Infrastructure Policy Unit 2012 PPI Data Update: Transport Sector

Transcription

1 Note 87 September 2013 Policy Unit 2012 PPI Data Update: Transport Sector Total investment in transport increased by 42 percent in 2012, led by road s In 2012, 83 new transport s reached financial or contractual closure in 12 developing countries, according to the Private Participation in Database 1 : Brazil (7), Chile (1), China (3), India (60), Indonesia (4), Mexico (2), Peru (1), the Philippines (1), Romania (1), the Russian Federation (1), Senegal (1), Turkey (1). 2 Total investment commitments in transport s with private participation amounted to US$52.1 billion, of which $45.8 billion were investments in new s $6.3 billion were investments in existing s. The number of new s was the same as in 2011 (figure 1), while total investment 3 increased 42 percent compared to 2011 (figure 2). The compounded annual growth rate of total investment in transport for period was 25 percent. About 78 percent of all investment commitments in s with private participation in the transport sector in the developing world in 2012 were concentrated in Brazil India Figure 1: Transport s with private participation, by region, Number of Projects Figure 2: Investment commitments in transport s in developing countries, by region, US$ billions * Adjusted by US CPI AFR EAP ECA LAC MENA SA Source: World Bank PPIAF, PPI Project Database. AFR EAP ECA LAC MENA SA Source: World Bank PPIAF, PPI Project Database. This note was written by M. Paloma Alonso García-Puente, Transport Financial Analyst, Policy Unit (TWISI), Sustainable Development Network, World Bank. 1 The PPI Database currently uses the FY12 World Bank country classification released in July Investment data are in 2012 US dollar using the US CPI to adjust to 2012 values. Data at are reported in millions of current U.S. dollars unless otherwise indicated. St. Kitts Nevis graduated to high income country status in July The data on infrastructure s with private participation include primarily medium-size large s as reported by the media other public sources. Small-scale s are generally not included because of lack of public information. Additional investment in some s may have been omitted for the same reason. 3 Total investment refers to investment commitments in new existing s with private participation along the note. Figures for 2011 may vary from update note 75 due to recent updates in the data.

2 Regional Overview In terms of the number of new s, private investment activity in transport was concentrated mostly in South Asia (SAR), where all 60 new s developed in India. Following SAR was Latin America the Caribbean, where 11 new transport s (3 road s, 3 seaport s, 5 airport s) closed in 2012, led by Brazil with seven s. East Asia the Pacific ranked third with eight new s closing in 2012 (the same number as in 2011), four of them road s in Indonesia. Europe Central Asia ranked fourth, with three new s: two road s one railroad, located in the Russian Federation, Turkey, Romania respectively. In Sub-Saharan Africa there was only one new in 2012: Blaise Diagne Airport (AIBD) management contract in Senegal. There were no new s in Middle East North Africa in Total investment activity in transport was led by Latin America the Caribbean (LAC), amounted to $24.1 billion. This represented a 147 percent increase from the 2011 level, mainly due to the closure of three large airports (Gualhuros, Campinas Viracopos Brasilia) the expansion of the existing Carajas Railway, all four s in Brazil. Guarulhos airport was the biggest in 2012 regarding investment commitments, with $9.4 billion committed both in physical assets payments to the government. Investment in LAC was deeply concentrated in Brazil, which accounted for investment commitments of $22 billion out of the aforementioned $24.1 billion. The South Asia (SAR) region ranked second, with total investments of $18.9 billion in line with 2011 levels. The GMR Kishangarh Udaipur Ahmedabad Expressway, a 26-year 555.5km six-lane toll highway brownfield concession in India, closed in May 2012 with investment commitments of $3.4 billion ($1.8 billion in payments to the government $1.5 billion in physical assets). Europe Central Asia (ECA) ranked third, where total investment in transport s amounted to over $5.59 billion, dropping by seven percent compared to the previous year. East Asia the Pacific (EAP) ranked fourth with total investments of $3.5 billion, a 150 percent increase from 2011 levels. The 53km Hangzhou Metro Line 1 located in Hangzhou City, Zhejiang Province, mainl China, comprised a considerable share with investment commitments of $1.3 billion. In Sub-Saharan Africa (AFR) there was no investment in 2012, since the new AIBD mentioned above had a management contract there was no additional private investment in existing s. There was no investment in the Middle East North Africa (MNA) in 2012 either. 2

