66324 PPI data update note 53 August 2011 Investment in energy projects with private participation remained at a peak level but was highly concentrated in 2010 In 2010, 106 energy projects with private participation reached financial or contractual closure in 28 low- and middle- income countries, involving investment commitments of US$55.7 billion. 1 In addition, energy projects implemented in 1990–2009 attracted new investment of US$14.2 billion, bringing total investment commitments to the energy sector to US$69.9 billion in 2010. 2 Such level of activity represents a 4% drop by investment and a 25% decline by the number of projects from 2009. Private activity in energy remained close to a peak level in 2010 (figure 1). However, such activity was highly concentrated on a few countries. India alone attracted 54% of investment in the sector and 34% of new projects, and was the country that sustained investment in energy close to a peak level. If India were excluded, investment in energy in developing countries would have fallen by 50% in 2010 compared with 2009. In addition, the four top countries (adding Brazil, Russian Federation, and Turkey to the list) accounted for 77% of investment and 58% of new projects. By type of business, private activity remained highly concentrated on electricity generation projects, which accounted for 75% of investment and 82% of new projects in 2010 (figure 2). Figure 1 Investment in energy projects with private Figure 2 Investment in energy projects with private participation in developing countries, by region, 1990 ‒2010 participation in developing countries, by segment, 1990‒2010 80 2010 US$ billions* Projects 160 80 2010 US$ billions* 70 140 70 60 120 60 50 100 50 40 80 40 30 60 30 20 40 20 10 20 10 0 0 0 1990 1995 2000 2005 2010 1990 1995 2000 2005 2010 EAP ECA LAC MENA SA SSA New projects Distribution Integrated utility Generation Transmission Natural gas Source: World Bank and PPIAF, PPI Project database. * Adjusted by US CPI. Source: World Bank and PPIAF, PPI Project database. * Adjusted by US CPI. In East Asia and the Pacific (EAP), six countries (Cambodia, China, Indonesia, Laos, the Philippines and Thailand) implemented 18 new projects representing US$10.3 billion in investment (table 1). Except for one, all these projects were generation power plants, which represented a total installed capacity of 5.6 GW. Cambodia implemented four electricity generation projects and one electricity transmission project for a total investment of US$1.8 billion. China had two electricity generation projects with a total investment of US$307 million. Laos implemented two power plant projects for a total investment of US$3.8 billion, including a US$3.7 billion, 1,470 MW coal power plant to export electricity to Thailand. Thailand had four additional electricity generation projects representing US$590 million in investment. The Philippines implemented three electricity generation projects for a total investment of US$1.5 billion. This note was written by Edouard Perard, Research Analyst, 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. Latvia and Poland became high-income economies according to the World Bank country classification released in July 2010 and are therefore excluded from the 2010 update of the PPI Project Database. 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/. 1 In Europe and Central Asia (ECA), five countries (Bosnia and Herzegovina, Bulgaria, Lithuania, the Russian Federation and Turkey) implemented 18 new projects representing US$10.1 billion in investment. Eleven of these projects were power plants with a total capacity of 1.1 GW, six were electricity distribution projects with 7.2 million connections, and one was a natural gas transmission project with 1,200 kilometers (km). Most of the private activity took place in Turkey which concessioned six electricity distribution as part of its sector reform which aims to transfer most of distribution network to the private sector. Turkey raised US$2.6 billion in government proceeds from the six distribution concessions, and attracted US$2 billion in eight electricity generation projects. Russia implemented one project: the first phase of off-shore Nord Stream Gas Pipeline at a cost of US$5.2 billion to export natural gas to Western Europe. Bosnia and Herzegovina, Bulgaria and Lithuania had one electricity generation project each. In addition, US$664 million in investment were committed to previously implemented projects. In Latin America and the Caribbean (LAC), 10 countries (Brazil, Chile, Colombia, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama and Peru) implemented 24 new projects representing US$5.4 billion in investment. Of