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About PPPs

There is no single definition of a PPP.

The PPP Guide is consistent with the WBG definition of PPP; 

A long-term contract between a private agent (or private economic operator) and a public agent (also referred as government authority or public authority), for the development and/or management of a public asset or service, in which the private agent bears significant risk and management responsibility thorough the life of the contract, and remuneration is significantly linked to performance, maintenance and/or the demand or use of the asset or service.

UNECE describes PPP as;

Long term (up to 30 years) service provision;
Transfer of risk to the private sector;
Long term contracts between legal entities and public authorities.

The Canadian Council for Public Private Partnerships describes them as; 

PPP is a cooperative venture between the public and private sectors, built on the expertise of each partner that best meets clearly defined public needs through the appropriate allocation of risks resources and rewards.

Lifecycle of a PPP project

Stage 1 – PPP Introduction and Overview  explains the focus of the PPP Guide, and describes the particular features of a PPP contract, the main worldwide variations in terminology and contract structure, the potential benefits of PPPs as a procurement option, the particular challenges and potential pitfalls, the need to develop a PPP framework, the need to carefully manage the PPP process and the main elements of the PPP process cycle.
Stage 2 – Establishing a PPP framework describes the elements of a PPP framework and the challenges that arise in developing the main areas that comprise the framework to ensure a better program approach. The chapter includes guidance on the strategic management and governance of the PPP option.
Stage 3 – Project identification and PPP screening describes the main features of robust project identification processes and explains how to assess the suitability of a project for PPP delivery. The Chapter includes an introduction to the economic analysis of projects.
Stage 4 – Appraising PPP projects describes the need for and approaches to PPP project appraisal and preparation, including an introduction to commercial feasibility analysis and other related analyses that should be undertaken before decisions are made by government to invest in and procure the PPP project.
Stage 5 – Structuring and Drafting the Tender and Contract describes how to design a PPP tender strategy and structure a PPP contract. The chapter explains financial, risk structuring, revenue and payment mechanisms, the most common and advisable approaches to risk allocation and the key requirements of the Request for Qualifications and Request for Proposals, as well as explaining how to incorporate the contract structure and tender strategy into the tender package.
Stage 6 - Tendering and awarding the contract describes the main challenges and needs for managing the tender process up to executing the contract, beyond the regulations settled in the tender package.  
Stage 7 – Managing the contract - Strategy, delivery and commissioning explains the need for and importance of a proactive contract management strategy, the main features of a contract management function, and the main challenges of contract management during the construction phase of the PPP project.
Stage 8 – Managing the contract – Operations and hand back describes the main challenges and particularities of contract management during the operating phase of the contract up to and including the handback of the asset upon the expiry of the contract.

  • Stage 1 and 2

    These stages explain particular features of a PPP contract, its structure, challenges and the need to develop a framework to carefully manage the PPP process. It also explains stages of developing a PPP framework and the challenges that arise in developing the main areas that comprise the framework to ensure a better program approach.

    1. PPP Introduction and Overview
    2. Establishing a PPP Framework
    3.  
  • Stage 3 and 4

    These stages describe the features of project identification processes and how to assess suitability of a project for PPP delivery. This explains the need for a PPP project appraisal and preparation.

    1. Project Identification and PPP Screening
    2. Appraising PPP Projects
  • Stages 5 and 6

    These stages describe how to design a PPP tender strategy and structure a PPP contract. It explains financial, risk structuring, revenue and payment mechanisms and the most common approaches to risk allocation and the key requirements of the Requset for Qualifications and Request for Proposals.

    1. Structuring and Drafting the Tender and Contract
    2. Tendering and Awarding the Contract
  • Stage 7 and 8

    These stages describe the need for and importance of a proactive contract management strategy along with the main features of a contract management function. It also describes the main challenges and the needs for managing the tender process up to executing the contract, beyond the regulations settled in the tender package. 

    1. Strategy, Delivery and Commissioning
    2. Operations and Handback
  • Certified PPP Professionals (CP3P)

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