66331 PPI data update note 60 August 2011 For fifth consecutive year India drove private activity in infrastructure in South Asia to a new peak in 2010 In 2010, 102 infrastructure projects with private participation reached financial or contractual closing in 4 low- and middle-income countries in South Asia, involving investment commitments of US$47 billion (table 1). 1 Infrastructure projects implemented in the 1990–2009 period attracted new investment of US$26.5 billion, bringing total investment commitments (hereafter, investment) to infrastructure sectors to US$73.5 billion in 2010. 2 The activity in 2010 represents an increase of 72% by investment and 70% by number of projects compared with 2009. The growth rate of investment is particularly significant given that investment in the region had been growing since 2006 but at a lower rate (figure 1). Investment in new projects grew by 54% from 2009, and additional investment in projects implemented in 1990-2009 rose by almost 120%. Private activity in the region, however, shows marked differences across countries. In India, private activity is vibrant thanks to many policy and programs that the national and state governments have implemented to attract private investment into infrastructure sectors. 3 India has now become the largest market for private participation in infrastructure in the developing world. The country implemented 94 new projects in 2010 and saw investment amount to US$71.9 billion in 2010, an 85% increase from 2009. That investment is the highest level that any developing country experienced in any giving year in the entire 1990-2010 period. India alone accounted for 43% of the total investment in projects with private participation in developing countries in 2010. In the other South Asian countries, private activity is sporadic and in many cases aims at easing crisis situations such as power outages. Most of the PPI activity was directed to greenfield projects (BOT, BOO, merchant, and rental), which attracted 81% of regional investment and 50% of new projects. Concessions accounted for 48 of the new projects and 14% of the regional investment. Figure 1 Investment in PPI projects in South Asia, by type of Figure 2 Investment in PPI projects in South Asia, by sector, PPI, 1990‒2010 1990‒2010 2010 US$ billions* Projects 80 120 2010 US$ billions* 80 70 100 70 60 60 80 50 50 40 60 40 30 40 30 20 20 20 10 10 0 0 0 1990 1995 2000 2005 2010 1990 1995 2000 2005 2010 Concession Divestiture Greenfield project New projects Energy Telecom Transport Water and sewerage * Adjusted by US CPI. Source: World Bank and PPIAF, PPI Project database. * Adjusted by US CPI. Source: World Bank and PPIAF, PPI Project database. Energy had 42 projects in three countries and investment of US$38.1 billion. That represents a 39% increase from 2009, and the highest PPI investment level ever in the sector. Energy accounted for 52% of regional investment in 2010. This note was produced by Ada Karina Izaguirre, infrastructure specialist, Finance, Economics, and Urban Development Department, Sustainable Development Network, World Bank. 1 The PPI Project Database currently uses the FY10 World Bank country classification released in July 2010. Investment data are in 2010 US dollar using the US CPI to adjust to 2010 values. 2 Data on infrastructure projects with private participation include primarily medium-size and large projects in low and middle income countries as reported by the media and other public sources. Small-scale projects are generally not included because of lack of public information. More information is available at http://ppi.worldbank.org/. 3 Information on the programs for attracting private participation in infrastructure sectors in India can be found at infrastructure.gov.in and www.pppinindia.com -1- • India accounted for 36 energy projects and 99% of regional investment in energy. • Bangladesh implemented five energy projects, all which were rental power plants with contract periods ranging from three to five years. These projects are a short term solution to the power crisis in the country. • Nepal implemented a 15.6 MW hydro power plant under a BOT contract. • In India, electricity generation accounted for 39 projects and US$35.4 billion in investment. Those projects involved 26.9 GW in new capacity