Services
For both public and private parties
With inside experience at both ends of the table, our platform offers services to both Public and Private parties that are seeking to partner up for large projects involving transportation, social or water infrastructure as well as renewable energy.
Government Authorities
Public
Business Case Development
To turn an idea into a project, one of the steps that need to be taken is to determine whether a project has the potential to be financially viable.
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Business Case Development
Your project always starts with just an idea. To turn an idea into a project, many steps need to be taken before a costly transaction process can be launched. One of these steps is to determine whether a project has the potential to be financially viable. By means of a financial model, we develop Business Cases to assess this. Through a number of iterations, this process helps to identify the full list of relevant assumptions enabling a determination of the project’s key value drivers. This powerful tool forces decision makers to make choices and eventually rationalises the final go/ no-go decision itself.
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Balancing Award Criteria
Translating your tender objectives into award criteria requires a thorough analysis of how participants in the tender would react to various incentives.
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Business Case Development
Translating your tender objectives into award criteria requires a thorough analysis of how participants in the tender would react to various incentives. We believe incentive schemes are at the core of why PPP tenders succeed or fail. Our familiarity with the behavioural process on the private side allows us to provide you the insights required to get this right from the outset.
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Risk Analysis
When putting in the market a project, the proposed risk allocation will drive investors and lenders enthusiasm to bid. We get risk allocation right from the onset of a tender through thorough analysis.
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Risk Analysis
When putting in the market a project, the proposed risk allocation will drive investors and lenders enthusiasm to bid. Parties are willing to accept risk as long they have control over them and are able to absorb them. It should be clear to Authorities what is really important to them and what is ‘nice to have’. Getting the risk-allocation wrong will come at a cost, either when risks should have been allocated to the private sector or when risks are allocated to the private sector but deters parties to participate. By means of both qualitative and quantitative analysis PPPPH contributes to getting risk allocation right from the onset of a tender. Subsequently, PPPPH assists in serving the interests of the Authority when proposed risk allocations are challenged by investors and their group of lenders.
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Contractual Framework Review
Comply with your own (often politically sensitive) conditions whilst keeping the project commercially attractive to your counterpart may be challenging.
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Contractual Framework Review
Procuring authorities in the preparatory phase of a project tender are faced with a wieldy set of commercial choices. Complying with your own (often politically sensitive) conditions whilst keeping the project commercially attractive to your counterpart may be challenging. This is however exactly what is required to maximise value for taxpayers money, which PPPPH believes should be the key driver of decision taking. PPPPH structures the choices to formulate a strategy. Knowing your private counterpart’s way of thinking as well as constraints helps us in setting the incentives right and keeping objectives realistic. PPPPH will look at the commercial aspects of project documentation including payment mechanisms, termination clauses, security packages, guarantees structure, risk allocation and exhaustiveness of contracts.
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Contractual Amendments
Given the rigid nature of project finance structures, managing contractual amendments may turn out to be a painful process with several stakeholders affected.
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Contractual Amendments
Given the rigid nature of project finance structures, managing contractual amendments may turn out to be a painful process with several stakeholders affected. Together with your legal counsel, PPPPH assists in the analysis and negotiations to achieve a satisfactory outcome.
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Private
Developers Investors Lenders
Business Case Development
Investors in the process of preparing an unsolicited proposal will need to determine whether a project has a sufficiently attractive risk-return trade-off.
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Business Case Development
Investors in the process of preparing an unsolicited proposal will need to determine whether a project has a sufficiently attractive risk-return trade-off. In order to determine this, a Business Case needs to be developed with a financial model. Through a number of iterations, we help you to identify the full list of relevant assumptions enabling a determination of the project’s key value drivers. This powerful tool forces decision makers to make choices and eventually rationalises the final go/ no-go decision itself.
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3rd Party Investor
+ Match Making
We enable the formation of consortia for (series of) bids or even with the establishment of joint ventures with the aim to cooperate in certain markets for extended periods of time.
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3rd Party Investor
+ Match Making
Through our wide international network of industrial- and financial sponsors and our good view on the transaction pipeline in various markets, we are well placed to contribute to formation of consortia for (series of) bids or even with the establishment of joint ventures with the aim to cooperate in certain markets for extended periods of time.
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Financial Bid Strategy
We help you put together an offer that finds the right balance between delivering the quality sought by the client and minimising cost.
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Financial Bid Strategy
Every public-private infrastructure tender is unique. In order to define a strategy to win, bidding consortia need to carefully study tender documentation to intelligently put together an offer that finds the right balance between delivering the quality sought by the client and minimising cost. As financial advisor we take a pro-active role in finding this balance by smart use of the financial model, structuring of a funding competition and developing a clear view on both bidding risks and risk allocation during the projects lifetime.
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Risk Analysis
A solid understanding of the risk-allocation in a project is key to negotiate sound project- and financing agreements. While talking to lenders and public counter parties an advisor needs to be on top of this.
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Risk Analysis
Allocation of risk is at the heart of how project financed transactions add value over other types of financing. Yet, every transaction will see risks allocated in a unique way based on the asset class, project specific objectives, the status of the various stakeholders as well as the state of the market. The paradigm ‘allocate the risk to the party best able to manage it’ is a good starting point, but real-life experience evidences it leaves a lot of room for discussion. A solid understanding of the risk-allocation in a project is key to negotiate sound project- and financing agreements. While talking to lenders and public counter parties an advisor needs to be on top of this.
