The art of the deal: drivers of success (and failure) for infrastructure PPPs from all sides of the table
The ideal conditions for a successful PPP are well-defined in the literature: transparency, source of repayment, contract and ability to enforce terms, good intent, and thoughtful project selection. In the real world, we all know that these conditions can never be fulfilled simultaneously. How do stakeholders manage this reality to ensure the success of a PPP? What are the most frequent reasons that PPPs fall through? This session will attempt to understand how the answers to these questions correspond or differ among public, private, and multilateral actors.
Ato Boateng, infrasructure finance, hKS
Ato Boateng has over 10 years of experience of project and corporate finance experience in infrastructure and natural resource Sector working with primarily with the International Finance Corporation (IFC) and PricewaterhouseCoopers in Ghana. He has significant experience in major Sub-Sahara Africa countries including Nigeria, Guinea, Ghana, Burundi, Kenya etc. Ato Boateng is the founder and Chief Executive Officer (CEO) of Liger Horizon Group, an integrated financial and business advisory firm based out of Ghana. Key focus of this firm is infrastructure project development and finance advisory, and infrastructure Public Private Partnership advisory and privatization advisory of infrastructure assets and companies. Liger Horizon Group also provides project finance modelling and structuring advisory, capital raise advisory including debt and equity finance, due diligence and company valuation advisory services. Selected on-going transactions include: •Lead Project Advisor: Ghana Western Railway Corridor Project. This is a US$1.6 billion rehabilitation and expansion of the 340 km railway line and related infrastructure from Takoradi Port to Nyinhin Bauxite Mine. •Lead Project Advisor: Valco-First Power Energy Project, a US$1.2 billion green field 1200MW Thermal Power Plant and LNG Infrastructure to be built at Tema, 25 Km East of Accra. •Transaction Advisor: Structuring of US$60 million Revolving Standby-Letter of Credit (SLBC) in favour of Early Power Company, a consortium led by General Electric, Endeavour LLC, and Sage Petroleum Limited. Ato Boateng is CFA charter holder and a Certified Public Accountant (CPA) and is currently pursuing a Master in Public Administration (MPA) at Harvard University’s Kennedy School of Government focusing mainly on infrastructure project development, regulation, privatization and financing.
Akash Deep, Professor, HKS
Akash Deep is Senior Lecturer in Public Policy specializing in finance at Harvard University’s John F. Kennedy School of Government. His expertise lies in public-private partnerships, infrastructure finance and valuation, financial risk management and derivatives, and the management and regulation of financial institutions, financial markets, and pension funds. He serves as faculty chair of the Infrastructure in a Market Economy and the International Finance Corporation executive programs, and has served as faculty chair of the Indian Administrative Service executive program at Harvard University.
Professor Deep has provided advice on bank restructuring, infrastructure financing, capital markets reform and pension funds to various governments and private firms around the world, and his work has been cited in journals and publications such as the Financial Times and the Boston Globe. He has worked in the financial institutions and infrastructure section of the Bank for International Settlements, and served as consultant and expert for the World Bank, the United Nations, the International Finance Corporation, the Inter-American Development Bank, the International Centre for Settlement of Investment Disputes, the US Federal Highway Administration, and the Latin-American Shadow Financial Regulatory Committee.
At Harvard, Professor Deep teaches courses in financial investments, risk management and infrastructure finance in the degree and executive programs. He has also led executive programs at the World Bank, the International Finance Corporation, the European Bank for Reconstruction and Development, the Inter-American Development Bank, National University of Singapore, Booz & Co, KPMG, and Goldman Sachs, amongst others.
Certified Financial Risk Manager by the Global Association of Risk Professionals, Akash Deep holds a PhD in economics and MA in operations research from Yale University, and a bachelor’s degree from the Indian Institute of Technology.
EMMANUEL NYIRInKINDI, Global Head, IFC PPP Advisory Service
Emmanuel Nyirinkindi is a Ugandan national and is currently the Global Head of Public-Private Partnerships (PPP) in the Cross Cutting Advisory Solutions (CAS) Department in International Finance Corporation (IFC), World Bank Group. Emma Nyirinkindi joined IFC in 2006 as a Senior Investment Officer in IFC Johannesburg Office. He was the Regional Manager of IFC’s Public-Private Partnerships Advisory Services for Africa prior to his current position. Over the past decade, Mr. Nyirinkindi has established a strong record of leadership and execution in advising governments in designing and bringing to market commercially robust PPP projects that provide high quality, affordable and efficient infrastructure and social services to the public across a variety of sectors. Prior to joining IFC, Mr. Nyirinkindi worked for the Government of Uganda’s Ministry of Finance where he was responsible for the introduction of PPPs in the electricity and railway sectors, and coordinated legal and regulatory reforms in the basic infrastructure sectors. He also previously worked in the petroleum products industry in Uganda and with Makerere University’s Faculty of Commerce. He holds an MBA from the University of Kansas and a Bachelor of Commerce degree from Makerere University, Kampala.
