41706 PPI data update note 2 July 2006 Investment flows to transport projects with private participation grew strongly in 2005 Investment flows to transport projects with private participation grew significantly, while the number of projects remained stable, according to just-released data from the Private Participation in Infrastructure Database. In 2005, 38 projects worth US$16.2 billion reached financial closure in 20 low- and middle-income countries.1 Annual investment flows more than doubled the levels of the previous four years, and were just 10% below peak levels reached in 1997-98. The number of projects remained in annual average of the last five years. Of the US$16.2 billion, US$10 billion was committed to sector expansion. The remaining US$6.2 billion went to governments as concession/lease fees. The growth in investment flows was primarily driven by airports, which accounted for US$7.2 billion - the highest level ever. Seaports followed with US$4.3 billion also reaching a peak level. For roads, investment flows grew by 13% to US$4.1 billion and railways accounted for US$0.5 billion. New private activity was concentrated. Four countries (China, Hungary, India, and Turkey) accounted for 65% of investment flows; while China, India, Mexico, and Turkey had 53% of projects. In East Asia, new private activity was seen only in China and Malaysia. In China, five seaport projects and one road were implemented, primarily through greenfield contracts. In Malaysia, two greenfield roads reached financial closure through local capital markets. In Europe and Central Asia, investment flows reached their highest level ever (US$7 billion). Activity took place in four countries (Albania, Hungary, Poland, and Turkey) and focused primarily on airports. Three airports were concessioned: Tirana airport in Albania, Budapest airport in Hungary, and Atarturk airport in Turkey. The last two projects were for over US$2 billion, becoming the largest airport transactions since the Argentine airport network concession in 1998. In addition, a greenfield contract for a new terminal in the Turkish Ankara airport was granted. Outside airports, there were three projects: Mersin port concession in Turkey, a greenfield section of A1 road in Poland, and a new container terminal also in Poland. In Latin America, six countries (Brazil, Chile, Costa Rica, Ecuador, Mexico, and Peru) implemented transport projects. Mexico accounted for the most activity with four road projects. In Chile, Costa Rica, and Peru, three road concessions were implemented. In Brazil, two greenfield ports were developed. Finally in Ecuador, the new Quito airport project secured financing. In the Middle East and North Africa, private activity was seen only in Egypt with a port terminal concession and Oman with a new port terminal. In South Asia, private activity took place in India and Bangladesh. In India, seven contracts were granted including two greenfield airports, two concession roads, one greenfield railway, one greenfield port, and a leased container terminal. In Bangladesh, a management contract for Shah Amanat airport was signed. In Sub-Saharan Africa, there were three projects: a port concession in Madagascar, and two railway concessions. One was for the joint system in Kenya and Uganda, and the other for the system in Gabon. A forthcoming note will analyze private activity in airports in more depth. For more information, see the list of transport projects by region. 1Data on private activity in transport include primarily medium and large projects. Small-scale private service providers are not generally included due to the lack of public information. List of transport projects in 2005 Note: ".." denotes Missing Data, "n.a." stands for Not Applicable East Asia and Pacific Country Project Name Project Subsector Type of Subtype of PPI Total Status PPI investment (US$ millions) China Deqing Wuxin Line Water Construction Seaports Concession Rehabilitate, 47 Canal Operation Co. Ltd. operate, and transfer China Phase II of Shanghai's Construction Seaports Greenfield Build, own, and 482 Yangshan Mega-port Project project transfer China Shanghai Waigaoqiao Phase V Construction Seaports Greenfield Build, own, and 482 Project project transfer China Shenzhen Dachan Bay Construction Seaports Greenfield Build, own, and 858 Container Terminals project transfer China Tianjin Five Continents Operational Seaports Greenfield Build, own, and 