Public Private Partnerships for Infrastructure

Deloitte Corporate Finance LLC

In this period of fiscal stress and diminished funding for ever increasing infrastructure needs, governments are looking for alternatives to traditional infrastructure delivery paradigms. In the U.S., growing numbers of States and other public sector entities are exploring the potential for partnering with the private sector in many infrastructure sectors. In parallel, specialized funds for infrastructure investment are expanding. There is now both a significant pipeline of projects and a pool of capital for investment across the spectrum from monetization of existing assets to the development of new assets through various forms of Public Private Partnerships.

Public Private Partnerships are complex commercial arrangements which seek to optimally balance responsibilities, risks and rewards. Successful partnerships require careful analysis and design, skillful transaction execution, and consistent achievement of performance targets. While there is a growing body of international leading practices in partnering, each infrastructure project is unique and requires a tailor-made solution.

Both public and private sector entities engaged in Public Private Partnerships in the U.S. are increasingly turning to experienced advisors to help transform their public policy and commercial objectives into viable market propositions designed to create or enhance infrastructure assets and improve the services delivered through them.

The Deloitte Touche Tohmatsu (DTT) member firms throughout the world have been leading providers of advice in the infrastructure arena for many years. Our Infrastructure Advisory practices support public and private sector entities engaged in financing, developing/purchasing, and operating infrastructure. Through experience gained in the marketplace, we have developed an extensive understanding of the factors that contribute to successful partnerships. We bring a strong combination of technical skills, industry and marketplace knowledge, as well as a commitment to outstanding client service.

Our team is composed of professionals with extensive domestic and international experience in this highly specialized area. We also draw on DTT member firms’ specialists with skills and experience in many facets of infrastructure transactions such as tax planning, valuation, risk analysis, construction practices, accounting treatment, change management, and project management.

Our Infrastructure Advisory Services

We use a “lifecycle framework” when advising on infrastructure projects and have developed a set of services: Strategic Services, Transaction Services, and Operating Services focused on maximizing the value produced in each of the five phases of a project’s lifecycle. Click on the links below to find out more about each set of services:

• Strategic services
  High-quality analysis and strategic advice are generally most crucial at both the earliest and latest stages of the lifecycle. Whether it be assisting with establishing the objectives of an infrastructure capital program or an infrastructure investment vehicle, evaluating project economics, prioritizing among projects, or assisting in the selection among various delivery strategies, We can provide a full contingent of services to both public and private sector participants in the infrastructure market. Our technical depth and global footprint in the infrastructure industry enable us to provide industry-leading analytical tools and market sensitive strategic thinking to support decision making.
  
  
• Transaction services
  Once the strategy is set, skillful execution is critical. Again, we can assist with every facet of transaction execution for both public and private participants in the infrastructure market. From designing and managing a procurement process, to crafting a financial model, to addressing tax structuring and accounting issues, to supporting the capital raising process, our team has the skills and experience to act as trusted advisor. Our combination of world-wide reach and deep experience in local execution provides insight into the primary concerns of both public and private sector participants, enabling us to help structure an optimal allocation of risk in a commercial arrangement designed to meet the needs of both partners and the financing markets.
  
  
• Operating phase services
  After transaction execution, the work of delivering the infrastructure gets underway. Our services continue: from monitoring progress and compliance with performance measures to assisting with the design, implementation or improvement of operations, our Infrastructure Advisory professionals can support the achievement of the longer-term objectives of sustainable value.

Learn more about Deloitte's Infrastructure Advisory Services.

Articles and Research

Big Issues In Government: Infrastructure
A former government leader and a leader in infrastructure finance share their thoughts on the importance of states addressing infrastructure deficits and ways state leaders can create a legislative and business climate that is conducive to public-private partnerships.

Partnering for value:  Structuring effective public-private partnerships for infrastructure

• "Partnering for value: Structuring effective public-private partnerships for infrastructure"
  
• "The changing landscape for infrastructure funding and finance"

www.deloitte.com/partneringforvalue