these projects, eighteen were for greenfield power plants involving 1.4 GW of new capacity, three were greenfield electricity transmission lines involving almost 2,000 km, one was integrated utility, and another was a natural gas transmission pipeline. Brazil accounted for seven power plant projects and three electricity transmission projects representing US$2 billion in investment. Mexico was the second most active country in the region with two power plants and one natural gas transmission project for a total of US$800 million in investment. In addition, the region had investment of US$5 billion in previously implemented projects. Most of this investment went to the electricity distribution companies that were divested or concessioned in the 1990s. In South Asia (SA), three countries (Bangladesh, India, and Nepal) implemented 42 new projects which attracted investment of US$29.6 billion, a peak record for second consecutive year. Of these projects, thirty-eight were greenfield power plants involving 26.9 GW of new capacity, one partially divested electricity generation company, two greenfield electricity transmission lines totaling 1,100 km, and one electricity distribution franchise serving 742,000 customers. Bangladesh implemented five rental power plants with total capacity of 410 MW and Nepal one small hydropower plant (15.6 MW). The rest of the activity took place in India with 36 projects and US$29.4 billion in investment. The region also saw additional investment in previously implemented projects totaling US$8.5 billion; almost all of this investment was directed to India. Of this amount, almost 60% went to expanding capacity of previously implemented greenfield power plants and the rest was government proceeds from sales of minority stakes via initial public offering in previously divested companies. In Sub-Saharan Africa (SSA), four countries (Cameroon, Liberia, Senegal and South Africa) implemented four new electricity projects representing US$370 million in investment. Cameroon closed the financing for 216 MW Kribi Power Plant and South Africa implemented a 15 MW rental power plant. Libera signed a management contract for the national electricity company and Senegal implemented a greenfield project to expand electricity connections in Saint- Louis-Dagana-Podor as part of the country’s rural electrification program. No new project was reported in the Middle East and North Africa. 2 Table 1 Energy projects with private participation reaching financial or contractual closure in 2010 East Asia and Pacific Type of PPI Total Country Project Name Segment Capacity (Subtype) Investment* Electricity Cambodia Cambodia Energy Limited Greenfield project (BOO) 100 MW 140 generation North Phnom Penh - Kampong Power Electricity Cambodia Greenfield project (BOT) 110 KM 106 Transmission transmission Electricity Cambodia Orussei Hydroelectric Power Plant Greenfield project (BOT) 338 MW 558 generation Stung Russey Chrum Krom Electricity Cambodia Greenfield project (BOT) 338 MW 412 Hydropower Plant generation Electricity Cambodia Stung Tatay Hydropower Plant Greenfield project (BOT) 246 MW 540 generation Gansu Guazhou Xiehe Wind Power Electricity China Greenfield project (BOT) 201 MW 249 Project generation Jilin Taobei Baoshan Wind Farm Electricity China Greenfield project (BOO) 49.5 MW 58 Project generation Electricity Indonesia Cirebon Coal-fired Power Plant Greenfield project (BOT) 660 MW 850 generation Electricity Indonesia Paiton III Thermal Power Plant Greenfield project (BOO) 815 MW 1450 generation Lao PDR / Electricity Hongsa Coal Power Project Greenfield project (BOT) 1473 MW 3710 Thailand generation Electricity Lao PDR Nam Lik 1-2 Hydropower Plant Greenfield project (BOT) 100 MW 150 generation Electricity Philippines BacMan Geothermal Power Plant Divestiture (Full) 150 MW 28.3 generation Electricity Philippines Cebu Coal-fired Power Plant Greenfield project (BOO) 200 MW 451 generation Electricity Philippines GNPower Mariveles Coal Power Plant Greenfield project (BOO) 600 MW 1000 generation Electricity Thailand Amata B. Grimm Power 3 Ltd. Greenfield project (BOO) 132 MW 156 generation Electricity Thailand Changwat Lopburi Power Project Greenfield project (BOO) 73 MW 250 generation Electricity Thailand Navanakorn Gas-Fired Power Plant Greenfield project (BOO) 110 MW 133 generation Sakon Nakorn and Nakorn Phanom Electricity Thailand Greenfield project (BOO) 12 MW 51 Solar Power Plants Project generation Europe and Central Asia Type of PPI Total Country Project Name Segment Capacity (Subtype) Investment* Bosnia and Electricity Mesihovina Wind Power Plant Greenfield project (BOO) 44 MW 108.6 Herzegovina generation Electricity Bulgaria Suvorovo