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Media:
Blog posts
Since 2004, Brazil have steadily introduced an impressive number of Public-Private Partnership (PPP) projects to combat the effect of the financial crisis in the early 2000s. This progression has enabled Brazil to better manage public interests and services by private investors. The steady incline...
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Body of Knowledge:
PPP Introduction and Overview
PPPs can also deliver additional efficiency benefits as follows:
PPPs ensure there is an up-front commitment of resources to maintenance and technical reliability: the private sector can improve the reliability of the infrastructure availability and quality by committing dedicated resources to the...
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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:
Strategy Delivery and Commissioning
A tangible contract management function assists in managing obligations in an effective manner; this saves the two parties significant time and effort and provides benefits in terms of business strategies and procedures.
Contracts dictate every aspect of key business strategies and relationships....
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Risk allocation: definition and rationale
Risk allocation is the exercise to define which party will assume each risk, identifying which risks the private partner will be (or remain) responsible for and to what extent, and identifying which risks the public partner will be responsible for and to...
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Body of Knowledge:
Operations and Handback
5.1. Payment Mechanisms
The mechanism by which the private partner receives revenue with which it covers its costs, services its debt obligations, and generates a profit must be linked to the performance of its obligations under the PPP contract. The very heart of risk transfer and, therefore,...
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Body of Knowledge:
Establishing a PPP Framework
Budgeting for PPPs involves making sure that money is appropriated and available to pay for whatever cost the government has agreed to bear under its PPP projects. Because such costs may be contingent or occur in the future, PPP budgeting can be hard to manage in traditional annual budget cycles....
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Body of Knowledge:
PPP Introduction and Overview
A project may fail for many reasons. A good number of them are naturally related to the PPP characteristics and even to the essence of the project itself. Many risks which can affect a project are unavoidable (typically force majeure, and a broader category sometimes known as unforeseen...
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Body of Knowledge:
PPP Introduction and Overview
7.2.1. Sources of Funds
The two main types of funds raised by a project company, as in any corporate finance structure, are debt and equity.
Debt may be in the form of loans or bonds. Equity may be take the form of pure equity or capital shares, and quasi-equity products (junior or subordinated...
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Body of Knowledge:
Appraising PPP Projects
Technical requirements, together with other PPP structure parameters, lie at the heart of the contract. The technical requirements should provide enough technical details about the project so as to allow a precise definition of the design of the infrastructure (and the characteristics of the...
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Body of Knowledge:
Project Identification and PPP Screening
A government may face a situation in which there is no room in the budget (either the current budget or a future budget) to procure all potential projects/government-pays PPPs, regardless of whether all those projects respond to relevant needs of the society in an efficient way, creating public...
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Body of Knowledge:
PPP Introduction and Overview
This section explains further the concept of infrastructure and public assets. It provides examples of infrastructure types that are usually developed under PPP schemes.
Public Assets and Infrastructure
This PPP Certification Guide is about procuring public tangible assets using a PPP process....
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Body of Knowledge:
Strategy Delivery and Commissioning
4.2.1. The Role and Responsibilities of the Private Partner
To enable the government to effectively manage the contract, certain roles and responsibilities must be required of the private partner through the contract. It is very important that the reporting system of the private partner complies...
