Where it started
The challenge
An earlier tender had failed. Bidders saw too much volume risk in the traffic forecasts, and lenders would not take on what the operators would not.
The authority needed private capital for the terminal, but it also needed to keep a fair share of the upside over a long concession, and to be able to defend the deal publicly.
What we did
Our approach
- Rebuild the business caseWe updated the traffic forecasts and tested them with shipping lines, operators and lenders before the tender, so that bidders could trust the numbers.
- Share the risk fairlyWe designed a concession fee with a fixed element, a guaranteed minimum on volumes and a shared upside above forecast, so neither side carried all of the uncertainty.
- Run the tenderWe managed qualification, bid evaluation and negotiation with the preferred bidder, and kept the lenders close to the process throughout.
Where it ended
The outcome
Six groups qualified to bid, including two global operators. The concession was signed after a single tender round, and the lenders confirmed support for the winning bid without asking for changes to the risk allocation.
- 25 yearsconcession term
- 6bidders at qualification
- 1tender round to preferred bidder
The structure was the first we had seen in the region that our credit committee could approve as it stood.
Head of infrastructure, development finance lender
Mandate leadMoussa DiopPartner, Public-private partnerships, Dakar
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