Business Coverage Issue 1

BUSINESS COVERAGE ISSUE

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Featuring Joburg Property Company / Kenya Water Conservation / Fonterra / Roy Hill

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“Quality is our business�

Neelkanth is the sole manufacturer of corrugated boxes in the Entire Lake Zone of Tanzania with state of Art Semi - Automatic machinery. The Turnkey Project was acquired from India including Highly Skilled & experienced machine operators.

17, Kenyatta Road, P.O.Box - 205, Mwanza, Tanzania T +255 28 2502763 M +255 784 274 777 E info@vrajlals.com

Publisher’s notes

Continuing on from our successful territorial publications in Africa and Australia, I am delighted to present to you the first issue of our global publication ‘Business Coverage’. Business Coverage is our new flagship publication, the objective is to put buyers in touch with sellers and connect service providers with end users cross the world.

The energy sector is currently experiencing a turbulent time with the price of oil significantly dropping over the last few weeks. In this issue we bring you all the latest news on how this is affecting the sector, and both the negative and positive impact this is having on the global economy.

Our Africa section brings you up to date on exciting construction projects upcoming in Mozambique and South Africa, this runs alongside our special business report on Johannesburg property giants, Joburg Property Company.

Australia is expected to be the world’s largest exporter of LNG over the next few years, and our Australasian sector includes major news on WA’s Persephone Gas Project.

We’ve secured a in-depth look at Europe’s largest ongoing infrastructure project. Crossrail’s External Affairs Director speaks to us in the first part of our special presentation on the project improving public transport in London and the surrounding areas.

Elsewhere in Europe, Santander have named a new CEO and Eurostar have unveiled a new train as part of their 20th Anniversary celebrations.

Renewable Energy is very much a hot topic in the USA right now, and our North America section covers latest news on investments in the sector that involve SunEdison, TerraForm and the Ikea Group. Finally, our Middle East section has the latest news as Etihad Airways unveils Airways Partners and Qatar award $290m worth of healthcare contracts.

To register your interest in increasing your company’s visibility either regionally or globally, please get in contact via my email address below.

BUSINESS COVERAGE

OKM Media Ltd, 66 Prince of Wales Road, Norwich NR1 1LT Publisher Oliver Moy okm@aubusinesscoverage.com Designer Sam Wood sam.wood@aubusinesscoverage.com Head of Research Abi Abagun abi@aubusinesscoverage.com Head of Research Sam Hussein sahardid.hussein@aubusinesscoverage.com Head of Research Cynthia Fall cynthia.fall@aubusinesscoverage.com

Issue 1

Con

ntents Africa

6-9 News Stories 10 Joburg Property Company 16 Kenya Water Conservation

Australasia 20-23 News Stories 24 Fonterra 29 Roy Hill

Caribbean

37 WASA Trinidad

Europe

42-49 News Stories 50 Cross Rail Project Q & A

North America 56-59 News Stories 60 Camac Energy

Middle East 66 News Stories

AFRICA NEWS STORIES

STEINHOFF TO BUY 92% STAKE IN PEPKOR FOR $5.7BN South African furniture firm Steinhoff International is set to buy a 92% stake in clothing retailer Pepkor, in a $5.7 billion cash and share deal that gives it exposure to the fast-growing African apparel market.

by Christo Wiese, one of South Africa’s best known businessmen and the top investor in African retail giant Shoprite.

Steinhoff, a furniture retailer targeting budget-conscious shoppers in southern Africa and Europe, said in a statement it will pay R62.8 billion ($5.7 billion) for Pepkor, which runs the Pep brand that sells everything from mobile phones to school uniforms.

Steinhoff said it will buy Wiese’s 52.7% stake for 609.1 million shares at a price of R57 each.

Steinhoff will buy the stake from private equity firm Brait and entities controlled

Business Coverage Issue 1

Pepkor is also a prominent retailer in Poland, allowing Steinhoff to accelerate its European expansion.

It will buy Brait’s 37.06% for R15 billion in cash and 200 million shares.

Shares of Steinhoff rose 2% while Brait’s shares plunged more than 19%.

SOFTWARE UPGRADE HELPS SWAZILAND UTILITY BRING MORE RELIABLE POWER TO ITS CITIZENS ABB has signed a significant software license agreement with Swaziland Electricity Company (SEC), the government-owned provider of electricity generation, transmission and distribution to the Kingdom of Swaziland. As part of the agreement, SEC will upgrade its Ventyx Ellipse work and asset management platform to the latest release to further optimize the management and visibility of its asset infrastructure and the workforce maintaining it.

Rural electrification continues to be a major priority for Swaziland’s Ministry of Natural Resources and Energy, the national energy authority which formed the SEC in 2007 to provide reliable, affordable, safe, and sustainable power to its citizens and to help eradicate poverty in the Southern African state. The upgrade is part of a major transformation project by SEC to improve power supply, rural electrification, and customer service – while minimizing operating costs.

(ESS). SEC will implement Ellipse Work Planner for advanced maintenance planning to improve asset availability while reducing costs.

SEC is moving to a newer software version having already used Ellipse for 18 years.

“By upgrading to the latest version, we can continue to use one single, easy-touse platform for all enterprise resource management functions – offering us significant productivity and cost efficiency gains,” underlined Melusi Malinga, Chief Information Officer, SEC. In this way, ABB is supporting SEC in its mission to deliver a reliable and safe power supply amid the challenges of managing extensive operational networks, assets and workforces while expanding the rural distribution network to provide a better quality of life to more of the country’s citizens.

Supported on low-cost technology platforms, the upgraded version of the Ellipse software helps minimize the expense for business process support in key areas of asset and work management, work requests, payroll, rostering, absence management, and employee self-service 7

AFRICA NEWS STORIES

CONSTRUCTION WORK BEGINS ON GROSVENOR SQUARE IN SOUTH AFRICA Construction of the Grosvenor Square worth US$10.95m has begun. The office park will be located at the Century City in Cape Town and will target small and medium tenants.

This construction project was designed

by Tim Hughes Architect and will span a total of 5364m2, comprising of five buildings that will harbor A-grade low rise offices. These will be located around a picturesque courtyard and buyers will have flexible options for the spaces, ranging from 90 to 2000m2.

Construction will involve the setting up of 170 basement parking bays and 30 open parking bays on a ratio of 4 per 100m2. Units will be sold at US $2,005.86 with parking space included and tenant installation.

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The location of the building makes it convenient as it is being built on high visibility site that is really sought after by developers and is boarded by two distinct roads: Century Boulevard and Century Way. According to the Project Manager for Rabie Property Group Kutlwano Rasodi, Grosvenor Square is being built with the aim of meeting demand for space in the fast growing region. This was also motivated by the fast selling of neighboring Quays office development that comprises of standalone buildings for large users.

The new construction project is under Murray & Roberts and is expected to be completed by September 2015.

MOZAMBIQUE TO CONSTRUCT A NEW PORT CITY Mozambique’s state petroleum company, Cabo Delgado Ports, will invest in construction of a new port city to assist development of natural gas discoveries in the country.

The planned is an industrial area development spanning 18, 000 hectares of land, and will be located in the northern Cabo Delgado province. According to a statement, it will also be in close proximity to the liquefied natural gas facilities planned by Eni SpA, Empresa Nacional de Hidrocarbonetos EP and Anadarko Petroleum Corp. (APC).

Construction works at the mixed use port city development will involve setting up of parks, industry, tourist attractions, residences, schools, hospitals and stores.

ENH has already said that the 8, 000 inhabitants of Palma area are satisfied with the new port city project. The development is designed in such a manner to avoid resettlement of the populations.

Construction of the new port city is crucial since the country could become the world’s third largest gas producer in 2018, following investments by a couple of companies. With reserves estimated at 250 trillion cubic feet, the country has attracted investors such as Eni of Italy

and Woodlands, Texas-based Anadarko.

Further investments are expected, with the country’s strategic positioning near gas-hungry India and the Far East.

The urban development plan for the new port city was started last month by a Maputo-based architectural company, Tracus.

Infrastructure construction is expected to commence in 2017 according to the statement, although access roads were expected to start construction immediately (as of July). The plan is so large that Amad Valy, head of operations at ENHLogistics, said it won’t be possible to complete before 2017 timeline according to client.

They expect to accomplish 25% of the plan in 15 years.

Cabo Delgado Ports, a joint venture between both state-owned Cia Mocambicana de Hidrocarbonetos and Portos & Caminhos de Ferro de Mocambique, will initially provide US$ 150 million and hold leases on ports in Pemba and Palma, as indicated on last January

by Transport Minister, Gabriel Muthisse.

Italian Premier, Matteo Renzi, has indicated that Eni will invest US$50 bn in Mozambique.

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JOBURG PROPERTY COMPANY

Helping to develop a ‘world-class African city’ Business Coverage Issue 1

JPC utilises these assets to leverage private sector investment in public infrastructure.”

PROPERTY MANAGEMENT

JPC provides all aspects of property management development, asset management, land strategy, acquisition and stewardship in order to maximise the social, economic and financial benefit to the City of Johannesburg and support the City’s delivery objectives on a cost competitive basis.

There are seven strategic objectives identified by the company. These are to: The City of Joburg Property Company (JPC) manages and develops the City’s property portfolio, promoting both social and commercial opportunities.

The JPC is committed to working towards the city’s growth and development strategy, Joburg 2040.

It is committed to helping to make Joburg a ‘world-class African city’.

“We pride ourselves on maximising the social, economic and financial value of the City of Johannesburg’s property portfolio and enhancing its efficient use to drive investment, economic growth and job creation,” says JPC.

