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The Private Sector Perspective on PPP Projects/Concessions. Stephan Eldh Finanskonsult AB, Independent Advising Company. Background. Technical Consultants Construction Suppliers Financial Institutions. My involvement in PPP/BOT. Procurement/Bid Processes
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The Private Sector Perspective on PPP Projects/Concessions Stephan Eldh Finanskonsult AB, Independent Advising Company
Background • Technical Consultants • Construction • Suppliers • Financial Institutions
My involvement in PPP/BOT • Procurement/Bid Processes • On the behalf of Public and Private Partners • Negotiation phase, Private partner • Financing (Financial Close), Private Partner • (Financial Structuring, Term sheet, CP, Risk allocations, Insurances)
PPP/BOT projects • Roads • Trams • Water Projects • Hospitals • Prisons • Ports/ Harbors • Airports
General PPP Structure Government Equipment System Plant Design Build Guarantees ? Public Authority Concession agreement Project sponsors Equity Sub. debt Senior debt Concession company SPV Senior Lenders Shareholders Dividends Repayment Periodic Maintenance, renovation Operation maintenance Construction Design Construction Operation and maintenance
General about Suppliers • Suppliers/Sponsors Perspective; • Deliver the services and merchandises • Core business; own commercial risks • Get paid (as soon as possible) • After completion move forward to other projects
How to select a country for PPP activities? • Suppliers Perspective; • A number of potential PPP projects in the area of interest coming up • Apatite from the International banking and Insurance system • Investors • Developed legal system • Developed Institutional framework • Access to local partners