66322 PPI data update note 51 July 2011 High level of private activity in energy, transport, and water in IDA countries in 2010 In 2010, 24 energy, transport, and water projects with private participation reached financial or contractual closure in 12 of the 63 IDA countries involving investment commitments of US$7.5 billion 1. That investment represents a record level compared with the US$1 to US$3 billion annual investment’s range of the last five years (US$1 billion in 2009). The number of projects also increased significantly with nine additional projects compared to 2009. This increase was driven mostly by the energy sector (Table 1), which accounted for 19 of the 24 new projects and for US$6.8 billion in investments. In comparison the energy sector had only 10 projects in 2009 representing US$605 million in investments. The largest 2010 energy project was the Hongsa partially captive coal power plant in Laos, which involved investment commitments of US$3.7 billion. This power plant is expected to generate 1,473MW that will be sold to Thailand. Other energy projects with private participation included:  A 100MW power plant in Laos representing US$150 million in investments  Five rental power plants in Bangladesh of 410MW in total capacity  Four power plants in Cambodia representing more than 1000MW in total capacity and US$1.6 billion in total investments  A 110KM transmission line project in Cambodia representing US$106 million in investments  A 216MW power plant in Cameroun representing US$342 million in investments  A 100MW wind farm in Honduras representing US$250 million in investments  A management contract for Liberia Electricity Corporation  A 15MW hydropower project in Nepal representing US$34 million in investments  A 23MW wind farm and a 72MW geothermal power plant in Nicaragua representing US$415 million in total investments  A rural electrification concession in Senegal representing US$22 million in investments In addition to energy projects, four transport projects with private participation reached financial closure in four IDA countries representing more than US$728 million in investments:  Two airports: a concession for Maldives Male International Airport representing US$478 million in investments; and a concession for Brazzaville, Pointe Noire, and Ollombo airports in the Republic of the Congo  Two seaports: a concession for Port of Monrovia in Liberia representing US$120 million in investments; and a concession for the container terminal of the Port of Freetown in Sierra Leone representing US$130 million in investments In the water sector, one project with private participation reached financial closure in IDA countries in 2010: a management contract for the water utility of Kathmandu in Nepal covering 160,000 inhabitants. This note was written by Edouard Perard, Research Analyst, Finance, Economics, and Urban Development Department, Sustainable Development Network, World Bank. 1 Data on projects with private participation include primarily medium and large projects in low- and middle-income countries as reported by the media and other public sources. Small-scale projects are generally not included because of lack of public information. More information is available at http://ppi.worldbank.org/. IDA country classification definition is available at http://data.worldbank.org/about/country-classifications 1 Table 1: Energy, transport, and water projects reaching financial or contractual closure in IDA countries in 2010 Note: .. denotes missing data; n.a. means not applicable. Energy Type/subtype Investment Project Capacity Region Country Project name Segment of private commitments Capacity Sponsor status type participation (US$ millions) Leader Universal East Asia Cambodia Electricity Greenfield 1 Cambodia Construction 140 MW 100 Holdings (100% / and Pacific Energy Limited generation project (BOO) Malaysia) North Phnom Leader Universal East Asia Penh - Kampong Electricity Greenfield 2 Cambodia Construction 106.5 KM 110 Holdings (100% / and Pacific Power transmission project (BOT) Malaysia) Transmission Orussei China Huadian East Asia Electricity Greenfield 3 Cambodia Hydroelectric Construction 558 MW 338 Corporation (100% / and Pacific generation project (BOT) Power Plant China) Stung Russey China Huadian East Asia Chrum Krom Electricity Greenfield 4 Cambodia Construction 412 MW 338 Corporation (100% / and Pacific Hydropower generation project (BOT) China) Plant China National Heavy Stung Tatay