELOPMENTû concerns do remain. Currency denomination is of an up to 1GW wind farm. Though it is not all obviously a factor, as the bid bond and tariff will plain sailing for these new markets – an auction be denominated in zloty and the question will in Turkey for a 1.2GW scheme was recently be whether banks have enough capacity to lend SCRAPPEDûANDûPRIVATELY PROCUREDûPROJECTSûINû in local currency. Estonia lay “dormant” – early excitement has “Offshore wind developers are really looking been generated by the similarities of the support ATû0OLANDûSERIOUSLY ûNOTûONLYûINVESTINGûBUTû mechanisms to the tried-and-tested Western investing early,” said Thomas Schubert, a models. PARTNERûATû$ENTONSû"ERLINûOFlCEû)NDEED û !ûTHIRDûANDûLIKELYûlNALûVERSIONûOFû0OLANDSû /RSTED û%QUINOR û27%û2ENEWABLES û%$02û offshore wind law is supposed to be passed before and E.ON – among others – have all struck the end of the year, although it could slip to partnerships with local utilities or begun *ANUARYû4HEûLAW ûDESCRIBEDûASûCOMPREHENSIVEûANDû DEVELOPINGûTHEIRûOWNûPROJECTSûANDûMANYûWILLû timely by market actors, sets out an ambitious BEûAMONGûTHEûlRSTûINûLINEûTOûSECUREûAû#F$û!û 10GW to be awarded under a contract for revised draft of the law released this summer DIFFERENCESû#F$ ûSTRUCTUREû increased the maximum capacity from 4.6GW “A CfD was always the main model from which TOû'7ûINûTHEûlRSTûPHASEûINûRESPONSEûTOûTHEû 0OLANDSûFRAMEWORKûWASûDESIGNED vûSAIDû0IOTRû high levels of interest. Ciolkowski, energy partner in CMS’s Warsaw Eastern Europe’s offshore wind market hasn’t OFlCEûh4HEûSTARTINGûPERCEPTIONûWASûTHATûTHEû5+û yet lived up to investors’ ambitions however. SYSTEMûWOULDûBEûTHEûMOSTûSUITABLEûFORû0OLANDv “Offshore wind in Eastern Europe has had a 0OLANDûHASûRUNûAUCTIONSûSUCCESSFULLYûSINCEû LOTûOFûATTENTIONûINûTHEûPASTûlVEûYEARS ûALTHOUGHû 2017 – albeit with some minor technical hiccups THISûDOESûNOTûINûALLûINSTANCESûSEEMûREmECTIVEû to begin. The pace has picked up in the last two of the traction it has gotten in real life,” said years, with a string of onshore wind and solar -ALTEû*ORDAN ûGLOBALûENERGYûSECTORûCO HEADûANDûAû PROJECTSûlNANCEDûSINCEû-AYûû4HEû YEARû PARTNERûINû7ATSONû&ARLEYûû7ILLIAMSûCORPORATEû tariff is structured essentially similar to a CfD, ANDû-!ûGROUPûBASEDûINû(AMBURGû7&7ûHASû WITHûGUARANTEEDûPRICEûmOORSûPROVIDINGûCERTAINTYû INSTRUCTIONSûFROMûDEVELOPERSûINûBOTHû0OLANDûANDû to sponsors and lenders. Estonia. An offshore wind “basket” has existed in past “We are involved in the Eastern European auctions, but for all intents and purposes its offshore wind marking by using correspondent inclusion has been purely symbolic. LOCALûlRMS vû*ORDANûSAIDû7&7SûSTRATEGYûISûTOû bring its in-sector experience to bear while TEAMINGûUPûWITHûNATIVEûlRMSûTHATûBRINGû experience of local law. The ones deciding which law firm to use tend to be the Despite showing promise, the industry doesn’t yet have the draw to bring international international developers so typically the most efficient LAWûlRMSûINûOFûTHEIRûOWNûACCORDûnûALTHOUGHû strategy is to team up with them they are following their key clients into the

