Gautrain – Concession renewal and extension

Description of the mission

The mission is two-folded:

• Producing a detailed financing strategy and contractual support covering both public and private financing needs to the financing of the Post 2026 Gautrain Project, in order to ensure service continuity to the Gautrain concession.
• Producing a high-level financing strategy and contractual support for GRRINE Phase 1, both for public and private financing needs that builds on some funding options already proposed as part of the completed GRRINE Feasibility Study.

Description of major tasks of the mission

• Review and international benchmark for comparable infrastructure, in terms of tariff setting, revenues, financing strategies, contractual strategy…)
• Optimization of existing studies in terms of risk allocation, and bankability impacts of the financing choices, notably regarding alternatives to the patronage guarantee system existing in the first transaction and mitigation mechanisms for the FX risks
• Market engagement (identification of key stakeholders, project pitching, determining intervention conditions per potential financing sources)
• Updating financial model and risks matrices
• Negotiation of term sheets with financiers
• Drafting inputs to the bidding documents
• Assistance along the transaction process (evaluation of bids, support in negotiation phase with bidders)
• Peer to peer engagement strategy, organisation of study tours and capacity building workshops

• Strong experience of financial instruments mobilized in railway concessions (subsidies, guaranteed debts and project debt, equity, bonds, …)
• Ability to interact between various stakeholders (DFIs, Sponsors, Governments, SOE, commercial banks, …)
• Expertise in the gestion of FX risks and in associated de-risking mechanisms
• Expertise in the constitution and steering of pools of lenders
• Experience in high level training and peer to peer engagement in the topics of PPP transaction, financing modelling and project contracting