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Media:
Blog posts
Over 110 delegates attended our event in Seoul, one of three events held last week showcasing the APMG PPP Certification Program.
The event opened with a congratulatory speech from Mr. Seong-hoo Kang, Director General, Regional Economic Cooperation, Ministry of Strategy and Finance. Welcoming the...
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The risk of the taxation framework changing during the course of a contract is generally borne by the private partner when referring to taxes that are part of the common business environment, with exceptions.
In some contexts, a value-added tax (VAT) may be an exception to the general rule, and...
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Body of Knowledge:
Strategy Delivery and Commissioning
Dispute circumstances are intrinsic in any PPP construction projects and could influence the success and failure of projects, thereby generating additional costs for all parties[27] [28]. PPP construction project issues, concerns, and disputes occur as a result of numerous factors such as technical...
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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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The risk of changes in law refers to the risk of changes that may affect the project outcome, impacting on the costs (capital costs by means of new investments) or current operating costs (higher maintenance costs or higher operating costs).
Law is broadly defined for this purpose as laws,...
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Body of Knowledge:
Tendering and Awarding the Contract
At the end of this phase, the authority has in place an enforceable and effective contract, duly executed after the accomplishment of prior conditions.
In some processes, financing has been arranged within this phase (as a prior condition to contract signature), while in other processes it will be...
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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:
Appraising PPP Projects
At the Appraisal Phase, the project must be accurately described in financial terms to allow for several feasibility exercises to produce meaningful results. For example, the following appraisal exercises in box 4.5 use some variation of the financial description of the project.
BOX 4.5:...
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Key websites
Knowledge Module on PPPs for Climate-Resilient Infrastructure
The Knowledge Module on PPPs for Climate-Reslient Infrastructure aims to build the upstream capacity of practitioners to integrate climate resilience into infrastructure PPPs and build a community of Climate-Resilient...
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Body of Knowledge:
Establishing a PPP Framework
Fiscal commitments to PPPs can be payments for services, capital contributions, or subsidies to reduce costs for users, or a means to share risk. The wide range of fiscal commitments can usefully be divided into the following categories.
Direct liabilities: known payments that must be made if the...
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Body of Knowledge:
PPP Introduction and Overview
This section describes the overview of the PPP project process which is then developed in detail — phase by phase — in chapters 3 to 8 of this PPP Guide.
The intention of this description is to give the reader a general view of the whole process, providing a preliminary description of its main...
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Body of Knowledge:
Appraising PPP Projects
In the process of inputting data to the financial model, several assumptions would have been made, and the model must be sufficiently flexible to reveal the impact on the final cash flows of changes in those assumptions.
All the sensitivity drivers are typically concentrated in a summary sheet that...
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Body of Knowledge:
Establishing a PPP Framework
A government’s fiscal commitments – both direct and contingent – will be established by the PPP contracts. The value of direct liabilities will be relatively simple to quantify. In many cases its value will be explicitly expressed in the contract. Valuing contingent liabilities is more complicated...
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Media:
Blog posts
2016 saw the much anticipated launch of the APMG Public Private Partnerships (PPP) Certification Program.
Responding to the need to enhance knowledge around PPPs and in the absence of a global certification program on PPPs - the Certification Program is an innovation and a collaboration between...
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Demand risk transfer should be always be considered with caution. Significant transfer of the risk, with no mitigation or sharing mechanisms, should only be considered when boosting demand is essential to the success of the project from the government’s perspective (see section 4.9). Another...
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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:
Strategy Delivery and Commissioning
One of the common questions asked about PPPs is why, despite the great development of standardized PPP contracts, so many PPP contracts are varied or amended during their term. With standardization in all areas of PPP project development and implementation, why would any form of change or amendment...
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Body of Knowledge:
Appraising PPP Projects
PPP contracts allocate risks between the government and the private partner. In fact, risk allocation is one of the most important tasks conducted during the whole of project preparation since it underlies most of the PPP’s potential advantages, as presented in chapter 1.5.2.
During the structuring...
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Body of Knowledge:
Appraising PPP Projects
The revenue regime of PPPs refers to the source of revenues collected by the project company. This can be broadly divided into two major groups. The first is the user charges. The textbook examples are the tolls collected directly by the private partner in road concessions, or the fees paid to...
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The Initiative focuses on the Governance Gap
The Regional Roundtables focus on the main enabler of effective, bankable and sustainable infrastructure projects: sound infrastructure governance. Much good work is devoted to developing effective financing arrangements, but if we are to meet the...