Nikhil Pereira-Kamath: CEO, Co-founder, Africa Healthcare Network
Nikhil Lawrence Pereira-Kamath is the Chief Executive Officer, Co-Founder and Chairman of the Board of Africa Healthcare Network (“AHN”). He established AHN in 2015 with the goal of increasing access to care by increasing awareness and reducing the cost of care in the sub-Saharan region while adhering to global standards of quality. In less than two years, he has built the organization into the largest dialysis chain in Rwanda and East Africa. He has over 15 years of experience in the dialysis space having previously run a non-for- profit organization, Youth That Care, whose mission was to provide assistance to the developing world via the establishment of dialysis centers. Youth That Care established dialysis centers across India and the first dialysis center in Burundi. Previously, Nik worked in the private equity industry as an associate at Berkshire Partners, a Boston based investment firm with $11.0Bn+ in AUM. At Berkshire, Nik engaged in all aspects of the investment process, including Berkshire’s $2.1Bn acquisition and subsequent merger of Lightower Fiber Networks and Sidera Networks in 2013 and $875MM acquisition of the Portillo’s Restaurant Group in 2014. Additionally, Nik was a member of the Healthcare OnPoint Team – a core investment team that focuses on “getting smart” on the healthcare industry.
Prior to joining Berkshire, he was an analyst at Morgan Stanley in the Healthcare Group where he focused primarily in biopharmaceuticals and healthcare services. Transactions at Morgan Stanley include the sale of Pharmasset to Gilead Sciences for $11.1Bn, sale of HealthDataInsights to HMS Holdings for $400MM, sale of Pharmaceutical Product Development to Carlyle and Hellman & Friedman for $3.9Bn. Prior to Morgan Stanley, he worked at Oxford Bioscience Partners where he worked as a research analyst, covering a portfolio company, FlowMedica. He holds a patent with Harry Goodson IV, Jeffrey Elkins and Samir Patel for the “Treatment Systems and Methods for Renal-Related Diseases”. Nik was a Candidate for an MBA at Harvard Business School Class of 2016 where he received First Year Honors before deciding to defer his second year to launch AHN. Prior to joining Harvard Business School. Nik graduated magna cum laude from Princeton University with a degree in Economics and a certificate in
BEYOND PPPS: NEW MODELS FOR PARTNERSHIPS TO DEVELOP AND FINANCE INFRASTRUCTURE
With wide recognition that external resources will be required to close the infrastructure finance gap in Africa, Public Private Partnerships have been increasingly looked to as a method to finance large infrastructure projects. Yet these partnerships require huge upfront investments to structure complex relationships and forecast financial and operational feasibility, and have often failed to deliver promised results. Are there other models to mobilize private capital flows for public service delivery more effectively? When should governments, DFIs, and the private sector look into these models? This discussion will explore alternative methods of financing for infrastructure investments, and evaluate when governments should look beyond PPPs as a procurement mechanism to better mobile resources, allocate risk or align incentives.
RONAK GOPALDAS, HEAD OF COUNTRY RISK, RAND MERCHANT BANK (SOUTH AFRICA)
Ronak is currently the Head of Country Risk at Rand Merchant Bank (RMB) in Johannesburg, where he manages a team of analysts who provide the firm with in-depth analysis of economic, political, security and operational dynamics across sub-Saharan Africa. He has travelled extensively across Africa to identify key country themes and trends, which in addition to a network of contacts and resources, help inform the qualitative and quantitative research the team produces with the aim of guiding RMB’s strategic investment decisions.vA prominent voice and trusted thought leader across print, radio, television and social media on Africa related matters, Ronak has made frequent appearances on the likes of CNN, BBC, Al Jazeera and CNBC Africa, and also publishes regular op-ed pieces. He has spoken at a number of the world’s top universities and at leading Africa focussed policy and business conferences as a moderator, panellist and keynote speaker.
In 2016, he delivered a powerful Tedx talk entitled “Embracing Africa: beyond the binaries” and in November 2015, he participated in the Asian Forum on Global Governance in New Delhi with a number of young leaders from around the world. He is a fellow of the young African Leadership Initiative (YALI) and was selected as one of South Africa’s “Brightest Young Minds” in 2011. Ronak holds a BCom degree in Philosophy, Politics and Economics (PPE) with Business French as well as a BCom (Hons) in Financial Analysis and Portfolio Management from the University of Cape Town (UCT). He is currently completing an MSc in Finance (Economic Policy) through the School of Oriental and African Studies (SOAS) in London.
SUDEEP DESARAJU, VP OF DEBT FINANCE, BBOXX (RWANDA)
Sudeep is the Director of Corporate Development at BBOXX, a virtual-utility that focuses on solving energy poverty by deploying off-grid solar home systems. BBOXX is the largest player in Africa by generated capacity and in January 2017 won the General Electric Innovation Award after being named as “the most sophisticated off-grid company”. Prior to BBOXX he worked in investment banking and in the Australian Army as a Logistics Officer. Sudeep holds a Commerce and Law degree from the University of Sydney.
