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February 2022

 

What's new

@ Global Infrastructure Facility

Charting Our Collective Future in 2022 
Dear Partners, 

We wish you well in 2022 and we thank you for your contributions throughout the past year. Together, we have coped with the second year of a global pandemic and the ongoing challenges of climate change. Yet against this backdrop, we have achieved many new GIF milestones.

We would like to share with you some of GIF's recent highlights and acknowledge the impact of our collaborations.  

We closed the year strong.  From July to December 2021, GIF approved 10 new activities totaling US$4 million, of which US$1.2 million will be funded under our COVID-19 Response Facility. What's more, by year-end, GIF's cumulative portfolio stood at 124 infrastructure project preparation activities in 57 countries. A number of GIF-supported projects have reached key milestones as detailed in the Project Highlights section below.

We welcomed new partnerships and strengthened existing ones.  It is our partners that make our work possible; to that end, we have continued to strengthen our partnership engagements by recently welcoming India, Indonesia, and Ukraine as our newest Beneficiary Partners. Recently, we also launched the new CFLI India platform in collaboration with our global partners to accelerate private capital mobilization at the country-level, as well as launched the FAST-Infra Sustainable Infrastructure Label at COP26 with our partners, Macquarie and HSBC.  

We hope you find this edition of What's New @ GIF informative and we wish you a good year ahead.

GIF Management Unit
Portfolio Updates 
As of February 2022, we have built a strong portfolio.
 

To date, GIF has built a strong portfolio, including 124 infrastructure programs and projects across 57 developing countries.  Through its pipeline of project preparation support, GIF anticipates mobilizing total investment of US$77 billion, including approximately US$52 billion in private investment, when GIF-supported programs and projects reach closings.  

(By funding volume)


Click on the map to learn more about where we work and what we do.

Project Highlights

GIF retained a strong pipeline of project activities throughout the first two quarters of FY22, with 37 activities in the immediate queue and US$27 million in funding requests. GIF's pipeline has 30% activites in ECA, 24% in LAC, 22% in EAP, 15% in MNA, 8% in AFR, and 5% in SAR.

Between July and December 2021, GIF has achieved one commercial close (one of the projects in the Brazil Federal Roads Program), two advisory mandates (Government of Ukraine), and three project tenders have received bids (Brazil, Egypt, and Uzbekistan). These transactions were implemented by GIF's  Technical Partners, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC), and the World Bank.
NEW GREM Developers' Manual 
GIF client PT Sarana Multi Infrastruktur (PTSMI) of Indonesia published a new Geothermal Resource Risk Mitigation (GREM) Developer Manual for public and private developers in November.  The manual explains the facility's financing instruments and describes the application and monitoring of sub-projects for geothermal exploration. GIF has been supporting GREM in collaboration with the World Bank and the Government of Indonesia through PTSMI since 2018. 
COVID-19 Response Facility Up-tick
In FY22, GIF's COVID-19 Response Facility continues to be a cornerstone of operational support. Demand for assistance currently stands at 17 activities totaling over $9 million. Four activities are in the social infrastructure sector while eight focus on renewable energy. FY21 activities approved were 14 totaling US$4.2 million.

GIF's Covid-19 Response Facility was established in June 2020 to support client infrastructure projects under preparation facing pandemic-related delays as well as governments establishing infrastructure programs and projects to build back better and greener. 
 
SPOTLIGHT

Maintaining and Expanding Brazil's Federal Roads System
In September 2021, BRT-153 was the first GIF-supported transaction under the Brazil Federal Road Program to reach commercial close. The Program, structured by IFC and EPL (Brazil’s Logistics and Planning SOE), in partnership with the World bank, the GIF and the PSPInfra (a facility between IFC, IDB, BNDES), includes ten federal road concessions, totaling more than 6,000 km, with US$16 billion expected in private investment. 

The 35-year concession was granted to Consórcio Eco153, composed of EcoRodovias and Singapore-based GLP, after a competitive bidding auction on the Brazilian Stock Exchange in April 2021. The consortium offered a tariff discount of 16.25 percent and an upfront concession fee of US$250 million, with a total expected private investment of US$1.7 billion. The project will recover, expand, maintain, and operate the BR-153 arterial road that connects the Mid-North to Center-South of Brazil. It also marks the first transaction to close under GIF's Covid-19 Response Facility, IFC's new regulatory model, and the first federal road to fully comply with IFC's ESG standards.

