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Body of Knowledge:
Establishing a PPP Framework
A good PPP framework aims to ensure that the right projects are selected as PPPs, and that they are developed, delivered and managed in a structured, transparent and efficient way. Equally, a good framework minimizes the risks that a PPP project will not deliver Value for Money (VfM).
PPPs involve...
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Body of Knowledge:
Operations and Handback
As in the Construction Phase, during the Operations Phase, the immediate mechanism to deal with non-compliance and contract breaches is typically a mechanism that has financial consequences for the private partner. However, the system and instruments for managing under-performance (by providing...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
An exact definition for risk is hard to find and its measurement is controversial as well. In literature, the word "risk" is used with many different meanings. The Oxford English Dictionary defines risk as "chance or possibility of danger, loss, injury, etc.”.
In the context of an infrastructure...
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Body of Knowledge:
Establishing a PPP Framework
A well designed and implemented procurement is central to achieving Value for Money from the PPP. Procurement processes can include marketing the PPP, checking the qualifications of bidders, inviting and evaluating proposals, interacting with bidders during the process, selecting the preferred...
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Body of Knowledge:
PPP Introduction and Overview
A single type of PPP may be given different names in different sectors or countries, despite the scope of the contract and the features being the same. This difference is often due to variations in legal tradition and legislation, but may also relate to variations in common or standard language....
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Body of Knowledge:
Strategy Delivery and Commissioning
PPPs, by their very nature, span a very long time frame. They are detailed and complex when it comes to managing relationships between the various parties in the PPP contract. There are many stakeholders within a PPP, including the parties, lenders, SPV shareholders, end-users, regulators,...
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Body of Knowledge:
Establishing a PPP Framework
As an alternative approach to originating and developing PPP project ideas, some governments accept unsolicited or privately-initiated PPP projects. By welcoming “privately-initiated” projects, governments can harness information and ideas that private firms have about how to provide services...
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Body of Knowledge:
PPP Introduction and Overview
a) The Challenge of the Availability of Long-Term Finance
Private finance PPPs require long-term finance, the majority of which should be in the form of debt so as to maximize financial efficiency through gearing[51] (see section 7).
A sound financial structure requires that the debt is denominated...
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Body of Knowledge:
Appraising PPP Projects
The initial capital expenditures (initial Capex) group represent the expenses incurred from the private consortium’s preparation of its proposal until the commissioning of the asset. These expenses commonly occur before the project company obtains any revenue. The expenses are mostly obtained from...
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Body of Knowledge:
Operations and Handback
Early termination of a PPP contract is truly a last resort and must follow a whole range of processes, commencing with an act of default by one of the parties or some continuing force majeure.
From a contract management perspective, the focus should be on avoiding termination by managing...
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Body of Knowledge:
PPP Introduction and Overview
Design, Build, Operate and Maintain (DBOM)
There are some contracts which are financed by the government against the budget (such as a conventional procurement) but in which the selected contractor will carry out the construction works, future operations, and maintenance....
