Financing large-scale international projects requiring a high investment volume is a difficult and complex endeavour. Export Credit Guarantees issued by the German government protect export transactions by German corporations against commercial and political risks. These guarantees reduce the risks for banks and project sponsors. This makes the financing of the project considerably more advantageous for the participating companies. Sometimes the project would not be implemented at all without these guarantees. Before the German government decides whether to grant a so-called Hermes Coverage, the project participants are required to submit an expert opinion or expertise. PwC has many years of extensive experience in preparing such expert opinions and expertises.
In order to assess whether a major project is commercially viable, PwC will analyse whether the project participants share the burdens in a fair manner, whether the construction and operation contracts for the project are reasonable, whether the commercial, tax and technical assumptions are plausible, and whether the cash flows will be sufficiently sound to be able to pay back the debt even under adverse market conditions.
For more than 25 years, PwC has as an independent expert been contributing to project financings for Euler Hermes. PwC's experts have successfully completed over 150 expert opinions and expertises, thereby enabling numerous companies to get their risks covered by the German government.
PwC is in great demand as an advisor to Export Credit Agencies (ECAs) – also on an international level: PwC's team of experts has provided advice regarding their cover decisions for a number of international Export Credit Agencies (ECAs), such as the French Banque publique d'investissement (Bpifrance), the Korean Export-Import Bank (KEXIM), the Italian Servizi Assicurativi del Commercio Estero (SACE) and the British UK Export Finance.
PwC also supports medium-sized companies with their investment plans by drafting business feasibility studies and issuing expert opinions on the commercial viability. Based on business analyses, the PwC experts assess whether an investment plan is sustainable. By analysing and verifying the concept of a project, the PwC experts help businesses increase their planning reliability. An investment plan considered feasible by PwC offers a sound basis for negotiations with banks, investors and one’s own management. This will make the financing of an investment project considerably easier; often times it is the feasibility study that allows a project to be implemented at all.
Global Head ECA Advisory & Head of CoE Modelling Transactions
Tel: +49 40 6378-1440
Tel: +49 40 6378-1426