The Global Opportunity Project Finance Round Table


Andrew Ivison EdF’s Hinkley Point C project is a good example of the


current challenge. Commercially EdF does not need to build Hinkley Point as it has projects all over the world that it can focus on. Clearly the company is saying: “If you want me to build a new nuclear plant in the UK then give me a reasonable return on capital because I only have limited capital to employ globally and it takes a huge amount to build a nuclear plant”. So every project has to stack up for the individual company and its investors - there are always choices.


Shyam Sankar


are getting shorter. But the second aspect of political risk is the ability to get paid and we see the export credit agencies as vital to proving the full political and commercial wrap to cover that risk.


Manish Gupta I actually differ in my experience of Africa. Energy


and utility sectors are moving well, funded by petrochemical companies but the wider non-energy market is actually doing pretty badly because of the same long gestation periods. It is down to affordability. Either the user pays or the government pays. If the government needs to pay those projects are the ones with the highest failure rate.


Andrew Ivison In emerging markets different players come into the


equation such as International Finance Institutions including the World Bank, IFC etc and also Development Finance Institutions. When you are doing a project in the developed world DFIs would usually not be relevant but there are many that will back projects in, say, Africa and will happily approach political risk in a much different way to that which a commercial lender or private equity fund might take.


The panel discussion moved to the risks that inevitably surround the management of the often complex supply chains needed across the life of a project and discussed whether there were ways to work more effectively.


Q: What lessons should we learn from past project failures and successes around the world?


Malcolm Bairstow There are many areas in our business where the


38 GLOBAL OPPORTUNITY 2014 | ISSUE 01 global-opportunity.co.uk


UK is the best in the world. We are very good on design, very good on technology and very good on innovation and health and safety. There is a huge opportunity as an industry to sell that expertise.


Peter Chamley One of the key success factors is project definition


and making sure that at the outset there is a clear definition of what is required. Scope creep is one of the biggest killers of projects and means that costs always goes up.


Manish Gupta One common theme for project success is having a


very strong role for government and its willingness to look outside the box to do something innovative. Thames Tideway is innovative. It takes the best bits of privately funded projects and the best things out of government funded or sponsored project and created a hybrid solution. The key to success of Tideway will be how the government handles the construction risk.


Geoff Bee Bringing simple ideas into play is important, such as


The speed of getting things done is inversely proportional


to the number of layers of elected representatives.’ Peter Chamley, Arup


Peter Chamley


FINANCE


|


ROUND TABLE


t


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172  |  Page 173  |  Page 174  |  Page 175  |  Page 176  |  Page 177  |  Page 178  |  Page 179  |  Page 180  |  Page 181  |  Page 182  |  Page 183  |  Page 184  |  Page 185  |  Page 186  |  Page 187  |  Page 188  |  Page 189  |  Page 190  |  Page 191  |  Page 192  |  Page 193  |  Page 194  |  Page 195  |  Page 196  |  Page 197  |  Page 198  |  Page 199  |  Page 200