Sovereign Wealth Fund Institute

The press release states, “CPP Investment Board (CPPIB) announced today that a consortium including CPPIB has completed the acquisition of a 24.1% stake in the Gassled Joint Venture (Gassled) from Statoil ASA. The consortium entered into an agreement to acquire this stake in June 2011.

The buyer is Solveig Gas Norway AS, a holding company that is approximately 40% owned by CPPIB, 30% by Allianz Capital Partners, a subsidiary of Allianz SE, and 30% by Infinity Investments SA, a wholly owned subsidiary of the Abu Dhabi Investment Authority. The total value of the transaction as announced on June 6, 2011 is NOK 17.35 billion or approximately C$3.18 billion.

André Bourbonnais, Senior Vice-President, Private Investments for CPPIB, said, “We are pleased to close this significant transaction alongside our consortium partners. Gassled is a good fit with CPPIB’s infrastructure portfolio and long-term investment strategy, and we look forward to becoming an important strategic partner in the future development of the Gassled network.”

Established in 2003, Gassled is an unincorporated joint venture which owns the majority of the gas transport infrastructure on the Norwegian Continental Shelf. It is a core infrastructure asset and a strategic asset in the Northwestern Europe energy landscape. Gassled is expected to benefit from the growth in European gas demand and Norway’s long term position as a key supplier of gas to Europe.”

Read more: Press Release

In December 2011, the Abu Dhabi Investment Authority purchased 9.9% of Kemble Water Limited, the holding company of Thames Water. The private regulated utility company is responsible for the public water supply and waste water treatment in parts of Greater London, Thames Valley, Surrey, and other areas. The utility is regulated by the Office of Water Services.

The China Investment Corporation (CIC) through a sovereign wealth enterprise (SWE) made its first major move into UK infrastructure buy purchasing an 8.68% stake in Kemble Water.

Earlier, CIC chairman Lou Jiwei indicated the CIC’s interest in European and American infrastructure.

Ireland’s National Pensions Reserve Fund (NPRF) is allocating more money to domestic investments rather than overseas. This change in investment policy to invest more capital domestically stems from political and economic policy shifts. France and Italy have taken similar measures by creating strategic domestic investment funds. These strategic direct investment funds invest in companies that are deemed essential to the domestic economy. The Irish Government pulled the trigger on the creation of a Strategic Investment Fund which will be a portfolio of funds investing in select sectors of the Irish economy. Some of these areas will include infrastructure, venture capital, and financing for small and medium enterprises (SMEs). Ireland’s NTMA sought the recruitment of corporate finance advisers to identify such investments and find potential co-investors. The investments are to be sourced on a commercial basis but also be of strategic long-term significance to the Irish economy. With regards to investment in the specialized funds, the NPRF will be the cornerstone investor.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to the press release, “The California Public Employees’ Retirement System (CalPERS) announced today that it has agreed to acquire a stake in a 65-mile submarine electric power transmission line that runs from Sayreville, New Jersey, to Hicksville, Long Island, New York.

The agreement to purchase an interest in the Neptune Regional Transmission System from Arclight Capital marks CalPERS second direct infrastructure investment, following the 2010 purchase of a 12.7 percent equity stake in London’s Gatwick Airport.

“This agreement is a good fit for our growing infrastructure program,” said Joseph Dear, CalPERS Chief Investment Officer. “It’s an income-generating investment with stable revenues located in the United States, very much in line with the type of investment we said we would be looking to make when we described our vision for infrastructure in September.”

Over the next three years, CalPERS plans to invest up to $5 billion in infrastructure projects, including up to $4 billion in the United States and up to $800 million in California. CalPERS plans call for investments in both public and private infrastructure, including, but not limited to, transportation, energy, natural resources, utilities, water, communications and other social support services.

The deal for the transmission line is expected to close in the first quarter of 2012. Terms of the agreement were not disclosed.”

