6th Global Infrastructure Leadership Forum

The Preliminary Strategic 100
6th Global Infrastructure Leadership Forum
New York City, February 27- March 1, 2013
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November 2012
The Preliminary Strategic 100
Executive Summary: The Strategic 100 & The State of Global Infrastructure 2013
The Strategic 100 is CG/LA’s annual list of the top 100 global strategic infrastructure projects. We focus on projects because that is the
only way to capture the reality and the opportunity of the global infrastructure market - there really is no other unit of measure for this
marketplace, no other North Star.
The global infrastructure market is not in good shape right now. We are going through a dramatic paradigm change, little remarked
upon, and less understood. We estimate that
the world is investing less than 40% of
infrastructure demand. Project finance-driven
banks have exited the scene, and have not
been replaced - neither as sources of funding,
nor as sources of expertise. What is the
result? Significant problems, and - the eternal
corollary - significant opportunities.
The Strategic 100 is our map of what the
global infrastructure market looks like in 2013
- projects, and project clusters, those
infrastructure markets that are relatively
reliable producers of projects. These 100
projects are comprised of 11 distinct macro
sectors, from 43 different countries - total
value is projected at nearly $650 billion dollars.
This is an extraordinary figure, 20% higher
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November 2012
The Preliminary Strategic 100
than last year’s total - reflecting pent-up demand, a relative return to growth and the carry-over of fundamentally important projects.
How do we Produce the Strategic 100? Projects are selected by a team led by Craig Guzinsky, our Vice President for Strategic
Projects, polling experts from around the world, including sponsors of the 6th Global Leadership Forum, local infrastructure experts
and professionals from both public and private institutions. We focus on five general criteria, ranking projects along the following:
Business Opportunity - Projects are ranked according to the likelihood of a business ‘event’ happening in the next 3-12
months (this can be anything from a feasibility study, to an RFI, through to bidding and even O&M contracting); its absolutely
critical to the Leadership Forum that these projects be ‘real.’
Productivity Creation - Projects are ranked according to the promise to generate an outsize contribution to economic
productivity of a city, a region or a country (e.g a transit project that revitalizes a city center, to a Smart Grid project, catalyzing
business creation, to a port and logistics project transforming hinterland possibilities).
Competitiveness Creation - Projects are ranked not only along the single productivity dimension, but in the multiple
dimension of whether it actually promises to drive a country to move ahead of competitors, increasing per capita income and
overall opportunities (e.g. the transformation of a country’s energy matrix, or the development of a transformation waterways
or logistics system)
Job creation- Projects are ranked in terms of direct, indirect and induced job creation - so directly and indirectly in terms of the
project’s construction, as well as indirectly throughout the 30+ year lifespan of the project, serving as an economic driver for the
project area. If all of these projects were financed and built, as many as 30 million well-paying jobs would be created, creating
the workforce and laying the groundwork for a next generation of projects, and jobs, and so on.
Carbon Efficiency - Projects are ranked in terms of the quality of their inputs, and their impact on their environment, and not
just on whether they are energy efficient - the overall aim is that projects be not only sustainable, but can model sustainability.
We are particularly concerned to select great projects, and to bring these projects to the attention of the best people in the world - so
that projects are designed, financed, constructed and operated in as optimal a fashion as possible. The overall goal of the Leadership
Forum, of CG/LA Infrastructure, and of our new venture GlobalViP is to double investment in the world’s infrastructure by 2020.
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Project Name
Project Sponsor
Project Stage
US$M
Airports
Airport
Expansion
UAE
Dubai Airport Strategic Plan
2020
Dubai Department of Civil Aviation
Ongoing
7800
Airports
Greenfield
Airport
Turkey
Istanbul 3rd Airport
Ministry of Transport and
Communication
RFP before end
of 2012
6500
Airports
Modernization
Brazil
Bahia Airport Improvement
& Modernization Program
Bahia Ministry of Infrastructure
RFP for
Consultants open
Oct. 2012
TBD
Airports
Modernization
Cape Verde
Cape Verde Aviation Hub
Cape Verde National Airport
Authority
Fundraising
underway
4290
TBD
Airports
Terminal
Saudi Arabia
King Khalid International
Airport Expansion
General Authority of Civil Aviation
(GACA)
Terminal 5 under
construction;
RFPs for design
of terminal 3/4
under evaluation
Digital
Infrastructure
Azerbaijan
Trans-Eurasian Information
Super Highway (TASIM)
Azerbaijan Ministry of
Communications and Information
Technologies
Concept
300-500
Electricity
Generation
China
Jiuquan Wind Farm Phase
II - 5GW
Gansu Province
Permitting
6280
Electricity
Generation
Georgia
Khudoni Hydropower Plant
Ministry of Energy and Natural
Resources of Georgia
Permitting
776
Electricity
Generation
Mozambique
Mphanda Nkuw
Hydroelectric Power Plant
Hidroeléctrica de Mphanda Nkuwa
Financial Closure
2900
Electricity
Generation
South Africa
5000MW Solar Park,
Northern Cape
Department of Energy
Feasibility Study
17300
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Project Name
Project Sponsor
Project Stage
US$M
Electricity
Generation
Turkey
Akkuyu Nuclear Power
Plant
ROSATOM
Permitting
20000
Electricity
Generation
USA
Marcellus NG Power Plants
Moxie Energy
Permitting
1600
Electricity
Geothermal
Kenya
Menengai Geothermal
Project Stage 2
The Geothermal Development
Company (GDC)
Financial Closure
150
Electricity
Hydropower
Generation
Congo, Dem.