“As a promoter of innovative solutions to the development challenges of contemporary Johannesburg, the

• Support economic development utilising the City of Johannesburg’s property portfolio;

• Support community development through using the City’s property portfolio;

• Support the Housing Master Plan and delivery through the use of the City’s property portfolio; • Support environmental programmes and initiatives in the management of the City’s property portfolio; • Establish land strategy, land acquisition and land stewardship in line with the City of Johannesburg’s priorities; • Ensure financial sustainability; and • Ensure good governance and a professionally managed company.

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AFRICA PORTFOLIO

The property portfolio is valued at some R8.6-billion (US$1.2-billion), with approximately 64,000 properties which cover 39,000 hectares across seven municipal regions.

JPC manages properties in the most vibrant and fast-growing hot spots in Johannesburg, including Newtown, Soweto and Sandton, creating excellent opportunities for both local and foreign investors.

The company also specialises in utilising council-owned land assets to leverage private sector investment in public infrastructure.

Realising both the social and economic value through the management and development of Council-owned properties and maximising their potential is a key priority of the JPC, increasing their value and long-term returns.

DEPARTMENTS

JPC’s Property Asset management provides a strategic advisory role relating to activities of capital investment, portfolio planning, disposal of single asset and /or entire portfolios and identification of possible scenarios for the positioning of the portfolio. The primary objectives are the means of intervention of complex real estate operations and identification of potential utilisation or investment opportunities.

The Property Management function involves obtaining and maintaining Business Coverage Issue 1

value from the property portfolio by effectively administering and leasing, acquiring and selling, and ensuring maintenance of the property.

Property Development aims to maximise the financial, economic and social returns from the sale and/ or lease of council owned land by active engagement with the property development value chain, in line with the City’s Growth and Development Strategy.

Over the last several years, the unit has successfully facilitated the completion of a range of projects with a combined investment value of nearly R2bn.

These projects include:

• Worldwear Shopping Centre • FNB Westbank Offices

• Pan African Shopping Centre

• Mofolo North residential development • Melrose Crossing

• Soweto Hospice in Diepkloof

• Orlando ekhaya projects- including University of Johannesburg campus, Orlando Towers & JoshCo Hostel conversion; and • Dale Lace Village in Westcliff.

JPC also partner with other municipal ownedentitiessuchastheJohannesburg Development Agency and Joburg City Parks as well as relevant private sectors to ensure efficiency and delivery, for maximum commercial returns “without losing our social focus,” it says.

A LONG TERM VISION

JPC’s sustainability vision ensures there is efficient management of planning, acquisition and disposal, operation and effective maintenance and growth of Council-owned properties.

There are several areas of focus to to ensure this. This includes better decision making: capital expenditure decisions should be based on rigorous and fully documented economic appraisals that take into account benefits and risks as well as financial parameters.

Other steps include:

• Improved planning and budgeting: the planning process helps identify gaps between existing assets gaps and assets required and also helps in budgeting process.

• Improved reporting: reporting on service delivery potential, continued service delivery needs and economic viability.

• Asset management planning: a central asset planning and control data repository.

• Sweating of fixed assets: design assets in the most cost effective and operation efficient way.

• Asset classification: asset class reflecting needs rather than reporting requirements.

• Building efficiency: efficient asset life cycle operational and maintenance costs • Portfolio growth: have a long term vision of future utilisation of developable land.

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AFRICA

Kenya National Water Conservation & Pipeline Corporation Helping the social and economic development of Kenya with the provision of clean water The Kenya National Water Conservation and Pipeline Corporation (NWCPC) was founded in June 1988. Its vision is to be a world class institution in water infrastructure development and management.

Its remit is to develop and manage water infrastructure and enhance water security and storage for multipurpose uses, mitigation of drought and flood effects in a sustainable manner.

Much like any other organisation, NWCPC strives to act with integrity, accountability, transparency and professionalism. It prides itself on improving team work and operating with innovativeness.

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The corporation’s core mandate is to:

• Develop state schemes and spearhead dam construction for water supplies, flood control and other multi-purpose uses, land drainage and construction of dykes • Carry out ground water recharge using flood water

• Develop, retain existing and expand bulk water supply to Water Service Boards and other Water Service Providers • Drill and equip boreholes

STRUCTURE

The NWCPC is divided into a number of main departments to handle separate areas of operations, which are:

• Corporate Department

&

Legal

Services

• Construction And Electromechanical • Planning And Design

• HumanResourcesAndAdministration • Finance Department

“Evidence shows that countries which have made major strides in their socio-economic development have made major investments in water infrastructure,” says NWCPC.

“In Kenya, the water sector will continue to play a major role in social and economic development given that all people in all sectors depend on water for various uses. Water availability and storage will then continue to be a key driver of development.”

As Chairman of the Board, Hon. Dr. Julius Kones explains: “The Corporation, as a key player in water infrastructure development and management, has been strategic in the development of boreholes, flood control infrastructure, water pans, small dams and large dams. Nine years into the Water Sector reforms, the Corporation has contributed significantly to the socioeconomic development of the country as it continues to embrace its mandate.”

The Corporation has introduced Performance Contracts in line with the national management accountability framework in Kenya which has helped the Corporation build its competitive advantage in performance as a public service institution.

‘Water confidence through Innovative Solutions’ Penelly Construction & Engineering Ltd is water & energy engineering firm located in Nairobi, wholly owned by Kenyans and agencies with multinationals on pumps, tanks, switchgear, transformers, pipes, generators, water treatment. The company was registered under Company’s Act in the year 1997 as Penelly Machinery Chemicals and later changed its name to Penelly Construction & Engineering Ltd in 2003.

We value partnerships, association and collaboration with our team, suppliers, financiers and customers both public and private.

The company has a fully fledged management team supported by a team of dedicated and experienced Project Engineers and Service Technicians.

KENYA HOUSE MONROVIA STREET, P.O. BOX 9145 - 00100, NAIROBI T +254 (020)2245572, 2229628, 2244844 F +254 (020) 315984

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AFRICA Since their introduction, Dr Kones says, “This approach to provision of services has led to a remarkable transformation and improvement of the quality of services offered by our organisation.

“Indeed, the results of the previous Performance Contracts have seen the Corporation ranked with ‘very good’ performance on the overall.

I am pleased to report that the Corporation has largely been on target on most of its performance indicators and obtained commendation certificate from the Public Complaints Standing Committee secretariat.”

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VISION 2030

NWCPC has had to adapt to a substantial increase in the demand for water storage due to not only increasing population estimated and climate change requirements but also to national and international development policies and needs including Vision 2030.

The Kenya Vision 2030 is the national long-term development blue-print that aims to transform Kenya into a newly industrialising, middle-income country providing a high quality of life to all its citizens by 2030 in a clean and secure environment.

The Vision was officially launched by the Grand Coalition Government in July 2008. The adoption of the Vision 2030 built on the successful implementation of the ‘Economic Recovery Strategy for Wealth and Employment Creation’ (ERS 2003 – 2007), which saw the country’s economy back on the path to rapid growth since 2002, when GDP grew from a low 0.6% and rose gradually to 6.1% in 2006.

Crucial to these aims is of course providing clean and safe water to the country. Managing Director, Mr. Evans JWC Ngibuini, commented: “NWCPC will therefore not only have

to adapt to these changes but also reform and change faster so that it can provide world class leadership, be proactive and provide solutions on demand.”

“We recognise the value other water sector institutions contribute to our success. We strive to improve on our operations and effectively execute our strategies where employee wellness, quality service delivery, environmental friendliness and corporate governance remain a priority.”

www.royal-associates.org Royal Associates incorporates Royal Associates Consulting Engineers, Consult 2 Associates, Integrated Development Associates and Biosolution Systems and Engineering. The Firm undertakes consulting assignments in Civil and Structural Engineering Design, Training and Construction Supervision including Irrigation, Water Supply and Sanitation, Drainage, Bridge Design, Flood Control and Reclamation, Water Treatment and Storage.

The Firm also offers consultancy Services in Economics, Infrastructure Planning, Project Management and Environmental Concerns, Gender and Community Facilitation, Agriculture and Rural Development, Resource Development etc. throughout Sub-Saharan Africa.

The Regional Head Office for Africa is located at Royal Plaza, Nairobi, Kenya with SADC Regional Office located at Royal Hill Apartment in Lilongwe, Malawi. Other main Regional Offices are in Arusha, Tanzania and Kampala, Uganda.

Africa Head Office

SADC Regional Office

Tel 0725 650 905 / 0733 265 237

Tel (265) 01771560

Royal Plaza, Nairobi, Kenya, P.O Box 37705 – 00100 Email royalassociates.hq@gmail.com

Royal Hill Apartment, P.O Box 31340,Lilongwe, Malawi Email royal@africa-online.net

AUSTRALASIA NEWS STORIES

WOODSIDE APPROVES $1.2 BILLION PERSEPHONE GAS PROJECT ENERGY giant Woodside will push ahead with its $1.2 billion Persephone gas project off the Western Australian coast.

The development showed Woodside’s commitment to the the oil and gas rich North West Shelf, off the coast of the Pilbara region of WA.

Woodside (WPL) and fellow stakeholders, which include global giants BP, Chevron, Shell and BHP Billiton, have approved the project, which will be the third major development for the North West Shelf in the past six years.

“The NWS project celebrated 30 years of domestic gas production and 25 years of LNG exports earlier this year and approval of Persephone is the next step in continuing this success story,” he said.

The project is expected to cost $1.2 billion, with work expected to start in 2018.

Woodside owns just over 16 per cent of Persephone and will operate the project on behalf of its partners.

