Infrastructure is the backbone of any economy and the key to achieving rapid sustainable rate of economic development and competitive advantage. Realising its importance governments commit substantial portions of their resources for development of the infrastructure sector. However despite such focus, governments in developing economies face severe impediments due to their limited spending power. This has prompted governments to open up the infrastructure sector to private sector and foreign investment and has increased reliance on innovative structures like public private partnerships. Infrastructure requirements for a country like India are massive, presenting enormous business potential for the private sector.
Funding for infrastructure projects is complex and presents specific challenges that require specialist knowledge and understanding to create appropriate finance structures which will ensure that risks are dealt with effectively and efficiently. Infrastructure project finance requires involvement of multidisciplinary teams. Economists, engineers, accountants and finance specialist all need to work together to ensure that a project achieves its funding objectives. The long-term nature of infrastructure project funding dictates specialist knowledge of the many different institutions, both local and international that offer financing in this sector.
If this is your situation:
- You are looking to undertake development of large scale infrastructure projects
- You are looking to participate in joint ventures/financial partnerships that would undertake execution of infrastructure projects
- You are looking to participate in a Public Private Partnerships (PPP), whether you are from the private sector bidding for a government led project, or from the public sector aiming to create an effective partnership
How PwC can help:
Whatever is the complexity of your requirement, PwC Project Finance can provide expert advice and specialised customised support to satisfy your requirements. PwC has extensive experience of working with both governments and private sector entities in the infrastructure domain. Our services are designed keeping in view the specific requirements of our clients. We develop procurement strategies for the public sector, design the private investment solicitation process and assist in implementation. We also work with the private sector in assessing opportunities, developing bid strategies and in finance raising. We have specialist knowledge of deals in all sectors including energy, transport, housing, education, health, defense, water and waste.
Our Services:
Project Identification and Feasibility:
- Country review
- Acquisition search
- Risk Analysis
- Financial Modeling
- Commercial issues
- Contract structures
- Funding options
- Consortia structure
Financial and Bid Structuring:
- Review tender documentation
- Risk allocation
- Funding strategy
- Tax structuring
- Security structure
- Prepare bid/Project Information Memorandum
Arranging Finance:
- Manage competition between funding agencies
- Negotiate term sheets
- Bring in underwriters; Banks, Institution, Bond underwriters
Deal Closure:
- Design hedging strategies
- Documentation
- Managing the Due Diligence process
- Negotiation assistance
Post Closure:
- Refinancing
- Enhancing value for shareholders
- M&A