Republic
Inga III Power Station
Steer. Com. under DR Congo
Energy ministry
Permitting
11500
Electricity
Hydropower
Generation
Ethiopia
Grand Ethiopian
Renaissance Dam
Ethiopian Electric Power Corp
Construction /
Procurement
5000
Electricity
Hydropower
Generation
South Africa
The Lesotho Highlands
Water Project Phase 2
Government of Lesotho and South
Africa
RFP/ RFQ
1000
Electricity
Solar
Generation
Kuwait
Al Abdaliyah Integrated
Solar Combined Cycle
(ISCC)
Ministry of Electricity & Water
RFP/ RFQ
TBD
Electricity
Solar
Generation
South Africa
Renewable Independent
Power Producers
Programme
Department of Energy
Financial Closure
(First Bid)
5440
Electricity
Transmission
Kazakhstan
Modernization of the
National Electric Grid of
Kazakhstan
Kazakhstan Electricity Grid
Operating Company (KEGOC)
Rolling
Construction
through 2025
3500
Electricity
Transmission
USA
Champlain Hudson Power
Express
Transmission Developers Inc.
Permitting
2200
Electricity
Transmission
Zambia,
Tanzania,
Kenya
Zambia-Tanzania-Kenya
Interconnector
Zambia, Tanzania, Kenya
Governments
Concept
650
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Project Name
Project Sponsor
Project Stage
US$M
Electricity
Waste To
Energy
Electricity
Generation
Brazil
Belo Horizonte Waste To
Energy Project
Aja Brasil/ Minas Gerais PPP Unit
RFP/ RFQ
TBD
Electricity
Wind
Generation
England
Dogger Bank Wind Farm
Forewind
Concept
47500
UAE
Abu Dhabi-Dubai Railway
The Etihad Rail Federal
Government Coordination
Committee
Feasibility Study
TBD
High Speed
Rail
High Speed
Rail
Passenger
Brazil
Rio - Sao Paulo Bullet Train
ANNT - Agencia Nacional de
Transportes Terrestres/ National
Transport Agency
Tender
16400
High Speed
Rail
Passenger
India
India High Speed Rail
Pipeline (Phase 1: MumbaiAhmedabad )
High Speed Rail Corporation of
India
Pre-feasibility
Study underway
10890
China
Datong-Xian High-Speed
Passenger Railway
Shanxi Government/Ministry of
Railways
Announced
September 2012
15000
High Speed
Rail
Oil and Gas
Pipeline
Azerbaijan /
Turkey
Trans-Anatolian Natural
Gas Pipeline (TANAP)
SOCAR - State Oil Company of
Azerbaijan Republic
Feasibility Study
20000
Oil and Gas
Pipeline
Canada
Keystone XL Pipeline
TransCanada
Permitting
7000
Oil and Gas
Pipeline
Russia
South Stream Pipeline
GazProm
Permitting
20300
Ports &
Logistics
Container Port
Mexico
Port of Veracruz Expansion
APIVER- Port Administration of
Veracruz
Permitting
3000
Ports &
Logistics
Container Port
Nigeria
Ibaka Deep Sea Port
Nigeria Ports Authority (NPA)
Concept
TBD
Ports &
Logistics
Container Port
Saudi Arabia
King Abdul Aziz Port
Expansion
Saudi Ports Authority/King Abdul
Aziz Port
Various Projects
through 2016
914
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Project Name
Project Sponsor
Project Stage
US$M
Ports &
Logistics
Container Port
Deepening
USA
Port of Savannah
Expansion
Georgia Ports Authority
Oct 2012- Final
Approval Given
652
Ports &
Logistics
Rail
Australia
Moorebank Intermodal
Terminal
Government of Australia
Feasibility Study
506
Ports &
Logistics
Sea Ports
Australia
Privatization of Port Botany
and Port Kembla
Government of New South Wales
Open for bidding
since July 2012
2200
Ports &
Logistics
Sea Ports
Canada
Robert Banks Terminal 2
Project
Port of Metro Vancouver
Concept
TBD
Ports &
Logistics
Sea Ports
Indonesia
Tanjung Priok Port
Expansion, Jakarta
Ministry of Transport
RFP/ RFQ
2400
Ports &
Logistics
Sea Ports
Myanmar
Dawei Port & Industrial
Zone
Dawei Development Co./Italthai
Construction /
Procurement
11117
Ports &
Logistics
Sea Ports
Oman
Salalah Port North
Breakwater
Ministry of Transport and
Communications
Design Stage
259
Ports &
Logistics
Sea Ports
Senegal
Port of Bargny
Government of Senegal
Concept
162
Ports &
Logistics
Sea Ports
South Africa
South African Ports
Expansion- Port of Ngqura
& Port of Durban
Transnet
Various Stages of
Design &
Construction
29150
Ports &
Logistics
Sea Ports
Turkey
Port of Çandarh
Ministry of Transportation
Construction /
Procurement
400
Social
Prison
Australia
Ravenhall Prison
Victorian Government
EOI in Mid-2013
700
Puerto Rico
New Beginnings Social
Treatment Complex
Puerto Rico PPP Authority/
Juvenile Institutions Administration
RFP/ RFQ
TBD
Egypt
Egypt Waste Recycling
