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Body of Knowledge:
Operations and Handback
6.1. Standard Regulations when Dealing with PPPs
As discussed in chapter 2 of the PPP Guide, most jurisdictions have a regulatory framework that is applicable to PPPs in general as well as PPP contracts for specific projects. The regulatory framework has a number of objectives, one of which is to...
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Body of Knowledge:
Establishing a PPP Framework
Most governments have rules for approving capital investment projects that is, defining who can give approval at various points in the life of the project for the project to proceed to the next phase. Because PPPs often do not require capital investment by the government, they may not automatically...
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Body of Knowledge:
Appraising PPP Projects
The revenues represent all the inflows used by the Project Company to meet its costs.
The revenues from government payments, when they are included in the revenue regime, can be considered an output of the commercial feasibility exercise since they are determined by the affordability assessment (...
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Body of Knowledge:
Tendering and Awarding the Contract
Name of Document
Authors/Editors and Year
Description
http link (when available)
Key References for PPP Tender Processes
Infrastructure Australia National PPP Guidelines Volume 2: Practitioners’ Guide
Commonwealth of Australia (2011).
Includes guidelines on PPP tender...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
6.8.1 Negotiating with Banks
The consortium’s financial advisory team prepares the Project Information Memorandum (PIM). The PIM sets out details of the PPP project, including the anticipated key contracts and projected revenues. Assuming a financing competition, a group of funders will be asked to...
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Body of Knowledge:
Establishing a PPP Framework
In developing a PPP framework, it is useful to consider the main responsibilities and identify an existing institution, if available, that is suitable for each one. The main responsibilities include the following.
Identifying and procuring projects: Driving forward the PPP project: identifying...
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Body of Knowledge:
PPP Introduction and Overview
The government may seek to financially support a project when it is an economically viable user-pays project, but the projected revenue on the basis of use is not enough for the project to be commercially viable. Another reason is to keep the price of services provided by the assets at a level...
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Body of Knowledge:
Tendering and Awarding the Contract
Having separate meetings with each potential bidding organization or consortium can provide better outcomes than only having a single meeting attended by competing organizations. However, meetings with individual bidders also entail a range of risks. The better outcomes arise because meetings with...
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Media:
Blog posts
In a PPP project the public sector invites the private sector, via a bidding process, to design, build, finance and operate an asset in order to provide a service to or on behalf of the public sector. In addition, the project must be affordable, provide value for money, and obtain optimal risk...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
As noted, the contract must have flexibility built in to enable changing circumstances to be dealt with as far as possible within the contract. In this sense, the contract should consider and permit certain potential changes (which may be subject to limits in quantity or the law may provide those...
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Body of Knowledge:
Tendering and Awarding the Contract
During the course of this period, it is common for both the authority and private partner (still as preferred bidder or successful proposer) agree on certain minor changes in the contract to resolve mistakes or clarify ambiguities. It may also be necessary to incorporate specific features of the...
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There is a risk of funding not being available at financial close or only being available at a significantly worse price (margin and fees) and conditions (including debt service cover ratio [DSCR] or maximum term) than anticipated. This risk is generally to be assumed by the private partner....
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Body of Knowledge:
Tendering and Awarding the Contract
Chapter 2.9.3 of the PPP Certification Guide explains the importance and significant benefits of transparency and proactive disclosure in PPP programs. It also provides examples of disclosure policies that are considered to be good practice. In some jurisdictions, it is compulsory to publicly...
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Body of Knowledge:
Tendering and Awarding the Contract
Some governments provide for independent oversight of the tender process while it is occurring to ensure that it is fair and transparent.
For example, governments in Australia and New Zealand appoint a probity practitioner to ensure that a transparent and robust process is followed at all times....
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Body of Knowledge:
Operations and Handback
Variation management is closely connected with PPP agreement management and relates to the creation of mechanisms to enable changes to the PPP agreement. Such changes may be necessary as a result of a change in circumstances that could not be anticipated or quantified when the PPP agreement was...
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Body of Knowledge:
PPP Introduction and Overview
As a private-financed procurement method, all (or most) of the resources for financing the capital investment comes from the private sector.
The PPP structure assigns to a private agent, through a contract, the development and business operation or exploitation of a public asset (under certain...
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Body of Knowledge:
Tendering and Awarding the Contract
Launching is the milestone that triggers the tender process. Tender documents are published through standard government processes, often in the official government bulletin or journal, on a centralized procurement website, or in regional or national newspapers.
Sometimes, in the case of procurement...
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Body of Knowledge:
PPP Introduction and Overview
In addition to basic concerns about ‘bankability’, governments have other points of concern regarding the private financial package that will influence the project contract structure. These have specific implications in the tender process regulations (RFP) and more especially in the contract...
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Body of Knowledge:
Operations and Handback
3.1. Introduction to Contract Management during the Operations Phase
During the Operations Phase, key activities that must be included in managing the PPP contract are: monitoring and managing project delivery and performance against service outputs; monitoring and managing changes; managing...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
One of the most important issues the consortium has to address is structure. Its members need to decide the most appropriate structure to adopt in order to finance and implement the procuring authority’s PPP project successfully.
This PPP Guide assumes a project financing approach. As such,...
