66321 PPI data update note 50 July 2011 Private investment in transport returns to pre-crisis levels in 2010 In 2010, 93 transport projects with private participation reached financial or contractual closure in 16 low- and middle- income countries, involving investment commitments (hereafter investments) of US$28.3 billion.1 In addition, transport projects implemented in 1990–2009 attracted new investment of US$0.7 billion, bringing total investment in transport to US$29 billion in 2010.2 Investment in 2010 increased by 40% compared with 2009, bringing investment back to pre- crisis levels (figure 1). By number of projects, activity in 2010 grew by 75% compared with 2009 (figure 2). Private activity was concentrated in India and road projects globally. India alone accounted for 56% of investment and 61% of new projects, driving most of the growth in activity in 2010. Road projects accounted for 69 new projects and US$20 billion of investment, the highest level thus far thanks to activity in India. In addition, there were sixteen port projects with investment of US$3.7 billion, two railway projects with investments of US$3 billion, and six airport projects with investments of US$2.3 billion Figure 1 Investment in transport projects with private Figure 2 Transport projects with private participation in participation in developing countries, by subsector, developing countries, by subsector, 1990‒2010 1990‒2010 Projects 40 2010 US$ billions* 120 100 30 80 20 60 40 10 20 0 0 1990 1995 2000 2005 2010 1990 1995 2000 2005 2010 Airports Railroads Roads Seaports Airports Railroads Roads Seaports * Adjusted by US CPI. Source: World Bank and PPIAF, PPI Project database. Source: World Bank and PPIAF, PPI Project database. In East Asia and the Pacific, two countries closed three new seaport projects representing approximately US$0.5 billion in investments (table 1). The Philippines signed two 25-year concessions: one for a multi-purpose terminal in Manila North Harbor and the other for a container terminal at the Port of Batangas. Vietnam closed financing on a greenfield container terminal with a syndication led by the International Finance Corporation. In Europe and Central Asia the Russian Federation and Turkey implemented five new projects, representing investment of US$4.7 billion. Russia closed the first airport concession for Pulkovo airport in St. Petersburg which involved investment of US$1.5 billion to build a new terminal and modernize facilities. In addition, two greenfield road projects reached financial closing in Russia: the first phases of Moscow-St. Petersburg and Moscow-Minsk. Turkey signed two 36-year concessions: one for Samsun Port near Istanbul and the other for Bandirma Port in the Black Sea Region. In Latin America and the Caribbean, six countries (Argentina, Brazil, Chile, Colombia, Mexico and Peru) implemented 23 new projects representing US$5.7 billion in investment commitments. Eighteen of these projects were for roads, This note was written by Alexander Jett, research analyst, Finance, Economics, and Urban Development Department, Sustainable Development Network, World Bank. 1 Data on transport 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/. 