Project
Egypt PPP Central Unit
Feasibility StudyTender late 2012/
Early 2013
200
Social
Solid Waste
Juvenile Facility
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Project Name
Project Sponsor
Project Stage
US$M
Strategic
Airports
Kenya,
Ethiopia,
Southern
Sudan
Lamu Port-South SudanEthiopia (LAPSSET)
Transport and Economic
Development Corridor
Government of Kenya
Construction /
Procurement
24600
Strategic
Commercial
India
Gujarat International
Finance Tec-City
Gujarat International Finance TecCity Company Limited
Construction /
Procurement
13216
Strategic
Industrial
Egypt
Suez Canal Corridor Project
Government of Egypt
Concept
30000
Strategic
Industrial
Nigeria
Indorama Fertilizer &
Methanol Facilities
Elema Petrochemicals Limited
Financial Closure
2100
Strategic
Mining
Canada
Ring of Fire Mining
Development
Thunder Bay Community
Economic Development
Commission (CEDC)
Feasibility Study
39000
Strategic
Surface
Transport
Southern
AfricaVarious
North South CorridorSurface Transportation
Development Program in
Sub Sahara Africa
Trademark Southern Africa
Construction /
Procurement
5000
Surface
Transport
Bridge
Canada
Champlain Bridge
Replacement
Transport Canada
Feasibility Study
5000
Surface
Transport
Bridge
Chile
Chacao Bridge
Ministry of Public Works - MOP
RFP/ RFQ
750
Surface
Transport
Bridge
Russia
Volga River Crossover
Bridge
Nizhny Novgorod City
Government
RFP/ RFQ
1300
Surface
Transport
Bridge
Turkey
Privatization of Highways
and Bridges
OIB (Turkish Privatization
Administration)
Shortlisted
Consortia
Announced
TBD
Surface
Transport
Bridge
USA
New International Trade
Crossing
MDOT and Federal Transport
Canada
Concept
3500
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Surface
Transport
Freight &
Passenger Rail
Australia
Surface
Transport
Freight &
Passenger Rail
Surface
Transport
Project Name
Project Sponsor
Project Stage
US$M
Cross River Rail
Queensland - Translink
Announced
Ready to
Proceed , July
2012
4500
Jordan
Jordan National Railway
Project
Ministry of Transport
Feasibility Study
2670
Freight &
Passenger Rail
Oman
National Freight and
Passenger Railway
The Supreme Committee for Town
Planning
RFP/ RFQ
11000
Surface
Transport
Freight Rail
Colombia
Carare Rail Network
Agencia Nacional de
Infraestructura / National
Infrastructure Agency
Feasibility Study
2500
Surface
Transport
Freight Rail
Qatar
Qatar Integrated Rail
Project
Qatar Railways Development
Company
Various Stages
25000
Surface
Transport
Freight Rail
Russia
Russia Freight Rail
Privatization &
Modernization
Russian Railways
Ongoing
TBD
Surface
Transport
Freight Rail
Senegal
Diamniado-Port of Bargny
Railroad
Government of Senegal
Concept
426
Surface
Transport
Highway
Australia
WestConnex
Infrastructure NSW
Concept
10000
Surface
Transport
Highway
Brazil
North Beltway Project
Minas Gerais PPP Unit
RFP/ RFQ
600
Surface
Transport
Highway
Brazil
Brazilian Highway Package
Agencia Nacional De Transportes
Terrestres
Design Stage
20000
Surface
Transport
Highway
Bulgaria
The Ruse-Svilengrad
Highway
Ministry of Transport, Information
Technology and Communications
Design Stage
996
Surface
Transport
Highway
Chile
Autopista Américo Vespucio
Oriente
Ministerio de Obras Publicas /
Ministry of Public Works
RFP/ RFQ
1900
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Project Name
Project Sponsor
Project Stage
US$M
Surface
Transport
Highway
Colombia
Autopistas Para la
Prosperidad
National Infrastructure Agency
(ANI)
Design Stage
8500
Ministry of Transport and
Communication
RFP/ RFQ
1256
Surface
Transport
Highway
Kazakhstan
East-West Roads Project:
Western Europe-Western
China International Transit
Corridor
Surface
Transport
Highway
The
Netherlands
A9 Gaasperdammerweg
Rijkwaterstaat - Ministry of
Infrastructure and Environment
RFP/ RFQ
TBD
Surface
Transport
Highway
Uzbekistan
National Highway System
Uzavtoyul
Construction /
Procurement
3442
Surface
Transport
Passenger Rail
Brazil
Regional Rail Passenger
System
Minas Gerais PPP Unit
RFP/ RFQ
700
Surface
Transport
Passenger Rail
China
Chengdu-Guiyang High
Speed Rail
Sichuan Province
Design Stage
16000
Surface
Transport
Passenger Rail
Kuwait
Kuwait National Railroad
Ministry of Communications/
Ministry of Public Works/
