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This risk refers to the risk (especially from the public perspective) of the infrastructure not being available to use and/or not meeting the quality or expected performance levels. This risk is borne by the private partner as it is the essence of the PPP objectives. The mechanism to transfer the...
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I am a Freelance Consultant & Director - Deal Advisory, Cities Forum, and have 20+ years in PPP projects over varied sectors viz. roads, tunnels, bridges, automated car park, education, metro rail, airport, sports stadium and commercial building, across the globe.
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Body of Knowledge:
Establishing a PPP Framework
Institutional responsibilities for PPPs, that is, which entity will play what role at each step of the process will need to be defined in the framework.
Institutional arrangements differ widely from place to place. This depends on the particular needs of the PPP program and the pre-existing...
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Construction risk is the possibility that during the Construction Phase the actual project costs or construction time exceeds those projected.
The delay in the completion or commissioning will also represent a loss of income. This is assessed and categorized as a separate or ad hoc risk category in...
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Body of Knowledge:
Strategy Delivery and Commissioning
For the purposes of this PPP Guide, quality management is defined as a set of policies, processes, and procedures required for planning and execution (production/ development/ service) in the core business area of an organization. A Quality Management System (QMS) needs to integrate the various...
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Richard Foster commenced his career as lawyer, working with a major Australian law firm in Melbourne and Papua New Guinea, and for one of Australia’s “Big 4” banks.
Richard then joined the Partnerships Victoria Unit within the Department of Treasury and Finance (Victoria, Australia), taking a key...
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An affiliate is an organisation with which an Accredited Training Organisation (ATO) has a formal contract, which governs the affiliate’s administrative procedures in relation to training course delivery. The trainers and training materials used for courses delivered by an affiliate will have...
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Body of Knowledge:
Project Identification and PPP Screening
The interaction between stakeholders, or the parties involved, has an important role in the project cycle. The main goal is not just to communicate about PPPs. Communication with stakeholders is an essential element of all projects, whether through a PPP or traditional procurement process.
The...
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Fernando Freire Dutra is Deputy Secretary of the Strategic Partnerships Secretariat of Porto Alegre, Brazil. His team is responsible for the municipality's PPP program.Previously Fernando served as Senior Consultant for KPMG in the Government and Infrastructure Division and before that coordinated...
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Body of Knowledge:
Tendering and Awarding the Contract
Before the deadline expires, the successful bidder will have to meet certain prior conditions as established in the RFP. The following conditions are typically included.
Establishment of a Special Purpose Vehicle (SPV) that will be the concessionaire.
Contracting of insurance policies (or in some...
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Mr. Khan, with a career spanning over 17 years, has expertise and knowledge in the financial services sector. He holds an array of internationally recognized qualifications in investment, finance, and economics. His foundation includes an MBA in Finance and an MS in Banking and Finance from Queen...
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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...
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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...
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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...
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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...
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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...
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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...
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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)....
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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...
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Body of Knowledge:
Appraising PPP Projects
Building the financial model is essentially a financial exercise, that is, it does not primarily deal with accounting results. Its bottom line conclusion, the Equity Free Cash Flow, is a financial concept rather than an accounting concept. However, the financial model also needs to produce...