Woodside chief executive Peter Coleman said the project would help maintain supply to its Karratha gas plant.

The project is set to produce its first gas in early 2018.

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NATIONAL LIFESTYLE VILLAGES ANNOUNCES PARTNERSHIP WITH BLACKSTONE US private equity investor Blackstone will invest $150 million in NLV as it looks to cash in on the growing need for housing for ageing baby boomers in Australia.

National Lifestyle Villages founder and managing director John Wood said the company was excited to have Blackstone as its financial partner, with the company’s investment ranking as one of the largest single investments in the Australian industry to date.

“NLV’s position as one of Australia’s most significant players in this niche and fastgrowingindustryreflectsyearsofexperience and our ability to meet the growing demand for land-lease communities in our target markets,” he said.

Kishore Moorjani, Blackstone’s managing director of tactical opportunities in Asia, said the partnership with NLV represented an attractive and long-term opportunity to invest alongside a well-respected and successful Australian company.

baby boomers and early retirees who wanted to release equity in their homes and live in secure and safe gated environments.”NLV continues to work closely with local and State Governments who acknowledge that the land-lease model is a proven and privately-funded solution for Australia’s ageing population as well as providing our community residents with impressive lifestyle advantages and benefits,” Mr Wood said.

NLV’s communities have more than 1800 residences that are home to about 2700 people, with plans to increase to 3100 homes and 4600 people as existing communities are completed over the next few years.

As part of its near-term expansion, NLV plans to develop another six communities of about 2100 homes.

“Blackstone’s investment follows extensive due diligence and we look forward to providing our global knowledge, expertise, and capital to develop this emerging sector in Australia,” he said.

Mr Wood said land-lease communities had struck a significant chord with Australia’s 21

AUSTRALASIA NEWS STORIES

MZI AWARDS EPC CONTRACT AT KEYSBROOK MZI Resources Ltd (MZI) has announced that it has executed the construction contract for the Keysbrook Mineral Sands Project to GR Engineering Services Limited (GR Engineering) (ASX:GNG).

The contract is for engineering, procurement and construction services under a lump sum, turn key arrangement (LSTK) of $54.6 million for delivery of the Keysbrook mine site and upgrades to the existing mineral sands separation plant owned by Doral Mineral Sands Pty Ltd. GR Engineering were awarded preferred contractor status in October 2013 and since then have completed early engineering activities with respect to the construction project. This early engineering has improved knowledge

Business Coverage Issue 1

of the project and MZI is confident that it will assist GR Engineering to derisk the construction effort.

MZI’s Chief Executive Officer Trevor Matthews said “We have a good relationship with GR Engineering and their appointment reflects the confidence we have in their ability to construct the project.

Signing the construction contract is one of the final activities prior to starting project development and we forward to commencing soon.”

look

MZI expects to make a further announcement on the development decision for the Keysbrook Project imminently.

ADANI SECURES FUNDING FOR CARMICHAEL MINE PROJECT IN QUEENSLAND Adani Mining, the Australian subsidiary of Adani Enterprises, and the State Bank of India (SBI), the country’s largest lender, have today signed an MOU in the aftermath of the successful Brisbane G20 Summit concluded over the weekend. Adani’s Australian operations are headquartered here in Brisbane, and the company has made building a long term future with the state of Queensland a key focus of its Australian arm.

The MOU provides for a credit facility of up to $1 billion USD subject to the detailed assessment of the company’s mine project at Carmichael, near Clermont in Western Queensland.

The mine, which holds a JORC-certified resource in excess of 11 billion tonnes of thermal coal, is the centrepiece of Adani’s integrated mine, rail and port project in Queensland, and a key plank of the company’s value chain going forward. SBI is a long-term and highly valued partner of Adani in its home market. It has long been a key financier of the company’s job-creating power, infrastructure and diversified projects in India and abroad.

“The MOU with SBI is a significant milestone in the development of our Carmichael mine. It is a unique asset

that lies at the heart of our investment in Queensland and Australia, and aligns perfectly with our clear vision for delivering energy security in the Indian market”, Adani Group Chairman and Founder, Gautam Adani said.

Adani Mining CEO and Country Head, Jeyakumar Janakaraj, added that the MOU and other agreements nearing their conclusion send a clear signal to the market that the company’s project is on track for first coal in 2017. This project, which is evincing interest from private and public financiers in India and abroad, will deliver 10,000 jobs and $22 billion in taxes and royalties to Queensland in addition to helping Adani deliver cost-efficient power in the Indian market.

The state government has further underlined the importance of this project by announcing today its willingness to invest in export-enabling infrastructure, namely the rail component of our project.

It is yet another example of the confidence close observers of our project has to deliver on our plan to build a long term future with Queensland, placing the state at the heart of Australia’s plans to be a key energy exporter to India and to other rapidly expanding markets.

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Fonterra

The world’s largest global milk processor and dairy exporter Fonterra is a global dairy brand based in New Zealand, with expert farmers at its heart. Fonterra is a cooperatively-owned company which produces 22 billion litres of milk each year sold the world over.

Each aspect of Fonterra represents the group’s dedication to nutritious dairy products - even down to its name which means ‘spring from the land’.

“Our business is based on sourcing secure, high quality milk and unlocking its natural goodness in ways that add real value to our customers and consumers around the world,” Fonterra says.

UNIQUE BUSINESS MODEL

From day one, Fonterra’s shareholders have been farmers that have helped it to become a world lead in dairy excellence over the last 140 years.

Fonterra has a network of 16,000 staff

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in New Zealand and around the world working to make dairy available to millions of consumers in 140 countries every day, making it the globe’s largest global milk processor and dairy exporter.

The Fonterra team produces more than two million tonnes of dairy ingredients, specialty ingredients and consumer products each year and 95 per cent of these are exported worldwide.

LEADING BRANDS

A large part of Fonterra’s business is operating consumer brands businesses in key markets across the world which contribute to around 55 per cent of its profit. In Australasia, its brands hold leading positions in cheese, spreads, yoghurts and dairy desserts. In New Zealand, our brands also lead the market in milk, flavoured milk and ice cream.

Across the ASEAN/MENA regions, which include all ASEAN countries as well as Africa and the Middle East, Fonterra’s high value nutritional powders including its Anlene high calcium range for bone health and our Anmum range for mother and child nutrition have a strong market presence.

In Latin America, Fonterra operates a joint venture with Nestlé, Dairy Partners Americas, which provides consumer dairy products across Brazil, Venezuela, Ecuador, Argentina and Columbia. Its Soprole business is also a leader in consumer dairy in Chile with the number one or two positions across all major categories.

New Zealand milk however is always the company’s first priority. “We have projects underway to improve the way we use our manufacturing plant and supply chain assets in New Zealand and drive efficiencies,” Fonterra says.

BEINGMATE PARTNERSHIP

As part of Fonterra’s growth strategy into China, in August 2014 it announced it had formed a global partnership with leading Chinese infant food manufacturer Beingmate to help meet China’s growing demand for infant formula.

Performance by design With over 20 years experience in food and biosciences industries for clients around the world, we have the experience, skills and knowledge to deliver integrated solutions in process technology.

Our clients include some of the world’s most demanding and sophisticated food and nutritionals processing companies including Fonterra in New Zealand, Australia, the United States and the United Kingdom, Glanbia in Ireland and the United States, South West Cheese and DairiConcepts in New Mexico USA, AB Mauri in China and New Zealand, Abbott in Ireland, Dale Farm and First Milk in the UK. Projects range from nutritional and infant formulae processes technology upgrades and installations to evaporating, drying, powder handling and specialty projects involving, milk, cheese, whey and yeast processing facilities. PDV Consultants have had significant experience in the development of processes and facilities for lactose (milk sugar) facilities for many of their clients. Our consulting engineers are experienced in all aspects of the design and construction of food production processes, utilities and supporting infrastructure.

With offices in Europe and Australasia our team will be pleased to discuss your project at any time.

Level 3, Vero House, 127 Alexandra Street, PO Box 4455, Hamilton 3247, New Zealand P 64 (0) 7 838 3727 F 64 (0) 7 838 3009 E info@pdvconsultants.com

www.pdvconsultants.com

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The partnership will create a fully integrated global supply chain from the farm gate direct to China’s consumers, using Fonterra’s milk pools and manufacturing sites in New Zealand, Australia, and Europe. The company started the process to issue a partial tender offer to gain up to a 20 per cent stake in Beingmate.

Fonterra Chief Executive Theo Spierings said the partnership between two leading dairy nutrition companies will

Business Coverage Issue 1

be a game changer that will provide a direct line into the infant formula market in China, which is the biggest growth story in paediatric nutrition in the world.

“Our partnership with Beingmate will show the benefits of an integrated and secure supply chain, starting in New Zealand – our number one milk pool – where we are fast-tracking investment in milk processing capacity to meet global demand,” said Spierings.

Fonterra also produces its own milk in China, where the company has two farms and another three under development. Combined, the five farms will produce 150 million litres of milk per year. Fonterra aims to produce up to a billion litres of milk in China by 2018.

LEADERS IN INNOVATION

Fonterra knows it has to be one step ahead of the game to retain its position in the dairy market. To this end, the company is proud of its world-leading Fonterra Research and Development Centre in New Zealand’s Palmerston North. During its 85 years of operations, it has boasted many world firsts.

These developments have included spreadable butter straight from the fridge, the world-leading Anlene range of bone nutrition products, functional milk protein concentrates, ClearProtein and Textured White Base ingredients, which have opened up many new opportunities for products made with dairy ingredients.

“Complemented by Innovation Centres in Melbourne, Amsterdam, Chicago, Shanghai and Singapore, our team in Palmerston North works to understand specific customer and consumer needs in some of the world’s leading dairy market,” Fonterra states.

