providing development capital to infrastructure …...2017/06/06 · infra capital myanmar (icm)...
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ProvidingDevelopmentCapitaltoInfrastructureProjectsinMyanmarIntroductiontoInfraCapitalMyanmarADBACEF,Manila,June2017
ICMisunderthePIDGumbrella
ICM fulfils the InfraCo Asia Development mandate forMyanmar. InfraCo Asia is backed by the Private InfrastructureDevelopment Group (PIDG) a multi-donor organization that promotes private infrastructure investment indeveloping countries througha range of specialized financing and projectdevelopment facilities and programs.
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Austria
ADA DGIS&FMO DFAT
UK
UKAid KfW
Private Infrastructure Development Group (PIDG)
GuarantCo DevCoTAFEAIFICF
DebtPool
InfraCo Asia Development
InfraCo Africa
SECO
InfraCo Asia Investments
SIDA NORAD
Infra Capital Myanmar
GreenAfrica
Power
The Department for International Development (DfID) is a UnitedKingdom government department responsible for administering overseasaid. The goal of the department is "to promote sustainable developmentand eliminate world poverty".
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Economicdevelopment:• Improvingrurallivelihoods formenandwomenthroughtheLivelihoods&FoodSecurityTrustFund (LIFT) andFLEG-T
• AdvisingfirmsonoperatinginwaysthatbenefitpoorpeoplethroughtheBusinessInnovationFacility
• Unlockingthepotentialofbusiness inBurmaviatheBurmaEnterpriseOpportunityFacility
• Improvingtheinvestmentclimateandbusiness standardsthroughtheIFC andtheMyanmarCentreforResponsibleBusiness
• IncreasinginvestmentininfrastructurethroughtheADB,InfraCo Asia andSARTIP
Governance:• ElectoralandParliamentary
strengthening,includingcredibleNovember2015electionsviaIFES
• ImprovingtheGovernment’spublicfinancialmanagement
• SupportingBurma’sparticipationintheExtractiveIndustriesTransparencyInitiative (EITI)
• StrengtheningcivilsocietythroughPyoe Pinand others
• Co-fundingthe2014CensusPeacebuilding:• Addressinginter-communal
violenceandsupportingthepeaceprocess
• AdvicefromInterMediate toallsidesonnegotiatingdurablepeaceagreements
Healthandnutrition:• Extendinghealthservicesandimprovinghealthsystemsvia3MDG
• Combattingdrugresistantmalaria• Improvingnutrition,especiallyforchildrenunder5andpregnantwomen,viaLIFT and3MDG
Education:• Improvingprimaryschooling quality
andaccessviaUNICEF• Improvingcomplementary
educationsystemsthroughtheMyanmarEducationConsortium
Humanitarian:• Fundinghumanitariansupportto
peopleaffectedbyconflictinKachin,Rakhineandborderregions
• FloodEmergency:reliefsuppliesandlivelihoodsrecoverysupport
Infra Capital Myanmar (ICM) originates, develops and finances infrastructure projects in Myanmar. As theDeveloper under contract to InfraCo Asia Development (IAD) for the country of Myanmar, we aim to stimulategreater private investment in infrastructure by developing projects and bring them to a stage whereby they canattract domestic and international finance.
TargetSectorsofDevelopmentandInvestmentInterestinMyanmar
RuraldevelopmentPowerinfrastructureRuralelectrificationWaterandsanitation
SustainableenergyRenewableenergyEnergyefficiencyWastetoenergy
Agriculture&agri-supportFisheries
AgriculturalfarmingColdstorage
Transport&logisticsRoadinfrastructureUrbanplanningLogisticsvaluechain
BuildingFoundationsfor:EconomicGrowth,PovertyReduction
AccesstoInfrastructure,EmploymentandSustainability
TheICMApproach:ImpactfulInvestments
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Creatingbankableprojectsthroughleveragingthepublicsector
Stages of Infrastructure Project Development
Most institutional investors focus on Stage 3 and Stage 4 projects as a way to diversify their portfolios
• Investment at this stage only $2 to $3 Million (2 to 10% of the total cost depending on project size)
• However, riskiest stage of investment• Lack of sources of early stage financing in
industry
InfraCo Asia plays a key role in attracting more private sector investment but very few peers exist
• IFC Infra Ventures • Global Infrastructure Facility
• Recent World Bank initiative• Supported by Australian government, European
institutions and Swiss firms
• Commercial Banks• Multi-laterals• Private Equity• Pension Funds• Sovereign Wealth Funds• Infrastructure focused government
sponsored funds such as AIF, AIIB
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InvestmentMethodology
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FeasibilityPhase1- 2yearsDueDiligence
TechnicalAssessment2
1
3
4
ProjectIdentification
Construction&ImplementationPhase
1- 2yearsPermitsandRegulatoryNavigation
InvestmentExit
RoleofICM• Identifiesandscreensinfrastructure
opportunitiesØ Feasibility studiesØ Commercial&legalduediligence
• Developprojectsuntilfinancialclose• Partnerwithlocalandforeignstakeholders• Attractinvestments fromprivatesector• Promote successoftheprojectsandpartners
RuralMini-gridProject
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• Solar/Diesel/Batterymicro-gridsto power
•communitycentres,
•telecomtowersand
•householdsinruralareas
ProjectDescription
• Implementationof2xPilotprojects
• buildanenablingenvironmentforcottageindustryand
SMEstobenefitfromelectricity.
PhaseI:Developmentphase
• Shorttermobjectiveofupto100sitesbyDec2018
andalong-termobjectiveof1000sitesby 2023
PhaseII:CommercialImplementation
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RuralMini-gridProject
ProjectDescription• Providingenergyaccessandruralelectrification throughSolardieselhybridmicro-gridsinthecountry• Displacementof440,000litersofdiesel,889tonsofCO2/yearandinefficientgensets thatrun24/7• Catalystforcottageindustryandsmallbusinesses• AdditionalAccesstoSocialInfrastructure– powermobilemedical clinics,communityschools• Forruralareas,basicenergyaccesscanbeprovidedquicklytothepeopleataffordablerates(previouslyun-
electrified)
OpportunitiesandChallenges
• Developmentofasecuritypackagethatwouldprovidecomfortprivatesectorinvestors,withinaPrivate-Public-Partnershipframework.
• Itcouldfunctionasacombinationofafundedescrowaccountandaguaranteefacilityto:• Backstopshorttermpaymentdelaysbythe
VillageElectrification Committees(VECs)• terminationeventscausedbydefaults from
VECs
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WindPowerProject
ProjectDescription• PioneeringthedeploymentofwindpowerinMyanmar• Developmentofupto60MWto100MWofwindpowerportfolio• 24proposedsitestobeinthreeregionsofMyanmar• Prefeasibilitycompletedwithfairlevelofconfidenceinwindresource,transportability&constructability• Developmentoflocalwindpowerplatform
OpportunitiesandChallenges
• InMyanmar,thereishugepotentialforpowergenerationfromrenewableenergyresources
• Technologytransferanddevelopmentofnativecoreskillsinwindpowerprojectdevelopmentisneeded
• However,thereisstilllackofbankablewinddatathatcanbeutilizedforpublicandprivatesectorinthedevelopmentofwindpowerprojects.
ChangingLandscapeforDevelopmentandInvestmentinMyanmarYanis Boudjouher,Director
MarcusTeo,[email protected]
ChristaAvery,CountryDirector,[email protected]
Contact
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