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Contractual Framework Review
This analysis helps to ensure the project structure is bankable and facilitates discussions with lenders. We pro-actively flag issues and formulate alternatives.
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Contractual Framework Review
In conjunction with the legal due diligence process, PPPPH as financial advisor will shed light over the commercial elements in the project- and finance documentation. This includes a thorough analysis of the payment mechanism, termination clauses, security packages, guarantees structure, risk allocation and exhaustiveness of the contracts. The analysis helps to ensure the project structure is bankable and facilitates discussions with lenders. As part of the process to build the financial model PPPPH will develop a familiarity with the proposed contractual structure. Consequentially, we consider the little marginal effort to pro-actively flag issues and formulate alternatives a natural part of our mandate.
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Due Diligence
Commercial and Financial
Protect the security whilst allowing for entrepreneurial flexibility in hybrid project finance assets that see with a lower degree of contracting than PPP Projects.
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Due Diligence
Commercial and Financial
Hybrid project finance assets benefit from a monopolistic regulated environment but see with a lower degree of contracting than PPP Projects. Financiers in these asset classes need to get their head around market features (e.g. long term evolution of demand), guarantee structures as well as complicated corporate structures that protect security whilst allowing for entrepreneurial flexibility. In these cases financial and commercial due diligence will be required focusing on long term value drivers and risks. In cooperation with subject-matter experts, PPPPH carries out complex due diligence processes starting with the understanding of the business and its environment and resulting in recommendations in respect of the structure.
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Project Debt and Derivatives
An important benefit of project finance is that it allows for highly leveraged capital structures. We maintain relationships with lenders with various degrees of risk appetite.
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Project Debt and Derivatives
An important benefit of project finance is that it allows for highly leveraged capital structures. This gives away a key role to lenders: commercial banks, development banks, institutional investors, debt funds, multilateral institutions and export agencies. PPPPH’s maintains relationships with lenders with various degrees of risk appetite. We select the right lender(s) for your project based on an intelligently designed funding competition process aimed at obtaining firm and competitive terms with lenders that deliver on their promises. With inside experience at both ends of the table, PPPPH is well placed to rationalise discussions and maintain focus in the negotiation process.
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Project Refinancing
One of the downsides of project finance is its relatively inflexible nature. As unwinding of the financial structure comes at a high price, restructuring is usually a delicate exercise.
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Project Refinancing
Project finance sponsors may gain a significant upside on their base return by refinancing project debt. Drivers of refinancing potential are construction completion (de-risking the project considerably), achievement of stable operations, decreased risk-premiums or loosened structural requirements prevailing in the credit market. Alternatively, the Sponsors may face refinancing obligations forcing them to look out for new debt to avoid loss of return or even default. In other occasions defaulting lenders may have to be replaced. In concession based projects a refinancing is typically a once in a project life time event that required solid financial analysis and an intelligent strategy to raise new debt. In addition rights of the grantor and creditors of non-refinanced tranches need to be dealt with to make the transaction work.
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Contractual Amendments
Given the rigid nature of project finance structures, managing contractual amendments may turn out to be a painful process with several stakeholders affected.
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Contractual Amendments
Given the rigid nature of project finance structures, managing contractual amendments may turn out to be a painful process with several stakeholders affected. Together with your legal counsel, PPPPH assists in the analysis and negotiations to achieve a satisfactory outcome.
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Changing Project Scope
Financial Restructuring
+ Renegotiation of Contracts
Given the rigid nature of project finance structures, managing contractual amendments may turn out to be a painful process with several stakeholders affected.
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Financial Restructuring
+ Renegotiation of Contracts
One of the downsides of project finance is its relatively inflexible nature. Once closed, transactions see a very high degree of contracting. As unwinding of the various elements of the financial structure comes at a high price, a restructuring is usually a delicate exercise. All parties may be impacted for the better or the worse and time is usually of essence. Contracts may not provide sufficient guidance to put an end to heated debates. As financial advisor PPPPH seeks to define creative solutions taking into account the interests and the decision making process of all stakeholders.
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Project Finance E-Learning
For teams within banks, law firms, fund managers, project sponsors and advisers
We are an Authorised Agent to distribute the E-learning courses developed by the Sydney based firm Four Quadrant Project Finance. The specialised, high quality and cost effective courses have been developed for teams within banks, law firms, fund managers, project sponsors and advisers. They are practitioner focused to build applied knowledge and skills.
Project Finance Foundations is the most comprehensive e-learning Project Finance Course available in the market today. It is designed for practitioners, utilises adult learning principles and leverages the power of multi-media to provide a stimulating and effective learning experience.
(click here to learn more about the program)
Mastering Project Finance Models takes the learner step-by-step through the process of building a fully scoped project finance model from a clean spreadsheet. Leveraging the power of video and interactive multi-media, the course uses a structured building block approach to offer a learning experience that provides a solid foundation in modeling skills for the project finance practitioner.
visit us
PPP Power House, Bernard Zweerskade 24, 1077 VA Amsterdam, The Netherlands