Read more: CalPERS Press Release

UK utility infrastructure remains in high demand. The Abu Dhabi Investment Authority (ADIA) plans to purchase a 9.9% stake in Kemble Water Limited, the holding company of Thames Water. ADIA is purchasing the stake from a consortium of investors led by Macquarie called Kemble Water Holdings Limited. The private regulated utility company is responsible for the public water supply and waste water treatment in parts of Greater London, Thames Valley, Surrey, and other areas. The utility is regulated by the Office of Water Services.[Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

Khazanah Nasional, a Malaysian sovereign wealth fund plans to invest directly into India in sectors such as financial services, infrastructure, and energy. India is one of the BRIC economies that had increased its economic growth tremendously this past decade. In addition, India is slowly opening up its economy to foreign investors by loosening some investment restrictions and regulations. Earlier in June, Khazanah and the Infrastructure Development Finance Company Limited (IDFC) agreed to set up a joint venture to produce a dedicated infrastructure development company that focuses on road transportation development. Khazanah would hold 80.1% of the equity share of capital in the proposed joint venture.

Khazanah Nasional is also evaluating proposals in India’s geothermal and hydroelectric business segments. In fact, much like the rest of Southeast Asia, India has strong demand for electricity and current power plants are not meeting demand.

The Alberta Investment Management Corporation (AIMCo) has acquired a 50% interest in Inversiones Grupo Saesa Limitada (Grupo SAESA) from Morgan Stanley Infrastructure Partners. Grupo SAESA is a regulated electricity transmission and distribution company in Chile. It is the second largest electricity distributor in Chile and delivers electricity to 16% of Chile’s population.  The other 50% owner is the Ontario Teachers’ Pension Plan.

AIMCo is not new to Chile and is attracted to their established and stable investment regulatory environment. Chile provides excellent opportunities in core infrastructure investments for sovereign investors due to their support of foreign capital investment. AIMCo has already invested $850 million in Autopista Central, a six-lane toll road in Chile.

Market Share by 2010 Sales (Chile)

• Chilectra 44%
• CGE 29%
• Otros 11%
• Chilquinta 8%
• Grupo SAESA 8%

According to the press release, “The California Public Employees’ Retirement System (CalPERS) Board of Administration today earmarked up to $800 million for investments in California infrastructure over the next three years.

CalPERS plan calls for investments in both public and private infrastructure including, but not limited to, transportation, energy, natural resources, utilities, water, communications and other social support services.

“We remain committed to California’s future and the investment opportunities that run deep between our coastline, mountains and valleys,” said Rob Feckner, President of the CalPERS Board of Administration. “We are prepared to increase our investments in infrastructure with our first and foremost goal being on investment returns, and a secondary goal of supporting essential community services that are crucial to continued economic development, a safe environment, and healthy schools and communities.”

Currently, CalPERS has $203 million invested in a combination of physical infrastructure investments and infrastructure-targeted private equity funds around the state. The Pension Fund has also lent its “AAA” rating to California cities and counties for credit enhancement of more than $326 million in infrastructure bonds.

Under its California allocation, CalPERS plans to target individual investments equal to or greater than $150 million. It will look for a number of key qualities in the investment that CalPERS calls “defensive,” including minimal competition, stable revenues and returns, low operating risk and strong credit.

“Infrastructure is an integral part of the CalPERS investment portfolio,” said George Diehr, Chair of the CalPERS Investment Committee. “We’re looking for long-term economic value by providing safe, reliable, efficient and high quality services that are vital to California that not only meet our risk-return objectives, but that we believe have the extra benefit of creating jobs and ultimately improving the economic climate.””

Read more: Press Release

Barack Obama

In our estimate, sovereign wealth funds would look forward to the creation of an American infrastructure bank. The primary reason for this is the infrastructure fund investment returns would most likely surpass treasuries and other current fixed income investments. It is essential to note that not all infrastructure investments are created equal. By observing current infrastructure investment patterns around the globe, sovereign wealth funds and other governmental investors prefer infrastructure in energy, utilities, and transportation, over more speculative types like green projects and social infrastructure.

U.S. President Barack Obama’s speech tonight is outlining his future plan for jobs in America. With high U.S. unemployment rates, the current situation is daunting. American public sector projects are facing major funding issues and will have to rely on outsider capital. Thirty years of underinvestment in American infrastructure has created tremendous issues for the United States. In fact, other developed nations spend a great deal more percentage wise on public infrastructure. One proposal out there is the creation of an American infrastructure bank. The bank would most likely receive a capital infusion of federal dollars to the tune of US$ 60 billion to provide infrastructure financing in transportation. If the proposal includes investment opportunities to sovereign wealth investors and other investors, it could alleviate congressional passage complication and lessen the fiscal impact on U.S. debt.

