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Module 5: Public-Private Partnerships (PPPs) - PPP Project Cycle

Mathieu Verougstraete (ESCAP)

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Transcript of Module 5: Public-Private Partnerships (PPPs) - PPP Project Cycle

escap-ttd@un.org

www.unescap.org/ttdw/index.asp

Thank you
ESCAP is the regional development arm of the United Nations and serves as the main economic and social development centre for the United Nations in Asia and the Pacific
Identification
PPP Project Cycle

Preparation
Transaction
Screening Criteria
Monitoring service delivery
PPP Project Cycle
Identification
Preparation
Transaction
Management
Project identified as a national priority
PPP?
BIG Enough
Long-Term Need
Private Sector Capacity
Measurable Output
Economic
Pre-qualification
Final negotiations
Bidding
Bidder's conference
Shortlist
Pre-qualified Bidders
Preferred Bidder
Two-stage
Final proposals (with financial bid)
Clarifications on RFP
Technical proposal
Two envelope
lowest tariff for users
Dispute resolution mechanisms
Contract administration manual
Enforcing penalties
Management
Business Case
traditional procurement?
Qualitative "Value for Money" Assessment
Provide answers in writing to all bidders
One-stage
Request for Proposals (RFP)
Revise draft contract
Technical proposal
Financial proposal
fail
pass
lowest cost to government
...
Prefeasibility Studies
Main project characteristics
Project viability?
Government support ?
Feasibility Studies
Bids evaluation
legal basis?
compliance with standards?
Unsolicited Proposals
Financial
Bidding documents
Technical & Financial criteria
Financial criteria
Financial Close
Source of ideas
Clear procedures & responsibilities
and sufficient resources
Efficient communication channels & detailed reporting
Adjustment & Renegotiation
output specification
demand / revenues?
Quantitative assessment
PPP
Traditional procurement
Final proposals
Well-prepared projects
Innovative solutions
Risk of corruption
Priority?
Resources / Costs
Introducing competition
Swiss Challenge
Handback
cost vs. benefit
Technical
proven technologies?
fiscal sustainability?
Legal and Regulatory
Environment & Social
Market Sounding
PPP really best option?
Value for Money
Risk Allocation
Approval to proceed with Bidding
Draft PPP contract
Procurement strategy
Request for Qualification (RFQ)
Project information (key commercial terms)
Timeline & information on the procurement process
Pre-qualification criteria
experience
capacity (design, construction, operation and maintenance)
resources
Pre-qualified bidders
(3 to 6)
Facilitate interaction
Increase chance of success
No "material changes"
Pressure from lenders
Meeting all precedent conditions
Finalizing project agreements
Securing permits and minimum land acquisition
Approval to sign the contract
Competitive, Fair
& Transparent

Pre-tender
Qualification & Selection criteria
Interaction with Bidders
Advertisement
Procurement notice
'Road shows'
Objectives

Approval to proceed with PPP development
Full transcript