Wind Farm Greenfield project (BOO) 60 MW 143 generation Electricity Lithuania Kreivenai Wind Farm Greenfield project (BOO) 20 MW 46.5 generation Russian Natural gas Nord Stream Gas Pipeline Phase I Greenfield project (BOO) 1224 KM 5187 Federation transmission Electricity Turkey Bagistas Hydro Power Plant Concession (BROT) 140 MW 338 generation 3 Electricity Turkey Boyabat Hydroelectric Power Greenfield project (Merchant) 510 MW 1214 generation Electricity 734,700 Turkey Camlibel Elektrik Dagitim A.S. Concession (BROT) 258 distribution connections Cataltepe and Kuyucak Wind Electricity Turkey Greenfield project (BOO) 41.6 MW 74.6 Farms generation Electricity 998,200 Turkey Coruh Elektrik Dagitim A.S. Concession (BROT) 227 distribution connections Electricity Turkey Damlapinar hydro power Greenfield project (BOO) 42 MW 65 generation Electricity Turkey Esen I Hydroelectric Power Plant Greenfield project (BOO) 60 MW 79.6 generation Electricity 660,000 Turkey Firat Elektrik Dagitim A.S. Concession (BROT) 230 distribution connections Electricity Turkey Garet Wind Farms Greenfield project (BOO) 22.5 MW 99 generation Electricity Turkey Mersin Wind Farm Greenfield project (BOO) 33 MW 58 generation Electricity 1,276,700 Turkey Osmangazi Elektrik Dagitim A.S. Concession (BROT) 485 distribution connections Electricity 2,278,000 Turkey Uludag Eletrik Dagitim A.S. Concession (BROT) 940 distribution connections Yavuz and Midilli Hydro Power Electricity Turkey Concession (BROT) 56.4 MW 80 Plant generation Electricity 1,236,000 Turkey Yesilirmak Elektrik Dagitim A.S. Concession (BROT) 441 distribution connections Latin America and the Caribbean Type of PPI Total Country Project Name Segment Capacity (Subtype) Investment* LT Tucurui - Jurupari and LT Electricity Brazil Greenfield project (BOT) 1240 KM 1109 Oriximana - Jurupari transmission Brilhante Transmissora Electricity Brazil Greenfield project (BOT) 444 KM 226 Transmission Line Project transmission Ibitiuva Bioenergetica Biomass Electricity Brazil Greenfield project (BOO) 33 MW 68 TPP generation Luzboa Small Hydro Power Electricity Brazil Plants BRA-Minas Gerais I Greenfield project (BOT) 3.4 MW 12.5 generation (Phase I) Electricity Brazil MPX Taua Energia Solar Greenfield project (BOT) 1 MW 6.1 generation Electricity Not Brazil Narandiba Substation Greenfield project (BOT) 29 transmission available Passo Ferraz Small Hydropower Electricity Brazil Greenfield project (BOT) 4 MW 5.7 Plant generation Electricity Brazil Piraua and Gravata Windfarms Greenfield project (BOO) 27 MW 83 generation Rio do Braco Run of the River Electricity Brazil Greenfield project (BOT) 11.5 MW 35 Hydropower Plant generation Electricity Brazil Santa Clara Wind Farm Complex Greenfield project (BOT) 188 MW 456 generation San Andres and El Paso Electricity Chile Greenfield project (BOT) 40 MW 255 Hydroelectric Plants generation 4 Sociedad Productora de Energia Integrated Not Colombia de San Andres y Providencia Concession (BROT) 52 MW utility available (Sopesa II) Electricity Guatemala Jaguar Energy Guatemala Greenfield project (BOO) 300 MW 758 generation Electricity Honduras Cerro de Hula Wind Farm Greenfield project (BOO) 102 MW 250 generation West Kingston Power Project Electricity Jamaica Greenfield project (BOO) 66 MW 132 (JEPIII) generation Guadalajara Manzanillo Gas Natural gas Mexico Greenfield project (BOT) 310 KM 360 Pipeline transmission Electricity Mexico La Venta III Greenfield project (BOT) 103 MW 225 generation Electricity Mexico Oaxaca I Wind Farm Greenfield project (BOT) 101 MW 215 generation Eolico Amayo Wind Farm (Phase Electricity Nicaragua Greenfield project (BOO) 23.1 MW 45 II) generation Polaris Geothermal Power Plant Electricity Nicaragua Greenfield project (BOT) 72 MW 370 Phases I + II generation Pando and Monte Lirio Electricity Panama Greenfield project (BOT) 84 MW 300 Hydropower Project generation Electricity Peru Cheves Hydropower Project Greenfield project (BOT) 168 MW 253 generation Chilca“ La Planicie - Zapallal Electricity Peru Greenfield project (BOT) 300 KM 130 Transmission Line transmission Maple Energy Ethanol Co- Electricity Peru Greenfield project (Merchant) 37 MW 74 generation Facility generation South Asia Type of PPI Total Country Project Name Segment Capacity (Subtype) Investment* Bheramara 110 MW Diesel Electricity Bangladesh Greenfield project (Rental) 110 MW 26 Rental Power Plant generation Ghorasal Quick Rental Power Electricity Bangladesh Greenfield project (Rental) 145 MW 34 Plant generation Khulna 55 MW Quick Rental Electricity Bangladesh Greenfield project Rental 55 MW 13 Power Plant generation Electricity Bangladesh Pagla Quick Rental Power Plant Greenfield project (Rental) 