Airlines and Airports will invest US$ 33 billion in IT this year: SITA Report
Transportation & Logistics I Real Estate I Energy I Communication
Bahia Mineração US$ 2.4 billion mining/logistics Brazil project
Cellnex Telecom acquires Alticom
ADB gives US$ 1 billion loans for Indonesia's Energy Sector
Apple to invest US$ 1.3 billion to build Iowa Data Center
Total partners with EREN to expand renewable business
Indian Oil plans US$ 27 billion investment in next 6 years
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Airlines and airports are estimated to spend nearly US$33 billion on IT this year, according to the SITA 2017 Air Transport IT Trends Insights. And they are focusing their technology investments on similar priorities. Top of the agenda for CIOs at both airlines and airports, are investments in cyber security and cloud services. In addition, they are prioritizing investments in passenger self-service.
SITA’s research of the world’s airlines and airports shows that IT spend remains strong. Airlines’ spend as a percentage of revenue will rise to an estimated 3.30% or US$24.3 billion1 in 2017. For airports, the rise is to an expected 5.05% for this year or US$8.43 billion. Looking ahead to 2018 over 70% of airlines and 88% of airports are expecting IT spend to increase or remain at the same levels as today.
As IT spend increases, both airlines and airports agree that the number one priority for their investments is cyber security. Nearly all of them – 95% of airlines and 96% of airports – plan to invest in major programs or R&D on cyber security initiatives over the next three years. This shows alignment across the industry on the importance of investing in this area.
Ilya Gutlin, President, Air Travel Solutions, SITA, said: “The air transport industry is going through digital transformation and focusing its attention on protecting the business and passengers; making it more efficient; and improving the passenger experience. Cyber-attacks are a very real threat in the highly interwoven air transport industry so building solid defenses is essential. Cloud services provide important efficiencies which play a key role in keeping costs down. Investments in self-service improve passenger satisfaction as they welcome the independence and efficiencies it delivers.”
Gutlin continued: “When it comes to IT investment, airports and airlines are aligned to provide better, more secure service to customers.
Airlines and Airports will invest $33 billion in IT this year: SITA Report
The Asian Development Bank (ADB) plans to raise its annual lending to India to a maximum of $4 billion to support the country to accelerate inclusive economic transformation toward upper middle-income status, as laid out in a new ADB Country Partnership Strategy (CPS) for 2018-2022 endorsed today.
ADB’s program in India will focus on three main pillars of activity during the 5-year period—boosting economic competitiveness to create more and well-paid jobs, improved access to infrastructure and services, and addressing climate change and improving climate resilience. About 85% of lending will be focused on transport, energy, and urban infrastructure and services. Other finance will be aimed at public sector management, agriculture, natural resources and rural development, as well as skills development and urban health.
The planned lending level, which includes private sector operations, compares with an average of $2.65 billion a year in loans extended in the period 2012-2016. It will be complemented by technical assistance to help undertake strategic studies, build capacities, and prepare projects, increasing from the current average of $6.6 million in 2013-2016. ADB will also explore cofinancing opportunities, including climate funds for relevant projects.
“ADB’s new 5-year partnership with India supports the government’s goal of inclusive and sustainable growth grounded by economic structural transformation and job creation, with an increased focus on low-income states,” said Kenichi Yokoyama, ADB Country Director in India. “We aim to assist transformative investments, deliver holistic solutions removing sectoral boundaries, and demonstrate high value addition of our assistance in terms of innovation, timeliness, efficiency, and quality.”
ADB earmarks up to US$ 4 billion a year for new partnership with India 2018-2022
ADB expands clean energy project in India with AIIB Cofinancing
The Asian Development Bank (ADB) has agreed to finance additional power transmission network components with cofinancing from the Asian Infrastructure Investment Bank (AIIB) that will connect with an ADB-financed Green Energy Corridor and Grid Strengthening Project in India.
In support of the Indian government’s Green Energy Corridor initiative, ADB’s Board of Directors approved in December 2015 two loans to build and upgrade inter-regional grid systems between the western and southern regions, and high voltage transmission lines and substations in the northern region. The system will mainly deliver solar and wind energy to wider locations in India. The ADB financing for this comprised a $500 million government-backed loan and a further $500 million in nonsovereign lending to India’s national transmission company, Power Grid Corporation of India Limited (POWERGRID).
To increase energy delivery to more provinces in India, the project will now be expanded to include 400 kilovolt transmission components in Tamil Nadu to connect at Pugalur with the long-distance grid systems financed by ADB. ADB will provide $50 million from savings from the earlier loans while AIIB’s Board of Directors yesterday approved cofinancing of $100 million for this component, which has a total cost of $303.5 million. POWERGRID will finance the remainder.
“We are pleased that this first AIIB cofinanced project in India will bring clean energy to more people and help the country achieve its ambitious renewable energy targets,” said Priyantha Wijayatunga, Director of ADB’s Energy Division in its South Asia Department. “We look forward to broadening our partnership with AIIB in the coming years.”