3 Subsector Overview In 2012 there were 69 road s, being 83 percent of all new transport s. Road s involved total investment commitments of $27.8 billion. It should be noted that all 60 s closed in India in 2012 were road s Figure 3: Transport s with private participation, by subsector, Number of Projects Figure 4: Investment in transport s with private participation, by subsector, US$ billions * Adjusted by US CPI Airports Railroads Roads Seaports Source: World Bank PPIAF, PPI Project Database. Airports Railroads Roads Seaports Source: World Bank PPIAF, PPI Project Database. Road s were followed by six airport s (7 percent), which involved total investments of over $15.7 billion. Although the number of new airport s decreased by one with respect to 2011, the total investment increased a tremendous 963 percent, due to the closure of the three aforementioned airport s in Brazil. Seaport s also accounted for six s (7 percent) $1.7 billion. Finally, the number of railroad s decreased from five in 2011 to two in 2012 (2 percent) located in ECA EAP, involving total investments of $6.8 billion. 3

4 Contract Type Overview By contract type, concessions 4 were predominant both in terms of number of new s total investment levels for They accounted for 64 new s (77 percent of all new s) $43.1 billion investment in new existing s (83 percent of total investment for 2012). They were followed by 17 new greenfield s (20 percent) with total investment of $8.9 billion (17 percent), by one management one lease contract (two percent) with no investments a lease fee of $2.5 million (less than 0.01 percent) respectively. There were no new divestitures in 2012, but there was an additional investment commitment of $75.5 million (0.14 percent) for Murmansk Port, an existing divestiture in the Russian Federation. 140 Figure 5: Transport s with private participation, by PPI type, Number of Projects 60 Figure 6: Investment in transport s, by PPI type, US$ billion * Adjusted by US CPI Management lease contract Divestiture Concession Source: World Bank PPIAF, PPI Project Database. Management lease contract Divestiture Concession Source: World Bank PPIAF, PPI Project Database. 4 Concession term in PPI Database refers to brownfield concessions. term refers to greenfield concessions (BOT, BOO, etc.) 4

5 Sponsors Overview Indian sponsors 5 dominated the transport sector by number of s (60), involving total commitments of $18.9 billion. They only invested locally, in India in new s. Brazilian sponsors, who invested in 18 s amounting to $22.7 billion, followed them. Out of those $22.7 billion, $17 billion were devoted to eight new s, all local except for one in Peru. Following them were Russian sponsors, who invested in four s (3 of them new) amounting to $4.2 billion. Total investment commitment figures by sponsor nationality give us a sense of sponsors exposure. China Argentina Philippines Spain Indonesia Russian F Figure 7: Top sponsor countries by number of transport s, closed in 2012 Brazil India Number of Projects Source: World Bank PPIAF, PPI Project Database. Investment Use Overview In 2012, 61 percent of total investment commitments in transport was assigned to physical assets (capital expenditure), while the remaining 39 percent was intended for payments to the government (concession rights, lease fees, etc.). The amount destined to government payments increased by 196 percent from 2011 levels, while investment in physical assets increased slightly, by six percent. Historically, payments to the government were especially relevant from 1996 to 2000, from 2005 to 2008, in 2011, in In 2012, investment in payments to the government comprised the biggest share of investment, by far, since Gualhuros airport was the with the highest payment to the government since 1990, amounting to $8.3 billion Spain Malaysia China Argentina France Russia 0 India Brazil Figure 8: Top sponsor countries by total investments in transport s, in US$ billion Figure 9: Investment commitments, by use, US$ billion Physical Assets * Adjusted by * Adjusted US CPI. by US CPI Source: World Bank PPIAF, PPI Project Database. * Adjusted by US CPI. Gov Payments Source: World Bank PPIAF, PPI Project Database. 5 Investment figures refer to investment in s where sponsors participated, not total actual investment made by listed sponsors. Sponsors with participation lower than 15% are not considered in the note. When two sponsors from different nationalities participate in the same, the number of s investment are double counted. 5

