Predictably, a US Congressional hearing yesterday on President Obama’s proposal for a National Infrastructure Bank condemned the idea as unecessarily bureacratic. The proposal has become a politically divisive issue, with leading opponent John Mica effectively saying it was doomed.
Thomas Putter, Allianz Capital Partners’ ex-CEO, says private financing is part of a shift that will force Westerners – long used to free infrastructure – to start paying for the assets.
The Swedish power group is gauging market interest for the sale of its Finnish electricity network and its heat distribution business. EQT, Macquarie and a consortium of Goldman Sachs, 3i Infrastructure and Finland’s Illmarinen Mutual Pension Insurance Company are said to be interested in the sale.
Thomas Putter, Allianz Capital Partners’ ex-CEO, says private financing is part of a shift that will force Westerners – long used to free infrastructure – to start paying for the assets.
In an effort to accelerate job creation, the Obama Administration has announced that 14 infrastructure projects, including New York’s new Tappan Zee Bridge, will benefit from swifter permit decisions and environmental reviews.
The ‘Connecting Europe Facility’ will be unveiled next week and will focus exclusively on trans-European transport, energy and ICT projects. Between 15% and 20% of the proposed €50bn in spending will be leveraged through financial instruments and public-private partnerships.
The Australian fund manager’s portfolio company, Dalkia Polska, has acquired an 85% stake in SPEC from the City of Warsaw. SPEC, the largest district heating network in the EU, increases Dalkia Polska’s market share in the Polish district heating sector from 11% to 25%.
The Connecticut-based energy investor has formed a gas gathering joint venture with Energy Corporation of America in Pennsylvania’s Marcellus Shale. The investment comes from the $1.2bn infrastructure fund closed by First Reserve earlier this year.
With fears mounting over the weakening global economy, investors kept their wallets closed in Q3 2011. Just $2.8bn was raised in the quarter, meaning that the global fundraising total this year is likely to be less than in 2010.
Transfield/Veolia Transdev, Serco Australia and Transit Systems/Forgacs Engineering will receive tender documents allowing them to submit bids by early 2012. Five parties had originally shown interest in running Sydney Ferries.
The managing director and chief executive of JPMorgan Asset Management’s Infrastructure Investments Group says he believes infrastructure is the ‘Holy Grail’ for institutional investors and could represent as large a slice of investor portfolios as real estate within 10 to 15 years.
The Connecticut-based infrastructure investor has increased its stake in the Ferrovial-owned airports operator. Alinda had already invested $604m in BAA in July 2007. Ferrovial, which originally hoped to sell 10% of BAA, will not seek to sell any more of the firm.
The House Transportation and Infrastructure Committee will debate the pros and cons of a national infrastructure bank this week. Chairman Mica is in favour of a state-led approach rather than what he describes as a ‘federal bureacracy’.
The Australian airports operator now owns approximately 85% of Sydney Airport, while disposing of its entire interests in Brussels and Copenhagen airports to the Canadian pension plan.
Bidders are now expected to lodge their final bids by February 16, 2012. Further delays in the tender may prove costly for investors, who will have to pay a $200m bond to participate in the privatisation.