PROFOUND KNOWLEDGE OF THE BIDDING AND FINANCING PROCESS FOR A CONTRACTOR´S FIRST TIME BIDDING IN PANAMA
It was the first time our client had participated in a bid in Panama. They already had a bank and a term sheet for the financing, including indicative pricing. However, they did not have a financial model, and the rules and format of the bidding specifications were not entirely clear. Upon being mandated, we created a financial model in which the output was the cost of the financing. The Argo team also assisted a series of meetings with the client and counsel in which we advised how certain forms needed to be completed and the relationship between them. The team also helped identify hidden costs in the modeling assumptions.
As an added value, our team revised the bidding specs, identified issues relating to the bankability, provided a set of clarification questions for the client to submit. As it usually occurs, some questions were answered by the government entity, and some were not. Our team identified in which cases the information was imperfect or inconsistent and outlined the strategy to follow with each assumption and provide insights into what occurs typically during the execution. With all this information, the client could make an informed decision as to which premises he would use.
In this case, ARGO Finance Partners was able to add value during the bidding stage.
ARGO was the only financial advisor with first-hand experience with the instruments described in the bidding specs and working with the granting entity. Thus, our team could see past the writing of the documents to truly get insight into how projects were executed within this government entity.