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Body of Knowledge:
Structuring and Drafting the Tender and Contract
An exact definition for risk is hard to find and its measurement is controversial as well. In literature, the word "risk" is used with many different meanings. The Oxford English Dictionary defines risk as "chance or possibility of danger, loss, injury, etc.”.
In the context of an infrastructure...
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Body of Knowledge:
PPP Introduction and Overview
8.3.1. Arising during Pre-Tender and Tender Phases
The following are common examples of poor management during the pre-signature phase of the project process that reflect errors and risks of project failure (to be regarded as a non-exhaustive list).
The appraisal may conclude that the project...
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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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Christopher Nixon, Director, Advisory
National Center for Privatization & PPP
Saudi Arabia
ABOUT THE AUTHOR:
Christopher is an internationally experienced infrastructure & project finance professional based in Saudi Arabia with a background in originating, arranging & advising on...
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Body of Knowledge:
Project Identification and PPP Screening
The capabilities necessary for an appraisal process can be divided into five main groups.
Technical:
In charge of the project’s design, with expertise in the type of infrastructure that is the subject of the contract;
Expertise in the technical aspects of the services involved.
Environmental:
In...
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Welcome to the CP3P Online Training course. This is a free learning resource that guides you through Chapter 1 of the PPP Certification Program Guide – so that you feel better prepared to take the Foundation exam for APMG's PPP Certification Program. Please note that a fee is payable to take the...
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Body of Knowledge:
PPP Introduction and Overview - Appendix B - Sharia Finance
A procurement istina’a (‘procurement agreement’) is also an agreement between two parties, however the parties are the Islamic funder and the PPP project’s special purpose vehicle (SPV). Under the procurement agreement, the SPV is required to procure the PPP project asset by a specified date. The...
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Body of Knowledge:
Establishing a PPP Framework
Public financial management of PPPs relates to how fiscal commitments under PPPs are controlled, reported, and budgeted. Public financial management aims to reduce the risk of PPPs costing the government more than expected or placing undue burden on future generations.
PPP contracts commit...
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Body of Knowledge:
PPP Introduction and Overview - Appendix B - Sharia Finance
Islamic financing of PPP projects is becoming more common for a number of reasons, including: the creation of Islamic banks (such as the Islamic Development Bank) that are able to provide Islamic financing products for PPP projects, the reduced availability of non-Islamic financing in the aftermath...
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Body of Knowledge:
Appraising PPP Projects
PPP projects demand a very sound preparation if they are to deliver timely, effective, and cost-efficient infrastructure. A significant part of this preparation is done in the Appraisal Phase. Appraising a PPP project means conducting a series of feasibility exercises that inform a decision to...
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Body of Knowledge:
Appraising PPP Projects
Technical requirements, together with other PPP structure parameters, lie at the heart of the contract. The technical requirements should provide enough technical details about the project so as to allow a precise definition of the design of the infrastructure (and the characteristics of the...
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Body of Knowledge:
Appraising PPP Projects
The first step in performing the fiscal feasibility exercise is to identify the liabilities assumed by government, at least on a yearly basis, for the entire duration of the contract.
There are two types of commitments that must be fully acknowledged in this identification: the direct liabilities...
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Body of Knowledge:
Appraising PPP Projects
As introduced in chapter 3.6, the Identification Phase will likely have provided a basic scope of the contract, describing what elements of the technical solution selected for the public need will be delivered by the private partner under the PPP contract.
However, in some projects, defining the...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Default Situation and General Rules
When allocating risks, the government should be clear that risk transfer is defined by the contract scope and the PPP contract structure. Subject to the refinement of risk allocation, all risks inherent to the scope of the contract, and those appropriate to the...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
3.1 Establishing the Project Team, Incorporating Advisors and Finalizing the Project Management Plan for this Phase
It may happen that the project team was established before appraisal, contracting advisors to handle both appraisal and the structuring and drafting of the tender package. Otherwise...
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Media:
Blog posts
A question I often receive at meetings is how to calculate value for money in PPPs. Many governments hire consultancy services that produce impressive spreadsheets on VfM. Very good, but for those governments who do not have the capacity to afford these services or do not understand the spreadsheet...
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Body of Knowledge:
Project Identification and PPP Screening
Before confirming the decision to move to the next stage (appraisal), a list of tasks to be carried out and a schedule should be developed. This will:
Serve as the basis for the Request for Proposals for external advisors, if needed; and
Assist the government, in the Appraisal Phase by identifying...
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Media:
Blog posts
I first discovered the CP³P certification when, in anticipation of business resulting from Saudi Arabia’s recently announced Privatization Program, I was asked to conduct some PPP training workshops for my corporate banking colleagues. Initially the PPP Guide helped me to step back and focus on the...
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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:
Appraising PPP Projects
IPSAS 32 deals specifically with service concession agreements, focusing on their governmental accounting consequences. The guideline presents a very comprehensive approach that includes most of the contracts defined as PPPs for the purpose of the PPP Guide. In fact, IPSAS 32 describes service...
