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Body of Knowledge:
Strategy Delivery and Commissioning
Force majeure events are a limited set of events which may arise during the term of the PPP contract through no fault of either party. These are best managed by the private partner. They are more severe than relief events, will typically last longer and may result in termination of the PPP contract...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
From the standpoint of contractual risk allocation (that is, the reflection of the risk allocation into the contract), there are different categories of risks.
Compensation events – this refers to risk events for which the private partner is entitled to receive financial compensation if the event...
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Body of Knowledge:
Strategy Delivery and Commissioning
The private partner will have a limited set of events for which it can claim to:
Extend the completion date by which the asset must be created, commissioned, and operated
Extend the expiry of the PPP contract (effectively an extension to the period in which it can earn revenue from operating the...
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Body of Knowledge:
Strategy Delivery and Commissioning
As noted, the general risk of implementing the PPP contract lies with the private partner. Exceptions to this general principle are limited to areas of specific relief such as relief events, compensation events, and force majeure events. In such cases, the PPP contract must specify the manner in...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
When a compensation event occurs, the private partner has the right to claim compensation to offset the loss suffered or that will be suffered, or part of the loss suffered in shared risk events. The loss may include forgone revenues (for example, revenue lost due to a delay in construction, where...
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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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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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The continued population growth across Africa has resulted in increased demand for infrastructure development. This has in turn driven a significant rise in the number of investors seeking opportunities in this region. To support this increase in demand, more and more countries across Africa are...
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Force majeure has been introduced in this chapter (see section 5.6).
As described in the referred section, force majeure may have different meanings (and therefore a different scope in terms of events included within the category or general term) in different jurisdictions, and it may even be a...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
This subsection introduces a list of the most relevant risks as they are commonly identified in different guides and protocols (while acknowledging that there may be material differences in the classification of risks from some country practices to others).
Appendix A provides a deeper explanation...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Default Situation and General Rules
When allocating risks, the government should be clear that risk transfer is defined by the contract scope and the PPP contract structure. Subject to the refinement of risk allocation, all risks inherent to the scope of the contract, and those appropriate to the...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Risk allocation is implicit in the revenue regime of the contract and in the scope of the obligations. The private party shall construct in the form and time defined (by the contract or as committed to in its proposal), and it shall provide the service as prescribed in the contract (the performance...
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The following glossary of terms has been prepared by the authors. Some of these definitions are based on external sources, adapted for this PPP Guide, while others have been developed by the authors to reflect common usage and good practice.
The main external sources used to develop this Glossary...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
As noted, the contract must have flexibility built in to enable changing circumstances to be dealt with as far as possible within the contract. In this sense, the contract should consider and permit certain potential changes (which may be subject to limits in quantity or the law may provide those...
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Body of Knowledge:
Strategy Delivery and Commissioning
Name of Document
Authors/Editors and Year
Description
http link
General Guidance on Contract Management and Construction Phase Management
4ps – A guide to Contract Management for PFI and PPP Projects
4ps in collaboration with Mott MacDonald, Public Private Partnerships...
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Media:
Blog posts
We received several questions from delegates during the 'PPPs and Covid-19 Webinar.' The panel has provided the following written responses.
The full recording of the webinar is now available on YouTube.
Answers by Natalia Korchakova-Heeb, Managing Director SDG.17 Consulting GmbH, leader...
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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...
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Generally speaking, the project company has to adequately plan its financial needs, building up in the financial plan the necessary contingent funds. Reserves for renewals and major maintenance have already been mentioned. Another common reserve, as requested by the lenders, is the debt service...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
The risk management process starts with the identification of risks. Identification of risks refers to defining a comprehensive list of risk events, usually grouped in consistent categories, and then describing them so as to understand clearly how those risks will impact the project outcome if they...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
The complexity of the procuring authority’s PPP project requires the consortium to adopt a project management approach to ensure that all necessary experts and skills are managed in an effective and timely manner. Upon signing the Letter of Intent (LOI), Memorandum of Understanding (MoU), or...