287 International Container project transfer Terminal Co. Ltd. China Western Delta Route Phase II Construction Toll Roads Greenfield Build, own, and 592 project transfer Malaysia Kuala Lumpur North-East Construction Toll Roads Greenfield Build, own, and 219 Expressway project transfer Malaysia Senai-Desaru Expressway Construction Toll Roads Greenfield Build, own, and 368 Bhd. project transfer Europe and Central Asia Country Project Name Project Subsector Type of Subtype of PPI Total Status PPI investment (US$ millions) Albania Tirana International Airport Operational Airports Concession Build, rehabilitate, 308 concession operate, and transfer Hungary Budapest International Airport Operational Airports Concession Rehabilitate, 2,320 operate, and transfer Poland A1 Gdansk-Torun Motorway Construction Toll Roads Greenfield Build, own, and 815 phase 1 project operate Poland Deep-sea container terminal Construction Seaports Greenfield Build, own, and 200 at Port of Gdansk project operate Turkey Ankara-Esenboga Airport Construction Airports Greenfield Build, own, and 305 Terminal project transfer Turkey Ataturk Airport concession Operational Airports Concession Rehabilitate, 2,543 contract operate, and transfer Turkey Port of Mersin concession Operational Seaports Concession Rehabilitate, 825 operate, and transfer Latin America and the Caribbean Country Project Name Project Subsector Type of Subtype of Total Status PPI PPI investment (US$ millions) Brazil Navegantes Port Construction Seaports Greenfield Merchant 186 project Brazil Tecon Santa Catarina Construction Seaports Greenfield Merchant 100 project Chile International Highway 60-CH Construction Toll Roads Concession Build, 435 rehabilitate, operate, and transfer Costa San Jose ­ San Ramon toll Construction Toll Roads Concession Build, 304 Rica road rehabilitate, operate, and transfer Ecuador New Quito Airport Construction Airports Greenfield Build, own, and 585 project transfer Mexico Amozoc-Perote y Libramiento Construction Toll Roads Greenfield Build, own, and 160 de Perote project transfer Mexico Libramiento Norte Construction Toll Roads Greenfield Build, own, and 360 project transfer Mexico Morelia-Salamanca Tollroad Construction Toll Roads Concession Build, 84 rehabilitate, operate, and transfer Mexico Tepic-Villa Union Highway Construction Toll Roads Greenfield Build, own, and 346 project transfer Peru Red Vial Number 6 Operational Toll Roads Concession Build, 230 rehabilitate, operate, and transfer Middle East and North Africa Country Project Name Project Subsector Type of Subtype of Total Status PPI PPI investment (US$ millions) Egypt Alexandria International Construction Seaports Concession Build, 86 Container Terminals rehabilitate, operate, and transfer Oman Oman International Container Construction Seaports Greenfield Build, own, and 0 Terminal project transfer South Asia Country Project Name Project Subsector Type of PPI Subtype of Total Status PPI investment (US$ millions) Bangladesh Shah Amanat International Operational Airports Management Management 0 Airport and lease contract contract India Bangalore International Construction Airports Greenfield Build, own, and 324 Airport Limited project transfer India Gangavaram Port Limited Construction Seaports Greenfield Build, own, and 386 project transfer India GMR Hyderabad Construction Airports Greenfield Build, own, and 399 International Airport project transfer Limited India Jaipur Mahua Tollway Construction Toll Roads Concession Build, 109 Private Limited rehabilitate, operate, and transfer India Kutch Railway Company Construction Railroads Greenfield Build, own, and 113 Limited project operate India Panipat Elevated Express Construction Toll Roads Concession Build, 117 Highway rehabilitate, operate, and transfer India Rajiv Gandhi Container Operational Seaports Management Lease contract 0 Terminal and lease contract Sub-Saharan Africa Country Project Name Project Subsector Type of PPI Subtype of Total Status PPI investment (US$ millions) Gabon Trans-Gabonese Railroad Operational Railroads Concession Rehabilitate, 92 concession II operate, and transfer Kenya Kenya-Uganda Railways Operational Railroads Concession Rehabilitate, 322 operate, and transfer Madagascar Port of Toamasina Operational Seaports Concession Rehabilitate, 300 operate, and transfer Uganda Kenya-Uganda Railways Operational Railroads Concession Rehabilitate, 322 operate, and transfer