Annual Report 2015

PIDG FACILITIES

 

InfraCo Asia

Originating, developing, structuring, investing and managing infrastructure projects in Asia

 

Explaining InfraCo Asia's approach

 

InfraCo Asia comprises two companies: InfraCo Asia Development – investing early-stage development capital – and InfraCo Asia Investments – offering debt and equity close to financial close.

See below for a description of InfraCo Asia Development’s work in 2015.

Click here for a description of InfraCo Asia Investments and a case study explaining InfraCo Asia’s equity capability.

Projects that reached Financial Close in 2015

Pakistan Gul Ahmed Wind Power

See case study

Achievements in 2015

In 2015, InfraCo Asia Development achieved financial close for the 50MW Gul Ahmed Wind Power Project. InfraCo Asia Development committed $7.87m, along with a $9.3m investment from InfraCo Asia Investments (see p87), as a Joint Venture Partner. The project mobilised an additional $119.4m of investment. Construction on Gull Ahmed commenced in 2015, and it is expected to be commissioned in Q3/Q4 2016.

 

Other notable highlights

InfraCo Asia Development achieved strong project development and implementation progress in 2015. It also made significant advancements in its newly-launched co-development program.

Significant progress was made throughout 2015 on InfraCo Asia’s Coc San Hydropower Project in Lao Cai province in Vietnam. Construction was completed in Q1 2016 and the plant became commercially operational in May 2016.

InfraCo Asia Development signed a five-year Developer Services Agreement for Myanmar with InfraCapital Myanmar (ICM) in June 2015. The partnership marks the launch of its project development activities in Myanmar. ICM has already established a solid pipeline of projects across the energy, transport, agriculture and rural development sectors.

2015 saw the expiry of InfraCo Asia Development’s contract with its first developer: Nexif (InfraCo) Management Pte Ltd. In September 2015, it commenced a competitive tender process to engage two new developers to originate and develop projects in south Asia and south-east Asia.

InfraCo Asia was pleased to host its Australian, Swiss and UK donors on-location at project sites in Pakistan and Vietnam in 2015.

InfraCo Asia was shortlisted for the Euromoney Infrastructure Journal Global, ‘IJ Global’ Awards 2015 in the ‘sponsor’ category for Asia, securing second place in a highly competitive field.

InfraCo Asia’s management team engaged with a range of Asia Pacific infrastructure and PPP forums throughout the year; raising its profile and building ‘leadership capital’ – a vital part of encouraging more private sector investment in emerging Asia.

InfraCo Asia Development's management team grew by four over 2015, extending its capacity in the areas of legal, administrative, business analysis, finance and communications.

 

2016 and beyond

Across Asia, governments are generally making good progress on regulatory frameworks that will make private sector investments in infrastructure, and notably renewable energy, more sustainable and commercially viable. There remains, however, a shortage of well-structured projects to mobilise available capital – both debt and equity – and InfraCo Asia is well-positioned to address this challenge.

In May 2016, InfraCo Asia Development will bring on two new developers – Infunde Development Private Ltd and Equicap Asia Pte. Ltd. The new developers will build InfraCo Asia’s pipeline of projects, significantly increasing its market presence. InfraCo Asia will also actively pursue co-development opportunities. It will continue to regularly exchange knowledge with its sister Facility, InfraCo Africa, and will work closely with TAF, DevCo and GuarantCo.

Vietnam Coc San hydropower project switch on in summer 2016

Commercially operational from May 2016 InfraCo Asia’s Coc San Hydropower Project will strengthen the power grid of Vietnam’s Lao Cai Province, supplying 29.7MW of clean, renewable energy. The run-of-river plant will reduce carbon emissions by about 76,000 tonnes per annum. InfraCo Asia has invested $7.5m, mobilising $30.9m of further investment. Coc San was also supported by InfraCo Asia Investments and TAF.

Coc San will benefit up to 130,000 people, providing access to reliable and affordable power. In addition, the project company has implemented Community Development and Livelihood Restoration Programmes, which have been well received by local communities. Coc San has been developed with minimal environmental impact and incorporates a tourist rest area and look-out, which will attract travellers on the busy road from Lao Cai to Sa Pa.

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