Financial adviser for the concession of Accra-Tema motorway
Financial adviser for the concession of Accra-Tema motorway
Supporting a private consortium in preparing and submitting a bid for the concession of the Accra-Tema motorway in Ghana.
The challenge
Toll pricing in Ghana is currently too low to cover the cost of road infrastructure. However, the authority envisaged a contract with full demand risk. In the context of a highly volatile local currency, keeping the toll pricing at its lowest was a core driver of the financial proposal evaluation.
The approach
As financial adviser, we organized and managed an extensive lenders consultation planning. It involved between 30-40 parties to assess interest in financing the project. In parallel, we designed a detailed financial model to formulate the bid price and test multiple financing structures and risk mitigation instruments.
We then drafted the financial bid proposal with the consortium.
Impact
We focused the advisory of identifying and pricing exotic hedging instruments for currency and guarantee product for debt and equity.