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. three for seaports and two for airports. Argentina signed six year management contracts for eight national road corridors, which replaced the management contracts granted in 2003 for the same corridors. Brazil implemented three projects representing investment of US$1.3 billion. Most of this investment went to greenfield Porto Sudeste LLX. The other projects were a seaport concession and BA-093 highway system concession in Bahia. Chile implemented three road concessions and one airport concession. Colombia attracted the largest investment in the region (US$2.3 billion), which was directed to four projects: two road concessions for Ruta del Sol sections 2 and 3; an airport concession and a greenfield container terminal in Buenaventura. Mexico signed two new road concessions and a greenfield urban toll road while Peru began implementing the concession to rehabilitate IIRSA Centro (section two). In the Middle East and North Africa, there was only one new project: the US$500 million concession for the Umm Qasr Container Terminal Berths 8, 10 and 11 in Iraq. South Asia had the most activity of any region with investment of US$16.6 billion and 58 new projects. India accounted for all but one project. 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 the expansion of highways from two to four lanes, represented over 4,870 kilometers. In addition, five greenfield seaport terminals reached financial closing at Kandla, Paradip, Salaya and Murmugao Ports. The ports were dry bulk coal terminals, except for one in Kandla Port, which was a multi-purpose terminal. Two greenfield railway projects also reached financial closing: Rapid MetroRail Gurgaon Ltd and Mumbai Metro Phase II. Finally, Maharashtra state and Reliance signed a 95-year concession for a package of five small private airports. Outside India, Maldives closed financing for a US$478 million airport concession for Male International airport, which included the construction of a new passenger terminal. In Sub-Saharan Africa, three countries (Rep. of Congo, Liberia, and Sierra Leone) implemented new projects. Republic of Congo signed a 25-year concession for three airports; Liberia and Sierra Leone each signed a container terminal concession in Monrovia and Freetown, respectively. Table 1: Transport projects reaching financial or contractual closure in 2010 Note: .. denotes missing data; n.a. means not applicable. East Asia and Pacific Country Project name Project Subsector Type/subtype Investment Capacity Capacity Sponsor status of private commitment type participation (US$ millions) 1 Vietnam Cai Lan Construction Seaports Greenfield 155 Throughput 720 Carrix (49% / United States) International (BOT) (thousands) Container Terminal LLC (“CICT�) 2 Philippines North Harbor Operational Seaports Concession 321 Throughput n. a. San Miguel Corporation (SMC) concession (ROT) (thousands) (35% / Philippines), Harbour Centre Port Terminals (65% / Philippines) 3 Philippines Batangas Port Phase Operational Seaports Concession 22 Throughput 30 Asian Terminal, Inc. (100% / 2 (ROT) (thousands) Philippines) Europe and Central Asia Country Project name Project Subsector Type/subtype Investment Capacity Capacity Sponsor status of private commitment type participation (US$ millions) 1 Russian Pulkovo Airport Operational Airports Concession 1530 Number of 2 Fraport AG (36% / Federation (BROT) runways Germany), VTB Group (58% / Russian Federation) 2 Russian Moscow-Minsk M1 Construction Roads Greenfield 842.9 KM 19.5 Brisa Autoestradas de Federation Section 1 (BOT) Portugal SA (Portugal), Gazprom (Russian Federation), Fomento de Construcciones y Contratas SA (FCC) (Spain), Stroygasconsulting (Russian Federation), Alpine Group (Austria) 3 Russian Moscow