Infrastructure and Public Finance 

Infrastructure is moving up the global policy agenda. An efficient infrastructure is critical to economic competitiveness and growth, and governments are faced with the task of plugging gaps and maintaining/modernizing nationally critical infrastructure.

 

The Infrastructure and Public Finance practice at CRISIL Infrastructure Advisory is borne out of the recognition that sustained development of Infrastructure facilities and services requires systematically strengthen three pillars:

  • Enabling frameworks for fostering Public-Private Partnerships across a range of sectors to enhance universal, efficient and inclusive access of infrastructure services to all citizens.
  • A vibrant Infrastructure Financing ecosystem to enable investment flows from a diverse investor base through a range of financing instruments, and institutional mechanisms
  • Robust Public Finance frameworks to facilitate prudent and efficient allocation of scarce public resources in a sustainable, growth supporting and equitable manner.

 

Our work under the Infrastructure and Public Finance practices spans the above areas and covers a range of advisory services for clients including:

  • Private Developers
  • Governments and Regulators
  • Multi-lateral Institutions
  • Banks, Financial Institutions, Institutional Investors

 

CRISIL’s Infrastructure and Public Finance practice has worked in over 35 countries across South Asia, South-east Asia and Africa.

Infrastructure Finance

Under Infrastructure Finance, we seek to work on cutting-edge efforts towards developing a vibrant infrastructure financing landscape in India and developing countries in Asia and Africa.

 

The practice works with an array of clients in the Infrastructure financing space on adopting new and innovative financial instruments, advising clients on structuring options for monetizing infrastructure assets and deleveraging and on setting up Government-led market-making development fund structures to seed and develop Infrastructure assets of nation-building and strategic importance.

 

Illustrative areas of work under the Infrastructure Finance umbrella with various client groups are summarized below:

 

Developers / Investors / Financial Institutions / Asset Reconstruction companies

  • Opportunity mapping and growth strategy
  • Asset monetization, financial structuring / restructuring assistance (viz., IDFs/IFCs/InvITs)
  • Deal and transaction advisory: M&A, buy/sell-side deals, valuation, due diligence, appraisals
  • Portfolio management and monitoring

 

Governments, Development Financing institutions and Multi-laterals

  • Establish/operationalize nodal Infrastructure Funds, and Institutions
  • Design of new Instruments/Credit enhancements
  • Asset monetization strategy and implementation

Public-Private Partnerships

Infrastructure development and service delivery are top priorities for governments across the globe to achieve sustained economic growth. The traditional sources of finance for governments for infrastructure creation, viz. budgetary allocations are usually strained with increased demand for improved quality infrastructure creation and service delivery. 

 

Therefore, governments across the globe are adopting the Public-Private Partnership (PPP) model to mobilize private capital and operational efficiencies for infrastructure creation and service delivery. Aligned with this agenda of governments across the globe, PPP advisory has been a key focus area for CRISIL Infrastructure Advisory.

 

We provide end-to-end PPP advisory to clients including advice on creating PPP enabling environment, PPP transaction advisory, post bid contract management, and PPP capacity building. In the last 20 years, CRISIL Infrastructure Advisory has successfully undertaken over 1000 projects including a number of successful PPP transactions in India and abroad. Work in PPPs cover three broad areas:


 

Enabling frameworks for PPPs and financing

 

As a part advisory services for creating the PPP enabling environment, we support our clients in structuring the PPP Policy, the Institutional Framework for PPPs, the Legal and Regulatory Framework governing PPPs, the Standard Operating Procedures to structure bankable and viable PPPs, and the Best Practices for PPP Contract Management. We also support clients in designing various types of financial support mechanisms to enable smooth implementation of PPPs including, Project Development Funds (PDF) to support PPP project preparation at par with international standards, Viability Gap Financing (VGF) and other Government Support Mechanisms (GSM) and Credit Enhancement Mechanisms (CEM) to enable PPPs avail long term financing. 

 

Transaction advisory services

 

As a part of the PPP transaction advisory services, we support our clients from conceptualization to commercial closure of a PPP deal. Specific areas of support include, (i) identification, prioritization, and creation of a PPP project pipeline, (ii) project suitability for implementation through the PPP route, (iii) project preparation including feasibility assessment, project structuring and risk assessment, (iv) bid process management including structuring of bid documents, bidding process, contract negotiations and commercial closure.

 

Post award management and capacity building

 

As a part of the post bid contract management and capacity building services, we support our clients in fulfilling their PPP contract obligations during the Conditions Precedent (CP) period post commercial close. We also provide capacity building support to our clients through customized training programs on PPP Project Preparation and Structuring, Financial Feasibility and Risk Assessment, Bid Process Management, Infrastructure Financing, and Viability Gap Funding.

 

 

 

Public Finance

Even as devolution and decentralization of Government spending has slowly but surely taken roots in India and several other emerging economies, there is a need among Governments at various levels (Federal, State and Local levels) to put in place frameworks for managing expenditure better and more efficiently and to allocate and spend funds to deliver development outcomes in prudent, efficient, and transparent manner. 

 

There is also a need to undertake structural reforms that enable progressive taxation, revenue buoyancy and tap other avenues including disinvestment and asset monetisation, to release greater level of resources to development needs and poverty alleviation. Judicious access to capital market financing of projects of critical importance while being fiscally responsible is another challenge governments need to tackle.

 

Our services in the area of Public Finance covers the following areas of support to Governments at National, State and Local levels: 

  • Economic Vision and Agenda setting for Governments
  • Governance reforms and Capacity building
  • Fiscal Planning and Debt Management strategy
  • Formulation of enabling policy / regulatory frameworks
  • Feasibility evaluation to establish and operationalize Infrastructure Funds and Institutions
  • Medium term Expenditure management frameworks
  • Strategy and Business Plans for Public sector entities and institutions
  • Asset monetization strategy and implementation
  • Roadmap for accessing Capital Markets
  • Program Implementation support

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Questions?

  • For any infrastructure services related queries, please contact:
    +91 22 3342 1918
    infrastructureadvisory@crisil.com