Project name: Economic Financial Modeling and Valuation with PPP Risk Analysis for the implementation and operation of the SIM RMBS (Metropolitan Integrated System) of the Baixada Santista Metropolitan Region.
Year: 12/2009 – 05/2010
Location: Santos, SP, Brazil
Client: Empresa Metropolitana de Transportes Urbanos de São Paulo S.A. – EMTU/SP
Activities performed: Proposal for a PPP modeling structure; Support for the Institutional Modeling architecture, identifying interfaces with the Economic-Financial Modeling; Projection of Inputs – Tariff collection and Service Provision Cost; Construction of the PPP Remuneration Model, considering tariff collection projections, the possibility of financial consideration, performance indicators, and the given legal and regulatory constraints governing risk allocation and PPP accounting, formulating a model with two cash consideration installments under the Sponsored Concessions Framework, comprising: A fixed portion to be paid based on the availability of the object (construction infrastructure, rolling stock, and trunk structural systems) linked to line extension and fleet size; A variable portion under the same logic, but subject to fluctuation according to performance indicators; Development of the Concession Business Plan; Preparation of a Financial Model; Preparation of the Income Statement, Cash Flow, and Balance Sheet for the private partner; Preparation of the SPV Financing Plan, projecting cash flows for the Company, Shareholders, and Lenders.