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Body of Knowledge:
Project Identification and PPP Screening
It is good practice to complete a report containing at least the following sections before entering the full appraisal process and, specifically, before committing staff and/or hiring advisors.
1. Executive summary and recommendations;
2. Project description: Outline of technical solution;
3. Needs...
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Media:
Blog posts
Interested in expanding your career into PPPs? This episode of APMG Midday Mentors is hosted by Lawire Kirk, Regional Lead APAC at APMG, and features guests James Kinch, Country Manager (Australia) of Training Byte Size, and Maurice Diamond, Lead PPP Training of Training Byte Size. Together they...
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Body of Knowledge:
Appraising PPP Projects
The appraisal exercise, reflected in the appraisal report, should recommend one of the following four decisions to be made by the governmental body charged with making the final green light decision or procurement decision.
The project should be procured as a PPP;
The project creates economic...
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Body of Knowledge:
Strategy Delivery and Commissioning
This general introduction shows the main components of PPP contract management, together with steps that need to be taken in order to be effective. The learning objectives are outlined in box 7.1 below.
BOX 7.1: Learning Objectives for Part A
After studying part A of this chapter, the reader...
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Body of Knowledge:
Appraising PPP Projects
The due diligence process should ensure that the project is procured in accordance with current legal requirements, both in domestic and international terms, and that key aspects of the project have been analyzed from a legal perspective. In order to assess the legal feasibility of the project,...
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Body of Knowledge:
Strategy Delivery and Commissioning
The life span of PPP projects is extensive and it is rare that the same staff and personnel will see the project through to the conclusion. Therefore, it is likely that the personnel involved in the management of the contract is going to change several times throughout the life cycle of the project...
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Body of Knowledge:
Project Identification and PPP Screening
The next step after defining the technical solution is to clarify the technical scope, including a detailed description and set of requirements for the most important aspects of the project (that is, a technical outline of the project).
This step includes a description of the project that covers...
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Body of Knowledge:
Appraising PPP Projects
The fiscal feasibility analysis provides two essential outputs.
First, it estimates the fiscal effect of the project in terms of direct and contingent exposures on the public budget. It also projects those effects from different perspectives, providing a comprehensive assessment of governmental...
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In government-pays PPPs, the risk of default by the authority is obviously a private side risk inherent in the strategic decision of investing in a particular country market or in the projects promoted by a particular authority. We basically refer here to credit risk.
This is more an issue in sub-...
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Body of Knowledge:
Strategy Delivery and Commissioning
It is common for the private partner to seek to change its shareholding arrangements and thereby, its owners. Provided that such a change does not increase the risk to the government or diminish the public benefit, it should not be prohibited by the PPP contract. The following circumstances are...
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Body of Knowledge:
Strategy Delivery and Commissioning
This is the phase during which the project finance is drawn down and the construction contractor and subcontractors engaged by the private partner begin construction, testing, and commissioning of the different components of the project according to an implementation schedule. The major...
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Media:
Blog posts
It's a momentous occasion for us at APMG – we've recently established a partnership with the World Bank Group (WBG) to create a new certification program for people working with Public-Private Partnerships (PPPs).
WGB’s the world’s largest development bank. Its objective is to reduce poverty in...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Evaluation criteria
Broadly speaking, there are two main types of processes in terms of evaluation criteria.
Processes based only on price (also referred to as least cost selection) in which the technical factors are evaluated on a pass/fail basis. This is sometimes called an auction; however it...
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Media:
Blog posts
The United Kingdom has been a leading player in the development of Public-Private Partnerships (PPPs) since the inception of the Private Finance Initiative (PFI) in the early 1990s. PFI is a structure that introduced project finance into UK public services for the first time. Under PFI, a private...
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Body of Knowledge:
Strategy Delivery and Commissioning
When dealing with under-performance and non-compliance in the Construction Phase, the issue is not the standard of services provided but rather the time taken to complete the asset and the quality of the asset on completion. In general terms, the private partner is incentivized to bring the asset...
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Body of Knowledge:
Tendering and Awarding the Contract
In addition to the need to select or pre-select the candidates in a short list (see chapter 5.6.4), the competitive dialogue processes (and other interactive processes) have a number of particular and common issues.
These relate to the special stage of interaction or dialogue where the technical...
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Media:
News
Claim and share your digital badges on social media and add them to your online CV and email signature to broadcast your certified skills to employers and other interested parties.
Successful candidates can now claim a digital badge to embed on an email signature, website, social media platforms or...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Through a proper structuring and drafting process (of both of the contract and the RFP package), the government is aiming to ensure that the procurement of the PPP Project will be a success by launching an affordable and feasible project that will deliver the desired levels of service and a Value...
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Body of Knowledge:
Appraising PPP Projects
The operating costs or operating expenditures (Opex) and reinvestments (infrastructure renewals or life-cycle costs) are commonly distributed throughout the entire duration of the contract. Most of those costs are outputs of the technical requirements, but they must be organized in terms of yearly...
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Inflation, when considering not only revenues but also costs, is a two-sided risk: higher inflation affecting costs will result in lower operational margins. However, provided that it is neutralized by a revenue indexation mechanism, it may result in higher nominal cash flows to debt service and to...
