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Seizing Infrastructure Opportunities in India

Seizing Infrastructure Opportunities in India EDC: Facilitating Canadian Trade EDC is Canada’s official export credit agency (ECA) offering financial solutions to help Canadian exporters and investors expand their international business

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Seizing Infrastructure Opportunities in India

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  1. Seizing Infrastructure Opportunities in India

  2. EDC: Facilitating Canadian Trade EDC is Canada’s official export credit agency (ECA) offering financial solutions to help Canadian exporters and investors expand their international business We work in partnership with the public and private sectors to enhance the visibility of Canadian companies abroad EDC’s financial services include financing, insurance and guarantees EDC’s combined financing and insurance volumes reached $85.8 billion in 2008 (23 % increased over 2007) while serving 8,312 Canadian companies (11% increase)

  3. EDC: How We Add Value EDC PRODUCTS Accounts Receivable Insurance Protects Exporters’ accounts receivables against non-payment by their buyers Contract Insurance & Bonding Guarantee of Exporters’ bid and performance bonds or any advances (ie. Down payments) received

  4. EDC: How We Add Value, Cont’d MORE EDC PRODUCTS Financing Flexible, medium- or long-term financing for buyers of Canadian capital goods and services including Structured Finance (Project Finance) Canadian foreign investment financing can also be considered Political Risk Insurance Provided for Canadian companies’ investments or assets in a foreign country, as well as protecting project loans from political risks

  5. EDC in India • 40+ year history in India • On-ground presence since April 2005 • Sector priorities: Telecom, Automotive, Energy, Infrastructure

  6. India needs new… • Power • Transportation Infrastructure • Airports • Roads/Highways • Sea Ports • Improved passenger/cargo rail systems • Public transportation system (e.g. MetroRail System) • Water & Waste Water Solutions

  7. Airports • 16 International and 87 domestic airports • PPP model successful in Bangalore, Hyderabad, Mumbai, Delhi • Opportunity • Projected Investment of USD 10 bn by 2012 • Upgradation of Kolkatta (East), Chennai (South) • Greenfield Airports in Noida ($ 365mn), Navi Mumbai ($ 610mn), Goa ($ 365mn), Kannur ($ 365mn) and Pune ($ 365mn) • Modernization of 35 Non-Metro Airports involving investment of $ 1.5bn. Immediate ones Udaipur, Amritsar, Jaipur • Maintenance Repair Overhaul facilities

  8. Opportunities in Power

  9. Power • India – Power deficit country • Additional generation capacity planned – 78,577 MW by 2012 • Power generation – skewed towards thermal (53%), hydro electric (25%) • 9 Ultra Mega Power Projects (UMPP) planned (thermal, coal) – 4000 MW each • 4 have been formally awarded to 2 private sector Co’s. Both EDC relationships • Investment in transmission & distribution in tandem with Generation • 14 new transmission projects planned with private sector participation

  10. Nuclear Power • Nuclear power – 4120 MW ~ 3% of total capacity • 17 civilian reactors operational, 5 under construction • Additional generation capacity planned – 63,000 MW by 2030 • Opportunity: • Canada & India signed bilateral co-operation facility • Mining of Uranium • Nuclear Power Plant Construction • Supplying specialised equipment

  11. Opportunities in Transportation Infrastructure

  12. Ports • 7,500 km coastline and just 12 major ports • Projected investment of CAD 21 bn by 2012 • Opportunity: • 276 projects have been identified – additional berths, deepening channels, equipment, rail road connectivity. • Share of Private Investment – CAD 15.50 bn • Chennai Mega Terminal planned by Ministry of Shipping with investment of CAD 1.17 bn

  13. Roads • India boasts of extensive road network but of poor quality • Model Concession Agreement for road projects in place • NHAI is the regulating body • Stipulates concession period, toll rates, technical parameters, price indexation. Company asking for lowest grant gets the project • Structure • Toll and Annuity based • Opportunities: • Golden Quadrilateral Project • Six laning of 6,500 kms • NSEW Project • Four laning of 6,736 kms • NHDP • 1,000 kms of access controlled expressways • Several state roadways being widened

  14. Railways • Largest railway network in world • 9,000 trains and 14 mn passengers per day • Opportunities • Total Investment planned by 2012 ~ CAD 75 bn of which; • Rolling stock procurement – 13.29 bn • Expenditure on Safety issues – 27 bn • Capacity augmentation – 18 bn • MRTS (Mumbai, Delhi, Hyderabad, Chennai) – 5.7 bn • 22 stations identified for development. • New Delhi, soon to be awarded ~ CAD 1.25 bn project • Feasibility Study by Terry Farell and Partners of HK • 2 Dedicated Freight Corridors planned • Eastern Corridor & Western Corridor - 7.30 bn • 2 New Locomotive factories in Bihar

