China embarks on world’s largest hydropower dam, capital markets cheer
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Brookfield Renewable to invest up to $1 billion in Isagen
Brookfield Renewable (BEPC.N) said on Friday it will invest up to $1 billion to increase its stake in Colombian energy company Isagen S.A. As a part of the deal, Qatar Investment Authority (QIA), an existing co-investor in Isagen, will also invest about $500 million.
July 18 (Reuters) – Brookfield Renewable (BEPC.N) , opens new tab said on Friday it will invest up to $1 billion to increase its stake in Colombian energy company Isagen S.A to about 38%.
As a part of the deal, Qatar Investment Authority (QIA), an existing co-investor in Isagen, will also invest about $500 million and increase its equity interest in Isagen to about 15%.
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The investment will be funded through a combination of proceeds from non-recourse financings at the business and available liquidity, Brookfield said.
Isagen generates stable and contracted cash flows from its large fleet of hydro assets. In addition, it also has a pipeline of renewable power projects, to support Colombia’s growing power needs.
Reporting by Sumit Saha in Bengaluru; Editing by Shailesh Kuber
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China embarks on world’s largest hydropower dam, capital markets cheer
China’s Premier Li Qiang announced construction had begun on what will be the world’s largest hydropower dam. The project will be located on the eastern rim of the Tibetan Plateau, at an estimated cost of at least $170 billion.
China’s Premier Li Qiang announced construction had begun on what will be the world’s largest hydropower dam, on the eastern rim of the Tibetan Plateau, at an estimated cost of at least $170 billion, the official Xinhua news agency said, Reuters reported.
Commencement of the hydropower project, China’s most ambitious since the Three Gorges Dam on the Yangtze, was seized by Chinese markets as proof of economic stimulus, sending stock prices and bond yields higher on Monday.
Made up of five cascade hydropower stations with the capacity to produce 300 billion kilowatt-hours of electricity annually, equal to the amount of electricity consumed by Britain last year, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river tumbles 2,000 metres (6,561 feet) in a span of 50km (31 miles), offering huge hydropower potential, according to Reuters.
Samuel Green rejoins Goldman Sachs to lead real estate investing team in Sydney
Goldman Sachs appoints Samuel Green as managing director of its Sydney-based real estate investing team. Green, who previously worked in the firm’s investment banking division earlier in his career, will lead the strategic direction and growth of its Australia equity and credit investing platform.
July 21 (Reuters) – Goldman Sachs (GS.N) , opens new tab has appointed Samuel Green as managing director of its Sydney-based real estate investing team, according to an internal memo seen by Reuters on Monday.
Green, who previously worked in the firm’s investment banking division earlier in his career, will lead the strategic direction and growth of its Australia equity and credit investing platform and strengthen engagement with an expanding client base in the region, the memo said
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He brings extensive experience in alternative investments across private equity, hybrid and credit in real assets, it added.
Most recently, Green was with Apollo Global Management, where he focused on commercial real estate in Australia and New Zealand. Before that, he held a role at Macquarie Principal Finance.
A Goldman Sachs spokesperson has confirmed the content of the memo to Reuters.
Reporting by Sherin Sunny in Bengaluru; Editing by Sumana Nandy
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China embarks on world’s largest hydropower dam, capital markets cheer
China’s Premier Li Qiang announced construction had begun on what will be the world’s largest hydropower dam. The project is on the eastern rim of the Tibetan Plateau, at an estimated cost of at least $170 billion. It is China’s most ambitious since the Three Gorges Dam on the Yangtze. China has said the dam will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment. Operations are expected sometime in the 2030s, but it has not indicated how many people would be displaced by the Yarlung Zangbo project. India and Bangladesh have already raised concerns about its possible impact on the millions of people downstream, while NGOs warned of the risk to one of the richest and most diverse environments on the plateau. The dam will produce 300 billion kilowatt-hours of electricity annually, equal to the amount of electricity consumed by Britain last year. It marks a major boost in public investment to bolster economic growth as current drivers show signs of faltering.
Summary
Companies Hydro project located on Yarlung Zangbo in Tibet
Project to dwarf Three Gorges Dam on Yangtze River
Start of construction fuels surge in engineering, related shares in stock market
India, Bangladesh have expressed concern about the dam’s impact
HONG KONG/SHANGHAI, July 21 (Reuters) – China’s Premier Li Qiang announced construction had begun on what will be the world’s largest hydropower dam, on the eastern rim of the Tibetan Plateau, at an estimated cost of at least $170 billion, the official Xinhua news agency said.
Commencement of the hydropower project, China’s most ambitious since the Three Gorges Dam on the Yangtze, was seized by Chinese markets as proof of economic stimulus, sending stock prices and bond yields higher on Monday.
