-
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...
-
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...
-
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-...
-
I am an Assistant Professor of Construction and Project Management at University of Tehran, an Accredited CP3P Trainer at K-Infrastructure (based in Spain), and a PPP consultant. I completed my PhD degree in “Infrastructure Management” at Department of Civil, Architectural, and Environmental...
-
Body of Knowledge:
PPP Introduction and Overview - Appendix A - Project Finance
The concept of project finance requires the sponsors to adopt a unique organizational structure in the form of a stand-alone project company (that is, a special purpose vehicle, SPV) which will enter into a PPP agreement with the government to design, build, and operate the project. This SPV has a...
-
Body of Knowledge:
Operations and Handback
8.1. Effective Relationship Management
In chapter 7, relationship management was clearly established as being a collaborative working relationship, together with systems and communications that actively support and enhance the relationship throughout the life of the project. Due to the nature of...
-
Body of Knowledge:
Tendering and Awarding the Contract
During the course of this period, it is common for both the authority and private partner (still as preferred bidder or successful proposer) agree on certain minor changes in the contract to resolve mistakes or clarify ambiguities. It may also be necessary to incorporate specific features of the...
-
Body of Knowledge:
Structuring and Drafting the Tender and Contract
The assets will be “handed-back” to the procuring authority at contract expiration. It is good practice to establish minimum criteria to be met by the assets so as to ensure that these are transferred back to the procuring authority in an acceptable condition. It is also good practice to note that...
-
In the context of user-pays projects (for example, a toll road, a rail project including service operations, or a water PPP including water supply to the public), revenue risk includes the risk of the charges to users not being at the anticipated level in each particular year. This may cause either...
-
Financing the asset is an essential obligation in a PPP, and the risks of availability and cost of the financing should generally be borne by the private partner (with the exception and to the limit established in the contract in those projects under a co-financing scheme – see chapter 5.4)....
-
Body of Knowledge:
Appraising PPP Projects
The output of the process of analyzing the impact of the project on the public debt involves the addition of the marginal impact of the project in terms of expenditure with the existing projection of national expenses, plus the marginal related impact in terms of debt in the national accounts.
This...
-
Media:
News
In this episode of APMG lifelong learning our CEO Richard Pharro has a conversation with Sergey Samolis, the founder and CEO of PPP Expertise Eurasia.
Listen to their discusion for free on Spotify covering a whole range of topics including:
Changing a country's infastructure for the better.
The...
-
Body of Knowledge:
Establishing a PPP Framework
PPP programs create direct and contingent liabilities. The government will need to ensure that there is sufficient fiscal space to fund direct liabilities, as well as to deal with situations where contingent liabilities translate into fiscal expenditures. The financial management of PPPs is...
-
Fraud may be considered a subset of volume risk in user-pays PPPs when considering volume as the level of demand that effectively pays for the service. Fraud is commonly used to refer to willingly avoiding payment, whereas collection risks include non-payment when the payment may be or become...
-
This risk refers to the risk for the public partner of a worsening in the performance of the project if the new shareholder (when there is a change in control) is not as capable as, and does not have the capacity, of the original partner.
It is common practice to require the private partner to...
-
Body of Knowledge:
Appraising PPP Projects
Infrastructure projects will often have significant environmental impacts arising from construction and operation, which can be both positive and negative. The impacts may also include follow-on effects beyond the immediate project area, as well as beyond the people directly associated with the...
-
Hossein Nourzad is an Assistant Professor of Construction Project Management at University of Tehran, an Accredited CP3P Trainer at K-Infrastructure (based in Spain), and a PPP consultant. Prior to working at UT, he was a PhD Student at Department of Civil, Architectural, and Environmental...
-
Media:
Download
Download the pdf below for details on how to become an accredited training provider for APMG's PPP Certification Program:
Become an accredited CP3P trainer.pdf
-
Body of Knowledge:
Appraising PPP Projects
An important parameter of the financial model is the contract term, since it directly affects several of its conclusions. This is typically a variable preliminarily defined during the design of the financial model and is confirmed or adjusted during the structuring of the project. Some of the...
-
Mark Williams, Director and Property & Infrastructure Lead at PA Consulting and member of CIPFA's Governments Faculty Board - specializes in providing financial and commercial advice on a range of complex contract PPP/PFI savings projects across defence, transport, education and health.