SUSTAINABILITY

Fonterra has always been at the forefront of energy saving initiatives and knows that carrying out its operations in the most efficient way possible makes

a big difference to the environment.

In 2003, Fonterra devised one of New Zealand’s largest energy efficiency programmes aimed at reducing the energy intensity per tonne of product manufactured. In the 2013 financial year, the energy intensity per tonne for ingredient products had decreased by 15% compared to when the programme began.

“This programme is based on conducting an ‘energy blitz’ on a selection of sites each year where projects and investments are identified and then implemented in order to reduce energy use,” says Fonterra.

“Focus areas have included heat recovery, refrigeration, compressed air, boiler efficiency improvement, and other energy intensive processes on sites.”

Fonterra’s dominance in the market looks set to continue as it keeps progressing closer to its 150th year.

“Our story doesn’t end here. Dairy is a pure and natural product with unlimited potential and nutritional possibilities we’ve yet to explore,” it concludes.

“Our partnership with Beingmate will show the benefits of an integrated and secure supply chain, starting in New Zealand” Theo Spierings, Fonterra Chief Executive

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ROY HILL PROJECT

Technology, innovation and investment in people are driving the largest mining construction project currently underway in Australia The Roy Hill Project is an iron ore mining, rail & port project to be developed in the Pilbara region of Western Australia, the only independent iron ore project with West Australian majority ownership.

It is a world-class, low phosphorus, Marra Mamba iron ore deposit located in the Pilbara – one of the world’s premier iron ore provinces situated approximately 115 kilometres north of Newman.

The Roy Hill Project has a defined mineralisation of more than 2.4 billion tonnes of +55% Fe iron ore, enough to sustain a mine life of more than 20 years, with Roy Hill aiming to load its first shipment of ore for export in 2015.

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Hancock Prospecting Pty Ltd is the majority owner of Roy Hill Holdings Pty Ltd, the holding company of the Roy Hill Iron Ore Project, with a 70 per cent equity interest.

The remaining 30 per cent equity interest is held through consortia comprising Marubeni Corporation, POSCO and China Steel Corporation, with Marubeni Corporation holding a 15 per cent equity interest in the company, POSCO holding 12.5 per cent and China Steel Corporation holding 2.5 per cent.

As part of the ownership agreement the various consortia partners have also secured their proportionate share of iron ore production from the Roy Hill Project, representing a combined 28.75Mtpa of iron ore at full production.

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PROGRESS

At the end of July 2014, Roy Hill advanced past the 50% completion stage following the successful completion of the US$7.2b loan facility in Singapore in March 2014.

More than 4,700 people are currently working on the project, with over 3,800 workers on site across the project and with this number set to increase to 4,500 later this year, the $10b Roy Hill project is on track for the 2015 shipment date.

OPERATIONS

The Roy Hill Project is intent on producing low cost, reliable, sustained iron ore known in the market for its quality and grade.

Civiltest Pty Ltd Geotechnical Consultants has been in business for approximately 25 years, and employs a

range of dedicated staff across their ofďŹ ces and NATA accredited Laboratories. The company provides civil

engineering testing services for both small and large civil engineering projects.

Civiltest Pty Ltd, 10 Latham Street, Mornington 3931 VIC T (03) 5975 6644 F (03) 5975 9589 www.civiltest.com.au

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cutting edge technology, remote operating control, high levels of automation and cross industrialised methodologies.

Operations will include:

• 55 Mtpa mine, processing plant, airport and permanent accommodation village • 344 kilometre heavy haul railway linking the mine and port • Port stockyard and two-berth export facility in Port Hedland

• Corporate Headquarters and Remote Operations Centre based in Perth The Corporate Headquarters and Remote Operations Centre (ROC) of Roy Hill will be based in Perth, introducing a significant new

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dimension to the mining industry.

Roy Hill will amalgamate its operations, marketing and corporate services functions, creating an integrated business that will deliver optimisation of production throughput, quality and reliability across the entire business.

This end-to-end integration of Roy Hill’s mining operations will set new standards for the industry. It will enable the integration of critical valueadding planning and scheduling between all aspects of Roy Hill’s operations. This significantly reduces cycle times, and in turn provide diagnostic information to facilitate timely and informed decisions in every aspect of the business.

“The ROC will be a custom built, hightechnology, central automation hub,

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which will provide a coordinated and integrated approach to the planning, operation and overall management of Roy Hill’s mining, processing, rail and port operations,” Roy Hill states.

TECHNOLOGY

Roy Hill will use state-of-the-art, hightechnology systems, automation and processes throughout the project.

It is not only intent on utilising this technology, but taking technology to a new level in the industry.

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“The use of technology and the application of innovative thinking will be a defining feature of Roy Hill and its operations. We are expanding on Western Australia’s reputation for mining technology and innovation and taking it to new levels of efficiency and focus,” it says.

“All Roy Hill employees are empowered to use the wealth of experience, knowledge and insight that they bring with them and apply it to developing and using proven technology in innovative ways to streamline operations and

ensure that Roy Hill exports 55Mtpa as cost-effectively as possible.

“Employees are encouraged to use innovative thinking to not only solve problems they encounter in their roles, but to also use this thinking to continually design and develop improvements to business processes and systems in all areas of the organisation.”

INVESTING IN PEOPLE

Roy Hill knows that the key behind its success will be the people at the core of the company and wants to

a ‘thinking organisation’ where the inherent knowledge and wisdom of staff will be collectively nurtured.

It is also intent on providing a training and development framework that maps an individual’s career aspirations and provides them with the opportunity to works towards realising their career goals. “Every employee will be able to influence continuous improvement from within their role,” says Roy Hill.

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Caribbean

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Water & Sewerage Authority Trinidad & Tobago On a mission to deliver 24 / 7 water services

The Water and Sewerage Authority of Trinidad and Tobago is a statutory body established in 1965.

Its mandate is to maintain and develop waterworks, provide water supplies, promote conservation and proper use of water resources and construct and develop sewerage works.

When it was founded in 1965, the total daily water production in Trinidad and Tobago stood at 45 million gallons per day (m.g.d).

Today, the Authority produces approximately 232 m.g.d, an increase of over 500 percent.

WATER SOURCES

Trinidad and Tobago has four main impounding reservoirs - Hollis (storage capacity 1 billion gallons), Navet (storage capacity 4.2 billion gallons), Caroni Arena (storage capacity 10 billion gallons), Hillsborough (storage capacity 224 million gallons).

Surface water sources equate to more than half of the country’s water supply, with ground water services at 30 percent and desalination plants at 12 percent.

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There are currently 77 water production facilities throughout Trinidad and Tobago.

The four major facilities mentioned previously and the privately run Desalcott account for 70% of the total water production.

The Authority’s main centralised public sewerage systems are located in the following areas: • Beetham, Port of Spain

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• San Fernando • Arima

• Malabar

• Maloney

• Scarborough, Tobago

STRATEGIC PARTNERSHIPS

WASA recognises the importance of strategic partnerships and has

been collaborating with PUBCPG Consultants of Singapore to provide technical support and services for the development of the Beetham Wastewater Treatment Plant Reuse Project.

“This project aims to utilise the final effluent released from the Beetham Wastewater Treatment Plant for use by industries located at the Point Lisas Industrial Estate,” explains Daniel Plenty, Head of Corporate Communications.

To this end, WASA has also signed a Memorandum of Understanding with the National Gas Company for the construction of a pipeline between the Beetham Plant and Point Lisas. This will facilitate the transfer of 10 million gallons per day of treated high-grade industrial water for reuse at Point Lisas Industrial Estate. This will in turn free up 10 million gallons per day of potable water, currently being used for industrial purposes, for domestic use instead.

WASA also signed a Memorandum of Understanding with the National Water and Sewerage Corporation of Uganda for benchmarking studies and developing a Performance Improvement Plan for the Authority.

GOALS AND AMBITIONS

One of WASA’s main targets is to provide 24/7 water service to

all customers. Althought there is much work to be done to achieve this, WASA has made significant improvements in the past five years. In early 2014 it was revealed that 56 percent now receive a 24/7 water supply, up from 18 percent in 2008.

“This massive improvement in coverage has been achieved through the upgrade and rehabilitation of infrastructure and optimisation in the operation of the water supply systems,” says Plenty.

WASA is focused on improving and building on the advances made thus far and the continuation of the ongoing infrastructural development programme will see the completion of a number of key projects across Trinidad and Tobago. “When completed, these projects are expected to result in the delivery of 24/7 in Tobago, in the first instance and 24/7 in Trinidad, by December 2014 or thereafter,” Plenty adds.

PROJECTS TO HELP COMMUNITIES

WASA put in place various projects to make improvements to increase water supply by 8.4 mgd, while works have been completed to replace high leakage pipelines including the Navet Trunk Main, Hollis Trunk Main South, Maracas

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Caribbean Royal Road and many others, to save an estimated 3.0 mgd. This was part of a transmission system upgrade where over 150 km of pipeline were laid.

With these measures, the deficit in supply was reduced by an estimated 11.4 mgd to 26.6 mg.

WASA completed several projects that dramatically improved supply for members of communities throughout Trinidad and Tobago:

• Chin Chin Road Pipeline Project provided some 9,400 residents of Cunupia with a 24/7 supply of water.

• Covigne Road Water Improvement Project gave 1,200 residents of Covigne Road a reliable pipe-borne supply for the first time through the installation of 2.9 km of new mains and a state-of-the-art booster system.

• The Point Fortin Desalination Plant provided over 30,000 residents of Point Fortin and parts of La Brea, with an improved water supply.