St. Construction Roads Greenfield 1975 KM 42 Vinci (30% / France) Federation Petersburg Toll Road (BOT) - Section 1 4 Turkey Samsun Port Operational Seaports Concession 157.2 .. .. Cenay Group (100% / (ROT) Turkey) 5 Turkey Bandirma Port Operational Seaports Concession 175.5 .. .. Celebi Holding (100% / (ROT) Turkey) Latin America and the Caribbean Country Project name Project Subsector Type/subtype of Investment Capacity Capacity Sponsor status private commitment type participation (US$ millions) 1 Argentina Corredor Vial N. 1 Operational Roads Management n.a. KM 1282 Benito Roggio e Hijos S.A. contract (Argentina), CPC SA (Argentina) 2 Argentina Corredor Vial N 8 Operational Roads Management n.a. KM 921 Supercemento S.A. contract (Argentina), Luciano S.A. , Ferrovial Group (Spain), Grupo Petersen (Argentina) 3 Argentina Corredor Vial N 7 Operational Roads Management n.a. KM 798 Vialco S.A. (Argentina), JCR contract SA (Argentina), Electroingenieria SA (Argentina) 4 Argentina Corredor Vial N 6 Operational Roads Management n.a. KM 933.5 Corporacion America (CASA) contract (Argentina), Helport S.A. (Argentina) 5 Argentina Corredor Vial N 5 Operational Roads Management n.a. KM 1330 IECSA SA (Argentina) contract 6 Argentina Corredor Vial N 4 Operational Roads Management n.a. KM 1000 Isolux Corsan (Spain), CCI contract Construcciones SA (Argentina) 7 Argentina Corredor Vial N 3 Operational Roads Management n.a. KM 724 Jose Cartellone contract Construcciones Civiles SA (Argentina), Rovella Carranza SA (Argentina) 8 Argentina Corredor Vial N 2 Operational Roads Management n.a. KM 769 Esuco SA (Argentina), contract Contreras Hermanos SA (Argentina) 9 Brazil BA-093 (Bahia) Construction Roads Concession 447.2 KM 125 Odebrecht SA (50% / Brazil), Highway System (BROT) Invepar (50% / Brazil) 10 Brazil Santos Port Bulk Operational Seaports Concession 170.6 .. .. Louis Dreyfus SAS (40% / Solids Terminal (ROT) France), Cargill, Inc. (60% / (Tegran) United States) 11 Brazil Porto Sudeste LLX Construction Seaports Build, own, and 740 .. .. EBX Capital Partners (68% / operate Brazil) 12 Chile Carlos Ibanez Operational Airports Concession 13 Number of 1 Agunsa (89% / Chile) Airport II (BROT) runways 13 Chile Ruta 5 Puerto Montt Construction Roads Concession 168 KM 55.3 ACS Group (Actividades de Pargua (BROT) Construccion y Servicios) (100% / Spain) 14 Chile Route 66, Camino Construction Roads Concession 322 KM 135 Besalco (38% / Chile), de la Fruta (BROT) Icafal (25% / Chile), Empresa Constructora Belfi (38% / Chile) 15 Chile Autopistas de Construction Roads Concession 320 KM 200 Skanska (100% / Sweden) Antofagasta (BROT) 16 Colombia Nor-Oriente Airport Operational Airports Concession 150 Number of 6 Incoequipos S.A. (Colombia), Concession Package (BROT) runways Nexus Banca de Inversion (Colombia) 17 Colombia Ruta del Sol Construction Roads Concession 900 KM 464 Impregilo SpA (Italy) (Section 3) (BROT) 18 Colombia Ruta del Sol Construction Roads Concession 1085 KM 528 Odebrecht SA (62% / Brazil) (Section 2) (BROT) 19 Colombia Buenaventura Construction Seaports Greenfield 224 Throughput 268 Grupo Maritim TCB (30% / Container Terminal (BOT) (thousands) Spain) 20 Mexico Rio de los Construction Roads Greenfield 237.4 KM 26 ICA SA de CV (50% / Mexico) Remedios-Ecatepec (BOT) urban toll road (Phase I) 21 Mexico Mitla-Tehuantepec Construction Roads Concession 740 KM 169 ICA SA de CV (100% / Highway (BROT) Mexico) 22 Mexico Libramiento de Operational Roads Concession 122 