Business case
Our client, a public sector body, signed a public-private partnership (PPP) agreement with a private party for the operations and maintenance of a sports hub, comprising a stadium with a seating capacity of 55,000 and other sporting facilities. Our client was exploring the option of taking back control of the hub (through the termination of the PPP contract) and sought to understand the options available from a strategic and financial perspective.
We analysed the termination sum based on the PPP contract termination clauses. We performed the financial scenario analysis, comparing a business-as-usual scenario with a termination scenario. Our analysis also considered the business plan development for the sports hub following the takeback.
We were appointed to analyse the options available on the takeback process for the PPP project. We undertook a detailed analysis under a Status Quo vs Government Take Back Control option model, reviewing the pros and cons and financial impact under each option to determine the preferred option / direction to be taken by our client.