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Media:
Blog posts
The need for resilient, sustainable and new infrastructure is on the rise globally. Executives around the world are concerned about the adequacy and existence of infrastructure. Availability of infrastructure is a critical issue for business as it impacts on operating costs and it becomes a major...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
From the standpoint of contractual risk allocation (that is, the reflection of the risk allocation into the contract), there are different categories of risks.
Compensation events – this refers to risk events for which the private partner is entitled to receive financial compensation if the event...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The last tasks of the process in the Structuring and Pre-launching Phase will include the following.
Formally raising the necessary approvals, packaging all tender documents, and running a control check. This is explained below; and
Planning the Tender Phase/tender process. The tender process...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Risk allocation: definition and rationale
Risk allocation is the exercise to define which party will assume each risk, identifying which risks the private partner will be (or remain) responsible for and to what extent, and identifying which risks the public partner will be responsible for and to...
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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:
Appraising PPP Projects
Chapter 5.6 provides a comprehensive overview of risk issues and the risk management cycle in PPP projects. During the appraisal process, risk identification and risk assessment are key tasks that provide inputs for constructing the financial base case for feasibility, for Value for Money (VfM)...
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Body of Knowledge:
PPP Introduction and Overview
There are a variety of reasons commonly given for using PPPs as an option to procure infrastructure. These reasons may be classified according to three main groups:
Those related to the financial nature of PPPs, or PPPs as a financial mechanism for governments (including the “off balance sheet”...
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Body of Knowledge:
Appraising PPP Projects
The project team have to make a thorough analysis of the legal issues surrounding the project, across several dimensions. A detailed legal due diligence should be done to ensure that all foreseeable legal requirements, which have not or will not be dealt with in other appraisal exercises, are met...
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Body of Knowledge:
Project Identification and PPP Screening
Most projects have constraints and dependencies that must be clarified before beginning the full appraisal, such as land availability and environmental studies. The main purpose of these considerations is to identify potential difficulties or obstacles that will have to be considered during the...
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Body of Knowledge:
Project Identification and PPP Screening
The procurement and selection of advisors may be done as a group, that is, selecting a consortium of firms under a single advisory contract to cover all the areas of work, or under separate procurement and contracts.
There are pros and cons to both of these options. A single integrated team will...
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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:
Operations and Handback
In this chapter, the focus will be on the contract management of the Operations Phase. Although the Operations Phase contains different aspects in comparison with the Construction Phase, the mechanism for applying good practice contract management therein does not differ significantly from the...
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William Dachs is the Chief Operating Officer the Gautrain Management Agency which is the owner of the assets of the Gautrain Rapid Rail Link, a USD 3billion urban rail PPP. Prior to this William was the Head of the Public Private Partnership Unit at the South African National Treasury and was one...
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Body of Knowledge:
Strategy Delivery and Commissioning
As the Construction Phase progresses, the private partner (and the government in cases where the government makes a capital contribution) must make payments that match the progress made by the construction contractor in completing the construction works. These payments are typically made against...
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Body of Knowledge:
PPP Introduction and Overview - Appendix B - Sharia Finance
A traditional istina’a (‘istina’a’) is an agreement between two parties (the Islamic funder and the construction contractor) whereby the Construction contractor agrees at the outset to construct/manufacture a clearly described/specified PPP project asset for the Islamic funder. The price for...
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Body of Knowledge:
Strategy Delivery and Commissioning
Once the PPP contract is signed and financial close has been achieved (refer to chapter 6), the Construction Phase commences. This culminates in a form of commissioning, which triggers the beginning of the Operations Phase. While the structure of the PPP Certification Guide treats the Construction...
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Body of Knowledge:
Project Identification and PPP Screening
There are three possible outcomes of the project analysis in this phase: move on to the next stage (the project appears to be economically sound and is a suitable PPP candidate); it is not suitable to be a PPP; or since some relevant information is missing, or there is a need to clarify some...
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Media:
News
Congratulations to all the CP3P professionals who have worked hard to achieve their certification.
The CP3P Scheme is an innovation of the World Bank and has grown from strength to strength over the past five years. The PPP Guide has become the go-to body of knowledge for thousands of PPP...
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Case Study – The Reliance Rail Rolling Stock Project, Australia
Reliance Rail was Australia’s largest PPP project when it was put to market in 2005-06 at Australian Dollar (AUD) 3.6 billion, with a capital requirement of AUD 2.35 billion. The contract required the design, construction, and...
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As the Social Media and Online Content Writer within APMG’s Marketing Team – I help produce written copy for the APMG PPP website and the PPP Certification Program digital newsletter. I'm also responsible for creating social media material supporting the program and to raise awareness around PPP...