• Biche Water Improvement Project provided 4,000 residents in 499 households in Biche and Plum Mitan a 24/7 water supply.

• Chase Village Pipeline Project provided 5,000 residents with a 24/7 supply.

• In Tobago, the Arnos Vale, Bacolet to Signal Hill, and Courland to Buccoo pipeline projects have benefitted approximately 25,000 persons.

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UPCOMING PROJECTS

These include the installation of storage reservoirs in Arouca, Tompire, Santa Cruz, Plaisance Park, Stonebright (Mayaro), La Fillette, Four Roads (Diego Martin), Quare Road (Valencia), Hololo (St. Anns) and Arena with a total capacity of 3.79 Million gallons.

The Caroni, Navet, Point Fortin, Teschier and Guayaguayare Water Treatment Plants will also be refurbished, while the Charlotteville site will be upgraded from an Intake to a Water Treatment Plant.

There will also be an installation of storage reservoirs at Charlotteville and Bloody Bay with a total capacity of 150,000 gallons.

SOCIAL RESPONSIBILITIES

The Authority has been involved in several social initiatives over the years. This includes the opening of its Public Education Centre in Tobago in 2013, the second facility of its kind in the Caribbean on the water and wastewater sectors. In addition to this, staff continue to collaborate other agencies such as the North West Regional Health Authority, to participate in a series of exhibition throughout Trinidad and the Annual International Coastal Cleanup, which is the world’s largest volunteer event and something WASA has been a part of for the past nine years.

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EUROPE NEWS STORIES

SANTANDER NAMES NEW CEO Santander (SAN.MC) chief Ana Botin has overhauled the management of the euro zone’s biggest bank (SAN.MC), turning the page after her late father’s 28-year leadership and giving the Spanish lender a younger, more international profile.

The bank ousted CEO Javier Marin and replaced him with finance boss Jose Antonio Alvarez, a move welcomed by investors as a sign that Botin, 54, was putting her stamp on a business emerging from a long economic downturn at home.

The new team, which starts on Jan. 1, needs to show Santander can cut costs and build up capital while turning around its business in major markets such as Brazil and Europe, as well as expanding in newer ones such as the United States and Eastern Europe.

The overhaul aims partly to answer big international investors’ concerns that Santander’s board was not independent enough. Santander replaced two

directors and added a third, filling a void left by the death of former chairman Emilio Botin in September, when he was succeeded by his daughter.

In an internal memo seen by Reuters, Ana Botin told staff that she wanted the modernised lender to be “a simple, personal and transparent bank”.

A veteran of Santander herself, she has shown every sign of wanting to further her father’s strategy, including the bank’s global footprint and generous dividend policy. But she has broken with some aspects of his management after four years running the bank’s British business.

Whereas the average age of board members had been 65 before the overhaul, the new directors are between 48 and 54 and include Briton Bruce Carnegie-Brown, who had been a frontrunner to become chairman of the British division.

He will be lead independent director, a new position meant to foster accountability and which some banks are creating following the financial crisis.

“The changes at Santander are a clear message from Ana Patricia to say ‘I’m in charge’ and to show who is holding the reins. She is implementing change at all levels of the bank,” said Enrique Quemada, CEO of investment bank ONEtoONE.

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BELARUS & AUSTRIA WORKING ON JOINT BUSINESS PROJECTS WORTH OVER $700M Belarus and Austria are developing joint business projects worth more than $700 million, First Deputy Chief of the Council of Ministers Office, the head of the Secretariat of Prime Minister Alexander Zaborovsky told a press conference in the follow up to the Austrian-Russian-Belarusian Business Forum held in Vienna on 14 November, BelTA has learned.

“In Belarus there are more than 100 companies with the Austrian investments.

The Belarusian-Austrian projects worth more than $700 million are currently in the pipeline,” said Alexander Zaborovsky.

According to him, the Austrian investors have offered to invest in the development of the construction industry, and the building materials production using the innovative technology. “Maybe the production will be set up from scratch. It is also possible that Austria will invest in one of the existing construction enterprises in Belarus,” said Zaborovsky.

Another area involves advanced timber processing. Alexander Zaborovsky noted that Austrian companies are already running investment projects in the timber industry of Belarus. “Today the matter is about more advanced processing, about the production of necessary components to manufacture furniture. These are special resins, and timber chemistry aimed at making products more competitive,” he stated.

According to Zaborovsky, the cooperation with Kapsch will be continued. “Innovative solutions in the toll road system are possible for Minsk. The project is still under discussion,” he said. Alexander Zaborovsky noted that during the meeting the Belarusian side and Kapsch considered the existing project (to establish the electronic toll collection system on some roads BelToll – BelTA’s note). “The most important thing is to make sure that all users could make payments comfortably. Analyzing the elements of the project implementation, we can see that there are areas we can improve. The parties agreed that all current issues will be resolved through joint efforts.

Mr Zaborovsky also took note of the projects related to renewable energy.

According to him, Belarus has created conditions for renewables to be integrated into the energy system.

Austrian investors also show interest in the cooperation in domestic waste management. “We see great interest on the part of European, particularly Austrian business that works in this area, in the construction of waste treatment plants. Belarus has established the legislative framework that allows making the business effective and interesting for a private investor”.

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EUROPE NEWS STORIES

DAIRY CREST AGREES TO SELL ITS DAIRIES OPERATIONS TO MÜLLER UK & IRELAND GROUP Dairy Crest has recently announced that it has agreed to sell the assets of its Dairies operations to Müller UK & Ireland Group (“Müller”) for a consideration of £80 million payable in cash on completion (the “Transaction”).

The sale is conditional on the approval of the relevant competition authorities.

This process is expected to take several months, during which time Dairy Crest will focus on continuing to provide high levels of service and delivery throughout the supply chain. It is also conditional on the approval of Dairy Crest’s shareholders and employee consultation.

The combination of Dairy Crest’s Dairies operations with those of Müller Wiseman Dairies (the fresh milk, cream and butter business owned by Müller) will build on the

progress Dairy Crest has already made in improving efficiency. It will help to create a more sustainable UK dairy sector by delivering economies of scale and cost efficiencies that will underpin investment in the industry. This in turn should help the UK to compete more successfully in global markets, which is essential for British dairy farmers. Dairy Crest believes the Transaction to be in the best interests of consumers, customers, dairy farmers, employees and Dairy Crest’s shareholders. It will create a stronger business that protects long term employment and has the potential to help reduce costs and increase efficiency.

After completion Dairy Crest’s focus will be on its profitable, predominantly branded, cheese and spreads operations. It will also grow its revenue and profits by continuing to develop whey-based products, such as demineralised whey powder and galactooligosaccharide, for the fast growing global infant formula market.

Since its flotation in 1996 Dairy Crest has significantly reduced its exposure to unbranded commodity markets by scaling back its dairy ingredients business and (in 2006) disposing of its commodity cheese operations. In line with its strategy

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to grow added value sales and improve quality of earnings, Dairy Crest has built a stable of strongly positioned dairy brands.

This includes Cathedral City, the nation’s favourite cheese brand, Davidstow and Country Life and Clover, both significant brands in the Butter and Spreads market.

Over recent years Dairy Crest has also developed a clear strategy for its Dairies operations. Its fresh flavoured milk brand, FRijj, is growing strongly and its programme to sell surplus depots as residential deliveries decline has enhanced profits.

In addition Dairy Crest has consistently identified and implemented cost reductions that improve the efficiency of its Dairies operations and make them more sustainable. These include the creation of a well invested, streamlined supply chain, the use of lighter plastic bottles and the reduction of distribution costs.

Dairy Crest believes that combining the two businesses will build on the progress that Dairy Crest has already achieved.

It will also strengthen the wider UK dairy sector bringing much needed security for Britain’s dairy farmers. Investment will be more attractive, enabling the British dairy industry to compete more successfully in global markets.

and hospitals) and residential customers. It also manufactures and sells Dairy Crest’s ready to drink flavoured milk brand, FRijj, flavoured milk, cream, bulk butter and milk powders. In the year ended 31 March 2014 Dairy Crest’s Dairies operations recorded revenue of £944.8 million and product group profits of £0.6 million excluding profits from selling surplus properties which were £18.2 million. At 31 March 2014 the total assets employed in the Dairy Crest’s Dairies operations which are being sold were £253.5 million and the net assets employed were £112.8 million.

The agreement between Dairy Crest and Müller is for Dairy Crest to sell its Dairies operations, including bulk butter manufacture, in its entirety and with its supporting overhead structure to Müller for £80 million, payable in cash, on completion. This includes the factories at Foston, Chadwell Heath and Severnside. It also includes the Hanworth glass bottling site, where Dairy Crest is consulting with employees on the site’s future, and 72 depots.

Dairy Crest will retain full ownership of the previously closed dairies at Totnes and Fenstanton; its Chard site, where it is also

Dairy Crest’s Dairies operations process and deliver around 1.3 billion litres of British milk per annum to major retailers, ‘’middle ground’ customers (including, for example, smaller retailers, coffee shops

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EUROPE NEWS STORIES completion or if any of its four dairies are inoperable at completion.

consulting with employees on the site’s future; and a number of already closed depots.

The two companies will also enter into a supply agreement whereby Müller Wiseman Dairies will sell bulk butter to Dairy Crest for five years. In addition Dairy Crest will provide certain transitional services to Müller Wiseman Dairies.

Dairy Crest will continue to meet the defined benefit pension obligations in relation to the Dairy Crest Pension Scheme.

