Transactions (Buy-Side, Sell-Side)

Investors are increasingly turning to infrastructure funds and building portfolios. They're seeking a countercyclical investment option - but they're also responding to the government's openness to private participation and the public's swelling demand for new infrastructure.

Executing infrastructure deals, however, includes many inherent risks and complexities and requires careful due diligence and structuring to align deal dynamics with investors' objectives. Many of the questions facing executives tasked with delivering stimulus projects as well as public agency directors responsible for disbursing funds are complex, critical and continuously evolving.

For example:

  • Will infrastructure financing options be enhanced by changes or extensions in the qualifications for tax-exempt financing?
  • Is the organization steadily progressing toward an integrated approach to accountability, transparency, governance and control throughout the supply chain?
  • If speed is critical to the implementation, what extraordinary demands, impacts and collateral outcomes should be anticipated and managed? What mitigating tactics should be employed?
  • Have current contract and performance provisions grown obsolete?
  • If supporting a major capital project isn't a challenge the organization has undertaken lately, does it have the right organizational framework, systems and controls in place for success?

In addition to investors, government organizations will be seeking participation from private sector infrastructure firms through PPP, and concession agreements.

Executing successful deals in the PPP space requires answers to key questions. For example:

  • Have we appropriately identified the potential for value enhancement within the PPP project?
  • Are we confident that we fully understand the principle threats to achieving base cash returns?
  • Given that achieving material value enhancements is more challenging in the current climate, have we been rigorous enough in considering the likelihood and impact of downside scenarios?

How PwC can help

PwC’s Capital Projects & Infrastructure team can help investors, federal agencies and local municipalities address these complexities and structure and execute an infrastructure deal to increase success.