|
By
Scott B. MacDonald
 Brazil – It’s
Official 2003 Was Bad: Official GDP numbers for
2003 are finally out and they confirm that last year was
bad on the growth front for Latin America’s largest
economy. Real GDP growth was at a negative 0.2%. This was
the worst result in a decade. Despite that result, the
economy did commence a gradual recovery in the second half
of 2003. The government expects real GDP growth in 2004
will be between 3.5% and 4%. The Lula government has also
announced it will propose a series of measures for the
construction sector, which slid 8.6% last year.
Indonesia: In
early March 2004 it was announced that BP PLc is seeking
$1.3 billion in loans from Chinese and Japanese lenders to
finance the Tangguh gas project. BP PLC was seeking loans
from the Bank of China and Japan Bank for International Cooperation
(JBIC) for the construction of Indonesia's third liquefied
natural gas (LNG) plant in the Bird's Head area of Papua
province. A consortium consisting of Japan's JGC Corp., U.S.
Kellogg Brown & Root, and local company Pertafenikki
Engineering won the tender to build the LNG plant at an estimated
cost of $1.3 billion, which is expected to enter into full
operation in 2007. To date, Tangguh has secured a total of
7.4 million tons per annum of LNG, including contracts to
supply 2.6 million tons per annum to China's Fujian province,
1.1 million tons per year to South Korean buyer (SK and Posco)
and a preliminary contract to supply 3.7 million tons of
LNG to U.S.-based Sempra Energy. The discussion with JBIC
was in the final stages, while discussion with the Bank of
China was still in the preliminary stages.
Currently, Indonesia has two LNG plants namely Bontang in East Kalimantan and
Arun in Aceh province, which have a combined capacity of 31.6 million tons
per year. Indonesia's natural gas reserves, both potential and probable, stand
at 178 trillion cubic feet (TCF). The Tangguh project will provide significant
revenue for Indonesia, particularly Papua, one of the poorest regions in the
country. Under the contract, the central government will receive 70 percent
of Tangguh's before-tax revenue, while Papua will receive 70 percent of the
central government's revenue share.
Israel Implements Sarbanes-Oxley: In early March,
the Government Companies Authority adopted part of the US Sarbanes-Oxley
Act of 2002, and will apply it to companies under its jurisdiction.
An official announcement to this effect will be published today.
The Government Companies Authority notified the accountancy firms
and auditors for government companies about the new guidelines yesterday.
The key guideline: chairmen, CEOs and CFOs of government companies
to sign declarations attesting to the veracity of financial reports.
At this stage, the new guidelines will not apply to the three publicly-traded
government companies - Bezeq (TASE:BZEQ), El Al (TASE:ELAL), and
Ashot Ashkelon Industries (TASE:ASHO)- in order to give the Israel
Securities Authority time to issue similar guidelines of its own.
India
- Russian Defense Minister Sergei Ivanov and Indian Defense
Minister George Fernandes signed a $1.5 billion deal on Jan. 20 to
sell the Russian aircraft carrier Admiral Gorshkov to the Indian
navy. Russia will refurbish the carrier before delivery in 2008.
India is acquiring 28 MIG-29MK jets for the carrier in the deal as
well as unspecified parts and components for the carrier, likely
to include new missile and radar systems and helicopters.
|
![[ Clients ]](../../../clients/aha.gif){kind=link}