6 Featured Western High-Speed Diameter (WHSD) (Russia) Brownfield concession (BROT) 30 years Project information The Western High-Speed Diameter (WHSD) is a high-speed toll highway linking St. Petersburg's seaports with the national road network. It provides connections to the "Scinavia" motorway to the north connects the north-western, southern central parts of St. Petersburg. The is part of the Federal Target Program for the Developing the Transport System in Russia in The road has three sections: northern, southern central. The northern southern sections are financed from federal municipal budgets. of the 8.5km southern section, with a capacity of up to 60,000 vehicles a day, began in September 2005 it was opened to traffic in October The northern section was to be completed in The 30-year concession agreement for the central section was initially signed in December 2011, pursuant to the contract, the NCH Consortium would build operate the central section of the highway operate maintain the northern southern sections. According to the consortium's winning bid, the total estimated cost of the was $3.9 billion (Rb120 billion). The bid for building the eight-lane central section of the WHSD (11.7km), which crossed the Ekateringofka Bolshaya Neva river, for operating maintaining the southern northern sections was won by the Northern Capital (NCH) consortium comprised of VTB capital (lead equity investor), Gazprombank (equity investor), IC-Astaldi (contractor, a Turkish-Italian joint venture). They outbid their competitor, the consortium, by requesting a lower minimum revenue guarantee of $344 million per year (Rb9.67 billion), as opposed to $575 million (Rb16.15 billion), by having more competitive CAPEX EPC terms. NCH consortium would also pay 90 percent of the excess toll revenue to the city. Financial structure Financing was secured on December 20, Five Mated Lead Arrangers (MLAs) provided debt worth $1.95 billion (Rb60 billion): Vnesheconmbank $812.5 million (Rb25 billion); Eurasia Development Bank $325 (Rb10 billion); VTB Capital $276 million (Rb8.5 billion); Gazprombank $276 million (Rb8.5 billion); EBRD $266.5 million ( 200 million in ruble equivalent - Rb8.2 billion). Equity contributions totaling $325 million (Rb10 billion) were made by the sponsors: VTB Capital (58.5 percent) Gazprombank (41.5 percent), resulting in a debt to equity ratio 92:8. VTB Capital is 75 percent owned by a State Owned Enterprise (SOE) Gazprombank is 56.7 percent private. The senior debt had a tenor of 12 years. The ruble loans were lent at fixed rate with average pricing margins of 11.4 percent (a balloon payment will be due at the end of year 12 when margins may increase), while the euro loan (EBRD) had a floating rate - Euribor+3%. In April 2013, the syndicate released the first tranche of the loan to the. Government financial support to the PPP The Russian government supported the with a $1.6 billion (Rb50 billion) loan. The federal government loan was provided by the State Investment Fund the city of St. Petersburg in order to pay for milestone construction payments. As mentioned, the government will guarantee minimum revenue of $344 million per year will receive 90 percent of the toll revenue that is in excess of that minimum amount. The WHSD was one of the world s largest PPPs in toll-road construction as of The WHSD received a number of prestigious awards from international magazines: European PPP Transaction of the Year ( Investor, 2012), European Toll Road Deal of the Year (Project Finance, 2012), European Road Deal of the Year (Project Finance International, 2012) Best Urban Development Project in Europe (World Finance, 2013). It also received technical assistance from the World Bank, in

7 Table 1: Transport s with financial or contractual closure in 2012 East Asia the Pacific Country Project Name Project Status Segment Type of PPI Subtype of PPI Investment commitment (US$ millions) Capacity Type Capacity Sponsors 1 Indonesia Cikampek- Palimanan Toll Road 1300 KM 116 PLUS Expressways Berhad (PEB) (55% / Malaysia) 2 Philippines Davao International Container Terminal (DICT) Project Terminal Merchant 49.7 Not Available Not Available ANFLO Management & Investment Corporation (100% / Philippines) 3 Indonesia Gempol Grati Pasuruan 295 KM 34 PT Jasa Marga (80% / Indonesia) 4 Indonesia Gempol Paan Toll Road own, operate 130 KM 13.6 PT Jasa Marga (53% / Indonesia) 7

8 5 Indonesia Bali Nusa Dua Benoa Toll Road Bridge highway KM 11 PT Jasa Marga (60% / Indonesia) 6 China Jiaxing Container Terminal Extension Project Operational Terminal Throughput (thouss) 200 Paul Y.-ITC Holdings (90% / Hong Kong, China) 7 China Ningbo Meilong Port Project Operational Terminal Throughput (thouss) 400 AP Moller - Maersk Group (25% / Denmark) 8 China Hangzhou Metro Line One Operational Passenger KM 53 MTR Corporation (49% / Hong Kong, China) 8