and 2.3 GW of partially divested capacity. • There were also two electricity transmission projects with investment worth US$698 million and 1,100 kilometers of length. In addition, India sold a 17% stake in Power Grid Corporation of India Limited (PGCIL) via an initial public offering, bringing the divested share in the company to 31%. The first sale of PFCIL’s shares took place in 2007. • India also signed a 20‒year franchise with a private operator for electricity distribution in Kanpur and Agra in Uttar Pradesh. Together those two areas serve 742,000 connections. • Greenfield projects were the most common type of PPI, accounting for 40 of the 42 new projects and US$34.2 billion in investment. The other new projects were a partial divestiture (Nathpa Jhakri Power Corporation Limited) and one lease contract (the franchise for electricity distribution in Kanpur and Agra). Telecom had two new projects and attracted of US$21.2 billion. That represents an increase of over 100% compared with 2009, and the highest level of investment in the sector in the entire 1990-2010 period. The sector accounted for 29% of regional investment in 2010. • The investment growth was driven by the issue of 3G spectrum in India. The country, which accounted for 96% of regional investment in telecommunications, auctioned 3G for its 22 circles in May 2010 and raised US$11.8 billion in license fees from the private telecommunications operators. • New telecom projects accounted for 16% of the investment in the sector, and additional investment in projects implemented in 1990–2009 for the remaining 84%. • Investment went mainly to multi-service providers (54%) and mobile operators (44%). Transport saw 57 projects in two countries and investment of US$14.3 billion. That represents an increase of 180% from 2009 and the highest level of investment in the sector in the entire 1990-2010 period. Transport accounted for 19% of regional investment in 2010. • India accounted for all but one project. Outside India, Maldives closed financing for a US$478 million airport concession for Male International airport, which included the construction of a new passenger terminal. • Roads comprised most of the activity in India, accounting for 49 projects and investments of US$12.7 billion. These road projects, most of which were for expanding highways from two to four lanes, represented over 4,870 kilometers. • India also had five greenfield port terminals reaching financial closure in 2010. Those projects were located at Kandla, Paradip, Salaya and Murmugao Ports. The port terminals were for dry bulk coal cargo, except for one in Kandla Port, which was a multi-purpose terminal. • In railways, India saw the 6.1-km, Rapid MetroRail Gurgaon reached financial closure in 2010. • In airports, Maharashtra state in India and Reliance signed and implemented a 95-year concession for a package of five small private airports in 2010. Water and sewerage had one new project in 2010. Nepal signed a four-year management contract for the Kathmandu water utility covering a population of 160,000. -2- Table 1. Infrastructure projects with private participation reaching financial or contractual closure in South Asia in 2010 Energy Total Country Project Name Type Of PPI Segment Sponsors Investment* Bangladesh Thakurgaon 50MW Diesel Greenfield project (Rental) Electricity generation 12 Rahimafrooz (100% / Bangladesh) Rental Power Plant Bangladesh Bheramara 110 MW Diesel Greenfield project (Rental) Electricity generation 26 Otobi Ltd. (100% / Bangladesh) Rental Power Plant Bangladesh Khulna 55 MW Quick Rental Greenfield project (Rental) Electricity generation 13 Aggreko Plc (100% / United Kingdom) Power Plant Bangladesh Ghorasal Quick Rental Power Greenfield project (Rental) Electricity generation 34 Aggreko Plc (100% / United Kingdom) Plant Bangladesh Pagla Quick Rental Power Greenfield project (Rental) Electricity generation 12 Aggretech AG (..% / Germany), Plant Primordial Energy Ltd. (..% / Bangladesh) India Caparo Energy Limited Greenfield project (BOO) Electricity generation 143 Carapo Group (100% / United Kingdom) India Monnet Power Co Ltd Greenfield project (BOO) Electricity generation 1,093 Monnet Group (..