Partnerships Technical Bureau
Feasibility Study
10000
Surface
Transport
Tunnel
Turkey
Bosphorus/Eurasia Tunnel
Yapi Merkezi
Financial Closure
1000
UMT
Commuter Rail
Mexico
Suburban Rail Mexico Chalco
Secretaría de Comunicaciones y
Transporte / Transport and
Comunication
Feasibility Study
970
UMT
Light Rail
Canada
Toronto Light Rail
Expansion
Metrolinx
Construction /
Procurement
8450
UMT
Light Rail
Kazakhstan
Almaty Light Rail PPP
Municipal Government of Almaty
Preparing TA
RFP
301
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Project Name
Project Sponsor
Project Stage
US$M
UMT
Light Rail
Philippines
Light Rail Transit line 1
Cavite Extension and O&M
Project
Department of Transportation &
Communications
Shortlisted
Consortia
Announced
1460
UMT
Metro
Brazil
Metro Poa
Prefeitura de Porto Alegre
RFI
1180
UMT
Metro
Egypt
Cairo Metro Line 4
National Authority for Tunnels
Design Stage
767
UMT
Metro
India
Hyderabad Metro Rail
Project
Hyderabad Metro Rail Limited
Financial Closure
2600
UMT
Metro
Indonesia
Jakarta MRT
Ministry of Transportation
Concept
1173
UMT
Metro
Kuwait
Kuwait Metro System
Ministry of Communications/
Ministry of Public Works/
Partnerships Technical Bureau
RFP in early 2013
7000
UMT
Metro
Malaysia
Klang Valley/Kuala Lumpur
Mass Rapid Transit System
MMC Engineering Group Gamuda JV
Construction /
Procurement
10285
UMT
Metro
Peru
Lima-Callao Electric Mass
Transportation System Line 2
Proinversión
Feasibility Study
3000
UMT
Metro
Romania
Bucharest Airport Metro
Metrorex
Design Stage
1024
UMT
Metro
Saudi Arabia
Jeddah Metro
City of Jeddah
Feasibility Study
9300
UMT
Metro
Saudi Arabia
Makkah Metro
Government of Saudi Arabia
Feasibility Study
16530
UMT
Metro
UAE
Abu Dhabi Metro
Abu Dhabi Department of
Transportation
Design Stage
7000
UMT
Metro
Ukraine
Kiev Subway Line 4
Kyiv City Administration/ Russia's
Federal Center for Project
Financing
Feasibility Study
TBD
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November 2012
The Preliminary Strategic 100
Sector
Sub-Sector
Country
Project Name
Project Sponsor
Project Stage
US$M
Agence Nationale dʼEtudes & de
Suivi de la Realisation des
Investissements Ferroviaries
(ANESRIF)
Concept
4500
UMT
Rapid Transit
Algeria
Algerian Rail Expansion
Program
UMT
Rapid Transit
Bahrain
Bahrain Integrated Transit
Lines
Ministry of Works & Housing
Feasibility Study
8090
Water & WW
Distribution
Philippines
New Centennial Water
Supply Project
Metropolitan Waterworks and
Sewerage System (MWSS)
Transaction
Advisor RFP
Open
TBD
Water & WW
Distribution
USA
Water System Improvement
Program
San Francisco Public Utilities
Commission
Construction /
Procurement
4600
Water & WW
Distribution
USA
Bay Delta Conservation
Tunnel
California Natural Resources
Agency
Feasibility Study
13000
Water & WW
WW Treatment
Brazil
Wastewater Vitoria
Cesan
Feasibility Study
250
Water & WW
WW Treatment
UAE
Strategic Tunnel
Enhancement Programme
(STEP)
Abu Dhabi Sewerage Services
Company (ADSSC)
Construction /
Procurement
3650
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November 2012
The Preliminary Strategic 100
Australia
Australia has long been an innovator in infrastructure project
finance, with firms like Macquarie leading the way. Over the last
few years international focus has centered on investments in
energy and mining while there has not been as much news or
attention on civil infrastructure. More recently, with the creation
of Infrastructure Australia and Infrastructure Partnerships
Australia there has been an elevated discussion in Australia
about how to prioritize and implement future infrastructure
projects - particularly expanded UMT and surface
transportation that will address bottlenecks and boost
productivity. Not often discussed internationally, the domestic
market cannot currently meet expected demand. The
government, with the support of Austrade, welcomes increased
Port Kembla in Wollongong is Australia’s ninth largest port. The
participation from foreign players. Of note, state assets
Port currently handles coal, grain, motor vehicles and cement,
continue to be privatized in an effort to boost state revenue to
but will be used as an overflow container port when Port Botany
maintain investment in infrastructure.
