Seizing Infrastructure Opportunities in India

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Seizing Infrastructure Opportunities in India
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EDC Facilitating Canadian Trade

• EDC is Canadas 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
• EDCs financial services include financing,
  insurance and guarantees
• EDCs combined financing and insurance volumes
  reached 85.8 billion in 2008 (23 increased
  over 2007) while serving 8,312 Canadian companies
  (11 increase)

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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

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EDC How We Add Value, Contd

• 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

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EDC in India

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

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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

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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

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Opportunities in Power
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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
  Cos. Both EDC relationships
• Investment in transmission distribution in
  tandem with Generation
• 14 new transmission projects planned with private
  sector participation

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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

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Opportunities in Transportation Infrastructure
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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

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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

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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

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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

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Large Players in India
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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

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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

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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

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Larsen and Toubro

• CA7 bn total revenue Largest engineering group
  in India
• Engineering and Construction Projects (EC)
• 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

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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

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Reliance-ADAG

• Among Indias 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
• Asias largest convention centre in Mumbai
• Nhava Sheva Sewri Link 22km Transoceanic bridge

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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

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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

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Your Contacts at EDC

• Marie-Claude Erian, Sector Advisor
• Infrastructure Environment
• Tel [phone]
• Email inf-env_at_edc.ca
• Karen Mallory, Sector Advisor
• Infrastructure Environment
• Tel [phone]
• Email inf-env_at_edc.ca
• Peter Nesbitt, Regional Vice-President South
  Southeast Asia
• Based in New Delhi
• Tel [phone]
• Email pnesbitt_at_edc.ca
• Rajesh Sharma, Regional Manager

Visit our website at www.edc.ca