% / India) India Dhonithanda Wind Project Greenfield project (BOO) Electricity generation 26 Bhoruka Power Corporation Limited Limited (100% / India) India EMCO Energy Limited Greenfield project (BOO) Electricity generation 761 GMR Group (100% / India) India Kanpur and Agra Power Management and lease contract Electricity distribution 144 Torrent Group (100% / India) Distribution Fanchise (Lease contract) India Ind-Barath Thermal Power Greenfield project (Merchant) Electricity generation 284 Ind-Barath Power Infra Private Ltd Limited (IBTPL) (100% / India) India Bajaj Energy Private Ltd Greenfield project (BOO) Electricity generation 507 Bajaj Hindustan (100% / India) India Krishnapatnam Ultra Mega Greenfield project (BOO) Electricity generation 3,826 Reliance ADA Group (100% / India) power plant India KSK Mahanadi Power Co Ltd Greenfield project (BOO) Electricity generation 3,363 KSK Energy Venture (100% / India) India Wardha Power Company Greenfield project (BOO) Electricity generation 528 KSK Energy Venture (74% / India) (WPCL) India Prayagraj Power Generation Greenfield project (BOO) Electricity generation 2,515 Jaiprakash Associates Ltd (100% / Co. Ltd. India) -3- India Sangam Power Generation Greenfield project (BOO) Electricity generation 1,662 Jaiprakash Associates Ltd (100% / Co. Ltd India) India Ind-Barath Utkal Power Greenfield project (BOO) Electricity generation 696 Ind-Barath Power Infra Private Ltd (79% Company / India) India Lanco Babandh Power Ltd Greenfield project (BOO) Electricity generation 1,515 Lanco Group (100% / India) India GMR Chhattisgarh Energy Greenfield project (BOO) Electricity generation 1,813 GMR Group (100% / India) Private limited (GCEPL) India GMR Rajahmundry Energy Ltd Greenfield project (Merchant) Electricity generation 719 GMR Group (100% / India) India Indiabulls Realtech Ltd (Nasik Greenfield project (BOO) Electricity generation 1,750 Indiabulls Group (100% / India) Thermal Power) India Hinduja National Power Corp Greenfield project (BOO) Electricity generation 1,213 Hinduja Group (100% / India) Ltd (HNPCL) India GVK Power (Goindwal Sahib) Greenfield project (BOO) Electricity generation 648 GVK Group (100% / India) Ltd India Jhabua Power Limited Greenfield project (BOO) Electricity generation 636 Avantha Group (85% / India) (Madhya Pradesh Power Project Phase I) India Mundra-Mohindergarh Power Greenfield project (BOO) Electricity transmission 601 Adani Group (100% / India) Tranmission Line Project India Jhajjar KT Transco Pvt Ltd Greenfield project (BOT) Electricity transmission 97 Techno Electric And Engineering Company Ltd (49% / India), Kalpataru Power Transmission Ltd (51% / India) India VISA Raigarh Power Project Greenfield project (BOO) Electricity generation 573 Visa Group (100% / India) Phase I India L&T Uttaranchal Hydro Power Greenfield project (BOT) Electricity generation 228 Larsen & Toubro Limited (100% / India) Ltd India Abhijeet MADC Nagpur Greenfield project (BOT) Electricity generation 302 Abhijeet Group (26% / India) Energy Private Limited (AMNEPL India SJVN Ltd Divestiture (Partial) Electricity generation 91 Others (10% / ..) India NSL Tidong Power Generation Greenfield project (BOT) Electricity generation 144 Nuziveedu Seeds Pvt. Ltd. (100% / Private Limited (NTPGL) India) India Kumardhara Small Hydel Greenfield project (BOT) Electricity generation 28 Bhoruka Power Corporation Limited Power Plant (100% / India) India Vaayu India Power Greenfield project (BOO) Electricity generation 257 Enercon India Ltd (100% / India) Corporation Ltd -4- India CLP Theni wind farm Greenfield project (BOO) Electricity generation 65 China Light and Power Ltd. (100% / Hong Kong, China) India CLP Andhra Lake wind farm Greenfield project (BOO) Electricity generation 160 China Light and Power Ltd. (100% / Hong Kong, China) India Azure Power India (first plants Greenfield project (BOO) Electricity generation 60 Azure Power India (100% / India) in Punjab and Gujarat) India Indian Energy Theni Project Greenfield project (BOO) Electricity generation 20 Indian Energy Limited (100% / United Phase 1 Kingdom) India Lanco Vidarbha Thermal Greenfield project (BOT) Electricity generation 1,517 Lanco Group (100% / India) Power Ltd India East Coast Energy Private Greenfield project (BOO) Electricity generation 1,437 Asian Genco (..% / Singapore), Athena Limited (ECEPL) Projects Pvt Ltd (..