Insights InfraCo Asia

Insights from Q3 ~ 1 July to 30 September 2015

Dear ,

Welcome to the latest in news, insights and infrastructure development from InfraCo Asia—applying a unique model of infrastructure development and investment across South Asia and Southeast Asia. Here we share highlights and progress made during the third quarter of 2015, as well as updates from the InfraCo Asia team and the world of infrastructure development and investments.

If you would like to find out more about collaboration and partnership opportunities with InfraCo Asia, please get in touch: info@infracoasia.com

FROM THE CEO'S DESK

Thank you for reading Insights InfraCo Asia, a brand new initiative to keep InfraCo Asia’s donors, partners, key stakeholders, service providers and interested parties informed about our activities. InfraCo Asia has grown since becoming operational in 2010, and its funding from the Private Infrastructure Development Group has recently increased. We are delighted that in July 2015 a revised funders agreement was signed with our donors—the Australian Department of Foreign Affairs and Trade (DFAT), the Swiss State Secretariat for Economic Affairs (SECO), and the UK Department for International Development (UKAid)—to support further sustainable growth of InfraCo Asia.

During Q3, the InfraCo Asia team was exceptionally productive on many fronts. After signing the funders agreement, we launched an Expression of Interest (EOI) process for the new multi-developer service program in South and South East Asia, followed by the pre-qualification process after an overwhelming response from the market.

The tender process with short-listed bidders is well on its way, and it is our intention to award 5-year contracts to two new developer teams by Q2-2016.

InfraCo Asia also launched an independent co-development / investment program earlier in 2015. The InfraCo Asia team has been reviewing over 25 investment proposals and the Board has recently short-listed three opportunities. Concerted efforts to evaluate co-development opportunities, de-risk projects, make them financeable and implement them successfully, will ensure we continue to create increased access to better infrastructure for poorer communities in South and Southeast Asia.

INFRACO ASIA HIGHLIGHTS

Five-year Developer Services Agreement signed for Myanmar

In early June 2015, InfraCo Asia signed a five-year Developer Services Agreement with Infra Capital Myanmar (ICM). ICM is mandated to provide development services for originating, developing and financing highly developmental and commercially viable infrastructure projects in Myanmar on behalf of InfraCo Asia. This development is an integral part of InfraCo Asia’s move to work towards ‘multi-developers’ and a co-development program. The partnership between InfraCo Asia and ICM is progressing strongly, and meetings in Myanmar were held in Q3 to introduce the ICM team to key stakeholders.

Pakistan Metro and Gul Ahmed Wind Power Projects progressing well

Q3 saw continued construction progress on both of InfraCo Asia’s projects in Pakistan. When complete, the Gul Ahmed Wind and Metro Power projects will each be 50MW in capacity, and will help address a critical shortfall and resultant power losses, estimated to represent a loss of 2-3% in annual GDP. InfraCo Asia is pleased to note the robust progress made on these projects.

Vietnam Hydro Project forging ahead

The Coc San Hydro Power Project in Vietnam’s Lao Cai Province is tracking well, with approximately 67% of construction accomplished as of Q3. Tunnel excavation is completed and lining is in progress with expected completion in December 2015. Good progress has been made on the construction of the dam and power station. All six towers of the transmission line have been erected. Tender for the power house office (which is separate from the EPC contract) was conducted and the contract awarded in October 2015. The plant is expected to start generating electricity in February 2016.

To view the full InfraCo Asia project portfolio, visit the website.

TALKING INFRASTRUCTURE

Interactive regional workshop

Building and maintaining partnerships with key stakeholders are crucial to our success. Recently, InfraCo Asia conducted an interactive workshop with participants from across various departments of the Asian Development Bank (ADB) in Manilla. Demand for Infrastructure in Asia and the lack of bankable projects and financing challenges provided a natural focus for the workshop.