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Made up of five cascade hydropower stations with the capacity to produce 300 billion kilowatt-hours of electricity annually, equal to the amount of electricity consumed by Britain last year, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river tumbles 2,000 metres (6,561 feet) in a span of 50km (31 miles), offering huge hydropower potential.
India and Bangladesh have already raised concerns about its possible impact on the millions of people downstream, while NGOs warned of the risk to one of the richest and most diverse environments on the plateau.
Beijing has said the dam will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment. Operations are expected sometime in the 2030s.
“From an investment perspective, mature hydropower projects offer bond-like dividends,” Wang Zhuo, partner of Shanghai Zhuozhu Investment Management said, while cautioning that speculative buying into related stocks would inflate valuations.
The project will drive demand for construction and building materials such as cement and civil explosives, Huatai Securities said in a note to clients.
BROADER IMPACT
The Chinese premier described the dam as a “project of the century” and said special emphasis “must be placed on ecological conservation to prevent environmental damage,” Xinhua said on Saturday.
Government bond yields rose across the board on Monday, with the most-traded 30-year treasury futures falling to five-week lows, as investors interpreted the news as part of China’s economic stimulus.
The project, overseen by the newly formed state-owned China Yajiang Group, marks a major boost in public investment to help bolster economic growth as current drivers show signs of faltering.
“Assuming 10 years of construction, the investment/GDP boost could reach 120 billion yuan ($16.7 billion) for a single year,” said Citi in a note. “The actual economic benefits could go beyond that.”
China has not given an estimate on the number of jobs the project could create.
The Three Gorges, which took almost two decades to complete, generated nearly a million jobs, state media reported, though it displaced at least a similar number of people.
Authorities have not indicated how many people would be displaced by the Yarlung Zangbo project.
The Yarlung Zangbo becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh. NGOs say the dam will irreversibly harm the Tibetan Plateau and hit millions of people downstream.
The chief minister of Arunachal Pradesh, Pema Khandu, said earlier this year that such a colossal dam barely 50km from the border could dry out 80% of the river passing through the Indian state while potentially inundating downstream areas in Arunachal and neighbouring Assam state.
Some experts also express concerns for a project in a seismically active zone
($1 = 7.1788 Chinese yuan)
Reporting by Farah Master in Hong Kong and Samuel Shen in Shanghai; Additional reporting by Ryan Woo in Beijing, Winni Zhou in Shanghai and Krishna Das in New Delhi; Editing by Himani Sarkar, Kate Mayberry and Lincoln Feast.
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China confirms Xi meeting with EU’s von der Leyen, Costa
China confirms it will hold a top-level summit with the European Union in Beijing this week. The meeting comes as both sides seek to navigate trade disputes amid broader global trade uncertainties. European Commission President Ursula von der Leyen and European Council President Antonio Costa will visit China on Thursday and meet Chinese President Xi Jinping. China’s Premier Li Qiang will be co-chairing the 25th China-EU summit with EU leaders the same day. The summit comes at a key time for these relations, Chinese foreign ministry spokesperson Guo Jiakun said.
BEIJING, July 21 (Reuters) – China confirmed on Monday it will hold a top-level summit with the European Union in Beijing this week marking 50 years of diplomatic ties as both sides seek to navigate trade disputes amid broader global trade uncertainties.
European Commission President Ursula von der Leyen and European Council President Antonio Costa will visit China on Thursday and meet Chinese President Xi Jinping, the Chinese foreign ministry said on Monday.
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China’s Premier Li Qiang will be co-chairing the 25th China-EU summit with the EU leaders the same day.
The meeting comes as global trade frictions heat up, with Beijing seeking to secure closer economic and political ties with the bloc to hedge against uncertainties in its relations with the United States
EU-China relations deteriorated sharply in 2021 when Brussels sanctioned Chinese officials over alleged human rights abuses in the Xinjiang region, a move that saw swift retaliatory sanctions from Beijing, halting much of bilateral exchanges
The summit comes at a key time for these relations, Chinese foreign ministry spokesperson Guo Jiakun told reporters at a regular press briefing.
China looked forward to the bloc working together, Guo said.
“China has always believed that after 50 years of development, China-EU relations…can cope with the changing difficulties and challenges,” he said, characterising ties between the pair as mature and stable but facing issues.
In a recent speech , von der Leyen praised China’s economic progress but said the country had flooded global markets with its overcapacity, limited access to its market, and de-facto enabled Russia’s war economy.
The bloc, which calls China “a partner for cooperation, an economic competitor and a systemic rival,” has also said it saw the need to thaw ties amid global trade uncertainties.
After U.S. President Donald Trump announced sweeping tariffs in April, von der Leyen told China’s Premier Li in a phone call that it was EU and China’s responsibility “to support a strong reformed trading system, free, fair and founded on a level playing field.”
Reporting by Liz Lee, Xiuhao Chen and Shanghai newsroom; Editing by Muralikumar Anantharaman and Raju Gopalakrishnan
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