Public-Private Partnerships
Because it has worked with both extensively, GLDPartners appreciates the overlapping and sometimes distinct requirements of public asset owners and private investors. We understand the key for successful collaborations is to recognize and respect the needs of each and develop a common intersection of specific project objectives. Once this is done, the conditions for joint success is created. If the groundwork is done properly there will be problems later.
GLDPartners brings a strong background in project fundamentals and public finance and private project finance.
We believe that there is great potential in blending private resources and with public resources and actions. Global trade in the 21st century will require visionary business planning and this most definitely includes state of the art and seamless connectivity and transport assets, and modern, well-sited property assets. There are places in the world that are intensively focus on this by investing in purpose-built next-generation infrastructure. These are the places that are emerging as players in the global economy. In the developed world, we must modernize and rethink our strategies and expand our thinking, clearly we will need to do a far better job of bringing global resources to help meet the opportunity.
Many seem to fail to distinguish the very clear delineations between various types of public-private partnership projects. There is great difference between the privatization of a public facility that has existing government guaranteed revenue flows, and the greenfield development of a road or a seaport asset. GLDPartners understand the kinds of partnerships associated with infrastructure at seaports, airports, inland ports and economic development projects.
Key Issues for Public-Private Partnership Success
- Political and government staff understanding of private investor return requirements, timing, risk management
- Deep understanding of market potential and current and future competitiveness
- Full understanding of the market, construction, competitive and regulatory risks
- A clear strategy to mitigate certain risks
- Realistic revenue and timing model that supports infrastructure investment
- Clarity about roles and responsibilities from the outset
- Agreement on an optimized phasing strategy, and flexibility to adapt to the market
- Ongoing communication