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Ameren Missouri to invest US$ 1 billion in wind,
Ameren Missouri announced a forward-thinking plan to dramatically increase the amount of wind and solar generation to provide cost-effective and sustainable energy for its customers.
Ameren Missouri, a subsidiary of Ameren Corporation, plans to add at least 700 megawatts of wind generation by 2020, representing an investment of approximately $1 billion. The potential exists to add even more wind generation in the coming years as a result of improving technology and economics, as well as renewable energy initiatives with large customers.
The company also plans to add 100 megawatts of solar generation over the next 10 years, with 50 megawatts expected to come online by 2025.
"This is Ameren Missouri's largest-ever commitment to clean, renewable energy," said Michael Moehn, president of Ameren Missouri. "We are committed to bringing our customers innovative solutions that are both cost-effective and environmentally responsible while maintaining the reliability our customers expect."
The new wind generation is expected to be located in Missouri and neighboring states using American-made turbines. The source, location and cost of the new wind generation is still under negotiation with several developers.
"We expect this tremendous growth in wind generation to provide great value to our customers, who will save money on energy costs," Moehn said. "Because of significant advancement in technology, harnessing wind is less expensive than other forms of new generation."
Essar Ports, India’s second largest private port operator that has an operational capacity of 82 MTPA, announced that its Rs 830-crore expansion plan to upgrade the iron ore handling capacity of the Vizag Terminal (outer harbour) from 12.5 MMTPA to 23 MMTPA is nearing completion. On completion, the upgraded terminal will have a loading rate of 8,000 TPH (tonnes per hour), which will be among the highest for an Indian port.
Essar Vizag Terminals Limited (EVTL) took over the project in May 2015 on a Design- Build - Finance- Operate-Transfer (DBFOT) basis for a period of 30 years. Since then, the company has ramped up the iron ore loading capacity of the terminal from 25,000 TPD (tonnes per day) to 70,000 TPD. After the completion of the upgradation - cum- modernisation project, the loading capacity will increase to 120,000 TPD, and the facility will be able to berth vessels up to 200,000 DWT, with a draft of 18 metres, on the outer harbour.
EVTL’s Iron Ore Handling Terminal at Vizag Port is an all-weather deep draft facility that has the wherewithal to serve the rapidly growing markets of South East Asia, including China, Japan, and Korea. The project facilities are state-of-the-art and require minimal human intervention.
Receiving System: Completely mechanised facilities that comprise high capacity wagon tipplers for receiving cargo by rakes, and one of the longest integrated conveyor systems that transfer cargo to a stackyard that has high capacity multiple stackers. The stackyard has a capacity to store 0.6 MT of cargo.
Shipping System: The system comprises high capacity reclaimers to load vessels up to Capesize through ship loaders. It is one of fastest loading systems ever seen in an Indian port.
Essar invests US$ 124 million to double Vizag Port iron ore handling capacity
The board of the European Investment Bank approved new financing totalling EUR 11.5 billion at its meeting in the Bulgarian capital Sofia. This includes support for investment to improve transport, education, urban development, water, energy and communications, alongside backing business investment across Europe and around the world. New Public-Private Partnership (PPP) financing for urban rail, motorway construction and flood defences was also agreed.
“Economies across Europe and around the world enjoy solid growth rates at the moment, but there is still a large investment gap that needs to be tackled. Investment is needed in many areas, from fighting climate change to supporting the digital transformation. As the Bank of the European Union the EIB helps companies of all sizes to flourish and develop new products and services”, said Werner Hoyer, President of the European Investment Bank.
Bulgarian Prime Minister opens new EIB office and welcomes strengthened EIB engagement.
EIB agrees US$ 13.6 billion backing for transport, education, energy and private sector investment
Ten years on from the global financial crisis, the prospects for a sustained economic recovery remain at risk due to a widespread failure on the part of leaders and policy-makers to put in place reforms necessary to underpin competitiveness and bring about much-needed increases in productivity, according to data from the World Economic Forum’s Global Competitiveness Report 2017-2018.
For the ninth consecutive year, the report’s Global Competitiveness Index (GCI) finds Switzerland to be the world’s most competitive economy, narrowly ahead of the United States and Singapore. Other G20 economies in the top 10 are Germany (5), the United Kingdom (8) and Japan (9). China is the highest ranking among the BRICS group of large emerging markets, moving up one rank to 27.
Drawing on data going back 10 years, the report highlights in particular three areas of greatest concern. These include the financial system, where levels of “soundness” have yet to recover from the shock of 2007 and in some parts of the world are declining further. This is especially of concern given the important role the financial system will need to play in facilitating investment in innovation related to the Fourth Industrial Revolution.
Another key finding is that competitiveness is enhanced, not weakened, by combining degrees of flexibility within the labour force with adequate protection of workers’ rights. With vast numbers of jobs set to be disrupted as a result of automation and robotization, creating conditions that can withstand economic shock and support workers through transition periods will be vital.
