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Infrastructure & PPP advisory

Infrastructure & PPP advisory

Developing and renewing Azerbaijan economic and social infrastructure has become a major national consideration.

Developing and renewing Azerbaijan economic and social infrastructure

How can we help?

Developing and renewing Azerbaijan economic and social infrastructure has become a major national consideration. Improving living standards, sustaining economic growth and responding to climate change and other environmental challenges demands a large, ongoing investment in the necessary infrastructure.

Financing infrastructure development promotes social and economic improvements, but it also creates new challenges. Unfamiliar financial risks, complexity and uncertainty of major infrastructure projects – to name a few. Additionally, traditional financing sources can no longer be enough for infrastructure financing. Solutions to the current turbulent market challenges impacting infrastructure will have increasingly to come from innovative financing and operating solutions developed by governments working collaboratively with the private sector. To overcome these difficulties the principal parties to infrastructure ventures will nearly always seek timely, authoritative, unbiased and objective professional advice. This is where KPMG can help. 

One of the most important, but complex ways to realize infrastructure projects is to use Public-Private Partnerships. PPPs are a special type of cooperation between the public and private sectors aimed at carrying out long-term investment projects in the social and infrastructure sphere, particularly where it is important to retain an element of public sector oversight or control over the service or asset(s). Typical PPP projects involve the construction/reconstruction of transport infrastructure (airports, roads, railroads, tunnels, bridges), public buildings (hospitals, schools, museums), utilities (water supply, wastewater, waste processing), energy, and also operation and maintenance of these facilities.

In PPP projects, the private sector commits to developing, building, and financing facilities, and operating them in accordance with the parameters and standards established by the government. In return, the private sector is paid by the public sector, with the amount dependent on results achieved (services provided). In some projects, this payment (or part of the payment) comes from the revenues generated by the commercial operation of the facility. See the example PPP scheme below.

KPMG understands the financial and operational drivers of infrastructure and PPP projects and transactions from the viewpoint of both public and private sector players. We provide a professional approach to the infrastructure and PPP sector by bringing our experts together to provide a wealth of experience in all stages of the infrastructure and PPP projects realization process. The experience in Azerbaijan is further supported and supplemented as required by our Global Infrastructure Group which is consistently recognized as a leader in its field.

Services to public sector Services to private sector
KPMG Infrastructure and PPP group helps its public clients to assess different ways of implementation of infrastructure and social projects, such as using PPP mechanism, in order to get maximum value for money and ensure bankability. KPMG Infrastructure and PPP group helps its private clients to achieve successfully financial closing of infrastructure projects. KPMG’s services include market sounding, structuring, preparation of documents, road show, negotiations with lenders and equity investors, etc.

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