ACEN’s divestment from the South Luzon coal-fired plant in the Philippines is billed as an energy transition financing, although it is not part of the ADB’s official ETM programme. Despite appearing to follow some of the principles of the ETM, the transaction’s structure is a little opaque and questions remain about the suitability of South Luzon for retirement before other plants.
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Brazil's new infrastructure law has been broadly welcomed by the project finance market. In addition to providing stimulus for a wider infrastructure investor base, the law has eased initial angst that BNDES will return to its old ways and start crowding out the private sector from infrastructure and energy finance.
With its mixed bag of offtake contracts that include a merchant element, the Aguas Pacifico project financing has pushed the envelope on structuring lender comforts for Chilean desalination projects. And with Chile expected to double desalination capacity by 2030, the project’s template is almost certain to be repeated.