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Kenya seeks $1.5 billion in highway funding from China
Kenya and two Chinese firms will begin construction on a $1.5billion highway expansion in East Africa this Friday. This marks Beijing's return after years of absence to major infrastructure developments. The partners will finance the project in two phases using a combination of debt and equity. This model is becoming more popular after China's traditional loan model raised concerns about borrowers' debt loads. Kefa SEDA, Director General of Public-Private Partnerships at Kenya's Finance Ministry told the official launch that "we don't have the room to borrow more money." The project will upgrade a vital transport corridor connecting Kenya's port city of Mombasa to its western region, as well as neighbouring states such Uganda and other landlocked countries. As China repositions in Africa, Kenya strikes a deal China, which had pumped billions into infrastructure projects in Africa, cut its lending around 2019, as concerns grew about the sustainability of debt in countries such as Kenya. Beijing, in its efforts to reposition the country on the continent, pledged $50 billion over three years as credit and investment. Kenya cancelled a deal earlier this year with a French consortium, Vinci SA, for the expansion of highways. The new agreement, announced in April during the state visit of Kenyan President William Ruto to Beijing. Kenya is one of Washington's closest African ally. The rapprochement of Nairobi and Beijing angered U.S. president Donald Trump. Ruto then defended the strategy publicly, stating that Kenya had to increase exports to markets such as China. A 28-Year Toll Concession and a Debt, Equity Mix The Kenya National Highways Authority announced that the first phase of the project, which will cost $863m, will see China Road and Bridge Corporation partnering with Kenya's State Pension Fund NSSF in order to convert two existing stretches from a single lane highway of 139km (86 miles) into dual carriage roads of four and six lanes. The second phase will see Shandong Hi-Speed Road and Bridge International (a subsidiary of China’s Shandong Hi-Speed Group) convert a 94-kilometer stretch of single-lane highway to a six-lane road at a cost $678.56 millions. KENHA stated that both total cost estimates include finance costs. The two parts of the project are divided into debt deals and equity deals. NSSF will provide 45% of equity funding for the phase in which it is involved. Seda stated that the borrowing could be from Chinese commercial banks and state entities such as Export-Import Bank of China. The companies have until 2027 to finish construction, followed by a concession of 28 years to collect tolls in order to recover their investment and earn a return. (Reporting and editing by Karin Strohecker, Joe Bavier, and Duncan Miriri)
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Trump announces that the US will take action soon against Venezuelan drug traffickers in land
Donald Trump, the U.S. president, said that "very soon" the U.S. would begin taking steps to stop suspected Venezuelan drug dealers on land. "You've probably noticed that people don't want to deliver by sea. We'll start to stop them also by land." "The land is easier but it's about to begin very soon," Trump said in a virtual conversation with U.S. servicemen. The Venezuelan Ministry of Communications did not respond immediately to a comment request. The Trump administration is evaluating Venezuelan options in order to combat what they have portrayed as Nicolas Maduro’s role in the supply of illegal drugs which has killed Americans. Maduro denies any involvement in the illegal drug trade. The U.S. military in the region has focused its efforts on anti-narcotics operations despite the fact that the firepower assembled far exceeds what is needed. Since September, U.S. forces have conducted at least 21 attacks on suspected drug boats in the Caribbean or Pacific. At least 83 people were killed. In recent weeks, reports of imminent action have been widely circulated as the U.S. Military has sent forces to the Caribbean in response to worsening relations between Venezuela and the U.S. Citing four U.S. government officials reported On Saturday, the U.S. announced that it was about to launch a second phase of operations in Venezuela. (Reporting and editing by Diane Craft, David Gregorio and Ismail Shakil)
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Campaign group: EU should reject biofuels as a fuel for automakers
T&E, a campaign group, said that the European Commission should not allow cars to run off biofuels after 2035 due to their scarcity and because they were not carbon neutral. The European Union has a rule that states all new vehicles must be carbon dioxide free by 2035. This is to encourage the sale of electric cars, and phase out internal combustion engines and fossil fuels. Automakers, however, are pressing the EU executive to grant a carbon-neutral fuel exemption for internal combustion engines, hybrids, and range-extenders. On December 10, the Commission will announce measures to support auto industry. T&E published a report on Thursday that highlighted changes to EU laws in 2018 which limited the use crop-based fuels such as palm oil and soy. Instead, they favored used cooking oils, animals, and other waste sources. These now account for around half of the bio-based diesel sold in the EU. T&E reported that 60% of biofuels, and 80% used cooking oils, are imported, primarily from Asia. Fraudulent practices, like palm oil being passed off as waste, have also increased. T&E stated that biofuels derived from food crops only reduce CO2 emissions by 60% compared to fossil fuels. This is because CO2 is emitted during their cultivation and transport. These biofuels also have the potential to cause deforestation. The report stated that more advanced fuels, made from municipal wastes or sewage sludge, are more sustainable. However, they are not available in enough quantities, and have already been earmarked for shipping and aviation. The EU's demand for fuels could double or even nine times what is sustainable in 2050 if road transport was included. According to the T&E report, allowing biofuels in EU cars can increase CO2 emissions up to 23% by 2050. The group recommends that biofuels be excluded from the solution for cars powered by carbon-neutral efuels after 2035 and, in their place, they should only account for 5% of all sales.
