Infrastructure and PPP advisory

Infrastructure and PPP advisory

Developing and renewing Russia’s economic and social infrastructure has become a major national consideration.

Developing and renewing Russia’s economic and social infrastructure

KPMG is one of the leading advisors in the PPP market. KPMG in Russia and the CIS is actively participating in establishing the conditions to develop PPP in Russia and the CIS and provides the full scope of advisory, tax and audit services needed to run projects. Our experience includes advising on such projects as Moscow-Saint-Petersburg PPP Toll Road (58-684 kms), Pulkovo airport, Nadex light rail system, Moscow waste disposal plant, construction of educational centers in Russian regions as well as several large water and wastewater projects.

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 Russia is further supported and supplemented as required by our Global Infrastructure Group which is consistently recognized as a leader in its field.

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.

Implementation of PPP projects is a complex task. In addition to the proper legal framework, successful implementation depends on a correct evaluation of the economic feasibility of the project, and no less on an appropriate structure and clear coordination of the work of all parties. Therefore, assistance of an experienced advisor is highly important for such projects.

Services to public 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.

Services to private sector

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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