Rainer Grohe
was Executive Director of the Galileo Joint Undertaking. He received a master degree in Electrical Engineering specializing in Telecommunications at the Rheinisch-Westfälische Technical University Aachen. After his studies and until 1977 he had been Head of Section in several companies. In 1977 he joined BBC/Asea Brown Boveri AG, where he was Member of the Board Management until 1991. From 1991 to 2000 he was Member of the Board of Management at VIAG Aktiengesellschaft.
Lecture: Managing and Funding International Projects
Introduction
The lecture will cover all the basic essentials of funding and financing large integrated projects both in the private and public sector as well for PPP schemes. It will address the appropriate tools for the selection of projects, for funding and financing, will exemplify the different views of the investor, the lenders and the potential users.
Tools for the selection
The task: Which of the projects at choice will generate the highest economic return,and how can I valuate it?
The tools: IRR, DCF, NPV.
The IRR a proven tool in the private sector.
Gross Economic Value of Public Projects.
NPV vs. nominal costs.
The Instruments for Financing
Equity, Loans, Mezzanine, Fonds.....
Asset backed and/or underpinned.
Private / Public / PPP
The history of PPP´s.
The different philosopies to appraise the value of your choice.
The difficulties to make all parties happy.
Lowest price vs. shared risks.
The idea of PPP.
Characteristics of Large Space Projects
Unproven technologies
Not yet developed markets
Ownership of sophisticated and sensitive infrastructures.
The views of the parties involved:
•The Owner (Public Side)
•The Investor (Concessionaire)
•The Contractor(s)
•The Lenders
Galileo the Paradigm for PPP?
The grand scheme
The funding
The parties involved
The design
The concession
The conflicting goals
Lessons Learned