Developing infrastructure in energy and transportation is a white hot asset class for sovereign wealth funds and public pensions. This $4.7 trillion dollar sovereign investor class already represents a major source of foreign capital for the United States. Sovereign wealth funds are an active participant in American stocks, private equity, and real estate.

Instead of recapitalizing financial institutions, funding infrastructure would provide numerous advantages to both investor and the U.S. economy.

Infrastructure as an asset class is a classic inflation hedge, plus it is long-term in nature. It can be a suitable investment for governmental investors with enough capital and funds with a long-term investment horizon. This inelastic asset class attracts investors searching for stable and predictable cash flows. Among the big infrastructure players in the sovereign wealth fund space include the Abu Dhabi Investment Authority, China Investment Corporation, New Zealand Superannuation Fund, and the Government of Singapore Investment Corporation.

One key advantage for sovereign wealth funds by creating an infrastructure bank in the United States is that it will lower political investment risk. When the Abu Dhabi Investment Authority invested in Chicago Parking Meters it created a bit of political controversy in Chicago. One way sovereign investors can circumvent political risk in public infrastructure investment is participating in club deals, bringing multiple foreign parties to the table. This alleviates and distributes political risk among the participating governmental entities and helps paint a better picture of their commercial investment intentions.

Furthermore, the infrastructure bank could lower project risk by creating a fund to invest in multiple infrastructure projects. This pooled approach would increase project diversity. In addition, if the Federal government would guarantee the cash flow payments, there would most likely be increased sovereign investor interest and participation.

2009 Grades – US Infrastructure

• Aviation D
• Bridges C
• Dams D
• Drinking Water D-
• Energy D+
• Hazardous Waste D
• Inland Waterways D-
• Levees D-
• Public Parks and Recreation C-
• Rail C-
• Roads D-
• Schools D
• Solid Waste C+
• Transit D
• Wastewater D

Source: American Society of Civil Engineers

Investing in new energy infrastructure is a blossoming area for many sovereign investors. There are numerous risks inherent in these types of projects such as political risk, financing risk, and developmental risk. In the past, the China Investment Corporation (CIC) has invested in AES Corp. stock. AES Corp. and the CIC have partnered strategically and financially. Recently, the CIC and AES Corp have partnered in a Vietnamese infrastructure project. By partnering with the China Investment Corporation and Posco, AES Corp has lowered political risk in the project, since the deal is involving foreign governmental investors.  Vietnam has a growing economy in which energy demand has exceeded supply. Energy generation capacity is trailing behind demand.

After completion this will be the biggest private sector power plant in Vietnam and will set precedence for future foreign investment in Vietnamese infrastructure.

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Norway’s sovereign fund is prodded by some for its conservatism in investments. The sovereign fund takes small stakes by indexing companies across the globe, with a significant allocation to Europe and the Americas. Over the years, the wealth fund actively pushed to diversify from bonds to equities, and now real estate.

Norway’s SWF has also taken bets where other investors feared, such as Greek sovereign debt. Greek sovereign debt proved to be a bit risky for them; therefore, they cut their debt position in it in the first quarter.

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The press release states, “Statoil ASA has decided to divest a 24.1% direct and indirect stake in Gassled joint venture (jv) for a consideration of NOK 17.35 billion. Following this transaction, Statoil will continue to own 5.0% in the jv.

The buyer is Solveig Gas Norway AS, a holding company that is approximately 45% owned by Canada Pension Plan Investment Board, 30% by Allianz Capital Partners, a subsidiary of Allianz SE, and 25% by Infinity Investments SA, a wholly owned subsidiary of the Abu Dhabi Investment Authority.

“This transaction contributes to a further streamlining of Statoil’s portfolio. The divestment is part of our continuous efforts to increase capital efficiency and maximize shareholder value creation,” says executive vice president for Marketing, Processing and Renewable in Statoil, Eldar Sætre.

Gassled is the owner of the integrated gas transportation grid and processing facilities on the Norwegian Continental Shelf (NCS), transporting Norwegian gas by pipelines from the producing fields to consumers on the European continent and United Kingdom. Gassled was established in 2003 by the merger of the majority of the gas pipeline joint ventures into one joint venture.
Gassled provides transportation services with third party access on a non-discriminatory basis to producers on the NCS. Statoil’s divestment in Gassled enables a re-deployment of capital into assets and projects that yield higher rates of return. This is part of Statoil’s continuous efforts to increase capital efficiency and create shareholder value.

