Project finance and public sector - Ernst & Young - Slovak Republic

Ernst & Young is the leading global advisor on the economic and financial aspects of infrastructure development projects in the government, public and private sectors, including Public Private Partnerships (PPPs).

Competitive advantage with Ernst & Young

Fully integraged services

The services we offer include comprehensive financial, legal and technical advisory at all stages of an infrastructure project. In providing a range of sophisticated services centred on our core competences of auditing, accounting, tax and other assistance to both global and Slovak businesses, we rely on the professional knowledge of our more than 144,000 people in 140 countries around the world.

Leading expertise

Ernst & Young’s extensive track record is the result of global experience and local knowledge as well as a range of team management and project organisation tasks in the fields of transportation, healthcare, education, research and development, defence, waste management, power engineering and renewable energy sources, urban regeneration, and real estate. We are able to reconcile the public sector requirements with the needs of private infrastructure developers and providers and optimise our project strategies accordingly.

Key network of contacts

We have been involved in more than 700 project finance transactions and, as a result, have the necessary expertise in key public infrastructure sectors. Our team effectively draws on the professional experience of the Project Finance & PFI/PPP division in London, which has practical knowledge gained from more than 200 PPP/PFI engagements. With a strong financial markets team that has raised over US$ 10 billion in individual projects, we have the breadth of resources to cooperate with investors, the banking sector and the consortia of potential infrastructure providers. Our assessments of the financial requirements of a project and a bidder’s competency are based on our in-depth understanding of actual market conditions. Ernst & Young focuses on adding value by managing the financing process independently of any funding institution and generating competition amongst the providers of finance to obtain the best funding terms.

Knowledge transfer

We always deliver our solutions in close association with the representatives of potential infrastructure providers. We are active in sharing our knowledge by running workshops, providing seminars and welcoming the temporary assignment of infrastructure provider-team members to the respective practices of Ernst & Young.

Ernst & Young ranked top infrastructure advisor

Integrated service offering and standardised project development

Ernst & Young provides its clients with comprehensive support at all stages of the preparation and realization of project finance transactions and PPPs, including strategic context analysis of project intention, financial model development, tender evaluation and preferred infrastructure provider selection, contract negotiating services, and project re-financing.

Selected public sector services:

• Strategic context analyses - needs analyses, determination of project scope, formulation of alternative solutions, feasibility and affordability analyses
• Commercial and financial analyses - preparation of detailed investment projects, specification of project outputs, risk estimates and allocation, preparation of operational and financial models
• Assistance with procedures for the award of public contracts - partner selection strategies, preparation of contractual documentation, bid negotiations, financing process optimisation
• Project implementation monitoring - controlling process, project refinancing

Selected private sector services:

• Bid preparation and submission strategy - forming consortia and project companies, negotiation and tender participation strategies, negotiations with subcontractors
• Financial planning - project due diligence - (financial issues), commercial structure, analysis of investors’ requirements and all assumptions underlying a financial model, preparation or audit and updating of project’s financial model, scenario testing, financing options, negotiation support, preparation of project company’s financial plan, tax advisory and optimisation, risk identification and allocation
• Financing - information memoranda, Competitive bids - comparison, presentations to providers of finance, banks, rating agencies, infrastructure funds, debt due diligence – assistance with financial issues
• Bid optimisation - review of payment mechanism in context of financial model, sources of financing and their optimisation, assistance in project financing negotiation, assistance in negotiating subcontractors’ agreements, transaction and accounting support, pricing proposal preparation
• Financial statements - assistance and advisory on negotiation and conclusion of project contracts, strategies for hedging instruments, strategies for refinancing