"We are facing an immense challenge to fund the backlog of critical
infrastructure across New South Whales (NSW) and more needs to
be done to free-up the vital funds needed to deliver long overdue
road, school and hospital projects across NSW.” -NSW Treasurer
Mike Baird
reaches capacity. Proceeds from the leasing of these two major
state assets will fund upgrades for future projects like the
Port Botany and Port Kembla Privatization
Why the Project is Important:
In July 2012 following a scoping study, the NSW Coalition
Government announced it would auction 99-year leases over
Port Botany is Australia’s second-largest container port with
both facilities in a transaction expected to fetch more than USD
annual volumes of two million TEU’s, accounting for roughly
2.2 Billion.
Pacific Highway, the Princes Highway and the WestConnex - the
USD 10 billion freeway linking the M5 and M4 to Sydney Airport.
Current Status:
one third of Australia’s annual containerized freight.
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November 2012
The Preliminary Strategic 100
Brazil
forward -
Back in 2007, Brazil unveiled its ambitious “PAC Program”, a
support, first class
growth acceleration program designed to push the % of GDP
that Brazil invested in infrastructure to a level on par with
executive guidance
from BNDES and,
China. Since then the PAC has invested only 30-40% of its
not least, it makes
budget per year - Brazil is faced with bottlenecking issues in
sense - given
infrastructure that are squeezing-out economic growth.
extensive traffic
Despite big issues, green infrastructure shoots are beginning to
studies. The
Presidential
appear. CG/LA spent a week in Brazil this November and was
project would be an engineering wonder, involving the
impressed with significant policy innovation, the flexing of
construction of 90 km of tunnels and 107 km of bridges and
institutional tools to move projects forward, including:
viaducts to traverse the rivers and mountainous terrain that
extensive local equity and investment capabilities through
public institutions, like BNDES (Brazil’s infrastructure bank) and
separates Sao Paulo from Rio de Janeiro. The rail line would
leading banks like Banco do Brazil; and the success story of EBP
transport an estimated 33 million people in its first year of
operation- a number expected to reach 100 million by 2030. It
(Estruturadora Brasileira de Projetos), a firm financed by both
takes five hours to travel between São Paulo and Rio de Janeiro
the private and public sectors that put together Brazil’s
by bus. Airport connections are fully congested.
successful airport privatization in a record six months.
Rio de Janeiro-Campinas-Sao Paulo High
Speed Rail
Why the Project is Important:
Originally planned to be ready in time for the 2014 World Cup,
the original Bandeirantes project was cancelled and changed to
a more viable single 518 km line to connect Campinas, Sao Paulo
and Rio de Janeiro. We’ve chosen this project because it is back
on track, with all the earmarks of a project that will move
Current Status:
The government of Brazil included this project in their Growth
Acceleration Program (PAC 2) announced in August 2012 and
interested companies have to submit their bids by April 30, 2013.
The government has made concessions to attract bidders for
the project by allowing longer concession periods (up to 40
years) and by allowing consortiums exclusively formed by
foreign companies. So far six major foreign operators -- the
local subsidiary of France's GEC Alsthom, Germany's Siemens,
Japan's Mitsui, South Korea’s Hyundai and Spain's CAF and
Talgo, have expressed interest in joining the initial bidding
process for the USD 16.4 billion initial project.