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Netherlands purchases drone detection radars following recent sightings
The Netherlands bought 100 early warning radars on Thursday to detect drones approaching, the Defense Ministry announced. This was after drones were spotted near an air force base and airport in the south of the country earlier this month. It added that the systems produced by Dutch firm Robin Radar can distinguish drones from moving objects such as birds. The 100 radars won't arrive at once. The first radar will be delivered tomorrow and the remaining 100 are scheduled to arrive by 2026. The accompanying vehicles are expected to arrive in early 2019," the defence ministry stated, without providing any further details. Last week, multiple drone sightings caused the Eindhoven Airport to suspend its traffic for several hours. The Dutch military also used weapons on drones seen above an air force base nearby. When asked where these drones came from, the defence ministry refused to comment. In recent months, drones and other airspace intrusions have caused major disruptions across Europe. Some European officials have blamed the incidents on "hybrid war" by Russia. The country has denied having any involvement. (Reporting and editing by PhilippaFletcher; Charlotte Van Campenhout)
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Canada agrees to lower the emissions cap in the oil and gas industry
Mark Carney, Canada's prime minister, signed an agreement on Thursday with Danielle Smith, Premier of Alberta. The goal was to encourage investment in the energy industry and the construction a new pipeline from Alberta to the West Coast. In the agreement, the federal government agrees not to implement an emissions cap in the oil and gas industry and removes regulations on clean electricity. This is done as a trade-off for the top oil producing province of Canada's commitment to increase industrial carbon pricing and support the carbon capture and storage. Carney has eased some of the environmental restrictions put in place by Justin Trudeau's predecessor Justin Trudeau. Canada has been trying to diversify its market away from the U.S. in response to Trump's policies. It sends 90% its oil exports to America. In September, we first reported on the possibility of a deal between Carney and Alberta to eliminate the emissions cap. Alberta is exploring a possible new crude oil pipeline from British Columbia to the northwest coast of British Columbia to increase Canadian exports to Asia. However, no private company has yet committed to build a pipeline. Trans Mountain, owned by Canada and the only way to transport Canadian oil directly to Asian market, tripled capacity with a C$34billion ($24.2billion) expansion last year.
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Brazil seeks US cooperation in money laundering probe
Brazil will seek U.S. assistance in combating organized crime in its oil sector, said Finance Minister Fernando Haddad on Thursday. This comes after a police investigation revealed that Delaware-based companies were laundering money to assist one of the country's worst tax dodgers. Haddad said that the issue could be on the bilateral agenda of Washington and Brasilia, as they look to reach a wider deal in light of the fact that U.S. president Donald Trump has begun lowering tariffs for some Brazilian products. Brazil's government has said that U.S. firms are used to launder money and disguise foreign investments. Haddad also said that he raised concerns with President Luiz inacio Lula da So about illegal U.S. arms shipments. He told reporters that he had "conveyed to President Lula" the importance of including the money laundering issue and illegal weapons exports to Brazil in the ongoing negotiations. Haddad said that the government could present to Washington footage of weapons arriving in Brazil from containers imported by the U.S. and show how money was being illegally funneled away from Brazil. The minister stated that "this partnership is crucial." If we want to prevent drugs from reaching Brazilian consumer markets, we must crack down on crime and prevent heavy arms from entering Brazil. REFINERY is Targeted Sources say that the main target of the police operation on Thursday was Refit, a privately owned refinery. Refit didn't immediately respond to our request for comment. Brazil's Tax Authority noted that the raid was a follow-up to an operation in August targeting money laundering and fraud involving billions of Reais, which included businesses connected with the First Capital Command - a major organized criminal gang. The federal revenue service, without naming the company in question, said that it would crack down on one Brazil's worst delinquent tax payers. This taxpayer owes the federal, state, and local governments more than 26 billion reais (about $4.9 billion). The revenue service reported that the group allegedly moved 72 billion reais a year via companies, funds, and offshore entities in order to conceal profits. At a press event in Sao Paulo, tax revenue secretary Robinson Barreirinhas stated, "We will close in on those who undermine the public security of Brazil from their mansions or upper floors in Faria Lima, Miami, and Europe." He said Delaware companies exploited tax rules that exempted them from U.S. taxes if they earned no local income. This left them untaxed both in the U.S. and Delaware, a scheme which is often linked to money laundering. ($1 = 5,35 reais). (Reporting from Marcela Ayres and Rodrigo Viga Gaier, in Brasilia; editing by Brad Haynes and Alexandra Hudson and Bill Berkrot.)
