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Body of Knowledge:
PPP Introduction and Overview
This chapter is designed to introduce the PPP Guide, the Body of Knowledge (BoK) that provides readers with a general overview of Public-Private Partnerships (PPPs). It will also introduce some of the basic features and characteristics of PPPs.
PPPs are one way to procure infrastructure and...
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Body of Knowledge:
Operations and Handback
2.1. Importance of Contract Management and Monitoring
The previous chapter (sections 3 and 4) explained the importance of: the contract management and monitoring; providing for the governance, structure and function of contract management; and the contract management team. The principles of the...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
As explained in section 4.2, one reason for co-financing may be simply to fill the viability gap in a user-pays PPP, but there are other approaches.
A market-oriented or revenue maker project (based on user payments) may not be completely feasible on the basis of those commercial revenues (that is...
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Body of Knowledge:
Tendering and Awarding the Contract
As introduced in section 2 of chapter 5, it is essential to give the bidders sufficient time to prepare a sound and high quality offer. Especially in open tender models, one of the common pitfalls in a PPP procurement is that the procuring authority allows bidders insufficient time for this work....
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Body of Knowledge:
PPP Introduction and Overview
In addition to offering benefits and advantages, PPPs are also a procurement option, however, one that has weak spots and potential disadvantages.
PPPs are significantly more complex than traditional procurement methods. Consequently, there is a significant risk in sinking resources into unworthy...
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Body of Knowledge:
Establishing a PPP Framework
Governments need to account for and report on their financial commitments, including those under PPP contracts. Fiscal reporting on PPPs needs to be consistent with fiscal reporting generally. There are three main types of fiscal reporting.
Government finance statistics: These are summary...
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Body of Knowledge:
Establishing a PPP Framework
As introduced in chapter 1.9, governments should adopt a structured and programmatic approach if they want to rely significantly on the PPP model for new infrastructure development. This is a way to attract stronger and more consistent interest from the private sector. In this sense, a PPP program...
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Body of Knowledge:
Strategy Delivery and Commissioning
9.1. Importance of Claims Management
A claim in the context of PPP contract management is somewhat of a misnomer. Well-structured PPP contracts allow for specific consequences for specific failures by one party to meet its obligations to the other party. These failures normally give rise to a...
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Body of Knowledge:
Appraising PPP Projects
A considerable cost associated with the project is the cost of capital or the costs of obtaining the financial resources to implement the project. To correctly estimate these costs, the financial model must accommodate a fundamental problem in project finance[14]: where the required money for the...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The risk management process starts with the identification of risks. Identification of risks refers to defining a comprehensive list of risk events, usually grouped in consistent categories, and then describing them so as to understand clearly how those risks will impact the project outcome if they...
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Body of Knowledge:
Establishing a PPP Framework
Sector agencies may lack some of the skills needed to identify and develop PPP projects successfully. Particularly at the early stages of a PPP program, sector agencies may have little experience in engaging with the private sector on privately financed projects. Sector agencies may also lack...
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Body of Knowledge:
Project Identification and PPP Screening
The starting point of this phase and of the full PPP process is the same starting point as for any procurement of public goods and services process: identification of the need.
There are some steps in the Screening Phase which includes: project identification (entry routes), scope and preliminary...
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Body of Knowledge:
PPP Introduction and Overview
Traditional procurement of infrastructure: public finance and public management. Build and Design, and Build contracts.
Public works and public infrastructure are traditionally financed by the government. The source of funds for such traditional procurement is the public budget[11].
The public...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The objective of a qualification process is to set a minimum bar of capability for the bidder company or group of companies (bidding consortium[63]) entering into the PPP contract. Setting qualification criteria will reduce the risk of project failure caused by a lack of capabilities and capacity....
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Body of Knowledge:
PPP Introduction and Overview
PPPs are a contractual means to deliver public assets and public services. PPP contracts include those intended to develop and manage new infrastructure, contracts to undertake significant upgrades to existing infrastructure (these are called infrastructure PPPs), and those under which a private...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
PPPs are generally (in developed countries and EMDEs with a certain degree of financial market development) financed in the local currency[13].
National agencies (national development banks [NDBs] and other national financial institutions) may play a significant role in lending to projects,...
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Body of Knowledge:
PPP Introduction and Overview
Privatized Companies and Companies operating in a liberalized and regulated market — “Regulated Investor owned utilities”.
There is often confusion between privatization and PPPs (especially with user-pays PPPs). But there is a clear difference between these two forms of private sector engagement....
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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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Media:
Blog posts
Stakeholders are described as ‘those groups and individuals who can affect, or are affected by the achievement of an organization’s (project’s) purpose’. This definition vividly limits stakeholders to human beings. Therefore, the natural environment is excluded from the definition even though it is...
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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...