  15. Others • City gas distribution projects • Players : Gujarat State Petronet Limited, Reliance Industries Ltd, Mahanagar Gas Ltd • Urban Infrastructure • Skywalks, bus queue shelters, sewerage systems, engineering studies • Cold chain logistics • Water and Waste Treatment Technologies • Security and Safety Equipment

  16. Large Players in India

  17. TATA Group • Large, diverse Indian company: • 107 operating companies and 7 business sectors • ENERGY • Power • ENGINEERING • Auto, Auto Components, Air Conditioners • MATERIALS • Steel • CHEMICALS • Fertilizers, Pesticides • SERVICES • Hotels, Real Estate, Infrastructure, Insurance, Asset Management • CONSUMER PRODUCTS • Beverages, Watches, Retailing • IT • Software, Telecom, Automation

  18. TATA Group • Projects pursuing. • Mumbai MRT Phase 2 – 32 km elevated metro stretch connecting Mumbai city. Total project cost ~ USD 1.89 bn • Redevelopment of New Delhi Railway Station • Mundra UMPP – 4,000 MW • Imported Coal, Cost ~ USD 4.2bn • First unit of 800 MW commissioning by July 2011 • Interest in Coal to Liquids • Developing small car “Nano”

  19. TATA Group • Logistics – Looking for partners • Looking at entering railway wagon leasing and transportation • Third party logistics business (3PL) • Free Trade Warehousing Zones • Ports • Looking at developing greenfield ports for captive use by the Group

  20. Larsen and Toubro • CA$7 bn total revenue: Largest engineering group in India • Engineering and Construction Projects (E&C) • Oil & Gas, Petrochemicals, Power and Water • Heavy Engineering Division (HED) • Custom Engineered Solutions, Nuclear business • Engineering Construction and Contracts (ECC) • Third party construction • Electrical and Electronics (EBZG) • Electrical Standard products, Electrical systems, Metering, control, automation, petrol dispensing pumps • Machinery and Industrial Products (MIPD) • Manufactures mining related equipments, valves, welding, tire making machinery, etc. • IT and Engineering Services • e-engineering solutions and embedded systems

  21. Larsen and Toubro • Interested in setting up Nuclear plants • MoU with AECL • Have grown by forging JVs • Very open for new relationships • Taking up role of EPC for major projects • Order book position in excess of ~ CAD 17 .50 bn • Mumbai Monorail project • 20 km elevated; 18 stations; To be completed in 30 months • Cost of ~ CAD 615 mn. Malaysian partner – Scomi Engineering • Seawood Railway Station Development • Wants to enter Rolling Stock Manufacturing

  22. Reliance-ADAG • Among India’s top 3 private sector group • Interests in Services • Projects pursuing • Worli – Haji Ali Sea Link project; 4.7 km sea bridge • Redevelopment of New Delhi Railway Station • 100 storey tower in Hyderabad • Asia’s largest convention centre in Mumbai • Nhava Sheva Sewri Link – 22km Transoceanic bridge

  23. Reliance-ADAG • Project under Execution • Metro One – Mumbai Metro Phase 1; 12 km elevated • Delhi Metro Airport Express Link; 22.50 km • Several Road projects in South India totalling more than 400 km • Other Areas. • Looking at Cement Manufacturing – Use of fly ash from UMPPs • Future Metro projects at Chennai, Ahmedabad • Nuclear Power • Old Age Homes

  24. Seizing MDB-Funded Infrastructure Contracts Three Principal Multilateral Development Banks in the Region • World Bank • www.worldbank.org • Inter-American Development Bank • www.iadb.org • If you are interested in bidding on MDB-funded contracts, you can download a free copy of the Guide for Canadian Businesses at: • www.edc.ca/infrastructure

  25. Your Contacts at EDC Marie-Claude Erian, Sector Advisor Infrastructure & Environment Tel:(613) 598-2969 Email: inf-env@edc.ca Karen Mallory, Sector Advisor Infrastructure & Environment Tel: (613) 598-3166 Email:inf-env@edc.ca Peter Nesbitt, Regional Vice-President South & Southeast Asia Based in New Delhi Tel:(613) 597-7961 Email:pnesbitt@edc.ca Rajesh Sharma, Regional Manager Based in Mumbai Tel: (613) 597-7963 Email:rasharma@edc.ca Vibhav Agarwal, Regional Manager Based in New Delhi Tel: Email: vagarwal@edc.ca Visit our website at www.edc.ca

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