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region, according to Christian Knuetel, partner h0OLANDûISûALSOûINûAûGOODûPOSITIONûBECAUSEûITSû INû(OGANû,OVELLSû(AMBURGûOFlCEûSAYS support industry is already very developed, with Hogan Lovells is working on an the exception of turbine manufacturing,” said “opportunistic basis”, Knuetel said, when it Ciolkowski, another area of advantage for the comes to entering Eastern Europe – as the 0OLISHûMARKETûOVERûITSûEASTERNûNEIGHBOURS team is already being kept busy on mandates Countries that are now beginning to pursue in Taiwan, Germany, Vietnam and the US. He offshore wind could look at some of the ADDEDûTHATûTHEûlRMSûSTRATEGYûISûMOREûABOUTû historical events in the now more established following existing clients into the markets markets. Offshore wind developers in Germany where they want to be active. such as Siemens and RWE faced problems with “It’s a question of who would be your clients THEIRûPROJECTSûNOTûBEINGûGRID CONNECTEDûINûTIMEû if you enter a new market,” Knuetel said. “If you to begin operations. enter a market and target local developers and !ûLACKûOFûDElNITIONûREGARDINGûGRIDû make them your client, you’ll typically see things operators’ liabilities to connect the new will really speed up only when the international OFFSHOREûWINDûPROJECTSûMEANTûTHATûINûITSûEARLYû developers are moving in, buying stakes and days Germany’s offshore wind boom was partnering up with the local developers.” CLOSEûTOûlNISHINGûBEFOREûITûHADûEVENûSTARTEDû )Nû+NUETELSûVIEW ûTHEûMOSTûEFlCIENTûANDû At the end of 2011, North Sea grid operator promising strategy is to team up with large, TenneT said it was becoming increasingly INTERNATIONALûlRMSûANDûTOûBEûONûTHEIRûRADARû DIFlCULTûTOûlNANCEûNEWûGRIDûCONNECTIONSûANDû when they do pull the trigger to enter a new that it would not be able to connect new wind geography, rather than having boots on the farms to the grid after 2015 under the then ground to build clients in a new country or regulatory framework. region. At one point, newly built offshore wind farms h)NûTHEûEND ûTHEûONESûDECIDINGûWHICHûLAWûlRMû were consuming energy. Diesel generators to use tend to be the international developers, powered some turbines to keep them moving SOûTYPICALLYûTHEûMOSTûEFlCIENTûANDûPROMISINGû and prevent corrosion in the salty sea air, local strategy is to team up with them and to be on daily Der Spiegel reported in 2013. The turbines THEIRûRADARûWHENûTHEYûNEEDûHELPûONûAûPROJECT û created more power than was needed to start rather than doing grassroots work in the them up, and with no grid connection it was country itself,” he said. not possible to dispose of the surplus. Knuetel said Hogan Lovells is already active Developing a stable regulatory framework ONûAûMANDATEûINû0OLANDûWITHûAûLARGEû'ERMANû is clearly needed in order to successfully foster company that has entered the market and a new industry. A clear pipeline of upcoming partnered with a local developer, buying a stake opportunities is also a help, Daisy East, a in their developments. This is likely to be the ,ONDON BASEDûPARTNERûINû7ATSONû&ARLEYûû PRIMARYûROUTEûOFûENTRYûFORûINTERNATIONALûlRMSûnû 7ILLIAMSûENERGYûGROUPûSAID on a cooperative, rather than competitive basis. “One of the hard-learnt lessons is that 4HISûWASûTHEûVIEWûOFû3ERGEJû"UTOV ûAûPARTNERû uncertainty around the regulatory environment at Sorainen, which advised Ignitis Grupe on MAKESûITûVERYûDIFlCULTûTOûBUILDûTHEûVOLUMEûOFû the formation of its offshore wind partnership transactions that you need to bring costs down. WITHûINDUSTRYûHEAVYWEIGHTSû%$02ûANDû%NGIEûINû That uncertainty can include changing regimes Lithuania. from one support system to another.” h&ORûSOMEûPHASESûOFûTHEûWORK ûTHEûPRESENCEû Auctions need to have low cost barriers to of international practices will be very much entry, to ensure enough companies take part needed to follow the good examples set by and encourage competition – which in turn will other countries,” said Butov, who added that reduce costs over the long-term. %NGIEûANDû%$02ûWOULDûBEûLIKELYûTOûBRINGûINû “If the costs of getting to auction are ANûINTERNATIONALûlRMûTOûPARTNERûWITHûTHEû prohibitive in the context of allocation risk, LOCALûLAWYERSûh3INCEûTHEûlRSTû-7ûWASû then there will be a reduced number of announced, there has been lots of positive players taking part,” East said. “So regulatory attention – we’ve received many calls and arrangements over how the grid connection, EMAILSûFROMû%UROPEANûANDû5+ûlRMSû4HISûISû consenting, the mass spatial planning of wind, what’s building the excitement for the sector,” wake effects and so on will all work – these he said. are all required in order to bring costs down In terms of which market holds the most and create a competitive market that isn’t APPEAL û0OLANDûAPPEARSûTOûHAVEûTHEûGREATESTû DOMINATEDûBYûJUSTûFOURûORûlVEûNAMESv draw. Although Latvia, Estonia and Lithuania Encouraging investment into local economies are showing promise, “they don’t have a is a key consideration when developing a comparable amount of funds and as much need regulatory regime. In Germany’s case, “there TOûTRANSITIONûTOûGREENûFROMûBROWNûLIKEû0OLANDû was an understanding right from the beginning does,” according to Knuetel. that if you want to be seriously involved 0OLANDûHASûOTHERûELEMENTSûINûITSûFAVOURûTOOû INûOFFSHOREûWINDûTHATûMEANSûSIGNIlCANTLYû – including strong wind resources and good upgrading local infrastructure such as factories, environmental and site conditions. SUPPLYûCHAINS ûANDûSOûON vûSAIDû*ORDAN

