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PPP Schemes

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Public Private Partnership (PPP) is a key funding vehicle for the successful delivery of project finance for transport schemes. Various PPP structures have evolved, one such form is the Special Purpose Vehicle (SPV) with its sharing of risk between the public and private sectors. We help our clients in the public and private sectors to develop transport PPP schemes which are based on a robust set of demand forecasts, and through our expanding Rail Operations team, maintenance and operating costs for rail schemes.

The approach to risk is a key issue for the successful completion of a toll road concession or rail franchise. Scheme financial viability is dependent on the underlying variability in planning and economic data such as projections of GDP growth and employment growth, and population and car ownership trends. Viability will also be critically affected by the modelling parameters used in producing the forecasts - for example, scheme users’ values of time and fares elasticity values.

We are well-placed to advise on the strengths and weaknesses of the PPP process, offering our clients the expert support to ensure they have a robust basis for preparing or evaluating PPP schemes. We provide clients with advice on the PPP process from public and private sector perspectives. We offer public sector clients our knowledge of the procurement process and past experience of PPP contractual arrangements and our experience of auditing scheme costs and revenue forecasts. Services to clients in the private sector include the preparation of traffic and revenue forecasts for toll road concessionaires and rail franchise bidders, and audits of forecasts for financial institutions.