The Global Competitiveness Report 2017-2018: WEF
Total has signed an agreement with EREN RE to accelerate its growth in the production of power from renewable sources. Total will acquire an indirect interest of 23% in EREN RE by subscribing to a capital increase for an amount of €237.5 million. The agreement also gives Total the possibility to take over control of EREN RE after a period of 5 years.
Founded in 2012, EREN RE has developed a diversified asset base (notably wind, solar and hydro) representing a global installed gross capacity of 650 MW in operation or under construction. Its ambition is to achieve a global installed capacity of more than 3 GW within 5 years. The capital increase subscribed by Total will enable EREN RE to cover its financing needs to accelerate its development in the coming years.
“Total integrates climate challenge into its strategy and is pursuing steady growth in low-carbon businesses, in particular in renewable energy. By partnering with EREN RE, we are leveraging a team that has a proven track record in renewable power production, and we are investing in an additional asset to accelerate our profitable growth in this segment, in line with our ambition to become the responsible energy major. So we welcome to Total Eren into the Total Group!” said Patrick Pouyanné, Chairman and CEO of Total.
“EREN RE’s momentum will allow us to accelerate our growth in solar energy and move us into the wind power market. The agreement with EREN RE is a major step towards our objective of achieving 5GW of installed capacity in 5 years,” commented Philippe Sauquet, President Gas, Renewables and Power. “In line with the Group's integrated strategy along the oil and gas value chains, we are rebalancing our portfolio in renewables between the upstream manufacturing with SunPower and the downstream power production with EREN RE. Today we want to provide this high-potential company with the means to reach a new level and support its ambitions for international development.”
Total partners with EREN Renewable Energy to expand its renewable Business
AAI will invest US$ 255 million for the Development of Airports
With an objective of improving and developing airport infrastructure to meet the growing traffic, Airports authority of India (AAI) will undertake new development works at Lucknow, Deoghar, Rajkot and Allahabad airport.
AAI plans to construct new integrated passenger terminal building at Chaudhary Charan Singh International Airport, Lucknow with estimated cost of Rs. 1230 Crores resultant of the increasing passenger traffic during last 5 years. The new terminal will be able to handle 4000 passengers during peak hour and 6.35 million passengers per annum.
AAI will develop Deoghar airport in Jharkhand, to facilitate the joint use of civil operation up to Airbus-320 and DRDO operation up to C-130 type of aircraft. The work will be carried out at an estimated cost of Rs. 401.34 crore on fixed cost basis and Rs. 427.43 crore on completion cost basis. An MoU was signed between the Govt. of Jharkhand, DRDO and AAI in March, 2017. As per the MOU, there will be financial input to the tune of Rs. 50 Cr by Govt. of Jharkhand, Rs. 200 Cr by DRDO and balance cost to be funded by AAI.
To meet the demand of increasing air travel in Allahabad, a new civil enclave at Allahabad will be developed by AAI at an estimated cost of 125.76 crores. The new terminal is to be made operational before the ‘Ardh Kumbh Mela’ to be held in January 2019.
EIB to finance construction of 524 Social Housing Units in Navarre
The agreement was signed in Pamplona by EIB Vice-President Román Escolano and the President of the Navarre Region, Uxue Barkos. The ceremony was also attended by Pablo Zalba, CEO of ICO, the institution working with the EIB to implement the Investment Plan for Europe in Spain.
The European Investment Bank (EIB) is helping to facilitate access to affordable social housing in metropolitan areas of Navarre by providing EUR 40 million to finance the construction of 524 units. These will be Nearly Zero Energy Buildings (NZEB), i.e. buildings with very low energy consumption owing to their design and the materials used in their construction. The agreement is supported by the European Fund for Strategic Investments (EFSI), the main plank of the European Commission's Investment Plan for Europe, also known as the Juncker Plan.
Miguel Arias Cañete, the Commissioner responsible for Climate Action and Energy, affirmed that "this project is a clear example of smart investment: people’s quality of life will be improved, energy consumption will be reduced and jobs will be created. These are the goals of the EU’s energy efficiency policies, and I therefore welcome this agreement and sincerely hope that investment of this type will continue to be requested and supported. "
At the signing cereThis investment will have a positive employment impact by helping to create over 700 jobs in the implementation phase, which will run until 2020. The financing provided by the EIB will be managed by NASUVINSA, the public agency responsible for urban development and social housing projects in Navarre. The 524 new units will be built in the next three years, up to 2020, in metropolitan areas of Navarre. A total of 78 000 square metres of housing will be constructed under the project.
ADB provides additional funding to improve Roads, Highways in Afghanistan
The Asian Development Bank’s (ADB) Board of Directors has approved an additional $30 million grant to further improve maintenance works on sections of Afghanistan’s regional highways and road networks in a bid to enhance the sustainability of the country’s transport sector.
“Since 2002, we have seen efforts to rebuild and reconstruct around 8,000 kilometers of roads in Afghanistan, but there is still a need to make sure that they are maintained,” said Nana Soetantri, Transport Specialist at ADB's Central and West Asia Department. “Having a functional and reliable transport sector is an important pillar for Afghanistan to recover economically. ADB remains committed to help the country achieve its growth and development goals.”
