Project financing of large infrastructure projects
Most countries in the region have virtually no market for non-bank infrastructure project finance, and in some cases project finance remains the domain of state-owned lenders. Until recently, a significant number of works of infrastructure have been funded through EU structural funds and public municipal resources. However, project stakeholders have been encouraged to include private investors in large infrastructure projects with a positive cash flow component.
The key reasons for the underdevelopment of project financing lie in insufficient project maturity and inability to develop projects to the level necessary to achieve bankability. Access to finance is one of the main reasons that infrastructure projects are not developing faster and the key stakeholders sometimes do not see a business case for financing. Moreover, lack of know-how and competence of key stakeholders require a complex multidisciplinary approach in order to guarantee project execution.
What does Deloitte offer?
- Identification of projects with a Cash Flows Generating component and bankability potential;
- Support of project development to achieve bankability;
- Preparation and structure of transaction by leveraging our consulting, financial and legal expertise;
- Finding the right investor and achieving financial close;
- Support to the client through the project execution and construction phases.
We can be present with our services across the entire project lifecycle
Strategy and planning: Assisting long-term planning of individual projects or a portfolio by focusing on feasibility, alignment with corporate objectives and governance procedures in order to maximize return on investment.
Financing and procurement: Raising project finance; establishing and managing the procurement process to acquire services, material or equipment to deliver the project, and prioritizing capital allocation between projects.
Project organization, execution and construction: Setting up the project for success and strengthening client capabilities to deliver on time and to budget.
Operations and maintenance: Assessing ongoing lifecycle costs and providing insights around optimizing the performance and value of assets in operation.
Asset recycling, concession maturity & decommissioning: Determining when and how to discontinue investing in an asset, and transaction advisory services for investors in infrastructure assets.