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Body of Knowledge:
PPP Introduction and Overview
The other main motivation for the use of PPPs as an alternative tool to both finance and procure infrastructure is the potential long-term gain in terms of efficiency (when applying PPP to the right projects and under the right structure and procurement process) and effectiveness (when using PPPs...
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Media:
Blog posts
A significant number of government and business leaders across Africa have come to accept the benefits of Public Private Partnerships as a strategic option, an alternative procurement and financial structuring methodology. An increasing number of African countries are developing PPP policies...
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Body of Knowledge:
Strategy Delivery and Commissioning
The following key activities typically occur during the Construction Phase of a PPP.
The private partner must establish itself on site and obtain the necessary permits and clearances to enable it to carry out the construction works;
The private partner must finalize the design for the construction...
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Body of Knowledge:
Structuring and Drafting the Tender and Contract
Deadline – Time to Submit
Due to the complexities of the PPP, it is essential to grant to the bidders sufficient time for proper due diligence and analysis/assessment of the project and the contract from different points of view. Time is also needed for the preparation of a sound and high quality...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
6.8.1 Negotiating with Banks
The consortium’s financial advisory team prepares the Project Information Memorandum (PIM). The PIM sets out details of the PPP project, including the anticipated key contracts and projected revenues. Assuming a financing competition, a group of funders will be asked to...
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Body of Knowledge:
Strategy Delivery and Commissioning
From a practical perspective, the Value for Money generated through a PPP depends on the quality of the private partner and the government’s contract management systems and teams. This is especially true for PPP contracts that have some form of risk retention on the part of the government, be it in...
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Body of Knowledge:
PPP Introduction and Overview
a) The Challenge of the Availability of Long-Term Finance
Private finance PPPs require long-term finance, the majority of which should be in the form of debt so as to maximize financial efficiency through gearing[51] (see section 7).
A sound financial structure requires that the debt is denominated...
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Body of Knowledge:
Appraising PPP Projects
The VfM analysis compares the relative merits of PPP procurement against one or more other procurement routes, usually traditional public finance. This can be done using quantitative analysis, qualitative analysis, or both. Some frameworks focus on quantitative analysis, requiring a comparison of...
