Financial advice for Maasvlakte 2 procurement contract
Being the financial advisor for the Maasvlakte 2 project is a complex and challenging task, but very satisfying.
Maasvlakte 2, an enormous project
For the Maasvlakte 2 project, Rebel acted as financial and economic advisor in the procurement process. This project concerns the construction of a 1000-hectare (approx. 2500 acre) port and industrial estate at sea in the Port of Rotterdam, worth €3 billion.
Flexible plan essential
A flexible project plan was essential, because there was still a lot of uncertainty. E.g. it was still unclear which businesses would settle on the Maas plain and how long it would take before the land in the whole area could be distributed. This required a flexible plan that would optimally exploit the market conditions (grab opportunities, reduce risks), with a flexible business case and insight into the risks.
Rebel draws up extensive business case
We were entrusted with the business case, including a risk assessment, and with supervising the procurement process. This was done over a number of cycles. First, we provided a financial model and we combined the financial analysis with a risk analysis consisting of an inventory, allocation and valuation of the risks. We formulated the results in the form of scenarios and we applied a real-option theory to the case. Then, we were involved in the tender process for the construction of the Maasvlakte and the tender for the first container terminal.
For a project with an impact
This mission was highly complex and constituted a real challenge, mainly because a flexible plan requires an innovative thought process. In addition, this is a project with a huge economic impact (i.e. employment opportunities) on the Rotterdam area for the next decades. As a true Rotterdam business, of course we wanted to be involved!
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