The additional financing of the Road Asset Management Project will help finance the gap arising from changes in financing arrangements as well as in revisions of the project’s scope. This includes priority maintenance works for the Southern National Ring Road of Afghanistan’s regional highway from Ghazni to Kandahar, which is considered as an economic lifeline of the country’s eastern region. The additional financing will also include a capacity development component to introduce sustainable practices in road asset management and road maintenance.
About 220 kilometers in the Kabul-Jalalabad highway and the Kabul-Kandahar highway from Kabul to Ghazni were selected for maintenance due to their economic and strategic importance. The overall project will facilitate regional connectivity, improve the quality and efficiency of road transport services, and promote inclusive economic growth in Afghanistan.
Air Products, announced it has signed an agreement to form a $1.3 billion joint venture (JV) with Lu’An Clean Energy Company, which will significantly expand Air Products’ scope of supply serving Lu’An Mining (Group) Co., Ltd.’s syngas-to-liquids production in Changzhi City, Shanxi Province, China.
Air Products has already invested $300 million to build, own and operate four large air separation units (ASUs) to supply the Changzhi City site. Under the new agreement, Air Products will contribute the ASUs and invest a further $500 million for a 60 percent ownership in the new JV. With this majority position, Air Products will fully consolidate the JV financial results. Lu’An will contribute the gasification and syngas clean-up system, will receive $500 million of cash and will have a 40 percent ownership in the new JV.
The new joint venture, to be called Air Products Lu’an (Changzhi) Co., Ltd., will own and operate the ASUs and gasification and syngas clean-up system. The JV will receive coal, steam and power from Lu’An and will supply syngas to Lu’An under a long-term, onsite contract. Closing is expected as soon as possible, pending initial operational start-up and government and regulatory approvals.
“Extending our strong partnership/relationship with Air Products through this new joint venture enables us to take advantage of world-leading project management and operational expertise to deliver syngas for this landmark energy project,” said Mr. Li Jinping, Chairman of Lu’An..
Air Products and Lu’An Clean Energy to form US$ 1.3 billion Joint Venture
Boeing and Malaysia Airlines signed a MoU for
Boeing and Malaysia Airlines Berhad signed a Memorandum of Understanding for 16 airplanes during a ceremony at the St. Regis Hotel in Washington D.C.
The signing was witnessed by Dato' Sri Mustapa bin Mohamed, Malaysian Minister of International Trade and Industry and in the presence of The Honorable Dato' Sri Muhammad Najib Bin Tun Abdul Razak, Prime Minister of Malaysia as well as members from the airline and Boeing.
The announcement includes eight 787-9 Dreamliners by converting eight of Malaysia Airlines' existing order of the Boeing 737 MAX aircraft and eight additional purchase rights of the 737 MAX 8s as well as Boeing's Global Fleet Care service to maintain the national carrier's current and future Boeing airplanes. Once finalized, the deal will be posted to Boeing's Orders and Deliveries website.
"Malaysia Airlines is proud to sign this MOU for the widebody Boeing 787-9 Dreamliners and additional 737 MAXs, building on our more than 40 years of partnership with Boeing," said Peter Bellew, managing director and chief executive officer of Malaysia Airlines. "New widebody aircraft are a key to making Malaysia Airlines a premium airline offering a five star product again. The extraordinary range of the 787-9 gives an ability to operate to any point in Europe and some USA destinations in the future from Kuala Lumpur. The MOU with Boeing on their Global Fleet Care program will allow the two companies to build a world class MRO for the 737 MAX, 787 and 737NG based on Malaysia's existing facilities in Kuala Lumpur."
The 787 is a family of technologically advanced, super-efficient airplanes with new passenger-pleasing features and uses 25 percent less fuel and with 20 to 25 percent fewer emissions than the airplanes it replaces. The 737 MAX 10 will be the most profitable single-aisle airplane, offering the lowest seat costs ever. The 737 MAX family has been designed to offer customers exceptional performance, flexibility and efficiency, with lower per-seat costs and an extended range that will open up new destinations in the single-aisle market.
ADB provides US$ 1 billion loans to strengthen Indonesia's Energy Sector with over
$1 Billion in Loans
The Asian Development Bank’s (ADB) Board of Directors approved two loans totaling up to $1.1 billion to strengthen and diversify Indonesia’s energy sector — considered key to promoting inclusive growth and sustainable development in the country.
The first is a $500 million policy-based loan (including $100 million from the ASEAN Infrastructure Fund) for the Sustainable and Inclusive Energy Program— Subprogram 2. The second is a $600 million results-based loan to the State Electricity Corporation (PLN), guaranteed by the Republic of Indonesia, which will boost access to sustainable and modern energy services in eastern Indonesia.
Indonesia’s energy sector faces far-reaching and interrelated problems throughout the value chain, from the supply of primary energy to the distribution of electricity, leaving some 23 million people lacking access to power. Energy subsidies over many years have led to underinvestment.
