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Body of Knowledge:
Structuring and Drafting the Tender and Contract
FIGURE 5.3: Structuring and Drafting Process
Note: RFP= request for proposal; RFQ= request for qualification.
The main work developed in this phase is the structuring of the contract and the tender process itself, followed by the detailing of the structure and technical terms in a clear and...
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Body of Knowledge:
Project Identification and PPP Screening
To avoid the risk of sinking resources into the analysis and structuring of a non-feasible PPP project, the government must determine whether the project makes sense as a PPP, provided that it has been satisfactorily tested as economically sound or sensible (under the CBA as explained).
This issue...
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Media:
News
The first CP3P Professional level training course (Preparation level) in Russian language was organised by IFC, and delivered by PPP Experts Ltd,to the PPP Development Agency Ministry of Finance of the Republic of Uzbekistan.
Sarvar Tilabov, Leading Specialist, PPP Development Agency Ministry of...
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Body of Knowledge:
Strategy Delivery and Commissioning
The objective of PPP contract management is to obtain the services specified in the output specifications and ensure ongoing affordability, Value for Money (VfM) and appropriate management of risk transfer.
PPP contract management is the process that enables both parties in a contract to meet their...
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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,...
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Body of Knowledge:
Appraising PPP Projects
In the process of inputting data to the financial model, several assumptions would have been made, and the model must be sufficiently flexible to reveal the impact on the final cash flows of changes in those assumptions.
All the sensitivity drivers are typically concentrated in a summary sheet that...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The RFP governs the bid requirements (what documents must be presented and how, which is developed further in section 8.1 below), the evaluation (rules and methods to evaluate and select – section 8.2), and other relevant matters such as protection for the government (for example, the right to...
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Body of Knowledge:
PPP Introduction and Overview
The financial motivation may be divided into two subgroups. One relates to the statistical and national accounting perspective (private financing that may be regarded as “off balance sheet” of the government, which constitutes a dangerous bias in favor of PPPs). This should be differentiated from...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
Following on from a successful PPP project screening, and once partnerships have been formed between like-minded organizations in the consortium (see section 6.4), the two main activities that the consortium will carry out are preparing the response to the procuring authority’s RFP and making the...
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Body of Knowledge:
Appraising PPP Projects - Appendix A - Procurement Procedures
The procurement procedure is the process that will be followed by the government to assign the contract, and it will generally be referred to in this PPP Guide as the ‘tender process’.
As in any public procurement, the usual process should be a competitive process[1], in other words, there will be...
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Body of Knowledge:
Appraising PPP Projects
The technical requirements will naturally be designed with the aim of defining a feasible PPP project. However, the development of specific technical feasibility criteria can be useful to organize the information properly, increase overall transparency, and promote a stronger base for the...
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Body of Knowledge:
PPP Introduction and Overview
BOX 1.22: An Initial Clarification: Funding versus Financing
Financing is defined in this PPP Certification Guide as the source of money required up-front to meet the costs of constructing infrastructure. Financing is typically sourced by the government through surpluses or government...
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Body of Knowledge:
Establishing a PPP Framework
Audit entities are an important link in the chain of accountability for public expenditure decisions, providing independent reviews of government finances and performance to parliaments and to the public. The International Organization of Supreme Audit Institutions (INTOSAI) provides an online list...
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Body of Knowledge:
Appraising PPP Projects - Appendix A - Procurement Procedures
Open Tender or One-stage Tender Process
In this form of open tender, the RFP is published at the same time as the contract, and launching implies the invitation to propose, with the tender open for bidding to any potential bidder. The proposal requirements also include the qualification...
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Body of Knowledge:
Strategy Delivery and Commissioning
It is crucial that the government is aware, at all relevant times, of the development and progress of the project. The most efficient way to ensure that this is done under the circumstances is by requiring the private partner to liaise with the government on a regular basis and report on progress...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The structure of the contents of the contract document may vary significantly from country to country, and even depending on the authority or level of government within the same country. It is preferable that the structure of the contents, the nomenclature, and the treatment of many commercial...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
As in any complex contract, especially those of a long-term nature, it is not possible to foresee every event that may happen and affect a PPP contract. Therefore, changes will happen and this can often lead to disputes.
Also, it is logical that some provisions in the contract may require...
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Body of Knowledge:
Strategy Delivery and Commissioning
In PPPs, liquidated damages are the preferred remedy for late service commencement. Liquidated damages are a payment representing a genuine pre-estimate of the actual losses or damages suffered if the private partner fails to achieve service commencement on time. The events giving rise to...
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Body of Knowledge:
PPP Introduction and Overview
The PPP contract structure (upstream) is defined by the public authority.
As chapter 5 explains in detail, the structuring of the contract has a number of aspects: scope and responsibilities, financial structure, and risk structure. It defines the commercial terms of the contract, fundamentally...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
Specialized knowledge is required to ensure a winning bid, and the consortium bidding for the procuring authority’s PPP project will be keen to put this in place as soon as possible. Despite the fact that large sponsors have internal resources that can be used to deal with the preparation of the...
