PPP in Chile The Toll Road Financing Experience. Jorge Domínguez Consultant, Financial Advisor. Establishing Public-Private Partnerships in Transport Sector in The Russian Federation Moscow, March 3rd 2005. The Chilean Concession Program. Origins and Objectives.
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Consultant, Financial Advisor
Establishing Public-Private Partnerships
in Transport Sector in The Russian Federation
Moscow, March 3rd 2005
Origins and Objectives
Leveraging the Sponsors’ Investment
Debt market players’ limitations
Local Institutional Investors
Solving the Project Risk dilemma
The long road to the market
Due diligence of legal, regulatory and institutional frameworks well as political risk. Legal protection of private property and strength of concession contracts
Documentation drafted under local law, concession contract and capital market provisions
Regulators and rating agencies to approve the “100% coupon payment guarantee” concept
Tax and bureaucratic issues to be addressed
Institutional investors educated on benefits of the guarantee and that no project risk was passed on to them
Four urban toll roads US$500 million
April 9: the Bond was placed
the largest bond placement in the local market.
Mid 2001: IDB (*) and FSA are hired
Financial advisor is hired
desirable support from
Sponsors begin by mid
1999 assessing the market for
not decided yet on financing
The structuring process took 1 year.
Some major issues to solve were:
debt repayment profile
structure (required ratios, guarantees etc.)
to the new scenario.
a mechanism of mandatory prepayment to match
(*)IDB: Inter American Development Bank
Basis for success