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November 2012
The Preliminary Strategic 100
Canada
Creativity in how projects are funded is what sets Canada apart
from other countries on The Strategic 100. Canada’s
infrastructure market functions like a well-oiled machine, with
close collaboration between the federal, provincial and
municipal governments creating a predictable, financeable
project pipeline. Metrolinx illustrates this process. Metrolinx
set up a province-wide procurement system for Ontario, where
26 agencies are able to use a standard procurement contract for
transportation projects. The program is estimated to have
saved taxpayers upwards of US$9 million in the purchasing of
buses alone. One of the greatest opportunities in the Canadian
infrastructure marketplace is in the development of
infrastructure surrounding global logistic hubs in provinces
rich in natural resources. Projects like Ontario’s Thunder Bay
mining project and Saskatchewan’s Regina Global
Transportation Hub provide a long-term vision of global
Toronto Light Rail Expansion
Why the Project is Important:
The Government of Ontario is moving forward on its USD 8.4
Billion commitment to deliver the largest light rail transit (LRT)
expansion in the history of Toronto. It features a network of 52
km of light rail transit that will connect downtown Toronto with
its suburbs.
Current Status:
The Toronto LRT Plan is part of The Big Move- a 25-year, USD 50
Billion plan that will transform regional transportation across
the Greater Toronto and Hamilton Region. Metrolinx also
approved using Infrastructure Ontario for project delivery
subject to positive value-for-money analysis results and
Treasury Board approval. Construction is currently underway
and all projects within the Toronto LRT Plan are scheduled to be
completed by 2021.
competitiveness for Canada.
Like Brazil, one of the keys to Canadian success is policy
innovation - and specifically the creation of highly professional
public entities like infrastructure Ontario to select, financially
structure and bid major projects.
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November 2012
The Preliminary Strategic 100
Colombia
of 251km, and rehabilitation of 33 km; Section 3: San Jose del
For the past five years, Colombia has gained momentum on The
km; Section 4: Ancón Sur-Tres Puertas construction of 234 km
Strategic 100 as a nation determined to attract foreign
and rehabilitation of 146 km. With a project value of USD 8.5
billion, 1260 km of highway operation and maintenance, 90km of
investment and global EPC firms to participate in its developing
Nus-Puerto Berrío construction of 77km and rehabilitation of 109
infrastructure market. The government has made progress by
establishing entities like ANI - the National Agency for
viaducts, 90km of tunnels and 26 road tolls, the Highways for
Infrastructure, whose goal is to structure and award $US 27 B in
worldwide.
PPP contracts over the next two years. The two most significant
Prosperity is definitely amongst the Top Infrastructure Projects
elements of the program are Road PPPs (US$ 20 billion) and Rail
Current Status:
PPPs (US$ 6 billion). The typical contract will have one year for
ANI plans to begin procuring the first section of the Highways
pre-construction activities, 5 years for construction, and 15 years
for Prosperity in December of 2012. If there are no delays, the
of operation and maintenance. Teaming is once again the key
900km of the Highway for Prosperity project will fully
word for this infrastructure hotspot. Engineering and
operational by 2020.
Construction firms are teaming with local Colombian partners
to form stronger consortia that are improving the quality of
bids received by ANI for its ambitious Road and Rail PPP’s.
Highways for Prosperity
Why the Project is Important:
This project entails the construction of 900km of highway
connecting the Antioquia Department with the concession
project of Ruta del Sol, the Atlantic Coast, the Coffee Zones and
the Americas Highways Projects. This project will increase the
competitiveness of Antioquia and will connect the entire center
of Colombia through a modern highway system.
Section 1: Western Tunnel-El Tigre: Construction of 338km and
rehabilitation of 63 km; Section 2: Hatillo-Caucasia construction
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November 2012
The Preliminary Strategic 100
Philippines
President Aquino has the capacity to see through plans for an
infrastructure build. The project involves the construction of
The national slogan for the Philippines under President Aquino
tracks, station and all attendant facilities - 50% of funding
is "Under New Management", and this is especially meant to be
comes through official development assistance.
true of the country’s infrastructure build. CG/LA met with the
entire economic cabinet on this issue, and they are serious. The
Current Status:
new administration under President Aquino is organizing their
In October 2012, four international consortia were short listed
initiative through the PPP Center of the Philippines, pushing
for the USD 1.46 Billion project with final documents due in
forward critical projects that have been on the books for years.
January 2013 followed by the contract award in April 2013. Once
The Philippines have entrenched local capacity, but now these
the project is completed, it will increase the ridership of LRT-1
firms are teaming with foreign firms to deliver priority
from the current 500,000 passengers a day to 700,000.
transportation and social infrastructure projects.
PPP Pipeline/Light Rail Transit Line 1
Cavite Extension and O&M Project
“We assure a level playing field and fair competition. Both
foreign and local investors get fair share in the PPP. This is
a new era of partnership.” Department of Transportation
and Communications Secretary, Antonio Abaya.
