Month: January 2018

For many years, SMEG, Monaco’s electric and gas utility company, has sponsored various sustainable initiatives. These programs are sometimes financed by SMEG or supported by the association Energy Assistance Monaco (EAM).

“Few people realise,” says Christian Philipon, SMEG Project Manager and EAM Vice-President, “that SMEG has hosted EAM – who looks to sponsor international humanitarian projects aimed at providing assistance, logistics and equipment to populations without access to electricity – since its creation in 2011.”

Members of EAM are volunteers, employees of SMEG and Cometh Somoclim – trade professionals in air-conditioning, heating, ventilation and energy services in the Principality – who are committed to benevolent and ecological projects.

EAM follows the ethos of its founding branch, Energy Assistance (EA), created in Belgium in 2001 by employees of Tractebel, Electrabel and Fabricom to bring together volunteers – a combination of retirees and employees of the energy sector. EA France was founded in 2005, EA Monaco and EA Italy in 2011.

Giving second life to Monaco’s pavilion 
One of SMEG’s most challenging humanitarian projects has been providing photovoltaic equipment for the new Aquatic Rescue and Training Centre in Loumbila, near Burkina Faso, which was inaugurated today in the presence of Prince Albert, the Monaco Red Cross, SMEG and the Burkinabè Red Cross.

SMEG’s involvement in the centre dates back to 2014, when designing the Monaco pavilion – with the theme “Feeding the planet, energy for life” – for the Universal Exhibition in Milan, that could be given a “second life” by recycling the building.

Based on a suggestion from the Monaco Red Cross (CRM), the government validated the “transformation” of the Milan pavilion to become an innovative and sustainable training and rescue centre near Ouagadougou, the capital of Burkina Faso.

Financial and technical support
In 2015, at the request of CRM, SMEG carried out a study which concluded that for a reliable and sustainable electricity supply, a solar hybrid solution with energy storage, conceived on the main part of the isolated site, would offer the best guarantees.

As a result, and with a €250,000 budget financed by SMEG, the centre was equipped with a photovoltaic field with a power of 56 kWp, a stationary battery bank of 4700Ah under 48V, and a set of inverters to supply the pavilion with three-phase power.

A solar generator prioritises energy supply to the roof of the building, and the surplus of energy is stored in a battery bank to ensure continuity of power in case of power loss or a network outage.

In case of high electricity consumption, or a day of bad weather, additional energy is provided by the public network or the generator. A set of inverters/chargers creates a three-phase, 400-volt “microgrid” to which the photovoltaic inverters are connected.

Photo: SMEG

High tech equipment and energy production 
The annual energy produced will be about 100 MWh, which represents the annual electricity consumption of some 30 households of four people in France. This local production will limit use of the public electricity grid.

Control and monitoring equipment with graphical interface has been installed to allow real time visualisation of the different energy flows within the set-up, as well as the precise level of battery charge. Subject to internet connection, remote monitoring will be possible via a data logging system.

SMEG CEO Thomas Battaglione and Christian Philipon were on hand for the opening of the Aquatic Rescue and Training Centre. Mr Battaglione commented, “The significant reduction in the electricity bill, often the largest expense of such a structure, will facilitate the financial start-up of the centre and thus contribute to its long-term training and action activities in the service of the poor.”

Article first published January 12, 2018.

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Prince Albert to visit Burkina Faso, aquatic centre to be inaugurated

It’s no secret that the ski industry on Europe has been under threat for some time. The most recent data available, from 2015, showed single-day skier visits down 2.5 percent in France and 5.2 percent in Switzerland, while overnight stays in these two destinations have been on a steady downhill slope since 2004.

Both cost (equipment hire, flight, accommodation and currency fluctuations) and climate change have been blamed for the crisis but developers are trying to find ways to reach new clients and keep them coming back.