- Major investors include Engie (formerly GDF Suez), the world’s largest utility, and Khosla Impact Fund.
- Over 500,000 customers across 35 countries in a data centric business model.
- Closed the industry’s first securitisation of an off-grid solar home portfolio.
- Closed the industry’s first project finance loan in local currency with an East African bank.”
Joyce Shyngle-Eigwe, Executive Director, GE West Africa
Joyce has over twenty years’ experience in Legal/Government affairs, working with various government agencies in Nigeria. She joined GE from Edut Shely Limited, a firm of Legal & Management Consultants where for eight years, she was the Managing Partner. Prior to Edut Shely, she was Legal Advisor/Team Member, Regulatory & Transaction Monitoring Unit (RTM) of Nigeria’s Presidential Task Force on Power (PTFP) where she served to unbundle the Power holding company and to midwife the power sector reform.
In GE, Joyce leads West Africa’s government affairs & policy. She plans and develops key strategies, implements actions vis-à-vis government institutions and regulatory agencies across different sectors. She guides GE’s economic policy formulation and stakeholder engagements in the sub-region and coordinates with GE leadership globally, GE businesses and GE sub regional executives on the development of positions on various issues and implementation of government affairs/policy projects.
Joyce graduated with a Masters and Doctorate degrees in Law from Stanford University Law School, California, USA and a Bachelor’s degree in Zoology from the University of Benin, Nigeria. She is a fellow of the Chartered Institute of Arbitrators.
Africa is currently the least urbanized continent – but at an annual urbanization rate of 3.5%, its cities are growing faster than any other’s. By 2030, half of Africans will live in cities. What infrastructure will these 800 million urban dwellers need, and how much of this will be developed by the private sector? Where are urban needs and commercial interest in conflict, and where do they align? Architects, academics, public actors, and companies will debate how we can build inclusive, commercially viable African cities.
Jordan Fabyanske, Associate Partner,Dalberg
As global co-leader of Dalberg’s work in Cities and Inclusive Economic Growth practice areas, Jordan works across a broad range of development topics including sustainable urban and regional development, resilience, industrial policy, and innovative finance. With leading actors in global development, including foundations, governments, multilateral organizations, NGOs and corporations, he advises on national policy reforms, organizational strategies, and the design of innovative new programs and partnerships. As founder of Dalberg’s office in Ethiopia, he is currently based in Addis Ababa. Over the last ten years, Jordan has led a range of strategy engagements related to urban development. These engagements include: supporting the Rockefeller Foundation’s 100 Resilient Cities (100RC) as a strategy partner for African cities in the initiative’s global network, advising the Bill and Melinda Gates Foundation and Islamic Development Bank on the launch of a multi-billion dollar financing facility for pro- poor infrastructure projects, leading a World Bank-sponsored symposium on Financing Urban Resilience, helping a development finance institution invest to strengthen the competitiveness of Ethiopia’s textiles sector, developing a leading donor’s five-year strategic plan for investing over USD 80 million in support of urban and regional development and employment generation in Afghanistan’s northeastern provinces; helping the UAE’s Ministry of International Cooperation and Development to develop a policy agenda and strategy for channeling more than UDS 20 billion in foreign assistance; and facilitating the design and initial rollout of the Global Resilience Partnership (partnership between Rockefeller Foundation and USAID) and its strategy to strengthen resilience in Sahel, Horn of Africa and South/Southeast Asia
Regions. Prior to joining Dalberg, Jordan was a manager in Booz and Company’s Public Sector Strategy practice. At Booz and Company (now Strategy&), Jordan was based in Abu Dhabi where he worked closely with government clients in the Middle East and North Africa to help craft national agendas and plans for economic development, social inclusion and environmental sustainability. Jordan’s other professional experience includes work with Booz Allen Hamilton and TechnoServe. He holds a Master of International Business from The Fletcher School at Tufts University and a Bachelor of Science in Applied Mathematics from Massachusetts Institute of Technology.
Alon Lits, eneral Manager, Uber Africa
Alon Lits joined Uber as its first General Manager in Africa in August 2013. Alon began his career in the leveraged finance division of Investec Bank Limited, where he provided debt and preference share financing solutions to public and private companies in South Africa, as well as Africa’s largest private equity funds. Before joining Uber, Alon interned with the emerging market focused private equity fund - LeapFrog Investments - focusing on investment opportunities throughout Africa. He holds an MBA from INSEAD where he was part of the leadership teams of both the Private Equity and Africa Clubs.
Ameel Somani, Principal, Helios
Ameel Somani is a Principal at Helios Investment Partners - an Africa focused private equity firm with greater than $3 billion of assets under management and investments in 30 African countries. Prior to Helios, Ameel worked in investment banking and private equity in New York and Toronto.
Ameel holds a dual degree in Chemical Engineering and Economics from Queen's University and an MBA from Harvard Business School. Ameel is a director of Wananchi Group Holdings (East African telecommunications platform), Acorn Holdings (Kenyan youth housing platform), and Telkom Kenya (Kenyan mobile and fixed telecommunications operator).