The consideration payable by Müller is subject to upward or downward adjustments for variances from agreed levels of working capital, capital expenditure and the profitability of Dairy Crest’s Dairies operations and will also be adjusted to reflect profits made on the sale of properties included in the Transaction that are sold by Dairy Crest before completion.

Müller also has the ability not to complete the Transaction should there be a material deterioration of more than £20 million in the agreed level of profitability of Dairy Crest’s Dairies operations before

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After completion Dairy Crest will focus on its cheese and packet butter and spreads businesses, which together recorded revenues of £442 million and product group profits of £56.1 million in the year ended 31 March 2014. This product group includes Dairy Crest’s market leading Cathedral City brand, Davidstow, Clover, Country Life and the fast growing Frylight one calorie cooking spray.

As well as these established brands, Dairy Crest has commenced a major project to develop whey-based products at its creamery in Davidstow. These include demineralised whey powder and galacto-oligosaccharide, both used in the fast growing global infant formula market.

Dairy Crest will continue to buy milk direct from around 400 supplying farmers for its Davidstow creamery to produce cheese and whey. With its strong brands and the growth potential of infant formula, Dairy Crest is well placed to grow profits, generate cash and continue to deliver its progressive dividend policy.

Dairy Crest will retain the following manufacturing sites: Davidstow, Nuneaton and Frome, the world class cheese production, storage and distribution facilities; Kirkby and Erith, Dairy Crest’s spreads and spray oil manufacturing plants.

EUROSTAR CELEBRATES ITS 20TH ANNIVERSARY WITH THE UNVEILING OF ITS NEW E320 TRAIN In the last two decades Eurostar has revolutionised cross-channel travel, providing a swift, seamless link between the UK and mainland Europe. With passengers increasingly choosing high speed rail over plane for short haul travel and demand at an all-time high, the business is now set for further expansion of its services into Europe.

On the eve of its 20th anniversary Eurostar unveiled in public for the first time its new state-of-the-art e320 train scheduled to enter commercial service at the end of 2015. At the same time the company announced its decision to augment its fleet with a further 7 new e320 trains. With the original order of 10 e320s now in the final stage of completion, this increases the number of new trains to 17 in total.

Antwerp, Rotterdam and Schiphol along the way.

Nicolas Petrovic, Chief Executive of Eurostar, said: “Having had ten consecutive years of growth, we are seeing a record demand for our services and the addition of new trains to our fleet will be key to our growth ambitions. With just one year to go until our new e320 train comes into service, our passengers will soon see a complete transformation of our service. The combination of bold design, chic interiors and wifi connectivity will raise the bar, providing an unprecedented level of style and comfort for our customers.�

Beyond its core routes of Paris, Brussels and Lille, Eurostar serves a range of destinations including the French Alps, Swiss Alps and Geneva. May 2015 will see the start of a new year-round direct service to Provence, stopping at Lyon, Avignon and Marseille, followed at the end of 2016 by the launch of a direct route to Amsterdam with stops in

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EUROPE NEWS STORIES

SWEDISH PHARMA COMPANY MEDA BUYS ROTTAPHARM Sweden’s specialty pharma company Meda has forged a deal to buy its Italian rival Rottapharm for 21.2bn kroner ($3.1bn).

Meda said the deal would expand its portfolio of specialty prescription drugs and consumer healthcare products, while also helping it to expand in emerging markets.

The Swedish firm will play 15.3bn kroner in cash for Rottapharm, along with 30m Meda shares and an additional payment of 2.6bn kroner due in early 2017.

Rottapharm, headquartered in Monza, Italy, was founded by Professor Luigi Rovati in 1961 and has grown into a leading consumer healthcare focused branded specialty pharma company.

The company’s products are differentiated through the professional

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endorsement of doctors and pharmacists within the consumer healthcare segment. The company combines Rx-reimbursed medications with more traditional consumer healthcare products, characterised by high scientific credibility (clinicallyproven consumer healthcare products or Cx); these are high-margin, nonreimbursed, by doctors prescribed or recommended products with nearly no generic competition.

The company makes osteoarthritis treatment Arthryl/Dona (glucosamine sulphate) and a range of generic cardiovascular, gastrointestinal, respiratory and gynaecological drugs.

The company also has a number of personal care products, such as children’s sunscreen Babygella, and dietary supplements.

Rottapharm has a global footprint with a presence in 90 countries worldwide and generated revenues of €536 million, of which 75% from Cx, with a gross margin of 67% and an adjusted EBITDA of €149 million implying a margin of 28% in 2013.

“The acquisition of Rottapharm is an important step in creating a stronger, improved Meda”, says Dr. Jörg-Thomas Dierks, CEO of Meda.

“Rottapharm is a preeminent specialty pharma company with highly differentiated brands and a leading position within Cx. The combined business will have an improved Rx / Cx balance and increased investment opportunities. This acquisition is in-line with our strategic priorities to execute value-accretive M&A, invest in consumer healthcare and Emerging Markets. We are impressed by the business which the Rovati family has built up and we are honoured to welcome the Rovati

family as a major Meda shareholder.”

Luca Rovati, CEO of Rottapharm, commented: “From our foundation in 1961, we have built Rottapharm into a leading consumer-focused branded specialty pharma business, leveraging our heritage in science and clinical development.”

“We are now ready to take the next step. We are very pleased to have reached this agreement with Meda and are confident that this will create significant value in the long-term for all our stakeholders. Through Meda’s expertise and resources, we are also confident that our medications will continue to serve patients and doctors alike going forward. Also, I very much look forward to contributing to the future success of the combined business as second largest shareholder in Meda.”

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CROSSRAIL PRO

Europe’s largest infrastructure project br up to speed from East to West

Q&A with Will Parkes, External Affairs Director, Cross Business Coverage Issue 1

ROJECT

ringing London

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EUROPE

Could you begin by introducing the Crossrail Project and giving some insight into its history to date highlighting key events over the years?

Crossrail is Europe’s largest infrastructure project. It stretches for over 100 kilometres from Reading and Heathrow Airport in the west through the centre of the city and out to Essex and southeast London. It will add 10% to the capital’s rail capacity and bring an extra 1.5 million people within 45 minutes commute of central London.

Crossrail’s construction officially began in May 2009, when the first pile was driven into the dock at Canary Wharf. It had been talked about and planned for many years prior to this; however it wasn’t until Parliament passed legislation in 2008 that it really moved forward with some certainty.

We are creating 26 miles of twinbored tunnels under central London.

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The start of this major tunnelling was an important milestone , begnning for the western tunnels in May 2012. The eastern tunnelling began in November 2012. Our rail tunnels are now 83% finished – we will complete these next year, when the remaining tunnel boring machines reach Farringdon station, in central London.

In terms of the overall programme, we passed the halfway mark in January of this year. We are nearing the completion of the major civil engineering work. The challenge now is to transition to the installation of railway systems, and finishing off our 10 new stations, an altogether different and no less challenging task.

Crossrail’s construction will support the equivalent of 55,000 full time jobs right around the UK. Three out of five businesses currently winning work on the project are based outside London and over half are small and mediumsize companies (SMEs).

Crossrail is the largest ongoing construction project in Europe with many component parts, can you highlight the elements that make up this construction programme?

Put very simply, the main elements of Crossrail include tunnelling, the construction of 10 new stations, and the works on the surface section of Crossrail. There is also the implementation of all of the railway systems, including signalling, tracks and platform edge doors and of course procurement of the trains themselves.

The western tunnels run from Royal Oak, west of Paddington, through to Farringdon station. The contractor for this work is Bam Ferrovial Kier Joint Venture. The Eastern tunnels run from Victoria Dock through to Farringdon and from Stratford through to Farringdon and the contractor for these is Dragados Sisk Joint Venture.

The Thames tunnels run under the river at Woolwich and the contractor for these is Hochtief Murphy Joint Venture. We are have also refurbished the Connaught Tunnel, a Victorian era structure beneath the Royal Docks in East London.

The surface section is being undertaken by Network Rail, on behalf of Crossrail.

Each of Crossrail’s 10 new stations are significant projects in their own right, especially considering they need

to link in with all of the other major civil engineering work, all beneath and around one of the world’s most dynamic cities.

Crossrail is much more than just a railway. As an example, we are planning to develop three million square feet of property above 12 construction sites, making us one of London’s biggest property developers in the next five years.

We have also built a new Tunnel and Underground Construction Academy, to up-skill a new generation of people capable of working in tunnels. We intend for the expertise gained from Crossrail to be passed on to future infrastructure projects.

MINING AND ELEMENT SIX HAVE COME A LONG WAY TOGETHER Element Six has played a big part in transforming the efficiency of South African mining with synthetic diamond and tungsten carbide applications for tools.

Today we are driving productivity in the mining, construction and power generation industries. It’s the result of a commitment to investment and innovation, made over 78 years ago, that continues to deliver ever improving performance and productivity – securing the industry today and for the future. www.e6.com

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Considering the continuous growth in population in the city of London how significant is this project to the future of the city?

London needs Crossrail if it is to continue to compete globally. The population of London will increase by one million over the next ten years and London needs additional transport capacity.

In addition to the 10% rail capacity increase, Crossrail will add resilience and cut travel times. It will help to transform the cityscape too, with over two million square feet of new and improved areas outside stations – equivalent to 19 Leicester Squares.

But this isn’t a project that is just benefitting London.

Crossrail is creating jobs and business opportunities right around the UK. Three in five businesses winning work are based outside London, including the largest contract, to build Crossrail trains at Bombardier in Derby.

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We have 10,000 people currently working directly on the project.

Crossrail is supporting some 55,000 job opportunities throughout the UK; among those are some 350 apprentices that have worked on Crossrail.