Statoil is committed to the development and supply of Norwegian gas and will continue to be the largest shipper in Gassled.

“Reliable, safe and cost-efficient operation of the system is the key to secure continued interest for our gas among European customers. We are therefore fully committed to maintain our role as TSP for the major part of the transportation and processing systems,” Sætre says.

The financial effect of the transfer will be as of 01.01.2011

The transaction will be subject to government approval from the Norwegian Ministry of Petroleum and Energy (MPE) and the Norwegian Ministry of Finance (MF).”

Read More: Statoil

The IDFC press release states, “IDFC and Khazanah have agreed to enter into a joint venture (JV) to set up a dedicated infrastructure development company with a focus on road sector in India. Khazanah would hold 80.1 % of the equity share capital in the proposed JV and the balance would be held by IDFC. Khazanah and IDFC also propose to invest in convertible instruments issued by the JV.

The first investment of this JV will be in Jetpur Somnath Tollways Limited (JSTL), subject to receipt of necessary regulatory approvals and permissions, including those from the National Highway Authority of India. JSTL undertakes development of a project involving four-laning the Jetpur-Somnath section of the National Highway-8D in the State of Gujarat. 74% of the share capital of JSTL is currently held by IDFC Projects Limited (IDFCPL). The JV will initially acquire 48% of the share capital of JSTL from IDFCPL and will ultimately acquire the entire shareholding of IDFCPL in JSTL and hold 74% of the share capital of JSTL.”

Source: Infrastructure Development Finance Co Press Release

Please view Park Alpha’s latest report on Global Utilities by the Numbers – May 2011. The report calculates and tabulates financial and investment data for select publicly-traded global utility companies.

Download Here

Park Alpha is the consulting arm of the SWFI.

Sovereign investors are keen on coming together to bid on developed European energy infrastructure assets. This asset is a necessary piece of natural gas infrastructure for Europe’s energy consumption and security. In addition, infrastructure assets like these tend to generate long term stable cash flows for their investors. Larger sovereign wealth funds are fond of infrastructure investments as an inflation hedge for their portfolio.

Created in January 2003, Gassled is a joint venture between several oil & gas firms and state owned companies. The entity serves as the official owner of the Norwegian gas transport infrastructure. The biggest stake in Gassled is being managed by Petoro AS, a state owned company that manages it on behalf of the Government of Norway. Petoro AS does not directly own the licenses. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

China views Latin America as a viable region for infrastructure development. The Export-Import Bank of China (China Eximbank) will launch a yuan-denominated fund to invest in developing infrastructure. China Eximbank will partner with the Inter-American Development Bank. The fund amount will be US$ 1 billion.

Headquartered in Beijing, China Eximbank was created in 1994 and is fully owned by the Government of China.

China’s yuan is being proposed as a currency diversifier. The Government of China wants to promote its currency to other countries by raising the visibility of the yuan. Several South American countries are engaging in bilateral trade agreements with China and are using yuan in their currency swap agreements.

According to an interview by Reuters, Gita Wirjawan, Chairman of the Badan Koordinasi Penanaman Modal (BKPM), says the China Investment Corporation is planning to offer $4 billion in infrastructure project loans. The BKPM is an investment board that coordinates business between businesses and government. Its aim is to increase foreign direct investment in Indonesia. Another goal is for the agency to improve the lives of its citizens by creating domestic jobs. The types of Indonesian infrastructure projects were not specified. Indonesia is an Asian emerging economy with a growing middle class in desperate need of infrastructure. If the proper infrastructure is not built in a timely fashion, it can harm economic growth and decrease country competitiveness.

Most sovereign wealth funds prefer to invest in developed infrastructure in Western economies. Developed infrastructure is less risky and cash flows do not vary as much as infrastructure projects. In addition, regulation and government transparency are key planks for SWFs to plunk down significant amounts of capital. Indonesia is at an economic crossroads. The country is aiming to build over 20,000 km of roads and provide at least 15,000 MW through power plants in the next few years. Indonesia is also ripe with natural resources in oil and gas. Lastly, Indonesia is fortunate enough to be able to reap the benefits of hydroelectric power, a renewable source of energy that contributes to an overall low carbon economy.

