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June 3 rd, 2014 Athens public meeting - Presentation on Infrastructure financing Vicky D. Kefalas, MBA Head, Investments & Development Projects Consolidated.

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Presentation on theme: "June 3 rd, 2014 Athens public meeting - Presentation on Infrastructure financing Vicky D. Kefalas, MBA Head, Investments & Development Projects Consolidated."— Presentation transcript:

1 June 3 rd, 2014 Athens public meeting - Presentation on Infrastructure financing Vicky D. Kefalas, MBA Head, Investments & Development Projects Consolidated Contractors Company (CCC)

2 More & Better Infrastructure More funding, renewed approach Government commitment Collaboration between policymakers, financiers, private investors Perspective & Experience Working on the private developer end Bidding and raising finance for PPPs Public Private Partnerships Expensive funding but a good model

3 KEY CHALLENGES - PRIVATE SECTOR FUNDING - High upfront capital requirements - large outflow, average construction term 2-4 yrs - Long term horizon of the projects yrs, may not align with investor terms, loan tenor -need for hospitable political & regulatory environment - Complex risk profile -country & project -interdependencies with adjoining / related projects - Recovery and return expectations of the private sector investors – seek stable, high-yield returns

4 IMPROVED COOPERATION BETWEEN MAIN STAKEHOLDERS OF INFRA PROJECTS -Key Stakeholders: developers, financiers, local governments, MDBs, DFIs, ECAs -Challenging economic and market conditions : -Developing countries -EU countries under austerity measures, deficit reductions -Banks under new regulations, repairing their balance sheets -Enabling & Inclusive infrastructure: -Limited ability of people to pay -More non -recoverable funding to ensure social acceptance and wide use -Standardized transaction structure and risk allocation: -UK has this, but not EUROPE and many parts of the world -A framework for project tendering and approval with standard processes and contracts

5 CLOSING THE “KNOWLEDGE GAP” Better cooperation between relevant international bodies and local governments Improve knowledge, skills and awareness of tendering authorities -Training and reference tools: - UN International PPP Center of Excellence and TOS s - WORLD BANK’s “PPP in Infrastructure Resource Center” -Increase the awareness of countries, ministries & staff More transparency and accountability across countries -Share information on management, operational performance & risks -Establishing common disclosure standards -Help learn which models work best

6 ATTRACTING INSTITUTIONAL INVESTORS A substantial pool of savings, could be deployed in the infrastructure sector Good match for the investment horizons & risk appetites of pension funds and SWFs Mostly stable & predictable cash flows over the long term Proactively finding the right incentives - support, regulation adjustments to coax these investors Critical in attracting funding and a relatively inexpensive way of mitigating risk

7 FINANCING INFRASTRUCTURE PROJECTS – CONCLUSIONS & WAY FORWARD -A serious challenge for governments & private investors -Government commitment -Both public and private sources of financing are critical -Working openly together, understand challenges -Find transformative policies and mechanisms to fund infrastructure “If you want to go quickly, go alone. If you want to go far, go together” - African proverb


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