Global infrastructure PPP advisory position (closed deals H1 2006)
In H1 2006 KPMG was proudly ranked first in the Global Infrastructure Public Private Partnership (PPP) advisory position by “Infrastructure Journal”.
KPMG Corporate Finance is also ranked first by “Infrastructure Journal” in the Healthcare and Transport PPP projects (3 deals in each sector).
Project Finance, Public Private Partnership (PPP) and Private Finance Initiatives (PFI)
Public Private Partnership (PPP) - A Wave of Greek Projects
There are increasing opportunities in European markets as governments introduce PPPs on a wider scale as a method of procuring infrastructure, notably in the health, education and transport sectors.
2006 saw a continuation of this theme although European markets are at very different stages of development with some enjoying a better year than others. Spain was arguably the pick of the bunch with a number of hospital and road deals reaching financial close and several new transactions coming to market at the tail end of the year.
However, Spain’s success last year contrasts sharply with the situation in Italy where PPPs made little or no progress and the high profile Messina bridge transaction was called off leaving the winning bidder (an mpregilo-led consortium) to seek compensation.
In between the two extremes, the Austrian and Benelux markets made steady, if unspectacular, progress. Markets to watch in 2007 include Greece, and more importantly, France.
The French RFF programme has strong political backing and two new projects are set to follow the GSM-R in the first quarter of this year.
The jury remained out on markets such as Germany, Portugal and the CEE, where progress was slow. However, some big transactions planned for 2007 – the A-Model roads in Germany, Western High Speed Diameter and Moscow to St Petersburg High Speed Toll Road in Russia, and Portugal’s Lisbon Airport – could quickly change opinions of these countries.
The European PPP sector in 2006/07 can broadly be split into four types of market which are analysed in more detail in this report:
• Those countries with a proven track record and predictable deal flow from which project sponsors and lenders can derive considerable comfort; Spain and Ireland fall into this category;
• those with experience of PPPs where project sponsors and lenders are likely to be comfortable, but which have had a variable deal flow up until now; France, Austria, Greece and the Benelux countries fall into this category;
• Countries with similar conditions to those above but which made slow progress in 2006; Germany, Portugal and the CEE countries;
• Italy.
A Wave of Greek Projects
Like France, Greece looks set to have a bumper 2007. Five accommodation projects, one prison project and two education programmes were approved over the summer of 2006, with the EUR 56m conference centre in Athens, EUR 150m Attica Grouped schools, EUR 84m University of Peloponnese, EUR 198m Grouped Prisons Project having already published tenders for advisory services.
The roads sector also moved forward in 2006. The EUR 844m Corinth-Tripoli-Kalamata project was awarded in March to a Elliniki Technodomiki/ Aktor/ Impregilo consortium. A consortium led by Hochtief and Vinci was awarded the EUR 995m Maliakos to Kleidi Highway in September after two of the consortia merged.
Awards
Following on the success of prior years, KPMG was proudly awarded the “Global Financial Advisor of the Year” award and the “Transportation & Infrastructure Financial Advisor of the Year” award for the year 2005 by the Infrastructure Journal Awards.
KPMG has been involved in numerous projects in Infrastructure Project Finance during the last years all over the world and has won a number of awards that reflect the extensive experience and skill sets that exist within KPMG. On a number of occasions, KPMG has won the same award two years in a row, which illustrates its commitment to outstanding results.
KPMG can advise on a range of project sizes and achieve global coverage, by providing specific representation through regional offices and by moving specialized resources where necessary.
Other awards
In 2004, KPMG was awarded the “Financial Advisor of the Year on PPP projects” prize by “Infrastructure Journal Awards 2004”, the “European Transport PPP Deal of the Year” award by the “Project Finance Magazine Awards 2004”, and the following awards by “Public Private Finance Awards 2004”:
- Best Operational Defence Training or Equipment Project
- Most Innovative New PPP Scheme in Development
- Best NHS LIFT JV Established
- Best Designed Operational Project
- Best Major Hospital in Operation
In 2003 KPMG was awarded the “European PPP/Healthcare Deal of the Year” award by “Project Finance Magazine Awards 2003” and the following awards by “Public Private Finance Awards 2003”:
- Best MoD Project
- Best Accommodation/Property Project less than £20m
- Best Health Project more than £45m
- Best Health Project less than £45m
- Best Operational Local Government Project
- Best Partnership (Coventry New Hospitals Project)
KPMG was also awarded the “Adviser of the Year (Europe, Middle East and Africa)” and the “Infrastructure Deal of the Year” awards by “Project Finance International Awards 2003”.