Concessions & Infrastructure Projects

In light of budgetary constraints, governments in developing countries are increasingly turning to the private sector to procure their infrastructure needs. Services such as wastewater treatment, power generation, water desalination, and mass transportation are being opened up for private investment. Social infrastructure projects such as schools, hospitals, museums and even prisons are also being tendered in the form of long term concessions.

 

Caravel Financial helps firms pursuing such projects by putting them in contact with potential consortium partners, assessing and commenting on bid documents, building the necessary financial models, representing bidders in negotiations with the concession granting entities, and securing bank commitment letters. During the financial modelling phase, we explore all the different possibilities and ideas analyzing their effects on the project’s profitability to arrive at the most viable configuration. Our focus is on presenting a bid that stands a greater chance of being selected by the concession granting entity over those submitted by competing consortiums.

 

Once a bid is successful, Caravel Financial can then negotiate with lenders on a limited or non-recourse project finance basis with a view to obtaining the best possible terms upon financial close. Instruments such as bridge, bullet or amortizing loans, and mezzanine finance can all be sculpted and incorporated in the financing package to take advantage of every opportunity to boost the promoters’ returns.