Industry Events - 2nd Annual Infrastructure Finance in CEE Forum

Mete Yegin, Pekin and Pekin

There is a serious infrastructure shortage in large parts of Central, Eastern and South-Eastern Europe, Russia and Turkey. Investment is needed in road, rail, airports and ports if the region is to achieve sustainable growth.

From 1996 to 2004 a vast stream of infrastructure deals flowed through the region, funded through public private partnerships (PPP). It seemed like CEE was to be a hot region of project finance for some time. However post-2004, transactions have dried up as low deal size, squeezed margins, regulatory complexities and government reservations have taken their toll. Some deals are still getting done but more infrastructure is being financed through competitive development loans and accession grants from the EU as well as through traditional state funding.

Clearly this is not sustainable. Chronic infrastructure needs paired with a shortfall in government finances mean that inevitably levels of PPP will pick up - this will happen sooner rather than later as the pressure of economic and political develop persists.

The 2nd Annual Infrastructure Finance in CEE Forum offers delegates the ideal opportunity to plan for the future and ensure your position is secured for when the project floodgates open.

This forward-looking, senior networking event will look not only at core CEE markets that are coming back on track, but also at potential for PPP in new frontier markets such as Turkey, Russia, Ukraine and South East Europe.

Our expert speaker panel is made up from a multitude of backgrounds including government ministries and agencies, bankers, investors, contractors, sponsors, lawyers and insurers. They will:

Assess infrastructure needs across the region

Explore the ways in which the project lag can be financed, including:
o EU grants and development loans
o Traditional state financing
o Privatisation and acquisition finance
o PPP/PFI solutions

Debate what can be done to make CEE infrastructure a more attractive investment opportunity to banks, private equity investors and fund managers

Highlight the regulatory challenges and solutions that will create an environment suitable for successful PPP

Network intensely with delegates throughout the two days, creating an atmosphere conducive to future deal-making

Infrastructure shortfalls in CEE exist and cannot be financed by government alone. PPP and PFI will continue to grow in the long run. Be a part of the market as it comes of age. Get your foot in the door by booking now.

"This fear that governments will overturn projects is misguided... the power of the EU should not be underestimated"
Otto Wachter, Graf, Maxl & Pitkowitz Rechtsanwälte (2006)

"Given decades of underinvestment, CEE may not have any choice but to go down the PPP route"
Project Finance Magazine (2006)

"In the end these governments will have to deliver infrastructure, and they don’t have much headroom in their borrowing requirements to fund the need themselves. Eurostat has been very helpful in terms of off-balance sheet treatment of PPPs. As long as that continues, there will be an active market for infrastructure"
Kent Rowey, Freshfields (2006)

"We find that PPPs have not been very successful in the region to date. This is mainly due to the unfavourable institutional environment during the transition period, suboptimal project design, and unrealistic demand projections.
However, the conditions for successful PPPs have considerably improved, partly due to EU membership, so that PPPs remain an important option for the second generation of infrastructure projects."
Brenck, Beckers, Heinrich and von Hirschhausen (2005)

"The institutional framework for PPPs in Central and Eastern Europe has been strengthened, improving the outlook for future PPPs."
Brenck, Beckers, Heinrich and von Hirschhausen (2005)

"Private sector participation is increasingly taking the form of concessions and management contracts rather than asset sales. Local investors are becoming more important”
EBRD Transition Report (2004)

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Posted by rjorr at June 26, 2006 6:45 PM