KM 29.4 CONSTRUCCIONES RUBAU, Celaya Toll Road (BROT) S.A. (50% / Spain), Constructora y Pavimentadora VISE SA de CV (50% / Mexico) 23 Peru IIRSA Centro Operational Roads Concession 127 KM 377 Concay SA (Colombia), Second Stretch (BROT) Incoequipos S.A. (Colombia), Nexus Banca de Inversion (Colombia), Constructora Colpatria SA (Colombia) Middle East and North Africa Country Project name Project Subsector Type/subtype of Investment Capacity Capacity Sponsor status private commitment type participation (US$ millions) 1 Iraq Umm Qasr Operational Seaports Concession 500 .. .. Gulftainer (100% / United Arab Container Terminal (BROT) Emirates) Berth 8, 10 and 11 South Asia Country Project name Project Subsector Type/subtype of Investment Capacity Capacity Sponsor status private commitment type participation (US$ millions) 1 India Reliance Airport Operational Airports Concession 13 Number of 5 Reliance ADA Group (100% / Developers Private (BROT) runways India) Limited (RADPL) 2 India Rapid MetroRail Construction Railroads Greenfield 237.92 KM 6.1 Infrastructure Leasing & Gurgaon Ltd (BOT) Financial Services (IL&FS) (74% / India), DLF Group (26% / ..) 3 India Mumbai Metro - Phase Construction Railroads Greenfield 2514.8 KM 32 Reliance ADA Group (74% / II (BOT) India), SNC Lavalin (26% / Canada) 4 India Transstroy Tirupati Construction Roads Concession 126.48 KM 124.7 Transstroy India Limited (74% Tiruthani Chennai (BROT) / India), OJSC Corporation Tollways Pvt Transstroy, (26% / Russian Federation) 5 India Topworth Tollways Construction Roads Concession 30.6 KM 74.13 Topworth Group (100% / India) (Satna) Pvt Ltd (BROT) 6 India Thrissur Expressway Construction Roads Concession 267 KM 28 KMC Constructions Ltd (India), Ltd (BROT) China Railway Construction 18th Bureau (Group) Co., Ltd (China) 7 India Supreme Manor Wada Construction Roads Concession 94 KM 64.32 Supreme Infrastructure India Bhiwandi (BROT) Ltd (India), Tapi Prestressed Infrastructure Pvt Ltd Products (India), Ram infrastructure Ltd (India) 8 India Simhapuri Expressway Construction Roads Concession 557.6 KM 183.52 BSCPL Infrastructure Ltd (50% Ltd (BROT) / India), KMC Constructions Ltd (50% / India) 9 India Shree Jagannath Construction Roads Concession 399.5 KM 67 SREI Infrastructure Finance Ltd Expressway Pvt Ltd (BROT) (48% / India), Galfar Engineering & Contracting SAOG (Galfar) (26% / Oman), Varaha Infra Limited (26% / India) 10 India Shirwal Phaltan Construction Roads Concession 83.5 KM 77.9 IVRCL Infrastructures & Baramati Project (BROT) Projects Ltd. (75% / India) (SPBDPL) 11 India Rayalseema Construction Roads Concession 357.8 KM 188 KMC Constructions Ltd (54% / Expressway Private (BROT) India), SNC Lavalin (36% / Ltd Canada) 12 India Raiganj Dalkhola Construction Roads Concession 149.6 KM 49.53 Hindustan Construction Highways Ltd (BROT) Company Ltd (HCC) (100% / India) 13 India Pune Sholapur Road Construction Roads Concession 306 KM 101 Infrastructure Leasing & Development (BROT) Financial Services (IL&FS) Company Limited (100% / India) (PACKAGE-II) 14 India Pune Satara Road Construction Roads Concession 398.85 KM 140 Reliance ADA Group (74% / (BROT) India), Jiangsu Provincial Transportation Engineering Group Company (JTEG) (26% / China) 15 India Patna Highway Construction Roads Concession 205.6 KM 83.17 Gammon India Ltd (100% / Projects Ltd (BROT) India) 16 India Orissa Steel Construction Roads Concession 196.8 KM 96 SREI Infrastructure Finance Ltd Expressway Pvt Ltd (BROT) (50% / India), MBL