Much of the project’s cost is funded

by London. Over 60% of Crossrail’s £14.8bn costs are funded by Londoners and London business through a Business Rates Supplement and direct contributions from other key beneficiaries.

One thing the team has done excellently over the lifetime of this project is maintaining great communication with its stakeholders, could you identify how the team has made the people of London take ownership of this project?

Managing stakeholders can be the making or breaking of a project. On a project like Crossrail, the sheer

volume of stakeholders and the fact that construction runs over a long period of time means you have to engage with the communities we are working in and manage concerns seriously. Addressing these and maintaining support for the project is a key element.

We know people are interested in the project so have made sites available for local visits so people can see behind the hoardings and gain an understanding of the works that are taking place; and see a glimpse of what the finished railway will look like.

We’ve got a hotline anyone can call 24/7, a website and we’ve established a range of community forums along the route.

Our contractors are obliged to minimise the impact on the local community and to invest in community improvements. They are also required to retain their own community relations staff, who work alongside those from Crossrail.

We have encouraged a culture of respecting the needs of our local communities well. This starts at the very top; our chairman and chief executive are both very passionate about our community and stakeholder relations.

Could you provide some insight into the expected advantages this project will present to both residences and businesses that operate in London?

Crossrail will reduce journey times, increase rail transport capacity by 10 per cent and bring an extra 1.5 million people to within 45 minutes of central London.

It will deliver £42 billion of economic benefits to the UK and allow London to continue to grow and compete with the world’s city powerhouses.

Crossrail will link London’s key employment and business districts more effectively than ever before – the West End, the City and Canary Wharf.

Crossrail trains will be around 200 metres long and carry 1,500 passengers and 24 trains per hour will run during the peak through central London after Crossrail opens.

Crossrail will boost regeneration around the stations along its route, improving accessibility, bringing shorter journey times, and giving employers better access to a larger, more highly skilled labour market.

It has been projected that Crossrail will support the delivery of over 57,000 new homes close to stations along the route.

Part II of the Crossrail Q&A will be published in the next issue of Business Coverage 55

NORTH AMERICA NEWS STORIES

SUNEDISON, TERRAFORM BUY FIRST WIND FOR $2.4B TO BECOME RENEWABLE PROJECT GIANT SunEdison and its YieldCo TerraForm just acquired wind developer First Wind for $2.4 billion. It means SunEdison is in the wind business and can now add wind projects to the solar project pipeline of its YieldCo, TerraForm. The purchase price was comprised of $1.9 billion in an upfront payment and a $510 million earn-out. First Wind is backed

by DE Shaw and Madison Dearborn Capital Partners.

GTM Research analyst Cory Honeyman points out that First Wind currently ranks as the 11th largest utility scale PV developer in the U.S, with a total of 468 megawatts (DC) in operation and in development, according to GTM Research’s U.S. Utility PV Market Tracker.

This makes SunEdison one of the world’s largest, if not the largest, renewable energy developers.

Honeyman notes that First Wind has “made a name for itself by tapping into unsaturated state markets for utility scale PV, most notably Utah

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and Hawaii. The developer’s recent wins in Utah highlights one of the key trends defining the utility scale market in 2014, that being a growing number of projects being procured by utilities outside of RPS standards.” He adds, “Yingli has been one of First Wind’s primary suppliers of modules to date, most notably for the developer’s large scale 80-megawatt projects in Utah.”

“First Wind is one of several developers with a longstanding focus on wind development that has recently shifted gears towards solar. In the past 12 months, former wind-driven developers have secured nearly 900 megawatts worth of new utility scale PV PPAs, notes the analyst.

Jigar Shah, the founder of SunEdison tells GTM, “Access to low-cost capital is a huge strategic advantage today. First Wind needs access to this capital and this transaction shows that SunEdison has more credibility on YieldCos and low-cost capital than anyone.”

YieldCo TerraForm will be acquiring 521 megawatts of active wind and solar power plants. SunEdison will acquire more than “1.6 gigawatts of pipeline and backlog, adding to TerraForm Power’s call right project list.” These projects are expected to be operational in 2016 to 2017. As per the release, “Pro forma for the transaction, TerraForm Power raises its 2015 CAFD guidance to $214 million and 2015 dividend guidance to $1.30 per share.”

First Wind has more than 200 employees with wind and solar projects (mostly wind) across the U.S. The release notes that the acquisition adds 8 gigawatts of pipeline and backlog. SunEdison raised its 2015 installation guidance from 1.6 to 1.8 gigawatts to 2.1 to 2.3 gigawatts as a result of the acquisition.

A colleague close to First notes that in addition to a wind and solar project pipeline, First Wind has experience with expanding transmission lines, energy storage in Hawaii and new wind technology that allows harvesting power from lower wind speeds.

Yieldcos represent an attractive exit strategy for pure play solar developers before the Federal ITC drops: Seven of the top twenty utility scale developers are considered “pure play” developers, meaning that none of them own their assets long term. With the ITC drop off looming at the end of 2016, margins for pure play developers are only expected to grow thinner. Making the switch from selling projects at or near commercial operation to selling the company altogether to long term PV asset owners represents an attractive strategy for pure play developers, in what should be an increasingly consolidated developer landscape post 2016.

Wind

GTM’s Honeyman suggests that the acquisition brings up two important implications about the role of YieldCos in utility scale solar:

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NORTH AMERICA NEWS STORIES

IKEA BUYS SECOND US WIND FARM The IKEA Group has announced that it has purchased its second wind farm in the United States from Apex Clean Energy: a 165-megawatt wind farm in Cameron County, Texas. This represents the single largest renewable energy investment made by the IKEA Group globally to date. The wind farm will contribute significantly to the IKEA Group 2020 goal of producing as much renewable energy as the total energy the company consumes globally. The Cameron Wind farm is expected to be fully operational in late 2015.

Earlier this year IKEA Group announced its first U.S. wind farm purchase located in Hoopeston, Illinois. The Cameron Wind farm will be more than one-anda-half times the size of the Hoopeston project. Together, the IKEA Hoopeston and Cameron wind farms are expected to generate nearly 1,000 gigawatt hours of electricity per year, which is equivalent to the average annual electricity consumption of around 90,000 American households.

“IKEA believes that the climate challenge requires bold commitment and action,” says Rob Olson, IKEA US Acting President and CFO. “We invest in renewable energy to become more

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sustainable as a business and also because it makes good business sense.

And as a home furnishings retailer with sustainability in our roots, we are committed to providing products and solutions that help our customers be more sustainable in their everyday lives.”

IKEA Group has now committed to own and operate 279 wind turbines in nine countries, and will invest a total of $1.9 billion in wind and solar power up to the end of 2015. IKEA has also taken steps to further the development of a low-carbon economy by supporting key initiatives including the People’s Climate March, UN Climate Summit, RE100, and the Climate Declaration Mark Kenber, CEO of the non-profit organization The Climate Group, said: “IKEA was one of the first major companies to recognize that tackling climate change makes good business sense. IKEA has set commendable renewable energy targets for its own company, and its actions are positively influencing business practices and the energy market. It has played an instrumental role in setting up ‘RE100’, The Climate Group’s global initiative to support businesses in switching to 100% renewable power.”

IKEA renewable energy investments in the U.S. to date now include: 104 wind turbines located on wind farms in Hoopeston and Cameron; 165,000 solar panels installed on 90% of IKEA buildings across the U.S., providing an additional 38 megawatts installed capacity; and geothermal integrated into the heating and cooling systems of two U.S. store locations, in Centennial, Colorado, and Merriam, Kansas.

Cameron Wind is located in a particularly favorable wind area in the south of Texas, which is the leading state in the U.S. for

wind energy production. The wind farm will be fully owned by the IKEA Group and will be constructed and managed by renewable energy company Apex Clean Energy. The project will use 55 Acciona 3-megawatt turbines.

“Apex is excited to partner with IKEA once again to bring clean, renewable energy from wind to market in the U.S.,” added Apex President, Mark Goodwin.

“Both companies understand that this abundant resource is great for the planet, great for our business and great for our shared future.”

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NORTH AMERICA

CAMAC Energy Advancing World-Class Frontier Exploration in West and East Africa

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CAMAC Energy Inc. is an independent oil and gas exploration and production company focused on energy resources in Africa. Its broad asset portfolio consists of nine licenses across four countries - Gambia, Ghana, Kenya and Gambia.

This includes current production and other projects offshore Nigeria and exploration licenses offshore Ghana, Kenya and Gambia, and onshore Kenya. Combined, this covers an area of 43,000 square kilometers (approximately 10 million acres).

CAMAC Energy is headquartered in Houston, Texas, and is listed on both the New York Stock Exchange (under the ticker symbol CAK), and on the Johannesburg Stock Exchange (under the ticker symbol CME).

MISSION

CAMAC Energy strives to maximise shareholder value by actively identifying and managing high-return global energy projects in Africa.

Through its balanced portfolio of assets, CAMAC Energy aims to reduce exposure and risks through diversification, continuing to offer both short-term cash flow and long-term growth potential. Part of this is the ability of knowing when to “sell-down� assets to maximise investment value.

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CAMAC Energy actively manages investments and on-going operations by limiting capital exposure and forming strategic partnerships and alliances. The company has worked tirelessly to build a strong technical and operational team, while outsourcing and utilising external resources and talent as needed to seek economic efficiency.

TRANSFORMATIVE YEAR

CAMAC Energy has been focused on preparing for major production growth this year and beyond. It has been advancing world-class frontier exploration in West and East Africa and generating predictable oil production growth on a consistent basis.

An intrinsic part of this is continuing to

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obtain attractive exploration assets yet balancing frontier exploration with current production.

