Issue Q4/2010

B CAPITAL PARTNERS (BCP) is pleased to present to you its most recent Newsletter. As investment advisor to institutional investors, BCP focuses on infrastructure, PPP and clean energy investments and offers ‘tailor-made’ investment solutions with specific risk/return characteristics. The long time horizon of infrastructure and renewable energy investments provides specific investment features including bond type returns, inflation hedging and “tick the SRI box”.

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B CAPITAL PARTNERS’ Barbara Weber on CNBC’s “Executive Vision” broadcast on infrastructure

On Monday October 25th at 8 p.m. ET (US broadcast) and Tuesday October 26th at 11 p.m CET (European broadcast), Barbara Weber of B CAPITAL PARTNERS will feature as a panellist in CNBC’s “Executive Vision” broadcast to discuss visionary leadership in light of the challenges of the infrastructure sector in these difficult economic times. She will be debating these issues with fellow panellists such as Jay H. Walder, Chairman of the New York Metropolitan Transportation Authority and Daryl Dulaney, President & CEO Siemens Industry Inc.

"Executive Vision," a CNBC five-part series hosted by CNBC's Melissa Francis and Simon Hobbs is an executive strategy session where some of the world's brightest minds gather to tackle the most compelling issues they face in their fields. The series examines how leaders gain the trust, dedication and admiration of all around them as they confront the challenges in today's ever-changing world.

From October 27th the B CAPITAL PARTNER´s website will feature a direct link to a recording of the full show under its “News & Conferences” section.

Monday October 25th at 8 p.m. ET (US broadcast)
Tuesday October 26th 11 p.m. CET (European broadcast)
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Infrastructure as an Asset Class - the new book by Barbara Weber and Hans-Wilhelm Alfen - an excerpt

Barbara Weber and Hans Wilhelm Alfen's new book: Infrastructure as an Asset Class: Investment Strategies, Project Finance and PPP provides the reader with the necessary theoretical knowledge and background information to understand all aspects of infrastructure investments. The authors demonstrate that far from 'only' representing a conservative asset class, infrastructure assets offer a wide variety of risk/return and cash flow profiles, ranging from highly conservative bond/fixed income-style asset profiles through to investment opportunities that are comparable to (private) equity.

Weber and Alfen point out that commonly, studies on infrastructure investments erroneously describe the risk/return profile of infrastructure investments by referring to their industry and sector alone. The authors argue that this approach oversimplifies matters and is therefore inadequate for capturing the risk/return profile of infrastructure investments: A central part of the book is hence an innovative new organizational model which enables readers to identify and assess all risks of any individual infrastructure project internationally.

For an excerpt see: (.pdf)

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Ireland’s pension fund investments in PPP schemes

The requirement for infrastructure funding is likely to exceed the capacity of the banking sector to provide senior debt financing for such projects for years to come. Many countries are aware of the continuing need to upgrade or replace ageing infrastructure. The National Development Plan of Ireland 2007-2013 for instance seeks to address Ireland’s significant infrastructure deficit.

However, banks are restricted by capital adequacy requirements and liquidity issues. Some are unable, or unwilling, to provide loans of the tenure required for typical PPP schemes. The result has been a significantly reduced number of debt providers operating in the project finance banking market. Unsurprisingly, governments which have taken ownership stakes in banks as part of their recapitalisation programmes are encouraging those banks to focus infrastructure lending in their own country for the benefit of the taxpayers who have provided the capital injection.

For a full version of the study see:

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Feed-in Tariffs: most efficient and effective policy to achieve renewable energy targets

The National Renewable Energy Laboratory (NREL) has undertaken a comprehensive review of different renewable policy schemes around the globe with special emphasis on Europe and Canada. The review confirms previous European studies that Feed-in Tariffs (FITs) are the most efficient and effective policy to attract investors to renewable energy projects, and this way, reach renewable energy goals. The report further suggests that comparable incentives could be material for the US to obtain the urgently needed private investments, which are essential to eventually match its renewable energy policy targets.

For a full version of the study see: (.pdf)

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Roadmap 2050: impressive outcomes from renewable energy study

Please read the remarkable findings of the Roadmap 2050 Project (conducted by leading organizations in this field) demonstrating that the discussion on the future of the European power sector has proven to be incorrect. It was assumed that high-renewable energy scenarios would be unstable, uneconomical and much more costly. However, Roadmap 2050 finds that in each of the low/zero carbon scenarios using 40%, 60%, 80% and 100% renewable energy sources, the future cost of energy is comparable with costs in the current high-carbon infrastructure.

For a short version see:
For the full presentation see:

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Responsible for this Newsletter is:
Paolo Alemanni, Konstantin von Falkenhausen, Arianne Leuftink, Dr. Barbara Weber
Susenbergstraße 108, CH-8044 Zurich, Switzerland