Infrastructures Limited (50% / India) 17 India Oriental Nagpur Construction Roads Concession 430.79 KM 175 Oriental Structural Engineers Bypass Construction (BROT) Private Ltd. (100% / India) Pvt Ltd 18 India Navayuga Udipi Construction Roads Concession 174.9 KM 90 Navayuga Group (India) Tollway Pvt Ltd (BROT) 19 India Navayuga Dichpally Construction Roads Concession 85.4 KM 60.25 Navayuga Group (India) Tollway Pvt Ltd (BROT) 20 India Navayuga Devanahalli Construction Roads Concession 192.4 KM 22.12 Navayuga Group (100% / Tollways Pvt Ltd - (BROT) India) NDTPL 21 India Moradabad Bareilly Construction Roads Concession 434 KM 121 Infrastructure Leasing & Expressway Limited (BROT) Financial Services (IL&FS) (100% / India) 22 India Mokama-Munger Operational Roads Concession 96.2 KM 68.6 C&C Constructions Ltd (50% / Highway Ltd (BROT) India), BSCPL Infrastructure Ltd (50% / India) 23 India Mahakaleshwar Operational Roads Concession 74.72 KM 49 SREI Infrastructure Finance Ltd Tollways Private Ltd (BROT) (48% / India), Galfar Engineering & Contracting SAOG (Galfar) (26% / Oman), Varaha Infra Limited (26% / India) 24 India L&T Samakhiali Construction Roads Concession 306.1 KM 56.16 Larsen & Toubro Limited (100% Gandhidham Tollway (BROT) / India) Private Limited 25 India L&T Krishnagiri Construction Roads Concession 317 KM 148.3 Larsen & Toubro Limited (100% Walajahpet Tollway (BROT) / India) Private Limited 26 India Kalyan Infratech Pvt Construction Roads Concession 40.9 KM 40 Keti Infrastructure Pvt Ltd Ltd (BROT) (100% / India) 27 India Jorabat Shillong Construction Roads Concession 180.2 KM 61.8 Infrastructure Leasing & Expressway Limited (BROT) Financial Services (IL&FS) (JSEL) (50% / India), Ramky Group (50% / India) 28 India Jharkhand Road Construction Roads Concession 308 KM 466 Infrastructure Leasing & Projects (BROT) Financial Services (IL&FS) Implementation (100% / India) Company Ltd (JRPICL) 29 India Jaypee Infratech Construction Roads Greenfield 1753.8 KM 165 Jaiprakash Associates Ltd Limited (Yamuna (BOT) (100% / India) Expressway) 30 India IVRCL Indore Gujarat Construction Roads Concession 333.2 KM 155.15 IVRCL Infrastructures & Tollways Ltd (BROT) Projects Ltd. (100% / India) 31 India IRB Talegaon Operational Roads Concession 154.1 KM 102 IRB Infrastructure Developers Amravati Toll Road (BROT) Ltd (India) Pvt. Ltd 32 India IRB Pathankot Operational Roads Concession 246 KM 102 IRB Infrastructure Developers Amritsar Toll Road (BROT) Ltd (India) Private Limited 33 India IRB Jaipur Deoli Operational Roads Concession 303.6 KM 146.3 IRB Infrastructure Developers Tollway Private (BROT) Ltd (India) Limited 34 India IRB Goa Tollway Construction Roads Concession 181.94 KM 69 IRB Infrastructure Developers Private Limited (BROT) Ltd (100% / India) 35 India Indore Dewas Construction Roads Concession 131.2 KM 45 Gayatri Projects Ltd (100% / Tollways Ltd (BROT) India) 36 India Hyderabad Yadgirl Construction Roads Concession 105 KM 35.4 Sadbhav Engineering Ltd Tollway Pvt Ltd (BROT) (100% / India) 37 India Hazaribagh Ranchi Construction Roads Concession 190 KM 71.16 Infrastructure Leasing & Expressway Limited (BROT) Financial Services (IL&FS) (100% / India) 38 India Haridwar Highways Construction Roads Concession 240.5 KM 80 Era Group (74% / India), Project Ltd (BROT) Sibmost (26% / Russian Federation) 39 India GMR OSE Hungund Construction Roads Concession 361 KM 99 GMR Group (51% / India), Hospet Highways (BROT) Oriental Structural Engineers Private