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“Recent review of infrastructure projects for the last six months, including social
projects, statistics revealed that 50% were unaffected by the global financial crisis,
25% had had substantial increases and 25% had been cancelled.”
* Poznámka
Zdroj: Zdroj 2
Key issues of PPP in financial crises
Měrná jednotka
“The monoline wrapped bond market, which has been the financial structure
of choice for large PFI projects over the past 10 years, is now effectively
closed to new transactions. This has increased reliance on the banking
market.
* Poznámka
Zdroj: Zdroj 3
PPP economics have changed
Měrná jednotka
* Poznámka
Zdroj: Zdroj 4
PPP economics have changed
Měrná jednotka
Implications for the VfM
(c) Some governments more rigorous on VfM and can be more keen on
litigation
* Poznámka
Zdroj: Zdroj 5
PPP economics have changed
Měrná jednotka
VfM might be lost at the current market, this can however be offset by fiscal
and macro economical benefits of PPP
VfM lost
equity
debt
51.3
Equity financing
74.4
15
Bond financing
5.7
2007
2008
212.1
Loan borrowing
234.9
* Poznámka
Zdroj: Zdroj 7
PPP economics have changed
Měrná jednotka
Change in 2008 in %
60
45
40
20 11
0 Loan borrowing
Loan borrowing Bond financing Equity financing Bond financing
%
-40
-60
-62
-80
Project finance 2009
* Poznámka
Zdroj: Zdroj 8
Global PPP in 2008
Měrná jednotka
Volume of PPPs have stagnated in 2008 on the 2007 level with growth mainly
generated in North America region (203% growth), however the 4Q volume fell
38% (in comparison to 4Q 2007 volume)
Asia 11.3
Spain 4.6
Portugal 6.4
UK 10.9
Global PPP 67
0 10 20 30 40 50 60 70 80
* Poznámka
Zdroj: Zdroj 9
Case study: A1, Motorway in Germany
Měrná jednotka
This is 72 km of existing motorway that shall be widened and refurbished
* Poznámka
Zdroj: Zdroj 10
Case study: M6 Phase III Motorway in Hungary
Měrná jednotka
This is 65 km motorway extension in Hungary
* Poznámka
Zdroj: Zdroj 11
Case study: Mexico’s Farac I and II projects show how market
conditions have changed at project level
Měrná jednotka
“The crisis has narrowed the financing opportunities from banks,” the
Construction Ministry wrote about the impact of the unfavorable financial
market on PPP projects, as cited by the TASR newswire. “The liquidity
shortage has a much bigger impact on the banks’ decision-making than
the quality of the projects or the financial standing or rating of the Slovak
Republic.”
The ministry is looking for ways to finance the PPP projects from the
European Investment Bank and the European Bank for Development and
Reconstruction.
The Slovak Spectator, 2009
* Poznámka
Zdroj: Zdroj 13
Policy and Governance implications
Měrná jednotka
Procurement has to be more flexible, shorter and financial market risk sensitive
Procuring authorities are suffering from the higher financing costs and bank
fees, as well as greater transaction costs from procedures and negotiations
that are taking longer to conclude. One risk is that final bids that were thought
to have committed financing are reopened as debt continues to be re-priced.
It’s no longer realistic to insist on committed financing at the bid stage – most
lenders require price flex, or indeed market flex clauses (in which most terms,
not just pricing, can be adjusted). This makes it impossible to conclude the
financial evaluation of private partner proposals until much later in the
process, and sometimes not even until days before financial close.
What is a DFC?
* Poznámka
Zdroj: Zdroj 15
Policy and Governance implications: introducing new
Měrná jednotka institutions and guarantee support mechanisms
IGD also proposes to reduce the impact on costs through a special state
warranty on local authorities’ projects, and calls for a broader public
support through investment subsidies when construction periods are
important.
Pierre Van de Vyver, 2009
* Poznámka
Zdroj: Zdroj 16
Conclusions
Měrná jednotka
Governments should focus on building the pipeline for the future post
financial crises PPPs and improve policies and procedures for the bidding to
accommodate current situation, perhaps introduce debt funding competition
(DFC)
* Poznámka
Zdroj: Zdroj 17