The session provided for a good discussion about the various modalities (advisory services, preparation facilities, developer platforms, investment funds, guarantee cos) that both ADB and the PIDG either provide or support. As a result of both the workshop and individual meetings, there is a much better understanding about InfraCo Asia and its complementary functions alongside ADB. It’s an exercise that InfraCo Asia plans to run again in future.

Q3 conferences

InfraCo Asia was involved in two regional forums during Q3. On 10 September, CEO Allard Nooy presented at the ALB Thomson Reuters South-East Asia Project Finance Conference in Singapore. He spoke about the forces holding back private sector investment in Asia and the increasingly critical role multilaterals can play.

On 15 September, InfraCo Asia chaired the first day of the 2nd Power South East Asia Conference in Myanmar, and presented the following day. Allard Nooy again spoke before industry peers and experts, discussing Myanmar infrastructure and the energy market.

Building the Future

InfraCo Asia’s CEO, Allard Nooy, was interviewed for the Global Infrastructure Initiative that executive search consultant firm, Spencer Stuart, co-sponsors with McKinsey & Company. Read the full article, including Allard's insights, here.

“Some emerging markets in Southeast Asia are setting up Public Private Partnership centers of excellence to initiate, structure and coordinate with line ministries and lead the tender processes for PPP projects.”

THE PIPELINE

In addition to three projects under construction in Pakistan and Vietnam, InfraCo Asia has a number of projects in advanced stages of development under its Developer Services Program for South Asia and South-East Asia. These include a Waste To Energy plant in Sri Lanka, a hydro power project in Nepal and two Grain Mandis in India.

As part of the newly launched Developer Services Program in Myanmar there are six projects in due diligence stage in various sectors including agriculture, renewable energy and waste management. As part of the Co-Development Program, there are three projects in due diligence stage. These include hydro projects in India and the Philippines and a biomass based project in Sri Lanka. InfraCo Asia is also actively screening opportunities in Myanmar for co-development and welcomes qualified proposals.

OUR PEOPLE

Model infrastructure: on the ground in Lao Cai Province

Ids Groenhout is the General Director of Lao Cai Renewable Energy (LCRE), the owner and operator of InfraCo Asia’s Coc San Hydro Power Project in Lao Cai Province, Vietnam.

With over 50 years of experience working in infrastructure, Ids singles out the Coc San Project as a highlight of his professional career. Read more about this successful hydro power venture, from the perspective of someone 'on the ground'.

L-R: Soo Imm Teo, Raghav Koshik, Jeraine Ng, Allard Nooy, Claudine Lim, Shalabh Singhania, Jeremy Saw.

InfraCo Asia will welcome more personnel in 2016. Get to know the corporate team here.

The InfraCo Asia team

InfraCoAsia has welcomed several new faces to further fuel and support the growth of the InfraCo Asia platform. Jeremy Saw joined the team as Legal and Compliance Manager (General Legal Counsel) in August 2015. In July 2015, Soo Imm Teo joined InfraCo Asia as Executive Assistant and Office Manager, and in October 2015, Raghav Koshik came on board as the company’s newest business analyst. Claire Delahunty joined the team in October 2015 as Communications Advisor.

OPPORTUNITIES

InfraCo Asia’s key expertise is in early stage infrastructure projects. We are interested in projects located in Indonesia, the Mekong region and South Asia more broadly, that may be ideal candidates for InfraCo Asia’s co-development program. We welcome enquiries - info@infracoasia.com +65 6823 6860

About InfraCo Asia

InfraCo Asia www.infracoasia.com is a commercially managed infrastructure development and investment company headquartered in Singapore. It aims to stimulate greater private sector investment in infrastructure in Bangladesh, Bhutan, Cambodia, India, Indonesia, Laos, Myanmar, Nepal, Pakistan, Sri Lanka, the Philippines and Vietnam. InfraCo Asia develops and funds early stage, high-risk infrastructure development activities, taking an equity stake in socially responsible and commercially sustainable projects.

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