Our services were in connection with a PPP investment project run by the City of Kraków which involved building and maintenance of a tram line, including a tram line tunnel. In cooperation with legal and technical advisors, we supported the City in the transaction in terms of pre-implementation analysis and market testing, private partner selection via a competitive dialogue, and the closing of a financing deal. Our remit included construction of a financial model comparing the PPP option with the traditional project investment option (PSC) where we sought to confirm the rationale of using the PPP arrangement. The key part of our engagement was to determine the boundary conditions for the bankability and profitability of the project from a potential private partner perspective, taking into account special corporation tax and VAT requirements, and the analysis of the potential contractor and financing institutions market. Our model was designed to enable comparison of various external financing options (including an EU grant for the Public Partner) and risk distribution.