Financial advice for Maasvlakte 2 procurement contract
Being the financial advisor for the Maasvlakte 2 project is a complex and challenging job but a highly satisfying one at the same time.
Maasvlakte 2, an enormous project
The Maasvlakte 2 project consists of a 1000 hectare (approx. 2500 acres) port and industrial complex built partly on reclaimed land in the port of Rotterdam. Its estimated cost is €3bn. Rebel was asked to act as a financial and economic advisor in the procurement process.
The uncertainties surrounding land distribution and business settlement asked for a flexible project planning. Market conditions would have to be exploited to the full and opportunities grabbed where they presented themselves while at the same time risks had to be reduced. What was needed was a flexible business case and a thorough assessment of the risks.
Rebel business case
Rebel was asked to put together a business case, including a risk assessment, and entrusted with the supervision of the procurement process as well. The work was done over a number of cycles. We provided a financial model and combined financial analysis with a risk analysis, identifying, allocating and assessing the risks. The resulting data were translated into several scenarios and a real-option theory was applied to the case. Subsequently, we were involved in the tender process for the construction of the Maasvlakte and the tender for the first container terminal.
A flexible plan is a huge challenge and requires a lot of innovative thinking. Moreover, this is a project with an enormous economic impact, representing numerous employment opportunities in the Rotterdam area for the next few decades. And because we are a Rotterdam business at heart we didn’t want to miss being part of this great project!