What’s next for PPPs in infrastructure procurement?
Watch the webinar on-demand. The policy and financial backdrop to private investment in infrastructure is changing. Proximo and its expert guests will take a look at the ways that PPP structures could - and probably will - evolve.
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Key topics discussed in this webinar:
- The advantages and disadvantages of using PPP in infrastructure procurement
- The most successful adjustments to PPP structures
- Sectors that benefit the most from the use of the RAB model
- The risks of the RAB model for project finance lenders
- Whether or not rising inflation and interest rates have affected the case for PPP
- Sectors and countries most open to the use of PPP
Background:
Government enthusiasm for procuring infrastructure using the private sector grew rapidly from the 1990s into the last decade. This led to strong growth in the global project finance market, and helped institutional investors get comfortable with the risk profile of infrastructure. PPP is now well-established in Europe, the Americas and Asia.
However, PPP developers have always had to work hard to make the argument that PPP leads to cost and date certainty and life-cycle savings. Opposition - most of it focused on the costs and inflexibility than can be associated with PPP procurement - has never relented. In England, arguably the birthplace of PPP, the market has been moribund despite a series of tweaks and relaunches.
But other markets are showing real creativity in structuring, risk allocation and financing. Mainland Europe and Latin America have made huge strides in procurement, and Canada and Australia still produce respectable volumes. Could developments in these markets allow PPP to take root in markets where governments have been more reluctant?
Proximo's Thomas Hopkins was joined by a panel of market participants from each of the most active regions for PPP to assess the progress that PPP has made, what tweaks have been most successful, and in what markets it is likely to be most successful:
Alistair Higgins, Managing director, infrastructure finance & advisory, ING
Allan Marks, Partner, Milbank
Jonathan Turton, Director, Arup
Christian Bauer, Partner, Watson Farley & Williams