% / India) India Kapil Mohan & Associates Greenfield project (BOT) Electricity generation 23 Kapil Mohan & Associates Hydro Power Hydo Power Pvt. Ltd. Pvt (100% / India) Nepal Mai Hydropower Project (MHP) Greenfield project (BOT) Electricity generation 34 Sanima Hydropower (P) Ltd. (SHPL) (100% / Nepal) Telecommunications Total Country Project Name Type Of PPI Segment Sponsors Investment* India Etisalat DB Telecom Pvt. Ltd Greenfield project (Merchant) Mobile access 2,000 Dynamix Balwas Group (55% / India), Emirates Telecommunications Corporation (Etisalat) (45% / United Arab Emirates) India Videocon Telecommunications Greenfield project (Merchant) Mobile access 1,390 Videcon Group (100% / India) Limited -5- Transport Total Country Project Name Type Of PPI Segment Sponsors Investment* India Reliance Airport Developers Concession (BROT) Airports 13 Reliance ADA Group (100% / India) Private Limited (RADPL) India Rapid MetroRail Gurgaon Ltd Greenfield project (BOT) Railroads 238 Infrastructure Leasing & Financial Services (IL&FS) (74% / India), DLF Group (26% / ..) India Ashoka Belgaum Dharwad Concession (BROT) Roads 152 Ashoka Buildcon Ltd (100% / India) Tollway Pvt Ltd India Baharampore Farakka Concession (BROT) Roads 218 Hindustan Construction Company Ltd Highways Ltd (HCC) (100% / India) India Beawar Gomti NH Road Concession (BROT) Roads 78 Infrastructure Leasing & Financial Services (IL&FS) (100% / India) India Bijapur-Hungund Tollway Pvt Concession (BROT) Roads 245 Sadbhav Engineering Ltd (100% / India) Ltd India BSCPL Godhra Tollways Ltd Concession (BROT) Roads 173 BSCPL Infrastructure Ltd (100% / India) India Chenani Nashri Tunnelway Greenfield project (BOT) Roads 814 Infrastructure Leasing & Financial Limited (CTNL) Services (IL&FS) (100% / India) India Chhapra Hajipur Expressway Concession (BROT) Roads 178 Madhucon Projects Ltd (100% / India) Ltd India Dehradun Highways Project Concession (BROT) Roads 151 Era Group (74% / India), Sibmost (26% Limited (DHPL) / Russian Federation) India Essel Bhind Mihona Gopalpur Concession (BROT) Roads 20 Essel Group (100% / India) Toll Roads Ltd India Essel Sagar Damoh Toll Concession (BROT) Roads 30 Essar Group (100% / India) Roads Ltd India Farakka Raiganj Highways Ltd Concession (BROT) Roads 236 Hindustan Construction Company Ltd (HCC) (100% / India) India GMR Chennai Outer Ring Greenfield project (BOT) Roads 255 GMR Group (90% / India) Road Pvt. Ltd India GMR Hyderabad Vijayawada Concession (BROT) Roads 383 GMR Group (74% / India), Punj Lloyd Expressways Private Limited Limited (26% / India) India GMR OSE Hungund Hospet Concession (BROT) Roads 361 GMR Group (51% / India), Oriental Highways Private Ltd Structural Engineers Private Ltd. (49% / India) -6- India Haridwar Highways Project Ltd Concession (BROT) Roads 241 Era Group (74% / India), Sibmost (26% / Russian Federation) India Hazaribagh Ranchi Concession (BROT) Roads 190 Infrastructure Leasing & Financial Expressway Limited Services (IL&FS) (100% / India) India Hyderabad Yadgirl Tollway Pvt Concession (BROT) Roads 105 Sadbhav Engineering Ltd (100% / India) Ltd India Indore Dewas Tollways Ltd Concession (BROT) Roads 131 Gayatri Projects Ltd (100% / India) India IRB Goa Tollway Private Concession (BROT) Roads 182 IRB Infrastructure Developers Ltd Limited (100% / India) India IRB Jaipur Deoli Tollway Concession (BROT) Roads 304 IRB Infrastructure Developers Ltd (..% / Private Limited India) India IRB Pathankot Amritsar Toll Concession (BROT) Roads 246 IRB Infrastructure Developers Ltd (..% / Road Private Limited India) India IRB Talegaon Amravati Toll Concession (BROT) Roads 154 IRB Infrastructure Developers Ltd (..% / Road Pvt. Ltd India) India IVRCL Indore Gujarat Tollways Concession (BROT) Roads 333 IVRCL Infrastructures & Projects Ltd. Ltd (100% / India) India Jaypee Infratech Limited Greenfield project (BOT) Roads 1,754 Jaiprakash Associates Ltd (100% / (Yamuna Expressway) India) India Jharkhand Road Projects Concession (BROT) Roads 308 Infrastructure Leasing & Financial Implementation Company Ltd Services (IL&FS) (100% / India) (JRPICL) India Jorabat Shillong Expressway Concession (BROT) Roads 180 Infrastructure Leasing & Financial Limited (JSEL) Services (IL&FS) (50% / India), Ramky Group (50% / India) India Kalyan Infratech Pvt Ltd Concession (BROT) Roads 41 Keti Infrastructure Pvt Ltd (100% / India) India