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Body of Knowledge:
Establishing a PPP Framework
To be effective, PPP frameworks need to be documented. They also have to have some enforcement mechanisms. Governments need to make the following decisions.
How will the PPP framework be made binding on government officials?
How will the PPP framework be communicated to all stakeholders?
What will...
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The Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, is organising the 8th edition of PPP Americas event which is supported by the Costa Rican Ministry of Finance. The conference focuses on innovative trends in Public-Private Partnerships in Latin...
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Body of Knowledge:
PPP Introduction and Overview
PPP is regarded as a method for procuring and delivering both public assets[1] (new assets or upgrades of existing assets) and public services.
This section will propose a broad definition of PPPs to capture the sense of the PPP concept as a means to procure assets, procure and deliver services,...
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Body of Knowledge:
Tendering and Awarding the Contract
It is good practice for the procuring authority to allow requests for clarification of the contract and the RFP, but the procuring authority should retain discretion about whether to respond. The procuring authority should provide a response wherever this will assist bidders to provide a better bid...
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Body of Knowledge:
PPP Introduction and Overview - Appendix A - Project Finance
An agreement to complete the project and a commitment to provide all the funding necessary to complete the project;
Established demand for the project outputs such that the project will generate sufficient cash to meet all its operating expenses and debt servicing requirements, even if the project...
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Body of Knowledge:
Appraising PPP Projects
The commercial feasibility analysis provides a number of outputs.
For user-pays PPPs, it provides the following:
An assessment of the capacity of the project to attract investors and lenders, from a financial perspective;
An estimate of the government payments (grant financing or supplementary...
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Body of Knowledge:
PPP Introduction and Overview - Appendix A - Project Finance
This appendix introduces some basic features of project finance. It also identifies some different approaches to, and the principles of, financing PPP projects. It provides an explanation of major sources of funding and outlines some benefits and limitations of project finance. This appendix should...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The assets will be “handed-back” to the procuring authority at contract expiration. It is good practice to establish minimum criteria to be met by the assets so as to ensure that these are transferred back to the procuring authority in an acceptable condition. It is also good practice to note that...
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Body of Knowledge:
Strategy Delivery and Commissioning
It is common for the private partner to seek to change its shareholding arrangements and thereby, its owners. Provided that such a change does not increase the risk to the government or diminish the public benefit, it should not be prohibited by the PPP contract. The following circumstances are...
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Body of Knowledge:
PPP Introduction and Overview
This section describes the overview of the PPP project process which is then developed in detail — phase by phase — in chapters 3 to 8 of this PPP Guide.
The intention of this description is to give the reader a general view of the whole process, providing a preliminary description of its main...
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Body of Knowledge:
Strategy Delivery and Commissioning
Where are We in the Process Cycle?
This part of the PPP Guide covers management of the contract during the Construction Phase of the PPP life cycle (delivery of the asset up to and including the commissioning of the asset). Therefore, all the general issues discussed previously in this chapter will...
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Body of Knowledge:
Appraising PPP Projects
The procurement of a PPP project represents Value for Money when — compared to a public sector procurement option — it delivers higher net economic benefits to society, taking into consideration the whole-life costs of the project.
The purpose of a Value for Money (VfM) assessment is to indicate if...
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Body of Knowledge:
Appraising PPP Projects
An effective market sounding exercise provides an opportunity for a structured dialogue between the private and the public sectors at early stages of the PPP process. This not only tests the viability of the project’s details, but it also obtains precious feedback on how aspects of the project...
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APMG's PPP Certification Program aims to foster a common minimum level of knowledge and understanding amongst practitioners. It helps them leverage Finance and Efficiencies from the Private Sector and give them a certificate which demonstrates they have studied the PPP Certification Program Guide...
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Body of Knowledge:
Appraising PPP Projects
The assessment of the Value for Money (VfM) of the project can be revisited in the Structuring Phase. Until then, the risk allocation mechanisms may still be altered with potential consequences for the VfM conclusions.
However, it is good practice to produce a confident evaluation of VfM during the...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Risk allocation is implicit in the revenue regime of the contract and in the scope of the obligations. The private party shall construct in the form and time defined (by the contract or as committed to in its proposal), and it shall provide the service as prescribed in the contract (the performance...
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Body of Knowledge:
Establishing a PPP Framework
A PPP framework should guide governments and private partners through each step in developing a PPP, ensuring that projects are well structured and delivered in line with expectations. The PPP framework will achieve this by outlining procedures and decision rules for various institutions, and by...
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Media:
News
Since 1990 China has committed $193,701 billion to PPPs and has 1,655 projects reaching financial closure. PPPs in China are amongst the most ambitious in the world, enabling the successful delivery of complex projects inluding Guangzhou-Shenzhen Superhighway, Zhangzhou Houshi Power Plant and the...
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Body of Knowledge:
Project Identification and PPP Screening
The importance of advisors in PPPs has been emphasized by Jangun and Marques (2006): [34]
“As governments transition from their role of monopoly provider of infrastructure services to setting the framework for private provision of infrastructure services, independent “third party” advisory...
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Body of Knowledge:
PPP Introduction and Overview
Please see separate document
Appendix B – Introduction to Islamic Finance
Please see separate document.
[40] The main reports cited are “PFI: Construction Performance. Report by the Comptroller and Auditor...
