Planeamento orçamental em project finance

: o caso "ascendi Beira Litoral Alta"

Abstract

In order to examine if the complex contract network that characterize a project finance/PPP transaction facilitates budget planning, we have chosen the toll-road concession Ascendi Beira LItoral Alta (Ascendi BLA) as our case study. We started with a theoretical contextualization about the financial arrangements in project finance/PPP as we are trying to identify their specific interests. In this particular case study, we have described all the steps concerning the company´s (Ascendi BLA) budget planning. We have identified the main risks and how contracts were established in order to allocate and mitigate those risks among major participants. Additionally, we have interconnected the main contracts with the forecast of each item in both income statement and balance sheet when preparing the 2016 budget. For achieving that purpose, we made an exhaustive analysis of the Firma’s existing contracts and of the internal processes related to the budget, always bearing in mind how the budget model is shaped after. Our results identify the presence of a strong nexus of contracts in Ascendi BLA concession, which regulates significantly the role of each party in the SPV and, makes possible to predict with a higher degree of certainty much of its present and future cash flows. Our results suggest that, as opposed to corporate financing, the existent contract network inside Ascendi BLA facilitates its financial planning as well as its budgeting process. Finally, our results show that BLA concession network of nonfinancial contracts allows sponsors to transfer the project major risks to those parties that are best able to manage them.

Date of Award	28 Nov 2016
Original language	Portuguese
Awarding Institution	Universidade Católica Portuguesa
Supervisor	João Pinto (Supervisor)