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Selected Case

published: 24 May 2012

  • Topic: Economics & Finance
  • Industry: Infrastructure
  • Region: Other Regions

Abstract:
Aquasure - a consortium formed by Macquarie, Degremont and Thiess - won the concession to finance, build, maintain and operate the A$5.72 billion Victorian Desalination plant under a public-private partnership initiative known as Partnerships Victoria. Financing took place during the period of the global financial crisis and there was a subsequent political backlash.

Pedagogical Objectives:
The structure of project finance; how risk is allocated and mitigated within the structure; the pros and cons of public-private partnerships; the discount rate as a measure of the transfer of risk; political risk in PPP.

Keywords:
Public-Private Partnership, Partnerships Victoria, Project Finance, Global Financial Crisis, Public Sector Comparator, Discount Rate, Transfer of Risk, Political Backlash, Corporate Governance, Auditing, Risk Control and Performance

Prizes won:
- Winner of 2011 EFMD Case Writing Competition, Public Sector Innovations Category


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