Money has been spent on infrastructure and reviving existing resorts, which, according to The Spectator, has “created a more nuanced class of real-estate investment is emerging, capable of generating tidy returns for the careful buyer”.

Enness International, a specialist, high-end lending division of Enness, which caters for clients looking to acquire or refinance overseas property, specifically those located in Monaco, France, The Balearics and Switzerland, has reported an increase in demand for ski chalet finance.

Managing Director Hugh Wade-Jones commented: “With winter firmly upon us, many of our clients are taking to the mountains of Europe to enjoy another season on the slopes. From Courchevel to Klosters, winter resorts remain as popular as ever – but with the best lodges and hotels getting booked up early, we’ve seen an increased demand from clients looking to purchase a place to call their own.”

Mr Wade-Jones, who along with his business partner Islay Robinson opened a Monaco office earlier this year, added, “Typically, our clients want to truly make the properties their own by either refurbishing or securing construction finance in the Alps.”

There are several key considerations for those trying to arrange construction finance in the Alps, Mr Wade-Jones pointed out, starting with ensuring the money you plan to spend is actually adding to the value of the property. “The project cost needs to be in line with the gross development value, or GDV. It’s more challenging to secure a large sum for a purely aesthetic overhaul, for example, if it isn’t going to significantly change the value of the property.”

And while any keen skier knows, location is key, Enness has noted an interesting trend in which valuations have been strong in areas that haven’t been showing a recent history of good snow. “For skiing resorts, this seems worrying. Megève hasn’t seen good snow for several years, but valuations are still coming back as positive. This is a risky game. Spots such as Courchevel 1850 and Meribel are far better bets.”

Timelines should reflect securing the right permits and securing development finance, which in the Alps can be a challenge for clients from a range of nationalities. However, the process of purchasing ski property can move quickly with the right lender, who can, in some cases, arrange finance for 100 percent of both the purchase and construction.

Another potential pitfall, said Mr Wade-Joes, is Assets Under Management (AUM) requirements. “Generally, you’ll need to place at least 25 percent of the global loan amount – the gross loan – as assets under management – for the duration of the facility. The entirety of this amount typically needs to be transferred on day one of the loan.”

This is an expectation Enness feels is important to manage. “Clients from the UK and America are often less accustomed to placing AUM, so this can be a sticking point,” explained Mr Wade-Jones. “However, while we have managed to negotiate lower rates of AUM for clients in the past, this will be a requirement from European lenders most of the time.”

Article first published November 16, 2017.

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Monaco property buyer younger and non-European, says report

The association Grimaldi Historic Sites of Monaco was inaugurated on Thursday, January 18, in Menton, with the unveiling of the first in a series of plaques commemorating strong associations with Monaco and the Grimaldi family.

The ceremony took place in the presence of Honorary President Prince Albert and Jean-Claude Guibal, Mayor of Menton and Founder and President of the association, as well as many other personalities.

Created in 2015, on the occasion of the celebration of the tercentenary of the Alliance between the Grimaldis and Matignon, the association aims to build a network of ancient Grimaldi sites testifying to the friendship between France and Monaco and consequently to promote these places in terms of culture, heritage and tourism.

With this in mind, the first meeting of the Grimaldi Historic Sites of Monaco will be held in Monaco on June 23 and 24, to present their cultural heritage, craftsmanship and common history.

Also present at the unveiling of the plaque were Colette Giudicelli, Senator of Alpes-Maritimes, Vice-President of the General Council of Alpes-Maritimes, HE Marine de Carne-Trecesson, Ambassador of France, Msgr Bernard Barsi, Archbishop of Monaco, Isabelle Rosabrunetto Director General of the Department of Foreign Affairs and Cooperation, Georges Marsan, Mayor of Monaco and Thomas Fouilleron, Director of Archives and Library of the Prince’s Palace.

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Minister visits the La Palmosa Hospital in Menton

The Monaco Economic Board (MEB), which held a three-day economic mission to Moscow on October 4, is hosting a working breakfast on Friday, February 9, on the topic of doing business in Russia.

