Capital ventures and infrastructure

How can Moores Rowland Assist?

We assist our clients all round the world in achieving huge capital ventures and infrastructure; whether in financing, planning, as well as in its management. Our expertise in technology and engineering as well as in finance enables us to work with investors, owners, contractors, private and public companies’ capital ventures and infrastructures throughout their life cycles.

Future of financing infrastructure:

Most underdeveloped countries need to improve and modernize its infrastructure especially in power, suitable roads, potable water, and sanitation. With today public deficits in these countries, financing infrastructure is no longer possible not even with guarantees since sovereign debts exceeds these countries capabilities and prevent them from being able to finance such huge projects. Today the World Bank, state-owned infrastructure banks, as well as private investments play a vital role in financing infrastructures ventures,.

Over and above, pension funds, sovereign funds as well as specialist funds search for direct investment in infrastructure projects and ventures whether directly or indirectly.

The public private partnership (PPP) became the most suitable solution for managing and operating the existing infrastructures, subject to the governments’ capabilities in proving the stability of their countries and in protecting the transaction.

Since securing long term financing is no longer easy, especially after adoption of Basel 3 pronouncements, it became essential to achieve a balance between public and private financing.

Capital ventures stakeholders’ strategies:

Government and public sector:

Most cities compete in becoming more desirable for residence and work where this relies on the level of the infrastructure they have. Based on that, additional attention is given to infrastructure planning.

Companies and Investors:

Since the world economy is facing difficulties, investors search for opportunities in long term infrastructure projects and ventures, taking into consideration growth markets, emerging types of funding, and the stakeholders’ goals.

Capital venture delivery:

During the preliminary phase or during the design phase or during the construction phase of a Capital project or venture, it may either be achieved or lost. Today many stakeholders are concerned regarding the risks of delivery of projects and ventures.

Proper planning of the venture:

It is vital to commence the project and the venture through proper feasibility study, project planning and establish management structure including controls, processes, systems and procedures. Also it is important to mitigate risks and clarify stakeholders’ goals and objectives. Also it is important to adopt integrated IT systems to secure the minimum transparency for the venture as well as apply due diligence analysis to validate and adjust the preliminary business assumptions.

Indicators for venture delivery:

• Clarity of venture definition and scope
• Accountability for venture goals
• Continuous reporting and communication
• Follow up on venture performance
• Efficient strategies in making contracts

Infrastructure ventures Risk management

In principle most infrastructure projects and ventures take more time than planned and cost more than expected. Taking into consideration cost of capital, risk management becomes vital for the success of any capital venture or project. Based on that, poor planning, absence of monitoring, weak management and unskilled labor are the most factors that cause risk on capital ventures and projects.

Mitigating risks is important through:

• Fining missed deadlines
• Linking venture and companies goals
• Balance quality with cost and time
• Maintaining clear records and accounts
• Apply accountability on all levels
• Seek external supervision

Sectors:

Energy and power

• Oil and Gas
• Electricity
• Nuclear power generation
• Mining

Environment

• Solid waste
• Water and waste water

Recreation

• Recreational facilities
• Parks and land developments
• Culture

Sustainable Urban development

• Green building
• Real-estate

Social infrastructure

• Education
• Social housing
• Healthcare

Technology, Entertainment & Media

• Broadband networks
• Transmission cables and broadcasting
• Sports complexes
• Hosting jumbo sporting

Transportation

• Airports
• Bridges
• Highways
• Ports
• Pipelines
• Railroads
• Ships
• Tolls
• Tunnels