HOUSING PPP LESSONS FROM THE UK

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HOUSING PPPLESSONS FROM THE UK

• BRIEN DESILETS
• CLARET CONSULTING
• BDESILETS_at_CLARETCONSULT.COM

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BENEFITS OF PPP

• Harness Private Capital Expertise
• Flexibility Results
• Turnkey Projects
• Maintenance
• 30-Year Value

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KEYS TO SUCCESS

• Urban Development Plan
• Growing Cities Thriving Communities
• Support Service Sector
• Economic Growth

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INCENTIVES FOR PRIVATE SECTOR

• Return on Investment
• Adjacent Land for Private Development
• Ownership of Asset _at_ Project Close
• Sell or Manage

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INCENTIVES FOR INVESTORS

• Return on Investment
• Steady Stream of Flows for 30yrs
• Guaranteed by Public Sector

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PROJECT DESIGN

• Equity Partners
• International Local Firms
• Beneficiary Organizations
• Local Authorities/Ministries
• Incentives for Collaboration
• Develop Management Harmony
• Progress through SPV

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SPECIAL PURPOSE VEHICLE AT CENTER STAGE
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FINANCING OPPORTUNITIES
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MARKET DEVELOPMENTS

• UK Leads Since 1999
• US Market Ready
• Experiments in South Africa, India
• Egypt, Bahrain Kuwait

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HOUSING PFI TAKES OFF IN THE UK
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AVERAGE PROJECT SIZE

• 30-150m in Value
• 200-3,000 Units
• 15-30 Years
• 5-30m Unitary Charge

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UK PFI/PPP PROJECTS - TOTAL VALUE BY SECTOR - m
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AVERAGE VALUE OF UK PFI PROJECTS BY SECTOR - m
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RETURNS IMPROVE AFTER REFINANCING

• PPP Market Develops
• Initial Risks Overcome
• Return Increases
• Initial Return 15-30 gt 50-70
• Gains from Refi 45-115m

Other sectors
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NEXT STEPS FOR NEW MARKETS

• Legal/Institutional Context
• Identify Projects
• Solicit International Proposals
• Monitor Pilot Projects