Governments & Infrastructure

Project advisory for synergy in public private partnerships

Your Challenges

The interface between the public and private sectors is an area of great opportunity and innovation. It is now globally recognised that much can be achieved through using private finance for investment in strategic industries that have traditionally been funded through the public purse.

Most Asian countries are seeking to significantly enhance their infrastructure due to an ever widening gap between the provision of and demand for infrastructure, a growing population and the failure of governments to invest adequately in the required infrastructure. Across the region, economic and social infrastructures are being upgraded or renewed to foster greater economic growth and meet increasing user expectations.

Achieving the necessary provision of infrastructure supply will require staggering expenditures. In the short term, governments are unable to provide the funding necessary to meet these targets. This has created the need for private sector capital, which in turn presents significant opportunities for profitable private sector investment.

A number of governments across the region are seeking to attract private capital for infrastructure through the Public Private Partnership (PPP) model which has been successfully used in numerous countries, including UK, Australia, South Africa, Japan, South Korea and Canada.

Infrastructure investment and PPPs also present a number of challenges. Detailed analysis of projects prior to procurement is essential for ultimate success, with the need to ensure a suitable regulatory and legal framework.

Optimum risk allocation, effective but fair payment mechanisms, robust contractual arrangements, rigorous review of project cash flows, and appropriate financing and structuring arrangements are absolutely critical to ensuring a workable, effective solution that delivers both value for money to the public sector and excellent services to the end user.

Meeting Your Needs

PwC partners governments; shaping their policy, developing frameworks and assisting them to implement PPPs, industry by industry, and project by project. We reconcile investors’ profit needs with the government requirements for political and financial transparency. As an independent advisor, we engineer a truly competitive bidding process for governments. When advising the private sector, we help them develop structures that allow access to local and international funds, maximising shareholder return while submitting winning bids that contain project specific, rather than institution or product specific financing solutions.

Our Experience

PwC is consistently ranked among the top Project Finance and PPP advisors, having advised on over 260 completed transactions valued at over of US$52 billion in sectors including utilities, rail, road, sport, schools, hospitals, government accommodation, waste and prisons. Some examples are listed below:

Economic Infrastructure
  • Newcastle International Airport (UK)
  • London Underground PPP (UK)
  • Docklands Light Rail PPP (UK)
  • Richmond-Airport-Vancouver PPP (Canada)
  • Trans-Java Toll Road (Indonesia)
  • Dayabumi Geothermal Power Plant (Indonesia)
  • Project Aquatrine (UK) (Water)
  • Sofia Water (Bulgaria)
  • Sheffield Waste Management PPP (UK)
Social Infrastructure
  • Singapore Sports Hub PPP (Singapore)
  • Ascot Racecourse Financing (UK)
  • ITE College West PPP (Singapore)
  • Glasgow Schools PPP (UK)
  • New South Wales Schools PPP (Australia)
  • Ministry of Defence – Colchester Garrison PPP (UK)
  • Ministry of Defence – Allenby Connaught (UK)
  • Ishinkai-Yap General Hospital (Japan)
  • Portsmouth Hospital NHS Trust PPP (UK)
  • Kochi Prefecture Hospital PPP (Japan)
  • Berwick Community Hospital PPP (Australia)