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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:
Project Identification and PPP Screening
During the Screening Phase, but not only then, successful PPP projects often make a specific effort to communicate the results of the various steps of the PPP process, as well as the decisions made during the phase, to the general public and to those specific groups with a particular interest in...
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Body of Knowledge:
Appraising PPP Projects
The further detailing of the scope and the design of the technical requirements provides fundamental outputs for the Appraisal Phase and, indeed, for the whole of the PPP process, since it provides the technical description of the project used as a basis for other feasibility exercises. See box 4.2...
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Media:
News
We’re delighted to announce the introduction of our online training initiative to support candidates studying for the APMG Public-Private Partnerships (PPPs) Certification Program.
The new online training offers a flexible approach to learning with a simple and clear online course, designed to take...
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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:
Appraising PPP Projects
The commercial feasibility must be assessed from two different points of view: lenders (the debt providers) and investors (the equity providers).
8.1.1 The Lenders’ Perspective (bankability)
The key aspect of the lenders’ concerns is the capacity of the project company to repay its debt on the...
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Body of Knowledge:
Project Identification and PPP Screening
As explained, if a project is identified as the appropriate solution to a need and the results of the PPP suitability test are positive, before moving ahead within the project cycle, a “project team” should be defined, which will carry out the next phases: the Appraisal and potentially the...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
As noted, the contract must have flexibility built in to enable changing circumstances to be dealt with as far as possible within the contract. In this sense, the contract should consider and permit certain potential changes (which may be subject to limits in quantity or the law may provide those...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Regardless of the envisaged order of the tasks, it is crucial to schedule and organize the work properly in advance, so as to minimize time disruptions and smooth the process. This work, like the appraisal work, is time consuming and requires a realistic time scale to ensure the required quality (...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
As introduced in chapter 4, when the private partner’s revenue is based on user-payments, there are a number of structuring parameters that should be carefully considered and outlined during appraisal. These should then be refined (and in exceptional cases reconsidered) in the Structuring Phase....
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The risk of changes in law refers to the risk of changes that may affect the project outcome, impacting on the costs (capital costs by means of new investments) or current operating costs (higher maintenance costs or higher operating costs).
Law is broadly defined for this purpose as laws,...
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Media:
Blog posts
In a PPP project the public sector invites the private sector, via a bidding process, to design, build, finance and operate an asset in order to provide a service to or on behalf of the public sector. In addition, the project must be affordable, provide value for money, and obtain optimal risk...
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Body of Knowledge:
Tendering and Awarding the Contract
Generally, there are four main stages into which any tender process may be divided.
Pre-qualification (in open tenders with a pre-qualification stage) or short listing (in a process with a short listing or pre-selection of candidates).
Bid period – from launching through bid submission or...
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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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Demand risk transfer should be always be considered with caution. Significant transfer of the risk, with no mitigation or sharing mechanisms, should only be considered when boosting demand is essential to the success of the project from the government’s perspective (see section 4.9). Another...
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Body of Knowledge:
Appraising PPP Projects
At the end of the Appraisal Phase, a considerable amount of the technical work required for a thorough preparation of a PPP project will have been done. In fact, this work sets the stage for the structuring of the project and, indeed, for several aspects of the procurement process and contract...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
This subsection introduces a list of the most relevant risks as they are commonly identified in different guides and protocols (while acknowledging that there may be material differences in the classification of risks from some country practices to others).
Appendix A provides a deeper explanation...
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Body of Knowledge:
Appraising PPP Projects
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Body of Knowledge:
PPP Introduction and Overview - Appendix B - Sharia Finance
The combined use of an istina’a and ijara can be illustrated in figure B1. as follows.
FIGURE B1: Combined Use of Istina’a and Ijara
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Body of Knowledge:
Project Identification and PPP Screening
The risks that are inherent to a project have to be considered and included in the appraisal. This must be done through proper adjustments and/or showing the ranges of values for certain sensitivities/future movements or the deviations on critical factors and variables. For this purpose, risks have...
