Government & Public Sector

Government in transformation

Governments and their policy makers are operating in a rapidly-changing world. Shifting demographics, urbanization, the increasing prevalence of artificial intelligence amongst rapidly changing technologies and climate change are just a few of the long-term and systemic trends reshaping 21st century government.

From an Irish perspective, Ireland is finally coming out of a decade of economic uncertainty, and while our growth story has been good our future will be shaped by the outcomes of Brexit and other areas of global uncertainty.  While we live with these uncertainties, what is clear is that to safeguard the Irish economy sensible and sustained investment in our infrastructure is key, building a better world for Ireland into the future.

Our Government & Public Sector practice aims to be the preferred partner in driving transformational change for government. EY identify that a number of key areas that will become prevalent in the realm of infrastructure investment and development in the coming years. Societal pillars such as transport, housing and health have significant scope for development and transformation.

EY’s skilled team have significant experience and on the ground knowledge working in these sectors.

Focus Areas

  • Transport

    The surge in people internally migrating to Dublin is putting increased strain on the transport systems in the capital city. Higher population numbers have led to an urban sprawl and new commuter towns have developed to accommodate for this. Transport is vital to any nation’s prosperity and standard of living. The solutions required to solve transport challenges are becoming increasingly complex.

    With government funding limited, governments need to be innovative to increase competitiveness through improvements in transport efficiency and customer service in the face of population growth and capacity constraints.

    EY globally is one of the leading transport advisors, and our Irish team have a wealth of experience advising on projects in both Ireland and internationally.

  • Energy

    The energy sector is a critical component of Ireland’s economy both North and South of the border. It accounts for nearly 50,000 jobs across the island (equivalent to 1in every 55 jobs) and in 2016 contributed c.€5.4 billion to the Irish economy. Ireland has made significant steps towards its binding EU 2020 targets but work remains particularly in Heat and Transport.

    Global investor appetite is increasing across the sector with purchases of assets such as wind farms and solar parks reaching a record $72.7bn globally in 2016. This has been mirrored domestically, with many new players entering the Irish market in the last 12 months. EY has also seen the capital volume seeking to invest in renewable energy projects, specifically in Europe rise in recent years driven by increasing appetite from life insurance and pension funds recognising the projects long term stable yields as attractive hedges against their long term liabilities. We are also entering a period of significant change in the sector in Ireland given the imminent introduction of ISEM and the move into a post REFIT world.

    EY’s award-winning Infrastructure Advisory Group is one of the leading corporate finance advisors across the globe, with over 500 dedicated professionals worldwide.  As part of the Global Power and Utilities community, with over 4,400 power and utilities professionals, we have a long-standing track record of advising on energy transactions.  Local expert knowledge is at the heart of this international experience.

    Our transaction advice and support is provided across the project life cycle, from early stage assessment and business case, to execution and post-deal activities.  Whether your project includes an acquisition, partnering, joint ventures or sale, we can advise you on the appropriate structuring and funding model to successfully deliver your objectives.  Our transaction advice spans all energy and natural resources including power, renewable technologies (including wind, solar and storage), waste and water.  Clients include Governments, large multinationals, utilities, independent power producers, financial investors and developers.

  • Housing

    In Ireland, the sharp increase in the internal migration of the country’s population towards Dublin is putting pressure on the Government and other privatised providers to develop critical additional housing units. Construction came to a virtual stop during the time of the financial crisis which has current lead to a critical undersupply of social and residential housing, student accommodation and office spaces.

    EY has identified over €39 billion in large scale construction activity forecasted within the next few years up until 2023. A significant proportion of our forecasted construction activity, c. €19billion, is in relation to the capital projects committed to be funded exchequer in the government’s 2016-2021 Capital Investment Plan. These projects are large scale multi-year projects. Delivering value for money and an efficient deliverable will be to be forefront of the government and any private developer’s mind.

    EY provide support from the earliest stages of analysis, from project evaluation to procurement, financial close, construction and operations. We can assist our clients in devising and comparing financial plans and delivery approaches for projects that involve public or private financing, project revenues and/or grants — and provide support to our clients in their implementation of those plans.

  • PPP

    Infrastructure investment and development is a top priority for governments globally — an indispensable necessity for poverty reduction, social progress and inclusive economic growth. In Ireland, the sharp increase in the internal migration of the country’s population towards Dublin is putting pressure on the Government and other privatised providers to develop critical new infrastructure, and to expand existing infrastructure due to aging assets and sustained underinvestment during the time of the financial crisis.

    The PPP approach has the potential to offer value for money and timely delivery of infrastructure when applied to projects of the right scale, risk and operational profile. One key aspect of the PPP approach is that risk is transferred to the party that can manage it best.

    The EY team has detailed knowledge of the Irish PPP funding market and would be well placed to advise clients on securing the most deliverable and cost efficient funding solution within this market.