50 MW 12 generation Thakurgaon 50MW Diesel Electricity Bangladesh Greenfield project (Rental) 50 MW 12 Rental Power Plant generation Abhijeet MADC Nagpur Energy Electricity India Greenfield project (BOT) 271 MW 302 Private Limited (AMNEPL generation Azure Power India (first plants in Electricity India Greenfield project (BOO) 12 MW 60 Punjab and Gujarat) generation Electricity India Bajaj Energy Private Ltd Greenfield project (BOO) 450 MW 507 generation Electricity India Caparo Energy Limited Greenfield project (BOO) 126 MW 143 generation Electricity India CLP Andhra Lake wind farm Greenfield project (BOO) 113.6 MW 160 generation Electricity India CLP Theni wind farm Greenfield project (BOO) 99 MW 65 generation 5 Dhonithanda Wind Project Electricity India Greenfield project (BOO) 25.5 MW 26 Limited generation East Coast Energy Private Electricity India Greenfield project (BOO) 1320 MW 1437 Limited (ECEPL) generation Electricity India EMCO Energy Limited Greenfield project (BOO) 600 MW 761 generation GMR Chhattisgarh Energy Electricity India Greenfield project (BOO) 1370 MW 1812 Private limited (GCEPL) generation Electricity India GMR Rajahmundry Energy Ltd Greenfield project (Merchant) 768 MW 719.4 generation GVK Power (Goindwal Sahib) Electricity India Greenfield project (BOO) 540 MW 648 Ltd generation Hinduja National Power Corp Electricity India Greenfield project (BOO) 1040 MW 1213 Ltd (HNPCL) generation Ind-Barath Thermal Power Electricity India Greenfield project (Merchant) 300 MW 283 Limited (IBTPL) generation Ind-Barath Utkal Power Electricity India Greenfield project (BOO) 700 MW 696 Company generation Indiabulls Realtech Ltd (Nasik Electricity India Greenfield project (BOO) 1320 MW 1750 Thermal Power) generation Indian Energy Theni Project Electricity India Greenfield project (BOO) 16.5 MW 20 Phase 1 generation Jhabua Power Limited (Madhya Electricity India Greenfield project (BOO) 600 MW 636 Pradesh Power Project Phase I) generation Electricity India Jhajjar KT Transco Pvt Ltd Greenfield project (BOT) 100 KM 97 transmission Kanpur and Agra Power Management and lease contract Electricity 742,000 India 144 Distribution Fanchise (Lease contract) distribution connections Kapil Mohan & Associates Hydo Electricity India Greenfield project (BOT) 13 MW 23 Power Pvt. Ltd. generation Krishnapatnam Ultra Mega Electricity India Greenfield project (BOO) 4000 MW 3826 power plant generation Electricity India KSK Mahanadi Power Co Ltd Greenfield project (BOO) 3600 MW 3363 generation Kumardhara Small Hydel Power Electricity India Greenfield project (BOT) 18 MW 27.6 Plant generation L&T Uttaranchal Hydro Power Electricity India Greenfield project (BOT) 99 MW 227 Ltd generation Electricity India Lanco Babandh Power Ltd Greenfield project (BOO) 1320 MW 1515 generation Lanco Vidarbha Thermal Power Electricity India Greenfield project (BOT) 1320 MW 1517 Ltd generation Electricity India Monnet Power Co Ltd Greenfield project (BOO) 1050 MW 1093 generation Mundra-Mohindergarh Power Electricity India Greenfield project (BOO) 1000 KM 601 Tranmission Line Project transmission NSL Tidong Power Generation Electricity India Greenfield project (BOT) 100 MW 143 Private Limited (NTPGL) generation Prayagraj Power Generation Co. Electricity India Greenfield project (BOO) 1980 MW 2514 Ltd. generation Sangam Power Generation Co. Electricity India Greenfield project (BOO) 1980 MW 1662 Ltd generation Electricity India SJVN Ltd Divestiture (Partial) 2264 MW 91 generation 6 Vaayu India Power Corporation Electricity India Greenfield project (BOO) 205 MW 257 Ltd generation VISA Raigarh Power Project Electricity India Greenfield project (BOO) 600 MW 573 Phase I generation Wardha Power Company Electricity India Greenfield project (BOO) 540 MW 528 (WPCL) generation Electricity Nepal Mai Hydropower Project (MHP) Greenfield project (BOT) 15.6 MW 34 generation Sub-Saharan Africa Type of PPI Total Country Project Name Segment Capacity (Subtype) Investment* Electricity Cameroon Kribi Power Plant Greenfield project (BOT) 216 MW 342 generation Electricity Liberia Electricity Corporation Management and lease contract distribution Not Liberia 12 MW Management Contract (Management contract) and Applicable generation Electricity Saint-Louis - Dagana - Podor distribution 19,000 Senegal Greenfield project (BOT) 22 Rural Electrification and connections generation South Electricity NewCogen power plant Greenfield project (Rental) 15 MW 6 Africa generation Note: BOT= Build, Operate, and Transfer; BOO = Build, Own, and Operate; ROT = Rehabilitate, Operate, and Transfer; BROT = Build, Rehabilitate, Operate, and Transfer. *in current US$ millions Source: World Bank and PPIAF, PPI Database. 7