Indonesia also lags many of its Southeast Asian neighbors in the development of its abundant renewable energy resources, such as solar, wind, and biomass. This leaves the electricity industry dependent on coal, which accounted for more than half of energy generation in 2016.
At the Economic Forum in Krynica Zdrój the European Investment Bank (EIB) has confirmed its strong commitment to supporting the Polish economy by providing financing totalling almost EUR 1bn for strategic investments in energy and science. In line with its aim of promoting competitive and secure energy, the EIB has provided EUR 250m of financing to Energa for the upgrading and extension of its electricity distribution network in northern and central Poland.
This financing, in the form of innovative hybrid bonds, is guaranteed under the European Fund for Strategic Investments (EFSI), a central element of the Juncker Commission’s Investment Plan for Europe. A further two EIB loans are providing Poland with EUR 730m for research, development and innovation activities in research institutes, universities and enterprises. The latter operations are the first to be supported by InnovFin Science, a facility with the financial backing of the European Union under Horizon 2020, its research and innovation programme.
During the signing ceremony held at the Economic Forum in Krynica Zdrój, Deputy Prime Minister Mateusz Morawiecki said: “Investments constitute one of the pillars of the government’s Responsible Development Strategy. We would like to fully utilize available financing sources both in terms of small and medium enterprises, as well as large-scale government initiatives. For the last year and a half the Ministry of Economic Development has been coordinating and monitoring the implementation of the Juncker Plan in Poland and we are very happy to observe and report its effects. Data published by the European Investment Bank shows that Poland ranks 6th among all EU countries in terms of transforming funds from this source into investments. The current contract is third in a series of contracts supporting government investment projects. The total value of the three investments – Energa, Tauron and Przewozy Regionalne – altogether amounts to PLN 5.6bn.” He added: “The EIB remains our main partner among the international financial institutions, so I am very happy to sign two new loan agreements with the Bank, which will provide financing for R&D projects, essential for economic growth. The new loans together with the previous ones granted since 2004 for Polish research, development and innovation projects amount in total to some EUR 7bn. They contribute to advancing the development of almost every scientific discipline: from quantum optics technologies to supramolecular chemistry and 3D holographic imaging.” Read more...
EIB supports Polish Energy and Science with almost US$ 1.2 billion
Bahia Mineração to build $2.4bn mining and logistics project in Brazil
Eurasian Resources Group, a leading diversified natural resources producer, and its wholly-owned Brazilian subsidiary Bahia Mineração (“BAMIN”), announced that BAMIN has signed a memorandum of understanding (“MoU”) with the State of Bahia and a consortium of Chinese companies to develop a $2.4bn integrated mining and logistics project in Brazil. The project includes BAMIN’s Pedra de Ferro iron ore mine, the Porto Sul deep-water port and the associated FIOL railway. The MoU signing took place during a bilateral meeting of Brazilian and Chinese businesses and government officials in the presence of the President of the People’s Republic of China, Xi Jinping, and the President of the Federative Republic of Brazil, Michel Temer.
The Chinese consortium is comprised of leading infrastructure and machinery companies and includes China Railway Group, China Communications Construction Company and Dalian Huarui Heavy Industry Group. The MoU sets out the intention of the consortium to participate jointly with BAMIN in the ownership and development of the integrated mine, rail and port project and to arrange its financing.
The MoU further sets out the State of Bahia’s intention to support the development of the project by enabling the use of Porto Sul for the handling of agricultural and other products, and by promoting tax benefits for Porto Sul and the FIOL railway.
World Bank Support Emphasizes Savings, Inclusion, and Reform on Road to Sustainable Growth in Turkey
A new World Bank loan is helping promote sustainable and inclusive growth in Turkey by focusing on increasing domestic savings, enhancing economic participation among vulnerable groups, and addressing structural bottlenecks through policy reform.
The €350.9 Million ($400 Million) Inclusion and Growth Development Policy Financing (RIG-DPF) program supports nine priority actions - structured around three pillars - and is grounded in both Turkey’s development program outlined in the Tenth Development Plan and the newly-approved World Bank Group Country Partnership Framework (CPF) for 2018-2021.
Specifically, the policies, strategies, and reform actions supported under the program center on three strategic outcomes:
The first pillar aims to increase domestic savings to help address external imbalances and reduce fiscal risks. Amendments to the Private Pension Savings and Investments Law introducing auto-enrollment will increase private savings and eventually reduce dependence on external financing. This pillar also aims to enhance fiscal discipline by including financial statements in the audit reports of all general budget institutions, thus promoting transparency of fiscal accounts and reducing fiscal risks.
The second pillar aims to support participation of women, youth, long-term unemployed, and Syrians under temporary protection in the labor market, by supporting flexible employment, increasing access to childcare and granting work permits to “foreigners under temporary protection”.
Cellnex Telecom has closed the acquisition of Dutch telecoms infrastructure operator Alticom from Infracapital. The acquisition, which includes 30 towers and long-range sites throughout the Netherlands, for a total value of € 133 million will contribute an expected € 11.5 million in EBITDA in 2018.
