1. PRIVATE INVESTMENTS IN PUBLIC INFRASTRUCTURE
Kuala Lumpur, April 14, 2016
IPBA Annual Meeting and Conference
PRIVATE INVESTMENTS IN PUBLIC INFRASTRUCTURE
RAVI NATH
Partner, RNClegal, India T: F: C: E:

2. GOVERNMENT INITIATIVES TO INCREASE PRIVATE INVESTMENT IN PUBLIC INFRASTRUCTURE
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3. “Infrastructure” – as defined by R.B.I Transport Energy
Communication Telecommunication
Social and Commercial Infrastructure
Infrastructure Finance Company
Alternate Investment Funds
National Investment and Infrastructure Fund (India’s Sovereign Fund)
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4. Proposed changes to the Public Private Partnership Model
Amend terms of issuance of Zero Coupon Bonds’ (ZCB) to encourage creation of a rupee denominated ZCB market
New credit rating system for infrastructure projects
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5. POINTS OF CONSIDERATION FOR INFRASTRUCTURE INVESTMENTS
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6. Funding for the projects Type of PPP
Understanding of the country, industry, region and time frame
Mechanism of emerging market
Source of potential revenue and identification of risks involved
Avenues of potential revenues from infrastructure projects
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7. Multilateral Banks and Private Equity vs. Sovereign Wealth Funds (SWF)
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8. SWF’s have an estimated assets under management-$6.1 trillion
Established out of trade surpluses, official foreign currency operations, and fiscal surpluses
Guided by strategic and commercial objectives
NIIF as a sovereign fund (Indian Govt.’s participation)
Investment opportunities
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9. THE ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB)
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10. India – second biggest stakeholder in AIIB
Management team – small, skilled, highly ethical
Focus – development of infrastructure
Will complement and cooperate with existing MDBs
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11. COMMON LEGAL-REGULATORY CHALLENGES
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12. Common challenges Solution Taxation Environmental clearance
Land Acquisition
Solution
Countries should ensure Faster decision making, Stable policy, Structural reforms and Consistent pace of those reforms
Bilateral Investment Treaty (BIT)
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13. PRACTICAL TIPS
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14. Liquidity in capital markets Brownfield v. Greenfield
Investment horizon
Effective use of infrastructure at expected tariff levels or availability and affordability of critical input
Management of risks
Assessment of Political risk
Involvement of government agency
Presence of development banks
Assessment of environmental, social and governance aspects
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15. Thank you Ravi NATH RNClegal / Rajinder Narain & Co.
International Commercial & Corporate Lawyers T: C: E: