-
8/3/2019 C.R.E.A.M. Project Alliancing
1/9
Building Europe Together with Public Private
Partnerships19.05.2011 1
Sustainable PPP Marketswith
Life-Cycle Project Alliancing
-
8/3/2019 C.R.E.A.M. Project Alliancing
2/9
19.05.201119.05.2011
Building Europe Together with Public Private Partnerships 2
Project AlliancingInitial Situation
Traditional contracts Master Servant Short Term Essentially
adversarial Objectives and drivers not aligned Motivated by
individual performance not
project outcome Are not suitable for complex project
developments or full life projects Risks often placed on those
unable to
influence them
Competition between client and contractorrather than
cooperation
-
8/3/2019 C.R.E.A.M. Project Alliancing
3/9
-
8/3/2019 C.R.E.A.M. Project Alliancing
4/9
19.05.201119.05.2011
Building Europe Together with Public Private Partnerships 4
Project FinanceRisk Matrix
Risk Type Mitigation
Pre-completion- Cost over-runs- Delays
(a) Fixed price turnkey contracts(b) Warranties / penalties /
incentives(c) Fixed project specification(d) Strong contractors
Post-completion- Revenue forecasts- Revenue build-up- Operating
costs- Management failure
(a) Committed supply contracts(b) Committed off-take
contracts(c) Strong operators(d) Performance guarantees
Technical- Performance- Environmental- Safety
(a) Warranties(b) Proven technologies(c) Public consultation and
approval
Financial- Structure: debt/equity ratio, eg. 75/25- Structure:
return on capital- Structure: risk / reward ratio- Foreign
exchange
- Interest rates- Debt service cover- Taxation
(a) Equitable ROE, ( eg. 15-20 %)(b) Acceptable cover ratios (
e.g 1.5 -2.0)(c) Escrow and reserve accounts(d) Dividend
constraints
(e) Loan syndication(f) Insurance / financial derivatives(g)
Standby funding arrangements
Legal- Regulatory framework?- Concession law?
(a) Experienced lawyers.(b) Clear, simple documents
Political- Regime stability- Force majeure aggt.- Political
intervention
(a) Clear regulatory regime(b) Investment insurance(c) IFI
support
-
8/3/2019 C.R.E.A.M. Project Alliancing
5/9
19.05.201119.05.2011
Building Europe Together with Public Private Partnerships 5
Project AlliancingOpportunities for Companies
Financing with EU-Know-How, EU-Grants, VentureCapitalOpening new
markets in other European countriesStarting system supply: complex
prod. & servicesolutionsProfiting from permanent cashflows
(service-contracts)Securing through selling shares in the
operation-phaseGenerating new orders in the core business through
building new consortia in other PPPs improved international
communication channels (national
platforms) improved networking to EU (international
platform)
-
8/3/2019 C.R.E.A.M. Project Alliancing
6/9
19.05.201119.05.2011
Building Europe Together with Public Private Partnerships 6
Project AlliancingLife-Cycle Consortium
Provider
Investor SystemSupplier
GeneralContractor
Developer
EuroPPPConsortium
-
8/3/2019 C.R.E.A.M. Project Alliancing
7/9
-
8/3/2019 C.R.E.A.M. Project Alliancing
8/9
-
8/3/2019 C.R.E.A.M. Project Alliancing
9/9
19.05.201119.05.2011 Building Europe Together with Public
Private Partnerships 9
AddressContact
C.R.E.A.M. Europe PPP AlliancePublic Private Partnership
AssociationAvenue de l`Opale 1 Appart. 5B 1030 Brussels
Fon: +32-2-7366-984Fax: +32-2-7320-795www.cream-europe.eu
NameE-MailMobileSkype
Dipl.-Ing. Zoran
[email protected]+49-175-9400639cream_zj