Around the globe, the majority of sovereign wealth funds have remained somewhat hopeful on Japan’s recovery and economic resiliency.  [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

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New Ownership Structure

Singapore’s GIC is active in energy infrastructure whether it’s in a developed or developing economy. The GIC partnered with ArcLight Capital Partners, LLC and GE Energy Financial Services to become investment partners in five Georgia natural gas-fired power plants. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]

According to the Wall Street Journal, “Global Logistic Properties Ltd. (MC0.SG), a unit of Singapore’s sovereign wealth fund Government of Singapore Investment Corp. or GIC, is in talks to acquire a majority stake in China’s Airport City Development, Co. Ltd., people familiar with the situation said Tuesday. Airport City Development, which is 40%-owned by Beijing Capital International Airport (0694.HK), is the sole developer of air side cargo handling and bonded warehouse logistic facilities for Beijing Capital International airport.

“A deal is likely to be signed soon and an announcement could come within this week,” one of the person said.

Details of the transaction weren’t immediately available, but another person said that the acquisition could be through a combination of cash and shares. Of the cash component, GLP may pay around S$300 million for the stake.”

Read more: The Wall Street Journal

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Reuters reports, “German utility E.ON has granted a consortium of foreign bidders exclusive rights to make an offer for Britain’s second-largest electricity distribution network, the Sunday Times reported. E.ON has given a consortium comprising the Abu Dhabi Investment Authority, the emirate’s sovereign wealth fund, and Canada Pension Plan until mid-January to put together a firm bid, the paper said.

The utility group delivers power to more than 5 million customers across Central England via its distribution business. It has hired JP Morgan to handle the sale while the consortium is being advised by Lexicon Partners and Goldman Sachs, the paper added. An agreement could be reached before the new year, the paper said, citing sources close to the process.”

Read more: Reuters

The Queensland Government press release states, “Treasurer Andrew Fraser today announced the signing of documents for the 99 year lease of the Port of Brisbane to the Q Port Holdings Consortium. Q Port Holdings includes major stakeholders Global Infrastructure Partners (GIP), Industry Funds Management (IFM) and funds managed by QIC Limited (QIC), and a minority stake held by Tawreed Investments Ltd., a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA). The sale delivers $2.1 billion in cash proceeds to the Consolidated Fund as well as the new owner agreeing to fund the future upgrade of section 3 of the Port of Brisbane Motorway, at an estimated cost of $200 million.

“The signing of the deal represents $2.3 billion worth of value to the Queensland taxpayer with the future development of the Port now the responsibility of a quality consortium,” Mr Fraser said.

“By achieving this value-for-money transaction, taxpayers will also avoid expected infrastructure expansions at the Port worth up to $1 billion.

“We are in the marketplace for the upgrade of the Port of Brisbane Motorway up to Pritchard Street now, and this deal will deliver the next extension of this state owned road.

“This is a quality group of investors with the skill and balance sheet to ensure the future development of the port. It includes leading players in port and airport operations and two of Australia’s largest superannuation fund managers.

“GIP, IFM and QIC each hold equal stakes of circa 27%, with the remaining minority stake held by ADIA.””

Read more: Press Release

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Bloomberg reports, “U.S. infrastructure-spending plans are “too little, too late” and should be increased in preference to quantitative easing, said Zhou Yuan, head of asset allocation at China’s $300 billion sovereign wealth fund. Proposed spending of about $500 billion over six years on infrastructure should be doubled, Zhou said in an interview on Oct. 30.

China Investment Corp. may invest, and wouldn’t expect to own completed projects, he said. “Infrastructure of this kind will serve to provide more jobs” than further quantitative easing, Zhou said in New York, while attending a conference hosted by the Chinese Finance Association. Low interest rates in the U.S. are his “top concern,” he said.

Congress has yet to approve the proposed $500 billion of spending on highways and transit. Transportation Secretary Ray LaHood said Oct. 12 he hoped Congress would make the plan a priority next year. Beijing-based CIC was created in September 2007, funded by a $200 billion allocation backed by China’s foreign reserves. Zhou said the fund has depleted its cash to the point where it’s seeking more government money. About 8.6 percent of the portfolio was in cash as of June 9, according to Executive Vice President Jesse Wang. Cash and equivalents were 32 percent of holdings at the end of 2009, according to its annual report.

“We are expecting continued injections,” Zhou said. “The form, quantity and structure remain to be determined.””

Source: Bloomberg

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According to Reuters, “The British government is selling “High Speed 1,” which has a 30-year concession to run a 110 kilometre (70 mile) railway linking London and the Channel Tunnel, to help cut its budget deficit. People familiar with the matter have previously told Reuters it could fetch 1.5 billion pounds.