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AfDB and EIB loan Mauritania $275 mln to upgrade railways
The African Development Bank and the European Investment Bank signed a $275 million financing package to assist Mauritania in upgrading its main rail corridor. The lenders announced that the AfDB would contribute $150 million, and the EIB, $125 million, towards modernising the railway connecting iron ore mining in Zouerate in northeastern Mauritania to the Atlantic Port of Nouadhibou. The statement said that the deal, which was guaranteed by the European Union and signed in Rabat on the sidelines the Africa Investment Forum, was also guaranteed by the European Union. It said that the financing would enable Mauritania’s National Industrial and Mining Company (SNIM) rehabilitate and upgrade its existing railway, and construct 42 kilometres new track connecting future mining sites in El Aouj Atomai. The company added that the money will be used to purchase locomotives, maintenance equipment and wagons for SNIM. Reporting by Ahmed Eljechtimi, Editing by Kirby Donovan
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Source: EU investigation is underway against MSC and BlackRock's bid for Hutchison Barcelona terminal.
BlackRock and MSC’s bid to buy most of CK Hutchison’s global port operations is facing a major obstacle in Europe. EU antitrust regulators are set to investigate the Spanish part of the deal. CK Hutchison, owned by Hong Kong tycoon Li Kashing, wants to sell 80% of its stake in the $22.8billion ports business. This includes 43 ports in 23 different countries. It is a politically sensitive transaction that has become entangled in tensions between China and the United States. BlackRock and MSC could be asked to make concessions in exchange for the clearance of the Spanish deal, as a result of the likely full-scale European Commission investigation, which was previously unknown. The Commission refused to comment. BlackRock, MSC, and Hutchison have not responded to a number of emails asking for comments. CK Hutchison holds interests in several ports in Europe, including those in Belgium, Poland, and the Netherlands. It wasn't immediately clear whether the other European components of the global deal would also be scrutinized. The non-EU parts of the deal are outside the EU review jurisdiction. BARCELONA TERMINAL AQUISITION UNDER UE SCRUTINY Washington and Beijing have become very politicised over the overall package which includes two important ports along Panama Canal. In the Spanish part of the deal, Terminal Investment Limited Holdings (TiL), an arm of MSC Mediterranean Shipping Company based in Switzerland, and BlackRock would acquire joint control over Hutchison’s terminal at Barcelona Port. The terminal is able to handle multiple mega-ships at once and boasts an eight-track facility, making it the EU’s largest rail terminal along the Mediterranean Sea. It connects the port traffic from and to Southern Europe. TiL operates a terminal in the Spanish port city of Valencia. After its preliminary review ends on December 10th, the European Commission (which is the EU's competition enforcer) will open a full investigation. Full-scale EU investigation typically lasts around four months and can result in firms making concessions, including divestments, to address concerns about competition and gain regulatory approval. Reporting by FooYunChee; editing by Adam Jourdan, Joe Bavier
Rescue efforts continue as Cyclone Ditwah leaves 23 people missing and 46 dead in Sri Lanka
Officials said that a cyclone hit Sri Lanka Friday, killing 46 people and leaving 23 others missing. The weather department warned the storm would intensify over the next twelve hours as it moved across the island.
The majority of deaths were caused by landslides that occurred as a result of torrential rains exceeding 300 mm (11.8 in) during the past 24 hour period, when Cyclone Ditwah ravaged the island nation. The eastern and central regions were most affected.
The Disaster Management Centre (DMC), in a press release, said that 43,991 people nationwide were evacuated into schools and public shelters. This included families who were stranded at rooftops.
As the rain continued, schools remained closed. Train services were suspended and Colombo Stock Exchange announced a trading suspension.
The Emergency Operations Director of the DMC Brigadier S. Dharmawickrema said: "We continue rescue operations in the most affected areas. However, some villages are hard to reach due to landslides blocking roads...we are trying to get everyone safely to safety."
Anura Karunathilake, Minister of Ports and Civil Aviation in Sri Lanka, told reporters that if the weather conditions worsened, Sri Lanka could divert its flights to Trivandrum airport or Cochin airports located in south India.
Local media reported six flights from Muscat, Dubai and Bangkok had been redirected to Colombo’s Bandaranaike International Airport. (Reporting and editing by Raju Gopikrishnan; Uditha J. Jayasinghe)
(source: Reuters)