9 Europe central Asia Country Project Name Project Status Segment Type of PPI Subtype of PPI Investment commitment (US$ millions) Capacity Type Capacity Sponsors 1 Russian Federation Western High-Speed Diameter Concession transfer 3900 KM 11.7 VTB Group (59% / Russian Federation), Gazprom Bank (42% / Russian Federation) 2 Romania CFR (Caile Ferate Romane) RC-CF Trans Lease Operational Fixed assets, freight passenger Management lease contract Lease contract 2.5 Not Available Not Available RC-CF Trans (100% / Romania) 3 Turkey Bosphorus (Eurasia) Tunnel tunnel transfer 1238 KM 14.5 Others (100% /..) 9

10 Latin America the Caribbean Country Project Name Project Status Segment Type of PPI Subtype of PPI Investment commitment (US$ millions) Capacity Type Capacity Sponsors 1 Brazil Super Port Acu LLX Acu Channel dredging terminal own, operate 700 Not Available Not Available EBX Capital Partners (100% / Brazil) 2 Brazil Imbituba Fertilizer Animal Feedstock Terminal Operational Terminal Concession Rehabilitate, 9 Throughput (thouss) 450 Fertilizantes Santa Catarina Ltda (100% / Brazil) 3 Brazil Sao Goncalo do Amarante Airport Runway terminal Number of runways 1 Jackson Empreendimentos Ltda (26% / Brazil), Corporacion America (CASA) (26% / Argentina) 4 Brazil Guarulhos Airport Operational Runway terminal Concession 9366 Number of runways 2 Invepar (46% / Brazil), Airport Company South Africa (5% / South Africa) 10

11 5 Brazil Campinas Viracopos Airport Operational Runway terminal Concession 3012 Not Available Not Available Triunfo Participacoes e Investimentos (23% / Brazil), Egis Group (5% / France), UTC Participacoes S/A (23% / Brazil) 6 Brazil Brasilia Airport Operational Runway terminal Concession Number of runways 2 Jackson Empreendimentos Ltda (26% / Brazil), Corporacion America (CASA) (26% / Argentina) 7 Brazil Ferno de Noronha Airport Operational Runway terminal Concession 4.4 Number of runways 1 Agemar (100% / Brazil) 8 Mexico Supervia Poetas (Phase I) Operational Bridge, highway, tunnel 385 KM 7 Obrascon Huarte Lain (OHL) (37% / Spain) 11

12 9 Mexico Manzanillo TEC II (Phase I) Channel dredging terminal Throughput (thouss) 400 International Container Terminal Services Inc. (ICTSI) (100% / Philippines) 10 Chile Ruta 5 Norte/La Serena- Vallenar KM 187 Sacyr Vallehermoso SA (SyV) (60% / Spain) 11 Peru Parque Rimac Toll Road Bridge, highway, tunnel 983 KM 25 Invepar (100% / Brazil) South Asia Country Project Name Project Status Segment Type of PPI Subtype of PPI Investment commitment (US$ millions) Capacity Type Capacity Sponsors 1 India Abhijeet Toll Road Karnataka 63.8 KM 70 Abhijeet Group 12

13 2 India ACP Operational KM 115 Chetak Enterprises Pvt Ltd (33% /, Patel Engineering Ltd (32% / 3 India Agra Etawah KM Ramky Group 4 India Ajmer Nagaur State Operational Bridge highway Concession 75.4 KM GVR Group 5 India L&T East-West Tollway KM 275 Larsen & Toubro (100% / 6 India Ashoka Cuttack Angul Tollway KM 112 Ashoka Buildcon Ltd 7 India Ashoka Dhankuni Kharagpur Tollway Operational Bridge highway Concession KM Ashoka Buildcon Ltd 13

14 8 India Atlanta Ropar 45.4 KM 54.8 Atlanta 9 India Tantia Batala Beas 24 KM Tantia (100% / 10 India Chetak Mitra KM 100 Chetak Enterprises Pvt Ltd (52% / 11 India Chetak KM 117 Chetak Enterprises Pvt Ltd 12 India Chomu Mahla Toll Private 58 KM 89 Unity Infras (100% / 13 India Datia Bher Project 10.2 KM 29.2 DP Jain & Company (100% / 14

15 14 India DBL Nadiad Modasa 41.4 KM 108 Dilip Buildcon (100% / 15 India Gangotri Sarangpur Shujalpur Tollway Private 11.6 KM 38.5 Gangotri Enterprises (100% / 16 India GMR Kishangarh Udaipur Ahmedabad Expressway KM GMR Group 17 India Shreenathji Udaipur Tollway Private KM 79.3 Sadbhav Engineering Ltd 18 India Manaj Tollway 71.7 KM 41 Man Infraconstruction (..% /, Ajwani (..% / 15

