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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The basic form of the payment mechanism is defined during appraisal, whether the project is a user-pays PPP that relies on significant service payments to complement the revenue, or the project is a pure government-pays PPP where the operational revenue is entirely in the form of public payments....
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Body of Knowledge:
PPP Introduction and Overview
The contract scope and therefore the structure may vary significantly within projects related to the same sector. The following illustrates the main variations in three sectors which are paradigmatic in this sense;
Rail: The PPP scope may include the following:
Only the infrastructure (the...
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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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Media:
Blog posts
The third and final exam within APMG’s PPP Certification Program will be available soon. The Foundation and Preparation exams are already available, giving individuals the opportunity to demonstrate, through passing the Foundation exam, that they have a good knowledge of the PPP process and...
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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:
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:
Project Identification and PPP Screening
The PPP process is composed of a number of phases: identifying the project and screening it as a PPP, appraising the project, structuring the procurement process and the contract, tender and award, and finally managing the contract.
This process requires a significant amount of time and resources....
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Body of Knowledge:
Establishing a PPP Framework
Before the PPP transaction can be implemented, the tender documents and the draft PPP contract need to be prepared. To prepare the tender documents, the evaluation criteria and proposal requirements must be developed. To prepare a contract, the outputs, responsibilities, and risk allocation need to...
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Media:
Blog posts
‘Direct procurement for customers’ (direct procurement for short) is a new delivery model for the regulated UK water sector, proposed by Ofwat (the UK water sector economic regulator) in December 2015[i]. Similar to PPP/P3, direct procurement is expected to drive value for customers by encouraging...
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Senior Advisor on PPP and Innovative Financing for the Netherlands Government
Currently, Jan van Schoonhoven is Senior Advisor on PPP and Innovative Financing for the Netherlands Government. His main role is to develop investment ready projects supported by the Netherlands government in economies...
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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:
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
Sections 4 and 5 of this chapter have extensively described financial and risk structuring matters. The defined structure (that is, all features related to risk allocation and risk treatment) and features related to the financial structure (means of compensation when there is more than just the...
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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:
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:
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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Priscylla Monteiro, Business Development Manager at APMG attended the event where she was delighted to see lots of interest in the PPP Certification Program, which provides a global standard of knowledge and a set of established good practices for PPP professionals worldwide
The Certification...
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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:
Operations and Handback
6.1. Standard Regulations when Dealing with PPPs
As discussed in chapter 2 of the PPP Guide, most jurisdictions have a regulatory framework that is applicable to PPPs in general as well as PPP contracts for specific projects. The regulatory framework has a number of objectives, one of which is to...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Privately financed infrastructure PPP contracts have long terms so that the government can obtain Value for Money (VfM) from life-cycle management and from effective risk transfer. There are other factors that can provide an incentive for the government to extend the term. However, at some point,...
