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Body of Knowledge:
Strategy Delivery and Commissioning
The private partner should be solely responsible for the design. Although the government should have a right to review the design (see section 6.1.2 above), it should have no rights of approval in respect of the design. Accordingly, all changes in the design to ensure that the output specifications...
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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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Media:
Blog posts
Navigating the landscape of public-private partnerships (PPP) can be a challenging endeavour, particularly when assessing project viability. PPP projects, particularly those situated in emerging economies, are often marred by various financial and structural hurdles. This is where Viability Gap...
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Body of Knowledge:
Appraising PPP Projects
The revenue regime of PPPs refers to the source of revenues collected by the project company. This can be broadly divided into two major groups. The first is the user charges. The textbook examples are the tolls collected directly by the private partner in road concessions, or the fees paid to...
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Body of Knowledge:
PPP Introduction and Overview
PPPs can also deliver additional efficiency benefits as follows:
PPPs ensure there is an up-front commitment of resources to maintenance and technical reliability: the private sector can improve the reliability of the infrastructure availability and quality by committing dedicated resources to the...
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Body of Knowledge:
Appraising PPP Projects
The next phases of the PPP process can be as demanding and challenging as the Appraisal Phase. They are multidisciplinary and profoundly interactive, and the natural interests surrounding large infrastructure projects tend to create a difficult decision environment. Thus, as the Appraisal Phase...
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Body of Knowledge:
PPP Introduction and Overview
Please see separate document
Appendix B – Introduction to Islamic Finance
Please see separate document.
[40] The main reports cited are “PFI: Construction Performance. Report by the Comptroller and Auditor...
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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:
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
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:
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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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...
