Public Private Partnerships are a relatively new instrument for the implementation and financing of utility projects in Poland. Our services cover economic-financial advice under the PPP model for either public entities or private partners.
We support public partners through:
We also support private partners in negotiating with public partners and in preparing the documentation necessary for determining the profit sharing proportions. Besides financial analyses, our deliverables for the private partner include documents which are the basis of internal decision making and for securing external financing.
Financial advice on a PPP transaction for a Public Partner | Public utility building
We advised the City of Kraków on the erection and maintenance of a public utility building. Our involvement included supporting the city in conducting pre-implementation analyses, market testing, private partner selection and the closing of a financing deal. We also built a financial model comparing the PPP option with the traditional project implementation option (PSC), determined the boundary conditions for project bankability and profitability from a potential private partner perspective, taking into account special corporation tax and VAT requirements, and analysis of the potential contractor and financing institutions market. Our model made it possible to compare various external financing options (including EU grants for the Private Partner) and risk and profits distribution in connection with leasing part of the commercial space.
Financial advice on a PPP transaction for a Public Partner | Tramways infrastructure
Our services were in connection with a PPP investment project run by the City of Kraków which involved building and maintenance of a tram line, including a tram line tunnel. In cooperation with legal and technical advisors, we supported the City in the transaction in terms of pre-implementation analysis and market testing, private partner selection via a competitive dialogue, and the closing of a financing deal. Our remit included construction of a financial model comparing the PPP option with the traditional project investment option (PSC) where we sought to confirm the rationale of using the PPP arrangement. The key part of our engagement was to determine the boundary conditions for the bankability and profitability of the project from a potential private partner perspective, taking into account special corporation tax and VAT requirements, and the analysis of the potential contractor and financing institutions market. Our model was designed to enable comparison of various external financing options (including an EU grant for the Public Partner) and risk distribution.