16 19 India Hospet Chitradurga KM Ramky Group 20 India IRB Ahmedabad Vadodara Super Express Tollway Private KM IRB Developers Ltd 21 India IVRCL Narnaul Bhiwani KM 151 IVRCL s & Projects Ltd. 22 India L&T Great Eastern KM 209 Larsen & Toubro (100% / 23 India Jalore Ramsingh Revdar State KM 77.8 D.K. 16

17 24 India Khwa Agroh Pathways 59 KM Agroh Developers Private Ltd (..% / 25 India Kiratpur Ner Chowk Expressway KM 84.3 Leasing & Financial Services (IL&FS) 26 India KNR Muzaffarpur Barauni KM KNR s Ltd (51% / 27 India KNR Walayar KM 54 KNR s Ltd 28 India Kotkapura Muktsar 23.4 KM 30 Supreme India Ltd (..% /, Subhash Projects & Marketing Ltd (..% / 17

18 29 India L&T Deccan 483 KM 145 Larsen & Toubro (100% / 30 India Lucknow Varanasi KM Atlanta (49% /, Essar Group (51% / 31 India VIL MPSV 28.4 KM Vijai (100% / 32 India Patna Buxar s KM Gammon India Ltd 33 India PNC Bareilly Nainital s KM 54 PNC Infratech Ltd 34 India Mhow Agroh Pathways 55.1 KM 69.4 Bla (..% / 18

19 35 India Vindhyachal Expressway KM 89 JMC Projects ( 36 India Sehore Kosmi 19.2 KM 50.1 Ramky Group 37 India MBL Development Company 48.1 KM 75.6 MBL s (100% / 38 India SEW LSY KM 206 SEW (70% / 39 India GVK Shivpuri Dewas Expressway KM GVK Group 40 India Sikar Bikaner KM Leasing & Financial Services (IL&FS) 19

20 41 India Solapur Bijapur Tollway Private KM Sadbhav Engineering Ltd 42 India Suratgarh Bikaner Toll Road Company KM MBL s (..% /, SREI Finance Ltd (..% / 43 India Suratgarh Sriganganagar Toll Road 66 KM 78 Unity Infras (100% / 44 India Sushee IVRCL Arunachal s KM 311 IVRCL s & Projects Ltd. (26% / 45 India Tantia Batala Beas 24 KM 35.4 Tantia (100% / 20

21 46 India Transstroy Bhopal Biaora KM Transstroy India (74% /, OJSC Corporation Transstroy, (26% / Russian Federation) 47 India Transstroy Krishnagiri Tindivanam s KM Transstroy India (74% /, OJSC Corporation Transstroy, (26% / Russian Federation) 48 India Umari Phook Pratapur State 14.5 KM 43.7 S&P Developers (..% /, Bla (..% / 21

22 49 India Vijayawada Gundugolanu Road Project KM Gammon India Ltd 50 India Vijayawada Machiliapatnam Expressways 146 KM 63 Madhucon Projects Ltd 51 India Wainganga Expressway KM 46.2 JMC Projects ( 52 India MBL (MP) Toll Road Company 11.1 KM 18.3 MBL s (100% / 53 India Yamunanagar Panchkula KM Gammon India Ltd 54 India BSCPL Aurang Tollway 338 KM BSPCL (100% / 22

23 55 India Essel Gwalior Shivpuri Toll Roads Private KM Essel Group 56 India Lucknow Raebareli Toll Roads Private KM 70 Essel Group 57 India Essel Walajahpet Poonamallee Toll Roads KM 93 Essel Group 58 India Jaintia 78 KM 102 Simplex 59 India Jind Haryana Border Toll Road Private 133 KM 68 Unity Infras (100% / 60 India VIL Rohtak- Jind 56.7 KM 48.6 Vijai (100% / 23

24 Sub-Saharan Africa Country Project Name Project Status Segment Type of PPI Subtype of PPI Investment commitment (US$ millions) Capacity Type Capacity Sponsors 1 Senegal Blaise Diagne International Airport Runway terminal Management lease contract Management contract N/A Population (thouss) 1500 Fraport AG (60% / Germany) Note: Investment commitments include payments to the government investment in physical assets US CPI adjusted. N/A means Not Applicable. 24