PPP Sale of shares

31% annual return on equity (M25 project, UK) Sources: National Audit Office analysis; HM Treasury PFI database; Connect Plus (M25) financial accounts A bit of historyIn 2008 Highways England (the post-Soviet equivalent of the Highways Authority) announced a tender for a 30-year PPP contract to extend two sections of the M 25 (London Ring Road) […]

PPP Refinancing

Refinancing and selling a stake in a specialist project company (SPV) are two ways for sponsors/shareholders to restructure a project while making a little, what they call, money… Above are the financial flow charts before and after the refinancing of the project to design, build, finance and operate Fazakerley Prison, UK We talk about these […]

PPP How to reduce the payment to the private partner

Reducing payments to the private partner Let’s say right away that this is extremely difficult to do. Reasons First, cost savings for the private partner must still be found. This requires an effective system for monitoring public-private partnership projects. But when structuring a transaction, the private partner, its sponsors and lenders pay a lot of […]

PPP Risk premiums

A «risk premium» As we now all understand, the transfer of part of the risks of a project from the state to the private sector is one of the essential differences between budget financing and public-private partnerships. The private investor takes into account these risks transferred to him in the expected profitability of the project. […]

PPP Direct budget expenditures forecast

So, shall we move on? In the comments to the previous article, I was asked to pay more attention to public-private partnerships in the social sphere and to cite examples from the Private Finance Initiative (PFI) system, which until recently operated in Great Britain. Well, be my guest. The distant future. But today Projections of […]

PPP Benefits and drawbacks

Preface In December 2019, it was announced that the Asian Development Bank (ADB) would act as a transaction advisor to the Ministry of Public Education of the Republic of Uzbekistan and assist in selecting a private partner to help build, manage, and maintain the facilities, while educational services would be provided by the public sector. […]