In October 2021, the second transaction of the Program and largest toll road contract ever in Brazil was awarded to CCR, a Brazilian company, which won the 30-year concession for the Via Dutra highway, linking São Paulo and Rio de Janeiro. CCR offered the maximum permitted discount on toll fees 15.31 percent, and an upfront payment of US$314 million.
 

Modernizing Ukraine's Port & Road Networks 

Port Chornomorsk Concession

In June and August 2020, Ukraine's first two concessions – Olvia and Kherson Ports – were successfully closed with support from GIF, in collaboration with IFC and EBRD. Subsequently, in October 2021, a new Transaction Advisory agreement was signed for the Chornomorsk Container and Ferry Terminal by the government, IFC, and EBRD, in partnership with GIF, to support the Ministry of Infrastructure and the Ukrainian Sea Ports Authority in structuring and tendering the concession.

This will be Ukraine's third concession in the ports subsector and signals the continued expansion of the country’s strategic maritime network. The project is expected to  modernize the third-largest transshipment port in Ukraine in terms of total volume and boost its competitiveness by attracting international shipping operators with optimized cargo logistics and higher quality services.
Ukraine Roads Agreement

In October 2020,  the Ministry of Infrastructure of Ukraine and the Ukravtodor, the State Road Agency, presented Ukraine’s “Road PPP Program: Partnering for Better Roads”, which in the medium-term is expected to attract up to US$9 billion of private investment for 4,500 km of brownfield roads across a three-phased program, supporting Ukraine's economic development through high-quality and safe highways.

In December 2021, an Advisory Agreement was signed by IFC and the EBRD, in partnership with GIF, to advise Ukravtodor in structuring two pilot PPP projects that will finance the rehabilitation and long-term operation and management of nearly 422 km of existing road sections in eastern and western Ukraine. The two pilots are the first under Ukraine's programmatic and phased approach to engaging private sector finance and expertise through a PPP model in the  road sector.
 

Tenth of Ramadan Dry Port Tender

In June 2021, a tender was launched seeking a consortium to design, build, finance, operate, and maintain the GIF and EBRD-supported 10th of Ramadan Dry Port and Logistics Center, a US$200 million project with 1,100,000 TEU per year capacity. The facility will include integrated customs processing, shipping line agent accommodations, logistic companies, and more.

By November, six consortiums had bid to build and operate the dry port and logistical hub.
The six consortiums are: Orascom Construction/Abu Dhabi Ports, Elsewedy Electric/CMA-CGM, Al Ghanim Group/China Hyper, Samcrete/Portek, Mediterranean Shipping Company, and Bollore Logistics.

Egypt was a GIF beneficiary partner and priority country in the Middle East and North Africa region. We view this project as further proof of the government’s commitment to delivering strategic infrastructure in the transport and logistics sub-sectors, in a way that helps decarbonize the economy.
 

Powering Up Uzbekistan's Energy Sector 

GIF, in partnership with IFC, has been supporting the Government of Uzbekistan to structure an international tender for the Syrdarya CCGT Power Plant to deliver cleaner power generation, reduce carbon emissions, and reduce natural gas consumption.

In February 2020, bidding began to select an independent power producer to build, operate and own the 1,200–1,600-megawatt combined cycle gas turbine, high-efficiency Syrdarya plant. In November 2021, the winning bidder was announced as Consortium EDF – Nebras Power – Sojitz Corporation. 

GIF support has included an investment feasibility study and is bolstering the transaction implementation process. GIF also leveraged its Advisory Partner network to promote investment opportunities and raise awareness among CCGT developers and financiers. 
 


 
Lighting Program Awards Sixth PPP Contract in Campinas (SP) 
The Brazilian municipality of Campinas (SP) will benefit from a November 29, 2021 auction that marked the sixth award in the first round of tenders for the GIF-supported Brazil Public Street Lighting Program (PSL). The PPP was awarded to the Ilumina Campinas consortium, comprised of the Tecnoluz and Nexwa companies.

Previously, five other municipalities were auctioned as part of the Program's first round after a competitive tendering process. All reached commercial close in FY 2021, while two also reached financial close. The municipalities are receiving about US$ 106 million in private investment to replace 389,000 lamps with LED technology, which should reduce energy costs by more than 50 percent, benefit about 3.1 million people, and have wide-ranging socio-economic benefits.