East Asia Electricity Greenfield Machinery 5 Cambodia Hydropower Construction 540 MW 246 and Pacific generation project (BOT) Corporation (100% / Plant China) Ratchaburi Electricity Generating Holding East Asia Hongsa Coal Electricity Greenfield Plc (40% / Thailand), 6 Lao PDR Construction 3710 MW 1473 and Pacific Power Project generation project (BOT) Banpu Public Company (40% / Thailand) China International Nam Lik 1-2 East Asia Electricity Greenfield Water and Electric 7 Lao PDR Hydropower Operational 150 MW 100 and Pacific generation project (BOT) Corporation (90% / Plant China) Latin America Cerro de Hula Electricity Greenfield Globeleq (70% / 8 Honduras Construction 250 MW 102 and the Wind Farm generation project (BOT) United Kingdom) Caribbean Latin Ashmore Energy Eolico Amayo America Electricity Greenfield International (AEI) 9 Nicaragua Wind Farm Operational 45 MW 23.1 and the generation project (BOT) (62% / United (Phase II) Caribbean States) 2 Latin Polaris Ram Power Corp. America Geothermal Electricity Greenfield 10 Nicaragua Construction 370 MW 72 (100% / United and the Power Plant generation project (BOT) States) Caribbean Phases I + II Bheramara 110 MW Diesel Electricity Greenfield Otobi Ltd. (100% / 11 South Asia Bangladesh Construction 26 MW 110 Rental Power generation project (Rental) Bangladesh) Plant Ghorasal Quick Electricity Greenfield Aggreko Plc (100% / 12 South Asia Bangladesh Rental Power Operational 34 MW 145 generation project (Rental) United Kingdom) Plant Khulna 55 MW Electricity Greenfield Aggreko Plc (100% / 13 South Asia Bangladesh Quick Rental Operational 13 MW 55 generation project (Rental) United Kingdom) Power Plant Primordial Energy Pagla Quick Electricity Greenfield Ltd. (Bangladesh), 14 South Asia Bangladesh Rental Power Operational 11.8 MW 50 generation project (Rental) Aggretech AG Plant (Germany) Thakurgaon 50MW Diesel Electricity Greenfield Rahimafrooz (100% / 15 South Asia Bangladesh Operational 12.1 MW 50 Rental Power generation project (Rental) Bangladesh) Plant Sanima Hydropower Mai Hydropower Electricity Greenfield 16 South Asia Nepal Construction 34.1 MW 15.6 (P) Ltd. (SHPL) Project (MHP) generation project (BOT) (100% / Nepal) Sub- AES Corporation Kribi Power Electricity Greenfield 17 Saharan Cameroon Construction 342 MW 216 (56% / United Plant generation project (BOT) Africa States) Liberia Management Electricity Manitoba Sub- Electricity and lease distribution Hydro International 18 Saharan Liberia Corporation Operational contract n.a. MW 12 and (MHI) (100%/ Africa Management (Management generation Canada) Contract contract) Office National de Saint-Louis - Electricity Sub- Number of l'Electricite (73% / Dagana - Podor distribution Greenfield 19 Saharan Senegal Operational 22 connections 19 Morocco), Rural and project (BOT) Africa (thousands) International Finance Electrification generation Corporation (17%) 3 Transport Type/subtype Investment Project Capacity Region Country Project name Segment of private commitments Capacity Sponsor status type participation (US$ millions) GMR Group (77% / Maldives Male Airport’s India), Malaysia Concession Number of 1 South Asia Maldives International Operational runway and 478 1 Airports Holding (BROT) runways Airport terminal Berhad (MAHB) (23% / Malaysia) Sub- Brazzaville, Airport’s Congo, Concession Number of Egis Group (100% / 2 Saharan Pointe Noire and Operational runway and .. 3 Rep. (BROT) runways France) Africa Ollombo Airports terminal Sub- AP Moller - Maersk Seaport’s Concession 3 Saharan Liberia Port of Monrovia Operational 120 Throughput 4.5 Group (100% / terminal (BROT) Africa Denmark) Seaport’s Sub- Port of Freetown Sierra channel Concession Bollore Group (100% 4 Saharan Container Operational 130 Throughput 50 Leone dredging and (BROT) / France) Africa Terminal terminal Water Type/subtype Investment Project Capacity Region Country Project name Segment of private commitments Capacity Sponsor status type participation (US$ millions) Management Kathmandu and lease Number of Upatyaka Water utility BerlinWasser (100% 1 South Asia Nepal Operational contract n.a. connections 160 Khanepani with sewerage / Germany) (Management (thousands) Limited (KUKL) contract) Note: BOT= Build, Operate, and Transfer; BOO = Build, Own, and Operate; Concession (ROT) = Rehabilitate, Operate, and Transfer; Concession (BROT) = Build, Rehabilitate, Operate, and Transfer. *in current US$ millions Source: World Bank and PPIAF, PPI Database. 4