FINANCING AND STRUCTURING UPSTREAM AND DOWNSTREAM PUBLIC BIDS IN LATIN AMERICA: HOST GOVERNMENT STRUCTURING OF BIDS

• Jurisdiction: Derecho Internacional

Oil and Gas Development in Latin America
(Mar 1999)
CHAPTER 19B
FINANCING AND STRUCTURING UPSTREAM AND DOWNSTREAM PUBLIC BIDS IN LATIN AMERICA: HOST GOVERNMENT STRUCTURING OF BIDS
Roderick L. Fraser
Chase Securities Latin American Oil and Gas Group
New York, New York

Host Government Structuring

I. Analyzing the Participants

II. Choosing the Project

III. Setting the Goals

IV. Structuring the Approach

V. Executing the Process

VI. Closing the Transaction

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I. Analyzing the Participants

Objective: Determine the likely response of affected parties and ways to address their issues.

1. National Government

2. State Company

3. General Populace

4. Local Governments

5. Industry Participants

6. Financing Sources

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II. Choosing the Project

Objective: Selection of a project which maximizes the likelihood of a successful outcome.

1. Political Acceptability

2. Likelihood of Success

3. Economically Rewarding

4. Attractive to Potential Investors

5. Build a Consensus

6. Manage Expectations

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III. Setting the Goals

Objective: Decide on the key attributes to be met for all parties to view the transaction as successful.

1. Attract Foreign Partner

2. Equitable Financial Arrangement

3. Match Expectations

4. Open and Transparent Process

5. Maintain Competitiveness

6. Basis for Future Transactions

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IV. Structuring the Approach

Objective: Formulation of a process which meets your internal and external requirements.

1. Choose the Methodology

2. Poll Internal Participants

3. Analyze Feedback and Reassess

4. Poll External Participants

5. Analyze Feedback and Reassess

6. Finalize Methodology

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V. Executing the Process

Objective: Conduct a process which encourages the largest possible group of bidders.

1. Determine...