L&T Krishnagiri Walajahpet Concession (BROT) Roads 317 Larsen & Toubro Limited (100% / India) Tollway Private Limited India L&T Samakhiali Gandhidham Concession (BROT) Roads 306 Larsen & Toubro Limited (100% / India) Tollway Private Limited India Mahakaleshwar Tollways Concession (BROT) Roads 75 SREI Infrastructure Finance Ltd (48% / Private Ltd India), Galfar Engineering & Contracting SAOG (Galfar) (26% / Oman), Varaha Infra Limited (26% / India) -7- India Mokama-Munger Highway Ltd Concession (BROT) Roads 96 C&C Constructions Ltd (50% / India), BSCPL Infrastructure Ltd (50% / India) India Moradabad Bareilly Concession (BROT) Roads 434 Infrastructure Leasing & Financial Expressway Limited Services (IL&FS) (100% / India) India Navayuga Devanahalli Concession (BROT) Roads 192 Navayuga Group (100% / India) Tollways Pvt Ltd - NDTPL India Navayuga Dichpally Tollway Concession (BROT) Roads 85 Navayuga Group (..% / India) Pvt Ltd India Navayuga Udipi Tollway Pvt Concession (BROT) Roads 175 Navayuga Group (..% / India) Ltd India Oriental Nagpur Bypass Concession (BROT) Roads 431 Oriental Structural Engineers Private Construction Pvt Ltd Ltd. (100% / India) India Orissa Steel Expressway Pvt Concession (BROT) Roads 197 SREI Infrastructure Finance Ltd (50% / Ltd India), MBL Infrastructures Limited (50% / India) India Patna Highway Projects Ltd Concession (BROT) Roads 206 Gammon India Ltd (100% / India) India Pune Satara Road Concession (BROT) Roads 399 Reliance ADA Group (74% / India), Jiangsu Provincial Transportation Engineering Group Company (JTEG) (26% / China) India Pune Sholapur Road Concession (BROT) Roads 306 Infrastructure Leasing & Financial Development Company Services (IL&FS) (100% / India) Limited (PACKAGE-II) India Raiganj Dalkhola Highways Concession (BROT) Roads 150 Hindustan Construction Company Ltd Ltd (HCC) (100% / India) India Rayalseema Expressway Concession (BROT) Roads 358 KMC Constructions Ltd (54% / India), Private Ltd SNC Lavalin (36% / Canada) India Shirwal Phaltan Baramati Concession (BROT) Roads 84 IVRCL Infrastructures & Projects Ltd. Project (SPBDPL) (75% / India) India Shree Jagannath Expressway Concession (BROT) Roads 400 SREI Infrastructure Finance Ltd (48% / Pvt Ltd India), Galfar Engineering & Contracting SAOG (Galfar) (26% / Oman), Varaha Infra Limited (26% / India) India Simhapuri Expressway Ltd Concession (BROT) Roads 558 BSCPL Infrastructure Ltd (50% / India), KMC Constructions Ltd (50% / India) -8- India Supreme Manor Wada Concession (BROT) Roads 94 Supreme Infrastructure India Ltd (..% / Bhiwandi Infrastructure Pvt Ltd India), Tapi Prestressed Products (..% / India), Ram infrastructure Ltd (..% / India) India Thrissur Expressway Ltd Concession (BROT) Roads 267 KMC Constructions Ltd (..% / India), China Railway Construction 18th Bureau (Group) Co., Ltd (..% / China) India Topworth Tollways (Satna) Pvt Concession (BROT) Roads 31 Topworth Group (100% / India) Ltd India Transstroy Tirupati Tiruthani Concession (BROT) Roads 126 Transstroy India Limited (74% / India), Chennai Tollways Pvt OJSC Corporation Transstroy, (26% / Russian Federation) India Adani Murmugao Port Greenfield project (BOT) Seaports 115 Adani Group (..% / India) Terminal Private Ltd India Essar Bulk Terminal (Salaya) Greenfield project (BOT) Seaports 190 Essar Group (100% / India) Limited India Essar Bulk Terminal Paradip Greenfield project (BOT) Seaports 122 Essar Group (100% / India) Ltd India Paradip-I Coal Greenfield project (BOT) Seaports 122 Essar Group (100% / India) India RAS Infraport Pvt Ltd Greenfield project (BOT) Seaports 55 Regal Shipping (..% / India), Alpha Vinimay Pvt Ltd (..% / India), Sainath International Pvt Ltd (..% / India) Maldives Maldives Male International Concession (BROT) Airports 478 GMR Group (77% / India), Malaysia Airport Airports Holding Berhad (MAHB) (23% / Malaysia) Water and sewerage Total Country Project Name Type Of PPI Segment Sponsors Investment* Nepal Kathmandu Upatyaka Management and lease contract Water utility with sewerage Not BerlinWasser (100% / Germany) Khanepani Limited (KUKL) (Management contract) Applicable Note: BOT= Build, Operate, and Transfer; BOO = Build, Own, and Operate; Concession (BROT) = Build, Rehabilitate, Operate, and Transfer. *in current US$ millions Source: World Bank and PPIAF, PPI Database. -9-