Ltd Private Ltd. (49% / India) 40 India GMR Hyderabad Construction Roads Concession 382.7 KM 181 GMR Group (74% / India), Vijayawada (BROT) Punj Lloyd Limited (26% / Expressways Private India) Limited 41 India GMR Chennai Outer Construction Roads Greenfield 255 KM 29.65 GMR Group (90% / India) Ring Road Pvt. Ltd (BOT) 42 India Farakka Raiganj Construction Roads Concession 235.9 KM 103 Hindustan Construction Highways Ltd (BROT) Company Ltd (HCC) (100% / India) 43 India Essel Sagar Damoh Construction Roads Concession 29.5 KM 68.8 Essar Group (100% / India) Toll Roads Ltd (BROT) 44 India Essel Bhind Mihona Construction Roads Concession 20.2 KM 50.86 Essel Group (100% / India) Gopalpur Toll Roads (BROT) Ltd 45 India Dehradun Highways Construction Roads Concession 151.2 KM 39 Era Group (74% / India), Project Limited (DHPL) (BROT) Sibmost (26% / Russian Federation) 46 India Chhapra Hajipur Construction Roads Concession 177.7 KM 64 Madhucon Projects Ltd (100% / Expressway Ltd (BROT) India) 47 India Chenani Nashri Construction Roads Greenfield 813.5 KM 12 Infrastructure Leasing & Tunnelway Limited (BOT) Financial Services (IL&FS) (CTNL) (100% / India) 48 India BSCPL Godhra Construction Roads Concession 173.4 KM 87.28 BSCPL Infrastructure Ltd Tollways Ltd (BROT) (100% / India) 49 India Bijapur-Hungund Construction Roads Concession 244.9 KM 100 Sadbhav Engineering Ltd Tollway Pvt Ltd (BROT) (100% / India) 50 India Beawar Gomti NH Construction Roads Concession 77.6 KM 248 Infrastructure Leasing & Road (BROT) Financial Services (IL&FS) (100% / India) 51 India Baharampore Farakka Construction Roads Concession 218 KM 103 Hindustan Construction Highways Ltd (BROT) Company Ltd (HCC) (100% / India) 52 India Ashoka Belgaum Construction Roads Concession 151.76 KM 79.36 Ashoka Buildcon Ltd (100% / Dharwad Tollway Pvt (BROT) India) Ltd 53 India RAS Infraport Pvt Ltd Construction Seaports Greenfield 54.67 Throughput .. Regal Shipping (India), Alpha (BOT) (thousands) Vinimay Pvt Ltd (India), Sainath International Pvt Ltd (India) 54 India Paradip-I Coal Construction Seaports Greenfield 122.2 Throughput .. Essar Group (100% / India) (BOT) (thousands) 55 India Essar Bulk Terminal Construction Seaports Greenfield 122.24 Throughput 10000 Essar Group (100% / India) Paradip Ltd (BOT) (thousands) 56 India Essar Bulk Terminal Construction Seaports Greenfield 190.3 Throughput .. Essar Group (100% / India) (Salaya) Limited (BOT) (thousands) 57 India Adani Murmugao Port Construction Seaports Greenfield 115.4 Throughput .. Adani Group (India) Terminal Private Ltd (BOT) (thousands) 58 Maldives Maldives Male Operational Airports Greenfield 478 Number of 1 GMR Group (77% / India), International Airport (BOT) runways Malaysia Airports Holding Berhad (MAHB) (23% / Malaysia) Sub-Saharan Africa Country Project name Project Subsector Type/subtype of Investment Capacity Capacity Sponsor status private commitment type participation (US$ millions) 1 Congo, Brazzaville, Pointe Operational Airports Concession .. Number of 3 Egis Group (100% / France) Rep. Noire and Ollombo (BROT) runways Airports 2 Liberia Port of Monrovia Operational Seaports Concession 120 Throughput 4.5 AP Moller - Maersk Group (ROT) (thousands) (100% / Denmark) 3 Sierra Port of Freetown Operational Seaports Concession 130 Throughput 50 Bollore Group (100% / France) Leone Container Terminal (BROT) (thousands) Note: Greenfield BOT= Build, Operate, and Transfer; Greenfield 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.