Project Finance International November 18 2020 71

06 Legal Report 2020 p55-72.indd 71 17/11/2020 19:01:14 “In order to get the private sector to invest in “How to do a turbine supply agreement these kinds of developments, there needs to be or a balance of plant contract, or whatever AûRELIABLEûPROJECTûPIPELINEûANDûDEVELOPERSûNEEDû THEûPROCUREMENTûSTRATEGYûIS ûISûABOUTûû to be sure of what kind of volumes are being the same across the world. And then the tendered, for example. If you don’t provide any rest tends to be specialist, local stuff like certainty about tendered volumes, that’s clearly earthquakes or typhoons in Taiwan, local a problem.” CONTENT ûlSHINGûRIGHTS ûORûREGULATORYûISSUESû In some newer markets, such as Turkey, local So these are areas where you need to custom lawyers feel they have the legal capabilities tailor rather than bluntly applying your ANDûEXPERIENCEûTOûWORKûONûTHESEûPROJECTSûnûTHEû experience earned in Western Europe,” missing link is technical expertise. Mustafa Knuetel said. $URAKOGLU ûPARTNERûATû4URKISHûlRMû#AKMAK û The contractors and suppliers involved said the reasons a planned 1.2GW offshore tend to be the same all over the world, and wind auction was recently scrapped were the they often have similar asks, concerns, and PROJECTSûSIZEûANDûTECHNICALûINEXPERIENCEûAMONGû approaches as to how they do things – which local investors and advisers. add further familiarity to deals in new locales. h4HEûPROJECTûWASûTOOûBIG ûANDûAûLACKûOFû The auction procedures and CfD or CfD- measurement and site data made it very ADJACENTûSTRUCTURESûADDûANOTHERûLEVELûOFû DIFlCULTûFORûPOTENTIALûBIDDERSûTOûIDENTIFYûTHEû CONlDENCE ûWITHûTRENDSûPOINTINGûTOWARDSûTHEû risks involved in a very limited period of time,” mechanism becoming widely regarded as the he explained, adding that “any winning bidder fairest and most reliable for offshore wind. WOULDûHAVEûTOûFACEûAûLOTûOFû@lRSTSûFROMûLEGAL û “Over time, even more established markets regulatory and technical perspectives, which is will move to a CfD,” opined Dentons’ Thomas a huge burden.” Schubert. “Turkish lawyers have experience in 4HEREûISûSOMEûPRESSUREûONûlRMSûRATES ûBUTû designing successful frameworks, but the the biggest pressure is on caps or lump sums for DIFlCULTûPARTûISûTOûMAKEûTHOROUGHûTECHNICALûRISKû certain phases of work. analysis.” h'ENERALLYûSPEAKING ûWEûSEEûlRMSûBIDDINGû On the legal side, there are plenty of extremely aggressive caps which they know INTERNATIONALûlRMSûWITHûAû4URKISHûPRESENCEûTHATû won’t work, but it’s still attractive for the client will be both used to issues unique to offshore because it looks as though its better value,” wind as well as to the Turkish YEKA and YEKDEM Knuetel said. “So the question is do you under- support systems – on which the planned offshore price intentionally from the outset in order SUPPORTûISûBASEDû)NDEED ûSOMEûLAWûlRMSûAREû TOûGETûTHEûJOBûANDûTHENûMANAGEûTHEûPROBLEMû lNDINGûTHATûMUCHûOFûTHEIRûEXPERIENCEûINûEXISTINGû when you get in, or do you pursue the more markets is applicable to the newer Eastern straightforward approach with a realistic cost European markets as they open up. PROJECTION vû„

Aerial view Dutch landscape with offshore wind turbines along coast. © T.w. Van Urk | Dreamstime.com

72 Project Finance International November 18 2020

06 Legal Report 2020 p55-72.indd 72 17/11/2020 19:01:18 WHERE IS THE NEXT…DUBAI, SHANGHAI, SINGAPORE? Landscapes and cityscapes have transformed over the years with the development of major infrastructure projects across many countries. The OECD estimates that meeting the UN Sustainable Development Goals (SDGs) will require ~$6.3T in annual investment immediately, increasing to ~$6.9T to meet the Paris Agreement goals.

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