The speaker will be Igor Yurgens, the Consul of Monaco in Moscow, an entrepreneur and Vice-President of the Russian Union of Industrialists and Entrepreneurs (RSPP).

Exceptionally qualified to lead the event, Mr Yurgens will help Monaco’s entrepreneurs and investors to better understand a country that is 30 times the size of France. After his address, Mr Yurgens will answer questions.

According to the European Parliament, Igor Yurgens graduated with a degree in economics from Moscow State University in 1974, when he began working in various positions with the international departments of the Professional Unions Central Council of the USSR and the UNESCO Secretariat.

From 1992 to 1997, he was the First Deputy Chairman of the CIS Trade Union Confederation. He later served as Co-Chairman of the Foundation for the Development of Parliamentarism in Russia (1997-1998). In 1998 he became President of the All-Russian Insurance Association (1998-2002).

Other positions held in recent years include Chairman of the Financial Markets Committee of the Russian Chamber of Commerce and Industry (2000-2009), member of Public Chamber of the Russian Federation (2007-2009) and First Vice President of the investment bank Renaissance Capital (2005-2010).

Mr Yurgens has served on the Board of Directors of numerous commercial and nonprofit organisations, including the EastWest Institute, OGK-4, National Association of Securities Market Participants (NAUFOR), New Eurasia Foundation and Sandvik – MKTC.

He is a professor at the Higher School of Economics, where he regularly holds seminars on the Particularities of Government-Business Relations in Russia. Under the editorship of Igor Yurgens, a Risk Management textbook was published in 2003.

The MEB breakfast is being held in close collaboration with HE Mireille Pettiti, Monaco’s Ambassador to Russia, who organised MEB’s fall mission to Russia with Mr Yurgens.

Participants will be welcomed at the Salon Théâtre of Hôtel Métropole from 8:15 am, and Mr Yurgens will start his presentation at 8:30 am. Those interested in attending should contact the MEB at +377 97 98 68 68 before February 2. Places are limited.

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Strengthening Monaco’s business ties with Russia

On Wednesday, January 17, in the presence of Prince Albert, Patrick Bini, Director of the Princess Grace Hospital, presented his New Year wishes to all professionals at the hospital.

Among many others present were Minister of Health and Social Affairs, Didier Gamerdinger, the President of the Board of Directors, André Garino, and the President of the Medical Establishment Commission, Dr Pierre Lavagna,

Mr Bini said that admissions increased by 5.5 percent while the number of surgical procedures was up by 6 percent. All the hospital’s medical services were operating at close to 100 percent capacity, the hospital chief said.

The director said that new services will start in the first half of 2018, including a Palliative Care Hospital Unit, a new Dialysis Service, new premises for the Blood Transfusion Centre and a new sector of scheduled consultations in Orthopaedics.

Mr Bini also announced, not without emotion and “with a feeling of duty accomplished duty,” his decision to retire on July 1 after 40 years of Hospital Management of which the last ten were as the head of CHPG.

During his speech, the Sovereign Prince warmly praised the work of Patrick Bini and especially thanked him for “leaving a hospital establishment whose activity is constantly growing and whose budget control has resulted in surpluses for the period 2008 to 2016.”

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Monaco authorities have detained the former Chairman of the Board of a Russian bank on an Interpol warrant, according to Tass, the official Russian news agency.

Vladimir Gudkov is suspected of being complicit in embezzling at least 500 million roubles, about €7.24 million, along with other senior office holders at Investtorgbank, according to respected business paper Kommersant, although Moscow’s Ministry of Internal affairs has not confirmed the name.

The alleged fraud involved the purchase and sale of mortgages between the bank and a brokerage company. Russian investigators claim that no real business was carried out by the brokerage. The case has been active since 2016. After the arrest of other suspects, Gudkov disappeared and was put on the Interpol list.

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