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Body of Knowledge:
Tendering and Awarding the Contract
It is possible that no bidders will submit, which constitutes a clear process failure. This is best avoided by having a well-planned and well-structured tender process, consistent with the practices described in chapter 5 of this PPP Certification Guide. If it does eventuate that there are no...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
For the purpose of this chapter, the term financial structure is taken from the public perspective, that is, the financial structure of the contract as opposed to the financial structure of the project company (which is how the private partner would use the term). In this context, the financial...
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Media:
Blog posts
La semana pasada, los delegados que acudieron al curso CP3P Foundation-Madrid de K-Infra e hicieron el examen en las instalaciones de K-Infra, recibieron su nota definitiva, y todos ellos aprobaron.
El curso Foundation-Madrid ha sido la primera edición de formación CP3P Foundation de K-Infra...
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Body of Knowledge:
Strategy Delivery and Commissioning
There is nothing that illustrates complexity better than the implementation of mega-projects. In this case, mega projects are PPP projects that are of high value, and are complex and lengthy by nature[15]. It can be demonstrated that a distinction among four different types of complexity helps to...
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Body of Knowledge:
Appraising PPP Projects
The nature of the Appraisal Phase is intrinsically multidisciplinary. It consists of a series of intricate and interrelated exercises that detail the project, compare the project to a set of feasibility criteria, and prepare it for procurement (see figure 4.2).
FIGURE 4.2: Overview of the Appraisal...
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Media:
News
Компания APMG International и Международная Финансовая Корпорация (МФК) рады сообщить о том, что первый том Руководства по Государственно-частному партнерству (ГЧП) и иные материалы для подготовки и сдачи экзамена по Основам ГЧП теперь доступны на русском языке благодаря поддержке Швейцарского...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Section 9.2 has shown how payments are linked to service performance through availability payment mechanisms, so that deductions or abatements are made from the payments commensurate with any failure to meet set service standards or target levels of service. The price paid is therefore adjusted to...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Performance requirements may be considered a part of the broader concept of "technical requirements" or "technical specifications", which in general terms refers to the specifications in the contract for what is requested of the private partner in terms of quality and/or quantity. Performance...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
BOX 5.14: Clarifications regarding the Scope of the Risk Concept assumed in this Chapter
Risk from a financial perspective
This chapter deals with risk matters from a financial perspective. As such, it is centred on risks affecting the infrastructure asset and the economic business related to...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
PPPs are generally (in developed countries and EMDEs with a certain degree of financial market development) financed in the local currency[13].
National agencies (national development banks [NDBs] and other national financial institutions) may play a significant role in lending to projects,...
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Body of Knowledge:
Appraising PPP Projects
The project team, typically with specialized consultants, must address a fundamental question during the environmental feasibility analysis: is there any specific aspect of the project that makes environmental approvals impossible or the costs to obtain them prohibitive?[43]
To approach the...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The project should have been sounded out during the Appraisal Phase (see chapter 4.9.1).
It is good practice to conduct further market testing during the Structuring Phase to collect reactions, suggestions, and concerns from the industry (investors, contractors, and lenders following the options...
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Body of Knowledge:
Project Identification and PPP Screening
The first stage of project identification is the identification of a public need[2]. Projects are not an end in themselves. They are enablers for the government to meet its service delivery obligations. Hence, the government needs to understand what the problem is that it is trying to solve before...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Financial or economic capacity criteria are intended to guarantee that the company or group of companies (consortium) that are candidates for the project have a healthy financial situation. The criteria provide evidence that they will be capable of meeting the financial needs of the project, which...
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Body of Knowledge:
PPP Introduction and Overview - Appendix A - Project Finance
Financing infrastructure projects through the project finance route offers various benefits such as the opportunity for risk sharing, extending the debt capacity, the release of free cash flows, and maintaining a competitive advantage in a competitive market. Project finance is a useful tool for...
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Site and ground conditions/geo-technical risks
The risk of unexpected geological or geo-technical conditions in the ground will also be commonly allocated to the private partner in a conventional project, that is, in those projects where geo-technical conditions do not represent a significant...
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General project company costs
General company costs include the permanent staff of the company, which is usually more of an administrative centre with limited personnel. For instance, it could include staff to manage the finance of the project and interact with the procuring authority and the...
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Body of Knowledge:
Project Identification and PPP Screening
There are multiple techniques for identifying the best technical solution for a project and hence which projects best meet public needs. This section will briefly introduce those techniques.
The government should have a policy of using a particular technique so that all projects are compared in a...
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Body of Knowledge:
Appraising PPP Projects
The initial capital expenditures (initial Capex) group represent the expenses incurred from the private consortium’s preparation of its proposal until the commissioning of the asset. These expenses commonly occur before the project company obtains any revenue. The expenses are mostly obtained from...
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Body of Knowledge:
Project Identification and PPP Screening
This section introduces[16] the concepts of Cost-Benefit Analysis and economic analysis.
FIGURE 3.3: Sequence of the CBA Analysis
Note: CBA= cost-benefit analysis; eIRR= economic Internal Rate of Return; eNPV= economic Net Present Value.
The most refined form of economic analysis is the Cost-...