The “GB Speedrail” group, already consisting of Eurotunnel, Goldman Sachs Infrastructure Partners and M&G’s Infracapital, has been joined by two financial backers, Britain’s Universities Superannuation Scheme, and France’s Caisse des Dépôts et Consignations, a spokesman for the group said.

“We will make an indicative bid today,” the spokesman said.

The five-strong group is vying with at least two rival teams.

One is made up of Morgan Stanley Infrastructure, 3i Infrastructure Plc and Abu Dhabi Investment Authority (ADIA). A second, Canadian partnership has allied Borealis, the infrastructure investment arm of Ontario Municipal Employees Retirement System (OMERS), with Ontario Teachers’ Pension Plan (OTPP).”

Read more: Reuters

According to Reuters, “Australia’s sovereign wealth fund, the Future Fund, is considering buying Macquarie Group’s 23.2 percent stake in airports fund MAP Group, an Australian newspaper reported on Monday.

Macquarie is rumoured to be looking for a price of around A$1.5 billion ($1.36 billion) for the stake in the fund that it managed until last year, The Age newspaper said.

Macquarie Group declined to comment on the report, and a spokesman for the Future Fund was not immediately available. MAP shares rose 1.6 percent to A$3.13 after the report, outpacing a 0.3 percent gain in the broader market. At that price, a 23.2 percent stake in the fund, the world’s only infrastructure fund dedicated to airports, would be worth A$1.3 billion.”

read more: Reuters

According to the Times, “The world’s largest sovereign wealth fund is to buy a £125 million stake in Gatwick as the airport’s new owner seeks to bring in additional investors. The Abu Dhabi Investment Authority (ADIA), which is thought to have more than $600 billion in assets, will buy a 15 per cent stake in the UK’s second-largest airport. ADIA’s purchase comes days after the South Korean National Pension Service bought a 12 per cent stake in Gatwick for £100 million. Global Infrastructure Partners (GIP), an infrastructure fund set up by Credit Suisse and GE, acquired Gatwick last year for £1.5 billion and has said that it is seeking additional investors but will retain management control of the airport. The fund, which also owns London City airport, is understood to be talking to several other potential investors but none of these are thought to be close to agreeing a deal. “

read more: Times UK

According to Bloomberg, “Qatar, the world’s largest producer of liquefied natural gas, expects the construction of a railway system will cost 17 billion euros ($25.3 billion) as the Persian Gulf state seeks improved transport links with its neighbors.

Qatari Diar Real Estate Investment Co. and German state- owned rail operator Deutsche Bahn AG formed Qatar Railways Development Co. today to build the network in three phases by 2026, Qatari Diar Chief Executive Officer Ghanim bin Saad al- Saad said.

Financing and the budget for the project will be announced very soon, he told reporters in Doha. Qatari Diar is part of the country’s sovereign wealth fund.

Gulf states are channeling crude-oil and gas earnings into railways and airports as they develop infrastructure to help economic development and attract foreign investors and tourists. Dubai, the second-biggest of seven sheikhdoms that make up the United Arab Emirates, in September opened the first metro system in the Gulf Arab countries. Oil-rich Abu Dhabi is conducting studies to build a rail system in the U.A.E. capital.

‘The signing of this agreement shows that German expertise and German technology in the transport sector are in demand the world over,’ Transport Minister Peter Ramsauer said today in a statement.

Qatar’s rail network will integrate projects such as a high-speed link between the gas-rich emirate’s capital Doha and its airport, and a link with Bahrain via a causeway, the companies said in a statement. Qatar will also get passenger and freight links between Doha and the industrial cities of Ras Laffan and Mesaieed, freight lines to other countries and a metro system in the capital.Qatari Diar owns 51 percent of the rail company with Deutsche Bahn holding the rest.”

read more: Bloomberg

According to Reuters, “Sovereign wealth fund the Government of Singapore Investment Corp [GIC.UL] regards downside protection as important when considering investments in infrastructure projects, a senior executive said on Wednesday.

Teh Kok Peng, president of GIC Special Investments, said infrastructure provides bond-like, rather than equity-like, returns so the protection offered to investors and the regulatory framework are things the Singapore fund looks at.

‘The returns are not that great because they are regulated,’ he said at a World Bank conference in Singapore.“

read more: Reuters

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