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Body of Knowledge:
Strategy Delivery and Commissioning
For the purposes of this PPP Guide, quality management is defined as a set of policies, processes, and procedures required for planning and execution (production/ development/ service) in the core business area of an organization. A Quality Management System (QMS) needs to integrate the various...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
When a compensation event occurs, the private partner has the right to claim compensation to offset the loss suffered or that will be suffered, or part of the loss suffered in shared risk events. The loss may include forgone revenues (for example, revenue lost due to a delay in construction, where...
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Body of Knowledge:
Tendering and Awarding the Contract
A major difference between procurement approaches in different countries is in the extent to which the government enters into negotiations with the “preferred” (but not yet successful) bidder following the evaluation process, but prior to the award of the contract.
The need for post-bid negotiation...
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Body of Knowledge:
PPP Introduction and Overview
Important note: “Infrastructure” is used in this PPP Certification Guide in the broad sense. This includes not only complete systems or facilities with significant civil works, but also equipment (for example, rolling stock for rail) and plants (independent power producers, wastewater treatment...
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Body of Knowledge:
Strategy Delivery and Commissioning
When dealing with under-performance and non-compliance in the Construction Phase, the issue is not the standard of services provided but rather the time taken to complete the asset and the quality of the asset on completion. In general terms, the private partner is incentivized to bring the asset...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Financial or economic capacity criteria are intended to guarantee that the company or group of companies (consortium) that are candidates for the project have a healthy financial situation. The criteria provide evidence that they will be capable of meeting the financial needs of the project, which...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Some PPP projects are funded wholly or primarily through user payments. This is most common in economic infrastructure sectors. Financial structuring matters that arise in user-pays PPPs are discussed in section 4.8.
Other PPP projects are funded wholly or primarily through government payments....
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Body of Knowledge:
Tendering and Awarding the Contract
It is possible that no bidders will submit, which constitutes a clear process failure. This is best avoided by having a well-planned and well-structured tender process, consistent with the practices described in chapter 5 of this PPP Certification Guide. If it does eventuate that there are no...
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Body of Knowledge:
PPP Introduction and Overview - Appendix A - Project Finance
Financing infrastructure projects through the project finance route offers various benefits such as the opportunity for risk sharing, extending the debt capacity, the release of free cash flows, and maintaining a competitive advantage in a competitive market. Project finance is a useful tool for...
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Body of Knowledge:
Project Identification and PPP Screening
It is common to think of stakeholders as an external audience. The external audience is composed of all the stakeholders interested in the project, outside the internal scope of the government and of bidders in the procurement process. This audience includes banks, investment funds, government and...
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Body of Knowledge:
Tendering and Awarding the Contract
Financial close is a stage with a high degree of variation in market practice among jurisdictions. Financial close means not only that the financing documents have been signed, but also that the prior conditions for the availability of financing have been fulfilled.
As described in chapter 5, in...
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Body of Knowledge:
PPP Introduction and Overview
For a PPP to be successful, the government must protect and maximize VfM throughout the preparation and implementation process and the life of the contract. A failure to achieve the expected VfM constitutes a project failure.
Success in managing the PPP process is achieved by avoiding project...
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Body of Knowledge:
PPP Introduction and Overview
PPPs can also deliver additional efficiency benefits as follows:
PPPs ensure there is an up-front commitment of resources to maintenance and technical reliability: the private sector can improve the reliability of the infrastructure availability and quality by committing dedicated resources to the...
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Body of Knowledge:
PPP Introduction and Overview - Appendix A - Project Finance
There are three basic sources by which a PPP project can be financed: debt, equity and government support[4].
Debt
Senior debt enjoys priority in terms of repayment over all other forms of finance. Mezzanine debt is subordinated in terms of repayment to senior debt, but ranks above equity both for...
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Media:
Blog posts
Making successful cases for Public Private Partnerships
Mark Williams, property and infrastructure lead at PA Consulting Group and John Wilkinson, MOD Defence Infrastructure Organisation PFI Advisor (on secondment from PA Consulting Group)
Infrastructure investment under good PPPs/P3s deals
It is...
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Body of Knowledge:
Strategy Delivery and Commissioning
The private partner will have a limited set of events for which it can claim to:
Extend the completion date by which the asset must be created, commissioned, and operated
Extend the expiry of the PPP contract (effectively an extension to the period in which it can earn revenue from operating the...
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Body of Knowledge:
Project Identification and PPP Screening
There are multiple techniques for identifying the best technical solution for a project and hence which projects best meet public needs. This section will briefly introduce those techniques.
The government should have a policy of using a particular technique so that all projects are compared in a...
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Body of Knowledge:
Establishing a PPP Framework
PPP projects are usually implemented by the Executive branch of government. The processes and responsibilities described in section 1.7 aim to create checks and balances within the executive branch as to how those decisions are made. This section describes the broader governance of the PPP program...
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Body of Knowledge:
Strategy Delivery and Commissioning
A tangible contract management function assists in managing obligations in an effective manner; this saves the two parties significant time and effort and provides benefits in terms of business strategies and procedures.
Contracts dictate every aspect of key business strategies and relationships....
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Body of Knowledge:
Establishing a PPP Framework
Fiscal commitments to PPPs can be payments for services, capital contributions, or subsidies to reduce costs for users, or a means to share risk. The wide range of fiscal commitments can usefully be divided into the following categories.
Direct liabilities: known payments that must be made if the...