Additionally, in October 2021, the Ministry of Regional Development signed an amendment to begin structuring the Second Round of the PSL Program, with support from GIF, in partnership with IFC and the Fund for Project Structuring (FEP), managed by Caixa. The second round has already begun in 2022 and benefit about 2.4 million people in up to eight additional municipalities, with five already selected: Foz do Iguaçu (PR), Olinda (PE), Ponta Grossa (PR), Ribeirão Preto (SP), and Timon (MA). 

EVENTS

12th Advisory Council Meeting 

GIF held its 12th Advisory Council meeting on December 9 to help contextualize the global infrastructure outlook in a post-COVID world and the importance of climate, resilience, and social sustainability through infrastructure project development. Over 100 participants registered for the meeting, including private sector financiers and investors from GIF’s Advisory Partner network, MDBs, donor governments, and other stakeholders. Read the Co-Chair Open Letter to the Global Infrastructure Finance Community,  Read the Event Summary. 

Opening Remarks were given by Daniel Zelikow, GIF Advisory Council Co-Chair and Global Co-Head, Infrastructure Finance & Advisory, and Global Head, Public Sector, J.P. Morgan, followed by a Keynote Address from Riccardo Puliti, Vice President for Infrastructure, the World Bank. Then, Imad Fakhoury, Global Director, Infrastructure Finance, PPPs & Guarantees Global Practice, World Bank, also participated in a Fireside Chat with Jason Lu, Head of GIF, and Daniel Zelikow to set the stage.


Fast-Infra @ COP26


 
The COP26 - UN Climate Change Conference presented an opportunity for GIF, together with its partners Macquarie Group and HSBC, to showcase and launch the FAST-Infra Sustainable Infrastructure (SI) Label. The SI Label serves as a consistent, globally applicable labeling system for evaluating the sustainability of infrastructure on an asset level – with the overarching objective of transforming sustainable infrastructure into a liquid asset class.

Mari Pangestu, GIF Advisory Council Co-Chair and World Bank Managing Director of Development Policy and Partnerships joined the discussion on the SI Label at COP26 alongside HSBC CEO, Noel Quinn, Banco BDMG CEO, Sergio Suchodolski, AFC Capital Partners at Africa Finance Corp CEO, Ayaan Zeinab Adam, and Bank of America Managing Director, Global Head of Sustainable Finance, Karen Fang. Managing Director & Executive Director, Barbara Buchner, Climate Policy Initiative, moderated the session.

Partnership Corner


Amplifying Our Role

In November 2021, one current and several former GIF Advisory Council Co-Chairs published a call to action in the form of an Open Letter to the global infrastructure finance community and particularly the GIF Advisory Partners. The letter posits that the delivery of climate-friendly and sustainable infrastructure is being held back by a lack of well-prepared, quality projects, something GIF is well-positioned to address. All are encouraged to help amplify GIF’s critical role in mobilizing private capital for sustainable infrastructure outcomes. 

G20 IWG

In September 2021, Jason Lu, Head of GIF, presented an operational update to the G20 Infrastructure Working Group (IWG) at the sixth and final IWG meeting under the Italian Presidency in Genoa, Italy. He spoke to the three central challenges facing the global community – reigniting growth, delivering on the SDGs, and reducing climate risk – and why it is important to act now, and how GIF’s comparative advantages position it to meet these challenges by supporting governments to build a strong pipeline of bankable projects to attract private participation and capital. The subsequent G20 Leaders Declaration highlighted the critical role of infrastructure investment in the recovery phase and committed to further developing public and private investor collaborations to mobilize private capital. GIF looks forward to supporting the current G20 Indonesia Presidency.

             

Introducing CFLI India 
 
GIF is working with Climate Finance Leadership Initiative (CFLI) members and other partners to mobilize and scale private climate finance flows in India. CFLI India is the first in a series of country pilots envisioned as multi-year efforts that align public and private resources around a narrow set of high-priority, sector-specific opportunities in emerging market countries. The Government of India, Her Majesty’s Government, and UN Special Envoy Michael R. Bloomberg announced the partnership in September 2021. GIF attended the 3rd Steering Committee of CFLI India, chaired by Tata and Macquarie in January 2022.
 

The Global Investors for Sustainable Development (GISD) Alliance, in partnership with GIF, calls on global asset managers to express their interest in partnering to jointly develop and launch the Sustainable Infrastructure Investment Platform (SIIP), a transformative blended finance concept for efficiently co-investing alongside multilateral development banks at scale in emerging markets sustainable infrastructure. Deadline is March 4, 2022.