The incorporation of Alticom strengthens and consolidates Cellnex Telecom’s leading position among independent telecommunications infrastructure operators in the Netherlands. Alticom’s long-range site network (tall towers with large equipment capacity) hosts wireless voice, data and audiovisual content transmission equipment and complements the network of 758 urban and rural sites that Cellnex Netherlands already manages.
The characteristics of Alticom’s sites are a key element to the future roll-out of 5G. They have the capacity – and connectivity to the fibre optic backbone – to host remote or ‘caching’ servers to bring data processing and storage capacity to the end users of 5G-based applications which is essential for meeting the exponentially increasing demand and requirements of an increasing number of people and connected objects: 50 billion by 2020.
5G will represent an explosion in terms of connectivity, with a 600% surge in mobile data traffic over the next five years (heavily based on downloads of audiovisual content); speeds of up to 1,000 times higher than 3G; and a latency / response time of up to 1 millisecond (100 times lower than 4G).
Cellnex Telecom acquires Alticom
The Asian Development Bank’s (ADB) Board of Directors has approved the disbursement of a loan of up to $2 million to develop solar energy capabilities and coverage in Samoa.
The ADB-administered Canadian Climate Fund for the Private Sector in Asia will provide an additional $1 million concessional loan and also a preparatory technical assistance grant to help overcome some of the early stage barriers to solar power development in the country. Under the financing package, Jarcon Pty Limited and Sun Pacific Energy Limited (SPEL) will expand a 2.2-megawatt (MW) solar farm in Samoa that is in partial operation.
The project will install up to 4 MW of solar power generation, owned and operated by SPEL, an independent power producer (IPP), who sells power to Samoa’s state-owned utility Electric Power Corporation. The project is expected to help the country lower its dependence on fossil fuels by generating an estimated 5.5 gigawatt-hours of solar power annually for 20 years, with estimated carbon emission reduction of 1,644 tons of carbon dioxide equivalent and save an estimated 1.7 million liters of diesel per year. This will help achieve the government’s goal of inclusive, sustainable, and environment-friendly growth.
The project is PSOD’s first energy deal in the Pacific and the first ADB investment supporting an IPP in the region. Concessional financing was needed to help the project reach financial close. “We hope this deal will demonstrate to private sector investors that developing bankable renewable energy projects in the Pacific can be achieved,” added Martina Tonizzo, ADB’s Investment Specialist. Read more...
ADB to Develop Solar Power in Samoa
AfDB approves $55 million loan for three Solar PV Projects in Egypt
The Board of Directors of the African Development Bank (AfDB) Group has approved three senior loans for a total amount of US$ 55 million to finance three solar PV Projects under the second Round of the Feed-in-Tariff (FiT) Program in Egypt.
Alcazar Energy Egypt Solar 1 (Alcazar I), Delta for Renewable Energy (Delta) and Shapoorji Pallonji Energy Egypt (SP), are the three Independent Power Producers benefiting from the loans for a tenor of eighteen years. Alcazar I and Delta will be extended a loan of US$ 18 million each. The US$ 19 million loan to SPEE also includes a US$7-million concessional financing from the Global Environment Fund (GEF).
The GEF financing is mobilized within the framework of the "AfDB-PPP Public-Private Partnership Program," which was approved by the GEF for implementation by the AfDB to promote the scaling up of renewable energy technologies and contribute to the delivery of universal power supply in Africa. The Project is aligned with the GEF6 climate change mitigation focal area – promote innovation, technology transfer, and supportive policies and strategies. It is estimated that the GEF investment will enable the reduction of 61,000 tons of CO2 per year.
Egypt has one of the best solar resources in the world, with daily sunshine averaging 9-11 hours, low humidity, and global horizontal irradiation of around 2230-2330 kilowatt-hour (“kWh”)/m2 per year. In order to meet the increasing energy demand, diversify the energy mix, and improve the environmental and climate footprint of the power sector, Egypt has developed an overarching regulatory framework for the development of renewable energy capacity with the aim of securing 20% of its energy generation from renewable sources by 2022. In September 2014, Egypt launched a FiT Program for a total of 4,300MW including 2,300MW of solar PV.
Asian Investors Continue to Favor Big Ticket Deals and Diverse Geographic Mix When Deploying Capital into Global Real Estate
London, New York, Hong Kong the Leading Global Destinations for Asian Investors
Global real estate continues to serve as an attractive asset class for investors, with Asian outbound investment into the sector posting significant year-on-year gains in the first half of 2017, according to the latest research from CBRE.
Approximately US$45.2 billion of Asian outbound capital was directly invested into global property in the first half of 2017, representing a 98.4% rise year-on-year against US$22.8 billion allocated in the first half of 2016.
Strength in Asian outbound investment was led largely by the preference of investors for big ticket deals in the global real estate sector. In the first half of 2017, 74% of committed investments were deployed into transitions valued at US$250 million and over, versus 56% in the corresponding period in 2016.
