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Aquasure: Project Finance - Victorian Desalination Plant

Published 24 May 2012
Reference 5827
Region Other Regions
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Prizes & Awards

Winner of 2011 EFMD Case Writing Competition, Public Sector Innovations Category

Summary

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.

Teaching 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
  • Q31112
  • Corporate Governance
  • Auditing, Risk Control and Performance