The GISD Alliance, with GIF, has worked over the past year to develop and test concepts for at-scale blended finance vehicles to fill critical gaps in the market, with plans to further refine the vehicle concept and move the group closer to launching a transformative SDG-aligned, EMDE investment model.

 
 
             

Climate Resilient Infrastructure Officer Handbook GIF, GCA, PPIAF

It is well-known that PPPs are a key entry point to integrating climate adaptation and resilience into infrastructure projects and addressing climate change impacts. Now, a new handbook brings the existing guidance for PPPs together with the literature on climate risks, resilience, and infrastructure, to help build government capacity.  
 
Fit-for-Purpose, Action-Oriented Climate Toolkits

GIF and PPIAF are developing Climate Toolkits for Infrastructure PPPs (CTIP3): How to embed climate mitigation and adaptation within infrastructure PPP projects, which will be made available online and through training workshops. 

Fit-for-Purpose, Action-Oriented ClimateToolkits GIF, PPIAF

The CTIP3 will allow users to screen for climate risks, embed climate mitigation and adaptation considerations, and facilitate increased private investment in low-carbon, climate-resilient infrastructure in emerging markets and developing economies (EMDEs). Designed for application in the upstream and midstream stages of the PPP lifecycle, the toolkits are outfitted for practical implementation, including checklists, example TORs, score sheets, and other implements to help its users assess the enabling environment and broader institutional capacity in a given country and enable climate considerations to be integrated into potential PPP projects.
             

Gender in Infrastructure GIF, PPIAF

An exploratory review of the literature on infrastructure and gender looks at best practices and lessons learned for mainstreaming gender into infrastructure practices and identifying gender gaps. The study's scope is limited to gender mainstreaming in upstream infrastructure planning and implementation but it also expands beyond publications produced by multilateral institutions to include academic literature on gender & politics. Read the Blog.

A new brief explores the  implementation of InfraTech across the infrastructure ecosystem, including the benefits and complexities disruptive technologies can bring.  The brief suggests that a desire to rapidly meet the growing demand for new infrastructure may result in technology-enabled solutions not being proactively factored into infrastructure planning, leading to a deprioritization of infrastructure technology, resulting in missed opportunities. 

 

On January 11, the World Bank Group released its 2022  Global Economic Prospects report, which suggests despite a strong rebound in 2021, the global economy will be entering a slowdown due to fresh COVID-19 variants, a rise in inflation and debt, and income inequality.   A widening divergence in growth rates between advanced economies and emerging market and developing economies (EMDE) will emerge, with EMDEs growth expected to decrease from 6.3 percent in 2021 to 4.6 percent in 2022.  Regional outlooks are also provided.

In November 2021, GIF published  its Annual Highlights Report, covering FY21 operational, partnership, and knowledge milestones, as well as results achieved during the fiscal year.  Despite the dual challenge of COVID-19  and climate change, GIF continued to deliver on its strategic priorities and achieved eight project closings. 

Blogosphere

Read blogs on GIF activities and the latest thoughts and trends in mobilizing private infrastructure finance.
 

FAST- Infra: Promising Sustainable Growth through Common Standards on Sustainability

By Towfiqua Hoque & Carmel Lev
August 18, 2021

 

Making Gender Matter in Infrastructure PPPs 

By Maria Waqar & Jade Shu Yu Wong
November 10, 2021

Send us your latest news!

Do you have news, projects, or stories you would like to share? If so, we'd like to include them in our next newsletter. Please send them to managementunit@globalinfrafacility.org. 

About the GIF

The Global Infrastructure Facility (GIF), a G20 initiative, has the overarching goals of increasing private investment in sustainable infrastructure across emerging markets and developing economies and improving services that contribute to poverty reduction and equitable growth aligned with the SDGs. The GIF provides funding and hands-on technical support to client governments and multilateral development bank partners to build pipelines of bankable sustainable infrastructure. The GIF enables collective action among a wide range of partners – including donors, development finance institutions, country governments, together with inputs of private sector investors and financiers – to leverage both resources and knowledge to find solutions to sustainable infrastructure financing challenges. 
The GIF is supported by the Governments of Australia, Canada, China, Denmark, Germany, Japan, Singapore, and the World Bank.
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