1. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU The Private Sector Perspective on PPP Projects/Concessions Stephan Eldh Finanskonsult AB, Independent Advising Company

2. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Background Technical Consultants Construction Suppliers Financial Institutions

3. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU My involvement in PPP/BOT Procurement/Bid Processes On the behalf of Public and Private Partners Negotiation phase, Private partner Financing (Financial Close), Private Partner (Financial Structuring, Term sheet, CP, Risk allocations, Insurances)

4. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU PPP/BOT projects Roads Trams Water Projects Hospitals Prisons Ports/ Harbors Airports

5. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Project sponsors General PPP Structure DesignConstructionOperation and maintenance Public Authority Concession company SPV Equity Sub. debt Concession agreement Senior debt Guarantees ? Construction DesignBuild Shareholders Senior Lenders Government Operation maintenance Equipment SystemPlant Dividends Repayment Periodic Maintenance, renovation

6. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU General about Suppliers Suppliers/Sponsors Perspective; Deliver the services and merchandises Core business; own commercial risks Get paid (as soon as possible) After completion move forward to other projects

7. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU General about Investors (within the Suppliers Parent Company) Investors Perspective; Deliver money (Equity) Core business; financial risks No commercial risks Transparency (allocation of the risks)

8. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU How to select a country for PPP activities? Suppliers Perspective; A number of potential PPP projects in the area of interest coming up Apatite from the International banking and Insurance system Investors Developed legal system Developed Institutional framework Access to local partners

9. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU How to select a country for PPP activities? Investors Perspective; Apatite from well-known Suppliers A number of potential PPP projects coming up Apatite from the International banking and Insurance system Developed legal system Developed Institutional framework

10. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Tendering, general Time consuming Expensive

11. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Bid for a PPP project? Area of special interest The volume of the project (substantial) Evaluate tender procedure and documents Search for Consortium partners Evaluate the changes for the potential Consortium to be awarded The competitors Some considerations;

12. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Tender procedure and documents What kind procurement process? ( Prequalification process) Risk matrix? Expectations of risk allocations Question marks in the tender documents Quality of the documents Timetable, realistic or not

13. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Tender procedure and documents Spend some time and effort to think the hole PPP project cycle thru Special attention to procurement procedures Start the collaboration with the Private Partners in early phases Special attention to risk allocation (risk matrix) Be realistic in term of time schedules A piece of advise……..

14. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Establishment of the Consortium Supply of services at different times in the project life cycle Minimize the risk expose – real apatite at own risks only No apatite on joint and several liability/responsibility/guarantees Typical issues to be discussed between consortia members

15. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU The complexity of a PPP project Long time commitment ( Economically, Politically, Legally and Commercially) Life cost perspective (many considerations) Many different Partners involved Different perspectives (Suppliers/Banks/Investors/Authorities) To many decision makers not aware of the complexity of a PPP Project To find an effective and realistic risk sharing structure ( e.g. Shadow Tolls, Rider ship, Availability)

16. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU The benefits of PPP projects Cost efficient - live cost perspective save 10 -25% Projects will come to reality Time cut in implementation phase over 30% (road project) Transfer risks (to the party which has the ability to monitor and prize at the lowest cost)

17. © OECD A joint initiative of the OECD and the European Union, principally financed by the EU Finally Consult International experts with experiences of PPP Projects (carried out PPP Transactions) We hope for PPP Projects coming up soon in Turkey Thank you for your attention finanskonsult@telia.com