1. Catalysing Institutional
Investment in Climate-Resilient
Infrastructure
GIB Summit
May 2014

2. PwC
Our PwC Capital Projects and Infrastructure team
800infrastructure projects being worked on
c.USD 175bn project finance deals
closed in 10 years
c.1000professionals across the global network

3. PwC
Which CP&I sectors do we work in?
Our clients are typically in the following sectors but can be in any sector where a large
scale investment is being considered or undertaken.
Energy
Government
Mining
Utilities
Mega-events
Transportation
Social
infrastructure
Healthcare
Communications

4. PwC
What services do we provide to clients?
CP&I serves the full project value chain for owners
and investors
The asset lifecycle
Strategic
planning
Project
planning
Project due
diligence
Procurement Project finance Asset
operations and
maintenance
Project execution
and
commissioning
• Market
assessment
• Economic
analysis
• Business case
analysis
• Political
assessment
• Organizational
assessment
• Stakeholder
management
• Dispute
avoidance
strategy
• Feasibility
analysis
• Environmental
assessment
• Regulatory
strategy and
assessment
• Schedule
Analysis
• Business case
analysis
including capital
investment
• Value analysis
• Project risk
assessment
and analysis
• Project controls
and risk
analysis
• Financial
assessment
• Financial risk
analysis
• Procurement
strategy
• Procurement/
delivery
modeling
• Contract
packaging
• Strategy
• Project
qualifications
• Finance raising
and structuring
• Financial
modeling
• Valuation
• Acquisitions
and divestitures
• Deal structuring
• Risk
distribution and
allocation
modelling
• Tax
considerations
• Asset
optimization
• Productivity
improvement
• Financial
management
• Compliance,
reporting and tax
• Divestitures
• Dispute
assistance
• Refinancing
• Project
management
• Project
governance
• Project
evaluation and
reporting
• Start-up
assessment
• Project close-out
• Post project
audit

5. PwC
Our record over the last decade
Project Finance International – Global closed deals
Global by number of closed deals for 10 years to 2013
Rank Adviser No. of
deals
Value
$’m
1 PwC 325 99,986
2 Ernst & Young 251 68,943
3 KPMG 156 57,474
4 Macquarie 152 82,049
5 HSBC 110 100,682
6 Grant Thornton 99 10,417
7 BNP Paribas 63 49,588
8 SBI Capital 59 38,160
9 Royal Bank of Canada 58 26,566
10 Citigroup 45 46,287
Rank Adviser Value
$’m
No. of
deals
1 HSBC 100,682 110
2 PwC 99,986 325
3 Macquarie 82,049 152
4 Royal Bank of Scotland 78,593 32
5 Ernst & Young 68,943 251
6 Credit Agricole 58,336 9
7 KPMG 57,474 156
8 SG 53,112 37
9 BNP Paribas 49,588 63
10 Mizuho 48,811 13
Global by value of closed deals for 10 years to 2013
globally with 325
closed deals for 10 yrs
ending December 2013
1st
globally with closed
deals value of $99,986m
for 10 yrs ending December 2013
2nd
Source: PwC calculations based on Project Finance International, January 2014 Source: PwC calculations based on Project Finance International, January 2014
* excludes ineligible deals under the $20m threshold

6. PwC
Market leading thought leadership
July 2013
6
Issues pieces on disaster
resilience and alternative
financing trends
Industry pieces on transport,
energy & capital projects
Future pieces on: global infrastructure market
sizing with Oxford Economics, dispute
resolution & national infrastructure plans
Series on infra development in emerging markets

7. PwC
Trend: We think the financing source for infrastructure will increasingly transition
from bank debt to institutional investors. But governments and project sponsors need to
gain a clearer understanding the prerequisites needed for such a market to take root
There is a major need for large-scale
infrastructure projects around the world.
Capital markets’ and institutional investors’
involvement in financing infrastructure
projects will steadily increase.
There remains a great deal of confusion among
both governments and project sponsors about
how best to access financing for infrastructure
projects.
Demand for large-scale investment has
been complicated by the fiscal constraints
in many countries
The challenge is finding innovative ways for
value-adding infrastructure to be funded and
financed in a manner that is sustainable for
both governments and infrastructure users.
Project bonds and non-bank lending could provide
a flow of suitable highly rated assets direct
to pension plans and life insurance
companies.
Increasingly investors are showing willingness to
take on construction / greenfield projects.
Financing is still relatively
new and tied to the specific conditions
within individual markets.
The key issue is structuring and funding
projects to a level where they become
Financeable / bankable
+ -

8. PwC
Reasons that many infrastructure projects are
currently delayed, especially in emerging markets
Required actions by governments
and project sponsors
Major
roadblocks
for
infrastructure
development
Land
acqui-
sition
Political &
regulatory
risks
Value
propo-
sition
Revenue
and
operating
risks
• improvement of the political, legal and
financial environment
• closing of the talent gap
• infuse leading practices in every phase
of the lifecycle of their investments
• build transaction capacity
• public sector, private sector and
multilateral banks have to work closely
together
• long term planning and prioritisation
of projects

9. PwC
Main issues & lessons learned to attract
institutional investors (e.g. pension funds)
It is unlikely that pension funds will invest
until key obstacles are overcome
Infrastructure still
regarded as a specialist
investment
Pension trustees &
investment advisors are
often not investment
experts
Failure to promote the
infrastructure
proposition
Lack of reliable business
models and business
plans
Miss-match between
geographic location of
funds and infrastructure
opportunities
Regulations & inflexible
investment policies
Illiquidity of infrastructure projects vs immediate
need for yield
Capital markets (e.g. infrastructure bonds
or specialised infrastructure funds) can
help fill the long-term financing GAP
• Strong and transparent political and legal
framework
• Develop programs with prioritized
investment opportunities
• Develop transaction skills
• Improve governance and transparency in
financial reporting
• Balanced tax and commercial policies
• Understanding investor appetite,
development of sectoral and geographic
focus
• Development of new sources and vehicles
for private finance
Developing a functioning market

10. PwC
Market conditions for infrastructure bonds
Relative feasibility and attractiveness of financing infrastructure projects
through the capital markets.