CAMAC Energy’s year to date reflects its ambitious yet progressive growth strategy. In

February, it closed a $270 million equity investment from the Public Investment Corporation (SOC) Limited of South Africa, before becoming the first company in 2014 to list on the Johannesburg Stock Exchange.

At the time, Kase Lawal, Chairman and CEO of CAMAC Energy, commented: “The JSE listing signifies a new chapter in our company’s history and allows access to capital on the continent, as well as providing a new option for investors in terms of diversity.

“We are especially honoured that the PIC has invested in our growth plans with confidence and we welcome them on board as a significant strategic partner on our exciting journey ahead.”

CAMAC Energy secured a longterm contract in February this year for the floating, production, storage, and offloading vessel (FPSO) Armada Perdana. The contract provides for an initial term of five years beginning January 1, 2014, with an automatic extension for an additional two years should CAMAC wish to enforce it.

Segun Omidele, Senior Vice President of Exploration and Production, hailed the deal as “another milestone towards the growth of CAMAC.”

The company plans to utilise the FPSO for its multi-year, high-impact development and production operations offshore Nigeria.

FPSO Armada Perdana has a production capacity of 40,000 barrels of oil per day, and storage capacity of 1.1 million barrels. It currently supports CAMAC’s daily production of approximately 2,000 barrels of oil and 40 mmcf of natural gas from the Oyo Field in OML Block 120 offshore Nigeria.

In March 2014, the organisation was awarded the Expanded Shallow Water Tano (ESWT) Block by the Government of Ghana (as detailed later).

NIGERIA

Announcing its results for the first quarter of 2014, CAMAC also secured the Northern Offshore Energy Searcher drillship offshore Nigeria for up to two years.

The rig moved to Oyo Field after taking on personnel, equipment and supplies and commenced drilling operations on the Oyo-8 development well in mid-June. First production from Oyo-8 is expected in October. The drilling rig will then move to complete and hook-up Oyo-7.

Both wells are on schedule to commence production this year, enabling CAMAC Energy to exit 2014 at an estimated production rate of 14,000 barrels of oil per day.

GHANA

In Ghana, the Expanded Shallow Water Tano (ESWT) block is located in the Tano Basin offshore Ghana, about 15-35 km off the coast of Ghana.

The ESWT block size is 1,508 square kilometers (370,000 acres) in water depths ranging from 55 meters to 116 meters (180 feet to 380 feet) and contains three previously discovered fields: Tano North, Tano West and Tano South. Significant quantities of oil and gas have been discovered in these fields, and drill stem tests carried out also established producibility of the reservoirs.

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NORTH AMERICA The Petroleum Agreement requires that the partners evaluate the feasibility of economic development of the discovered fields over the next 9 months. A leading worldwide independent petroleum consulting firm has been identified to assist with the evaluation. Activities will include evaluating existing 3D seismic data, and geological and well data.

KENYA

Exploration activities are continuing in the Lamu Basin on Blocks L1B and L16 onshore, and on Blocks L27 and L28 offshore.

Onshore, a Gravity and Magnetic Survey was completed in 2013, and an Environmental and Social Impact Assessment Study completed in February 2014.

As well as this, ‘Invitation to Tender’ requests have been made to seismic companies that are active in the region. Work is focused on drilling two exploration wells in 2015/2016.

Offshore, CAMAC Energy completed the acquisition of multi-client 2D seismic in March 2014, and processing is currently underway

by WesternGeco, a Schlumberger company which is building a dataset for a Geological and Geophysical Study. Results from the 2D interpretation will be used to

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outline the location for a 3D seismic acquisition in 2014/2015.

Evaluations are being directed towards drilling one exploration well in either Block L27 or Block L28 in 2016/2017.

GAMBIA

Further frontier exploration activities are also continuing offshore Gambia on Blocks A2 and A5. During 2014, CAMAC Energy is reprocessing existing 2D seismic, and a regional geologic study and possible 3D seismic survey are also planned.Â

Gambia is currently anticipated to be drilled in 2016.

EXPONENTIAL GROWTH

With its experienced, diverse international management team and distinguished board of directors at the helm, CAMAC Energy is ideally placed to continue to experience exponential growth in the coming years.

The first offshore exploration well in

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MIDDLE EAST NEWS STORIES

ETIHAD AIRWAYS PARTNERS UNVEILED Etihad Airways has unveiled Etihad Airways Partners, a new brand which brings together like-minded airlines to offer customers more choice through improved networks and schedules and enhanced frequent flyer benefits.

increasingly to harmonise standards in the air and on the ground.”

Initially, six airlines will participate in the new partnership - airberlin, Air Serbia, Air Seychelles, India’s Jet Airways, Darwin Airline, and Etihad Airways.

“The potential for network alignment to maximise flight connectivity for passengers, together with a shared passion for superior service, are central to the ethos of the Etihad Airways Partner concept,” he said.

However, any airline can become an Etihad Airways Partner even if it is part of an existing alliance, such as airberlin, which is a member of oneworld.

The key emphasis for Etihad Airways Partners is a strong commercial partnership and shared values.

James Hogan, President and Chief Executive Officer of Etihad Airways, said “We are broadening our business model to articulate and define a partner proposition for like-minded airlines which will result in synergies and efficiencies for participating airlines on the one side, and enhanced network choice, service and frequent flyer benefits for the consumer on the other.

“The Etihad Airways Partners logo is a seal of excellence and global cooperation. It will be displayed on aircraft and on branded materials by a group of airlines working together to connect travellers around the world, and

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Mr Hogan said Etihad Airways Partners differed from legacy airline alliances by offering benefits well beyond pure commercial cooperation.

“Frequent formation as it will confusion alliances.

flyers will benefit from the of Etihad Airways Partners remove the complexity and that exists within the global

“We’re aiming to deliver a consistent experience for frequent flyers when they travel, as well as a consistent framework for earning and using their miles.”

This will include standardised mileage and tier benefits across all partners, no blackout periods and priority services.

Etihad Airways Partners will also have access to economies of scale and operational synergies such as centres of excellence, shared sales teams in certain destinations, joint procurement of services and supplies, and shared pilot and cabin crew training at the Etihad Airways facilities in Abu Dhabi.

Qatar awards $290mn worth of healthcare contracts Qatar Public Works Authority has awarded $290mn worth of healthcare projects including the expansion of two hospitals in Doha and the construction of four new health centres, local media has reported.

The consulting and construction contracts are part of Ashghal’s efforts to enhance the country’s medical facilities, according to The Peninsula.

Expansion work will be carried out at Hamad General Hospital’s emergency department and Al Khor Hospital, with an additional 500 beds and the construction of a simulation centre at Hamad Medical

City to provide virtual surgical training to fresh medical graduates, it added.

The new healthcare centres will be built at Muaither, Al Wajbah, Al Waab and Al Jamiaa as part of the deals, said the report.

Al Waab and Al Jamiaa centres will be designed according to type B that comprises two basements, a ground floor and one upper floor.

The centres will include blood test, women’s health, specialised, dental and chronic diseases clinics, X-rays, pharmacy, labs, emergency, pre-marriage tests, and educational services, it added.

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MIDDLE EAST NEWS STORIES

Qatargas sells its first cargo of LNG to JOVOUNVEILED Qatargas has sold its first cargo of liquefied natural gas (LNG) to Jovo LNG Storage and Transportation Co., Ltd. (“JOVO”), an independent LNG importer from the People’s Republic of China. The 64,000 cubic meter cargo was sold on a free-on-board basis and loaded on to the vessel LNG Lerici at Ras Laffan port on 22 October pursuant to the FOB Master Sale and Purchase Agreement signed by the parties earlier this summer.

The cargo will be delivered to JOVO’s LNG terminal located in Lisha Island, Dongguan in the Guangdong province.

This represents the first deal of its kind concluded by Qatargas with an independent and privately owned LNG importer in the People’s Republic of China where until today Qatargas has only supplied LNG to Chinese state-owned national oil and gas companies.

The recent development in the Chinese market to promote cleaner fuels has encouraged and supported the growth of smaller LNG players like JOVO which enjoys its niche market in the Guangdong province by providing

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its customers with LNG delivered by a fleet of trucks, as well as with LPG, methanol and DME. Khalid Bin Khalifa Al-Thani, Qatargas Chief Executive Officer said: “This is an important milestone for Qatargas.

This achievement highlights Qatargas’ capability to supply LNG not only to major LNG players around the globe, but also demonstrates our ability to work successfully with small-scale buyers and cater to their specific needs. This delivery will undoubtedly encourage other potential independent players both in the People’s Republic of China and across the world to consider Qatargas as a reliable source of LNG no matter how big or small their operations are.

Mr. Zhang Jianguo, Chief Executive Officer of JOVO, stated: “After more than two years of hard negotiations and friendly communications, vigorous support from China’s National and Guangdong Provincial Energy Administration has created a new prospect for Chinese Private Enterprise to import LNG. The first LNG cargo from Qatargas is an achievement and it is also an important

milestone for JOVO. I believe there will be better cooperation between JOVO and Qatargas. The success of this business deal gave a powerful impetus to the realization of JOVO’s enterprise mission to promote the low carbon economy and to share the prosperous future. JOVO sincerely hopes that through the future good cooperation with Qatargas, to provide better

service to promote the development of China’s Clean Energy.”

Qatargas is the world’s largest LNG producing company with a production capacity of 42 MTA. The State of Qatar, as the world’s leading LNG producer, anticipates that the People’s Republic of China will become one of the world’s largest gas markets.

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BUSINESS COVERAGE Oliver Moy Publisher

For enquiries email okm@aubusinesscoverage.com