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Body of Knowledge:
Project Identification and PPP Screening
Before confirming the decision to move to the next stage (appraisal), a list of tasks to be carried out and a schedule should be developed. This will:
Serve as the basis for the Request for Proposals for external advisors, if needed; and
Assist the government, in the Appraisal Phase by identifying...
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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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Body of Knowledge:
Project Identification and PPP Screening
It is common to think of stakeholders as an external audience. The external audience is composed of all the stakeholders interested in the project, outside the internal scope of the government and of bidders in the procurement process. This audience includes banks, investment funds, government and...
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Body of Knowledge:
Project Identification and PPP Screening
During the Screening Phase, but not only then, successful PPP projects often make a specific effort to communicate the results of the various steps of the PPP process, as well as the decisions made during the phase, to the general public and to those specific groups with a particular interest in...
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Body of Knowledge:
Project Identification and PPP Screening
As explained, if a project is identified as the appropriate solution to a need and the results of the PPP suitability test are positive, before moving ahead within the project cycle, a “project team” should be defined, which will carry out the next phases: the Appraisal and potentially the...
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Body of Knowledge:
Project Identification and PPP Screening
The capabilities necessary for an appraisal process can be divided into five main groups.
Technical:
In charge of the project’s design, with expertise in the type of infrastructure that is the subject of the contract;
Expertise in the technical aspects of the services involved.
Environmental:
In...
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Body of Knowledge:
Project Identification and PPP Screening
The importance of advisors in PPPs has been emphasized by Jangun and Marques (2006): [34]
“As governments transition from their role of monopoly provider of infrastructure services to setting the framework for private provision of infrastructure services, independent “third party” advisory...
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Body of Knowledge:
Project Identification and PPP Screening
The procurement and selection of advisors may be done as a group, that is, selecting a consortium of firms under a single advisory contract to cover all the areas of work, or under separate procurement and contracts.
There are pros and cons to both of these options. A single integrated team will...
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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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Body of Knowledge:
Project Identification and PPP Screening
There are three possible outcomes of the project analysis in this phase: move on to the next stage (the project appears to be economically sound and is a suitable PPP candidate); it is not suitable to be a PPP; or since some relevant information is missing, or there is a need to clarify some...
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Body of Knowledge:
Project Identification and PPP Screening
Name of Document (including version if more than one)
Authors/Editors and Year
Description / Reason for Signposting (including details on pages and/or headings when applicable)
http link (when available)
Defining Success for Software Projects: An Exploratory Revelation
Agarwal, N....
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Body of Knowledge:
Operations and Handback
In this chapter, the focus will be on the contract management of the Operations Phase. Although the Operations Phase contains different aspects in comparison with the Construction Phase, the mechanism for applying good practice contract management therein does not differ significantly from the...
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Body of Knowledge:
Operations and Handback
2.1. Importance of Contract Management and Monitoring
The previous chapter (sections 3 and 4) explained the importance of: the contract management and monitoring; providing for the governance, structure and function of contract management; and the contract management team. The principles of the...
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Body of Knowledge:
Operations and Handback
3.1. Introduction to Contract Management during the Operations Phase
During the Operations Phase, key activities that must be included in managing the PPP contract are: monitoring and managing project delivery and performance against service outputs; monitoring and managing changes; managing...
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Body of Knowledge:
Operations and Handback
As in the Construction Phase, during the Operations Phase, the immediate mechanism to deal with non-compliance and contract breaches is typically a mechanism that has financial consequences for the private partner. However, the system and instruments for managing under-performance (by providing...
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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:
Operations and Handback
6.1. Standard Regulations when Dealing with PPPs
As discussed in chapter 2 of the PPP Guide, most jurisdictions have a regulatory framework that is applicable to PPPs in general as well as PPP contracts for specific projects. The regulatory framework has a number of objectives, one of which is to...
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Body of Knowledge:
Operations and Handback
Variation management is closely connected with PPP agreement management and relates to the creation of mechanisms to enable changes to the PPP agreement. Such changes may be necessary as a result of a change in circumstances that could not be anticipated or quantified when the PPP agreement was...
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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:
Operations and Handback
Early termination of a PPP contract is truly a last resort and must follow a whole range of processes, commencing with an act of default by one of the parties or some continuing force majeure.
From a contract management perspective, the focus should be on avoiding termination by managing...