Why the Project is Important:
Finally getting PPP projects going is a goal of the government,
and critical to investor confidence. A good beginning: in July
2012 Macquarie closed a USD 625 MM Philippines Infrastructure
Fund. The USD 1.46 billion Metro Manila light rail expansion is
largest of the four PPP bids that have been launched, and is a
critical indicator of whether or not the Philippines under
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November 2012
The Preliminary Strategic 100
Turkey
The Bosphorus Tunnel will connect the continent of Europe and
Turkey is one of the 2013 Global Infrastructure Hotspots
because of the robust project pipeline, and the strength of its
Bosphorus Strait. The tunnel will be used for light vehicle traffic.
infrastructure cluster - especially construction firms. In
addition to ambitious and innovative transportation projects
like the Bosphorus Tunnel project, Turkey is addressing its
need for a diversified energy portfolio. Currently, 45% of
Turkey’s power comes from gas (two thirds of this from Russia,
most of the rest from Iran), 28.5% from coal, and 23% from hydro.
Per capita consumption has exploded from 800 kWh/yr in 1990 to
about 2300 kWh/yr. Over the next ten years $100 billion is
projected for new electricity generation.
Bosphorus/Eurasia Tunnel
Asia through a 14.5km tunnel, 5.4km of which will be under the
Current Status:
The Bosphorus Tunnel project is a Turkish-Korean Joint Venture
(TKJV) made up of Turkey's Yapi Merkezi and South Korean
companies SKEC, Samwhan Corp., Hansin, Namkwang
Engineering & Construction and Kukdong Corp. The consortium
has been awarded a 30-year concession to build and operate the
tunnel, due to be completed by 2016.
The technical challenges and construction risks of this project
have made it difficult to secure project financing. The TurkishKorean consortium is currently looking for equity coinvestments of at least $50 million.
Why the Project is Important:
The Bosphorus Tunnel is crucial to supporting Istanbul’s
transport network, alleviating congestion and linking Turkey
and Europe. Istanbul - Turkey’s economic engine - has a
transportation infrastructure that struggles to keep pace with
demand. More than 12 million people currently live in Istanbul.
Each day, over a million trips are made across the Bosphorus by
boat or using one of the two bridges over the straits. At rush
hour, crossing the city can take up to five hours. This Bosphorus
tunnel project, also referred to as the Eurasia tunnel, is one of
several projects currently underway to help ease cross-strait
traffic (others include the Marmaray rail tunnel project and the
Third Bosphorus Bridge).
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November 2012
The Preliminary Strategic 100
Saudi Arabia
Saudi Arabia, along with China, has the most ambitious current
infrastructure build in the world, a USD 400 Billion program
King Khalid International Airport
Expansion
Why the Project is Important:
committed over the next five years to boost interconnectivity
Saudi Arabia plans to expand the capacity of Riyadh’s King
and increase port/airport capacity throughout the
Khalid International Airport to 25 million passengers from 14
Kingdom. Currently, Saudi Arabia is the world's largest exporter
million over the next three years. The King Khalid International
of oil, but wants to diversify its economy and has identified the
Airport represents the air gate and the beating heart of the
port and shipping industry as a means of achieving this
capital of the Kingdom of Saudi Arabia and the center of the
goal. USD 613 million has been put aside for expansion and
national air transportation system - and as Dubai has shown,
development of the country's ports aimed at boosting capacity,
there is a tremendous opportunity to create regional logistics
and promoting trade and tourism. The government is planning
and passenger hubs.
multi-billion dollar projects to expand capacity at airports in
order to meet rising demand. The King Khalid International
Airport (Riyadh) and the King Abdulaziz International Airport
(north of Jeddah) expansion projects have begun and are
Current Status:
Construction work will start in November 2012 and is to be
completed by 2015. The expansion will include the construction
scheduled to be completed by 2015. of a new terminal, terminal five, expected to be complete by
Investment is also being made in expanding rail and metro
terminals three and four, which are currently in the design
networks throughout the kingdom. Of particular note, in 2013
phase.
November 2013 and an expansion and upgrade of existing
Saudi Arabia will invite tenders for a USD 16 Billion metro
network in Mecca with a view to easing congestion, particularly
during the annual Haj pilgrimage. Also to this end, the
Haramain High Speed rail will connect Mecca and Medina by
way of the Red Sea city of Jeddah.
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November 2012
The Preliminary Strategic 100
South Africa
According to the Minister of Energy, Ms. Elizabeth Dipuo Peters,
“for international companies, a solar park would indicate a
Infrastructure funding is largely provided by the national
serious and long-term commitment to solar deployment, giving
government, however increasing private sector investment is
them the confidence to establish a presence and invest in the
recognized as crucial. The newly created Presidential
country.”
