Wait, will there even be a future?
In the last few years, infrastructure projects procured through PPPs have been under the microscope. Mostly as the political discourse discourages accurate value creation analysis. Instead, it chooses to focus on political jabs to attract the media. But are PPPs the problem, or the solution?
In reality they are neither...
PPPs are just a way to procure infrastructure projects and services. This procurement method may work well, more or less, or may fail miserably, depending on several issues beyond the scope of this post.
However, in order to reduce the chances of losing money, destroying value, and wasting government resources, we at Weaver Advisory help governments do it right using some of these solutions:
Value for Money analysis - which allows governments to check whether a project should be done as a PPP or just through traditional public procurement
Fiscal Impact Analysis - which allows governments to check whether they can afford all those beautiful projects that it wants to get done. It also helps design a calendar of projects for the future, which may contain the next ten, twenty or even thirty years of projects, in line with a national development strategy that makes sense
Contingent liability pricing - all those clauses that governments sign in concessions, providing guarantees and advantages to the concessionaire, have a real, actual cost. They should be priced like a derivative. We help you price them...
Weaver Advisory used all these tools first-hand on a USAID energy project. Bernardo Weaver helped the government of Kosovo understand costs and advantages of changing from a heavily polluting 1960's Soviet coal plant to a new less polluting modern plant.
We use finance to bring environmental progress and infrastructure development. We use models so that your country can become a model country!