Geography-wise, Asian investors remain bullish on Europe, Middle East and Africa (EMEA) and the Americas, which drew US$21.9 billion—driven largely by a single US$13.2 billion from the logistics portfolio purchase—and US$11.3 billion in capital, respectively. The top five global destinations for Asian investment in H1 2017 were London (10%), New York (8%), Hong Kong (5%), Shanghai (4%) and Singapore (4%).
London, New York & Hong Kong are Leading Global Destinations for Asian Investors
IndianOil's 58th Annual General Meeting was held at Mumbai, India, where the Corporation's Board members presented the annual performance of the Corporation to the shareholders. Addressing the shareholders and highlighting the Corporation's performance over the last financial year, Chairman, IndianOil, Mr. Sanjiv Singh said, "IndianOil exceeded all previous benchmark indices in physical performance in 2016-17, whether it is sales, refineries and pipelines throughput, R&D initiatives, petrochemicals sales, gas marketing or upstream integration. It is your trust in IndianOil that has kept your Company growing year after year, for nearly six decades, fuelling the nation's growth and economic transformation, serving diverse customer segments with customised products & services, and fulfilling its commitment to all its stakeholders"
Being in the Oil & Gas industry, the Corporation has to address several environmental concerns. Talking about the same, Mr. Singh said, "IndianOil is committed to a sustainable future and therefore to reduce carbon emissions and greenhouse gas emissions in the coming years, IndianOil refineries are preparing for a transition from BS-IV to BS-VI grade fuels by April 2020. India will join the developed world by attaining this highest standard of automotive fuels." As part of the ongoing initiatives for a green planet, "clean fuels, bio-fuels and alternative, renewable energy sources such as solar energy and wind-power are being progressively integrated into the energy mix by IndianOil," he added.
Talking about the upcoming projects and the future plans of the Corporation, Chairman, IndianOil said, "with a capital expenditure target of about Rs. 1.8 lakh crore in the next 5 to 7 years, IndianOil is scaling up its investments in areas that will ensure profitable growth both in terms of volumes and revenue. The Corporation, with over 10 subsidiaries and 15 joint ventures in India and abroad, is evolving into a fully integrated, diversified energy conglomerate with interconnected but competing business verticals like Transport Fuels, Industrial Fuels, LPG, Natural Gas, Chemicals & Petrochemicals, Aviation Fuel, Lubricants, Greases & Special Products, Bio-fuels, Electricity from Solar & Wind-power, Innovative Power Storage Systems and even Hydrogen."
Indian Oil announce $27 Billion Investment plan in next 6 years
Apple to invest $1.3 Billion to build Waukee, Iowa Data Center
Apple, announced plans to build a 400,000-square-foot, state-of-the-art data center in Waukee, Iowa, to better serve North American users of iMessage, Siri, the App Store and other Apple services. Like all Apple data centers, the new facility will run entirely on renewable energy from day one.
Apple’s investment of $1.3 billion will create over 550 construction and operations jobs in the Des Moines area, and the company is contributing up to $100 million to a newly created Public Improvement Fund dedicated to community development and infrastructure around Waukee.
“At Apple, we’re always looking at ways to deliver even better experiences for our customers. Our new data center in Iowa will help serve millions of people across North America who use Siri, iMessage, Apple Music and other Apple services — all powered by renewable energy,” said Tim Cook, Apple’s CEO. “Apple is responsible for 2 million jobs in all 50 states and we’re proud today’s investment will add to the more than 10,000 jobs we already support across Iowa, providing even more economic opportunity for the community.”
The new Public Improvement Fund, to be established and managed by the City of Waukee, will support the development of community projects like parks, libraries and recreational spaces, as well as infrastructure needs. The first project the fund will support is construction of the Waukee Youth Sports Campus featuring a greenhouse, playground, fishing pier and fields for high school and public sporting events.
EIB backs USD 120 million Sainshand wind farm in Mongolia
The Sainshand wind farm in Mongolia, the third privately financed wind farm in the country, will receive a USD 120 million project financing package from a group of international investors and financiers
Located 460 km south-east of Ulaanbaatar in the Gobi Desert, Sainshand Salkhin Park LLC is sponsored by French energy leader ENGIE, German project developer Ferrostaal, Danish Climate Investment Fund (DCIF) and Mongolian entrepreneur, Radnaabazar Davaanyam, with long-term financing provided by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).
The lenders have agreed to provide a total project financing of USD 78.5 million, which comprises EIB funding of USD 47 million, of which the first tranche will be guaranteed by EKF, Denmark’s Export Credit Agency, with NORD/LB acting as agent; and EBRD funding of USD 31.5 million.
Once operational, the new Sainshand wind farm will make a significant contribution to reducing Mongolia’s carbon emissions and cater for an expected increase in power demand in the country. The scheme will significantly enlarge Mongolia’s renewable energy capacity and help the government to achieve the goal of renewable energy accounting for 20 per cent of all power by 2020, and 30 per cent by 2030.