Infrastructure Commission (PICC) now has a mandate to
The solar park will create 12,300 jobs during the construction
develop a 20-year infrastructure pipeline, to ensure forward
planning of infrastructure development and streamline project
and an additional 3,010 for operations and maintenance - in an
area that currently face high rates of unemployment.
procedures. The big trends in South Africa in 2013 and beyond
are a dual focus on introducing a renewable energy program, as
well as pushing through container and natural resource port
expansions - projects that are seeking co-investment from
global partners. On the renewable energy front, the government seeks to
introduce 17,800MW of renewable energy by 2030. In order to
deliver on that vision, South Africa seeks expertise from foreign
firms, especially including Spanish firms Abengoa Solar,
Iberdrola, and Gestamp Wind. Current Status:
Recently the DoE has issued RFPs to source a team of
5000MW Solar Park
consultants (an environmental assessment practitioner and a
geotechnical engineering consultant) to conduct a feasibility
Why the Project is Important:
study. Tenders for consultants close on November 16.
The proposed 5000MW Solar park project in the Northern Cape
Project bidding will happen in the first or second quarter of
2013.
is an ambitious renewable energy project that would position
South Africa as a key manufacturer of solar technology.
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November 2012
The Preliminary Strategic 100
United Arab Emirates
Plant. The tunnel will start at 24 meters below the ground
surface and end at 80, allowing gravity to do much of the work
Infrastructure investment in the Gulf States is once again
and thus removing the need for up to 35 existing pumping
booming after the financial crisis. Both Dubai & Abu Dhabi have
stations. When completed, the underground pumping station
world class ports and airports that have undergone or will soon
will be one of the largest in the world.
undergo expansion, and both cities are developing planned
communities, urban mass transit systems and highway projects
Current Status:
to support growing populations. Both Emirates are in full stride
CH2M HILL was contracted in 2008 to oversee the delivery of
promoting their locales for infrastructure-related firms to set
up their MENA regional hub. STEP as well as the decommissioning of up to 35 existing
sewage pumping stations. Construction on the tunnel began in
This rapid expansion is putting pressure on energy and water
2011 and is to be completed by 2015. COWI, a leading consulting
resources. For example, in Abu Dhabi energy demand is
group in engineering, environmental science, and economics, is
growing at an estimated 8%/year and is expected to triple by
carrying out the design of the STEP T-02 contract, and Impregilo,
2030. The biggest electricity project is the UAE transmission
an Italian group, was awarded the contract for construction.
interconnection. On the water side, desalination plants provide
Mott MacDonald won the contract in August 2012 to provide
the majority of the UAE's water. contract administration and site overview services.
Strategic Tunnel Enhancement Program
(STEP) - United Arab Emirates
“The UAE is the third largest consumer of water in the world…
There is a daily water consumption rate of nearly 550 litres per
person in a region that receives less than 1cm of rain per year”
-Peter Hall, Project Director for Mott MacDonald.
Why the Project is Important:
STEP will feature 41km of deep sewer tunnel beginning in the
main pumping stations on Abu Dhabi Island and surrounding
islands and at the Al Wathba Independent Sewage Treatment
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November 2012
The Preliminary Strategic 100
USA
Crossing (NITC), was commissioned in 2004 and will provide an
alternative to the privately owned Ambassador Bridge that
One of the trends that emerges this year is “uncertainty”, and
currently monopolizes traffic between Detroit, Michigan and
this is a theme that is personified in the US infrastructure
Windsor, Ontario. Trade with Canada supports approximately
market. Whereas most of the countries highlighted in this
237,000 jobs in Michigan, and the Detroit-Windsor border is the
year’s Strategic 100 have a Ministry of Infrastructure, or a PPP
busiest corridor on the U.S./Canada border, making up nearly
Unit of the government, the US has no federal vision for
40% of binational trade. The NITC holds immense trade promise
implementing critical strategic infrastructure. On the state
for the U.S., as exports to Canada traveling through Detroit by
level, there are shining stars that have emerged: Virginia has
truck totaled USD 55.1 Billion in 2010.
established an “Office of Transportation Public-Private
Partnerships” to move priority PPP projects forward; and Texas
continues to be a national leader on the state level for
delivering PPP projects on time and on budget.
Despite an overall lack of a national vision, and severe policy
Current Status:
Opposition to the NITC’s construction was led by the project’s
competitor bridge, the Ambassador Bridge, but Michigan voters
in November 2012 approved moving forward with planned
construction.
uncertainty, the US continues to be a destination for foreign
investment and foreign EPC firms are aggressively competing
for projects. Last month, for example, Vinci won the contract
for the Ohio River Bridges project
New International Trade Crossing Project
"Shouldn't we have at least a second crossing? To say we got
that covered so we have opportunity, it allows us to grow (trade)
and be more successful?" Michigan Governor, Rick Snyder
Why the Project is Important:
The construction of the bilateral Detroit River International
Crossing project, also known as the New International Trade
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November 2012