1
Models of PPP Project Finance
Case Study
Presentation for Canadian
Council on Africa
Montreal, March,19-20
African Devel...
 1. An Overview of PPP
 2. Motivation for PPP
 3. Doraleh project Case Study
 - Project description
 - Project shareh...
 The Canadian Council for Public-Private
Partnerships defines PPP as “A
cooperation venture between the public
and privat...
1. 1. To attract private capital investment (often to
either supplement public resources or release
them for other public ...
Development, construction and operations of Container
terminal in Republic of Djibouti in a 30 year concession under
build...
 No loan to government;
 Borrower is a single purpose business;
 Separate legal and financial entity with ring-fenced c...
100%
DP World
Government
of Djibouti
DP World
Djibouti
Port Autonome
International de
Djibouti (PAID)
Doraleh
Container
Te...
Direct
Agreement
Direct
Agreement
Procurement
Agreement
Management
Contract
Port Services
Agreement
Dredging
Contract Equi...
African development-bank-ppp-model-djibouti-and-itzi Doraleh Terminal container
African development-bank-ppp-model-djibouti-and-itzi Doraleh Terminal container
African development-bank-ppp-model-djibouti-and-itzi Doraleh Terminal container
African development-bank-ppp-model-djibouti-and-itzi Doraleh Terminal container
Upcoming SlideShare
Loading in …5
×

African development-bank-ppp-model-djibouti-and-itzi Doraleh Terminal container

1,990 views

Published on

African development-bank-ppp-model-djibouti-and-itzi Doraleh Terminal container

Published in: News & Politics, Business, Travel
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,990
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
34
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

African development-bank-ppp-model-djibouti-and-itzi Doraleh Terminal container

  1. 1. 1 Models of PPP Project Finance Case Study Presentation for Canadian Council on Africa Montreal, March,19-20 African Development Bank Private Sector Operations
  2. 2.  1. An Overview of PPP  2. Motivation for PPP  3. Doraleh project Case Study  - Project description  - Project shareholder structure  - Contract structure  
  3. 3.  The Canadian Council for Public-Private Partnerships defines PPP as “A cooperation venture between the public and private sector, built on the expertise of each partner, that best meets clearly defined public needs through the appropriate allocation of resources, risks, and rewards. 3
  4. 4. 1. 1. To attract private capital investment (often to either supplement public resources or release them for other public needs); 2. 2. To increase efficiency and use available resources more effectively; 3. 3. To reform sectors through a reallocation of roles, incentives, and accountability; and, 4. 4. The allocation of risks between partners who are better able to manage risk.
  5. 5. Development, construction and operations of Container terminal in Republic of Djibouti in a 30 year concession under build-operate- transfer PPP arrangement Total project USD 396 million with debt to equity funding of 70% 30%- first PPP financing in Djibouti Joint venture between the Djibouti government and Dubai Port World  Djibouti port has a monopoly position for Ethiopian imports and exports The new terminal has an annual capacity of 1.9 million TEU (twenty foot equivalent container units) Bank provided USD 100 million, 10 year senior loan.
  6. 6.  No loan to government;  Borrower is a single purpose business;  Separate legal and financial entity with ring-fenced cash flows;  Sponsor guarantees don’t cover all the risks;  High leverage and long repayment terms ;  Contracts with major project parties are a key credit support mechanism ; and,  Security rarely covers the nominal value of the loan.
  7. 7. 100% DP World Government of Djibouti DP World Djibouti Port Autonome International de Djibouti (PAID) Doraleh Container Terminal 100% 33.3% 66.7% Concession Agreement Management Agreement JV Agreement
  8. 8. Direct Agreement Direct Agreement Procurement Agreement Management Contract Port Services Agreement Dredging Contract Equipment Contract Fixed Price Construction Contract Direct Agreement Finance Agreement Doraleh Container Terminal PAID DP World Djibouti FZCO Government of Djibouti Financiers Civils Crane Supplier Dredging

×