Jonathan Taylor, Vice President, European Investment Bank (EIB), said: “The European Investment Bank is committed to supporting climate-related investment across Asia and is pleased to support development of wind power in Mongolia, which provides an alternative to coal use. The Sainshand wind farm will use world-class technology and demonstrate that wind power can be successfully harnessed in remote regions facing a harsh climate.”
Hans-Dietmar Schweisgut, Ambassador, European Union to Mongolia, said: “Mongolia and the European Union are signatories of the Paris Climate Agreement and the new Sainshand wind farm shows the close partnership between Europe and Mongolia to reduce carbon emissions through renewable energy. European finance and technical expertise, working in close cooperation with Mongolian partners, demonstrate a shared ambition to harness wind from the Gobi Desert to tackle climate change.”
DLF Ltd and GIC, Singapore’s sovereign wealth fund, have entered into a strategic partnership to develop a rental assets portfolio, under the consolidated portfolio of DLF Cyber City Developers Ltd. (“DCCDL”), a subsidiary of DLF Ltd. The partnership enables sustainable, long-term growth of DCCDL’s rental business and creates an optimum structure for its rental business to improve efficiency, with long-term capital for growth of the portfolio.
“We are excited to enter into, yet another, landmark transaction with GIC”, said Rajiv Singh, Vice Chairman, DLF Ltd. "Going forward, we expect this partnership to unlock significant embedded value in this portfolio and achieve scale and growth to unprecedented levels", he added.
Mr Lee Kok Sun, Chief Investment Officer, GIC Real Estate, said, “We are pleased to enhance our existing partnership with DLF, one of India’s leading real estate developers, through this landmark transaction. This portfolio comprises high-quality, income-generating assets which are located across India's top-tier cities. In addition, there is significant development potential within the portfolio. As a long-term investor, we believe in the growth potential of India and in strengthening relationships with like-minded partners."
The transaction envisages an enterprise value of approx. US$ 5.6 billion for DCCDL. Post completion of series of steps as contemplated in the transaction, DLF shall hold 66.66% equity shares (up from 60% diluted equity earlier) and an affiliate of GIC shall hold 33.34% equity shares in DCCDL. The gross proceeds to the sellers from the transaction would be Rs 11,900 crore (approx. US$1.9 billion), which comprises secondary sale of equity shares (post-conversion of Compulsory Convertible Preference Shares – “CCPS”) to GIC for approx. Rs 8,900 crore (approx. US$1.4 billion), and two buybacks of CCPS for Rs 3,000 crore (approx. US$0.5 billion) by DCCDL – out of which one shall be done before the closing and the second will be done 12 months thereafter.
The transaction has customary representations and indemnities; subject to regulatory and shareholder approvals.
GIC to acquire 33% stake in DLF rental arm for $1.3 Billion
ADB to provide $180M to Help Improve Railway Safety in China
The Asian Development Bank’s (ADB) Board of Directors has approved a $180 million loan to help the government build a safer, more reliable, and more efficient rail transport system in the mountainous southwest region of the People’s Republic of China (PRC).
The Mountain Railway Safety Enhancement Project will fund advanced railway safety equipment for the E’Mei-Miyi section — about 386 kilometers long — of the Chengdu-Kunming railway line, considered one of the most important railway networks supporting tourism and economic growth in the PRC.
“A safer and more advanced railway system will give residents better and faster transport options and support economic growth in the region,” said Sharad Saxena, Principal Transport Specialist for ADB. “It can also provide more jobs, improve people’s quality of life, and strengthen gender equality. We look forward to working closely with our counterparts to achieve these objectives.”
The project will help install new technologies, including advanced railway signaling, communication, and power supply mechanisms, as well as tunnel safety operation and monitoring systems. These will allow for more seamless train operations to avoid delays, technical difficulties such as power outages, accidents, and other emergency situations.
Propertyfinder Group, the leading real estate portal in the MENA region for more than a decade, acquires 16.95 percent of Zingat, the fast-growing property and information marketing platform in Turkey.
Leaders involved in the agreement commented.
" Zingat has become an important part of the network of Property Finder Group " , said Michael Lahyani , founder and CEO of PFG , the Zingats Board joins.
Zingat founder and CEO Ahmet Kayhan said, "At Zingat, we aim to bring customers together with the right real estate professionals who use data and information effectively of the fast-growing real estate portals in the world, with over 6 million visitors a month and more than 18,000 real estate brokers. "
He added, "Michael and his team have established the Propertyfinder Group with an impressive list of shareholders as the largest and strongest real estate portal network in the MENA region." Zingat is proud to be an important part of this network. "
" We believe in Turkey and the stability of Turkey. "
Husnu Akhan , CEO of the Doğuş Group, commented on the investment of PFG: "Although Zingat is new to the market, the Propertyfinder Group's investment in Zingat shows that this is the right path Turkish real estate portals attracting significant foreign investment.We place a strong emphasis on property investments.The knowledge of the Propertyfinder Group and the extensive MENA network will strengthen Zingat and make it the most important platform for real estate investors. "
Propertyfinder invests in the Turkish property portal Zingat
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