Private Public Partnerships for Development Projects

Course Private Public Partnerships (PPP) for Development Projects

Course Preamble.
Governments and development partners around the world now understand that public-private partnerships (PPPs) can be an important option to help meet infrastructure and basic service needs while contributing to a reduction in poverty. By bundling construction and service delivery, PPPs offer the possibility of improved accountability, greater innovation, and long-term efficiencies. However, to get the hoped-for benefits of PPPs, public sector officials and managers need to develop and maintain skills and capacities to identify, assess, and procure PPPs – and, once the project is up and running, to manage the contract and regulatory requirements.

Multilateral development partners and other institutions have long recognized this need. That’s why, several years ago, we began thinking about how to enhance professionalism among PPP practitioners around the world. We brainstormed on ways that a certification program created with direct input from our experts could transform emerging markets and developing economies by raising the quality of all PPPs. This training is geared towards enhancing the skills of PPPs players by endeavoring to impart hands-on skills.

Main Training Modules
PPP Introduction.
• Introducing and Scoping the PPP Concept
• Private Participation in Public Infrastructure and Services: What is and is not a PPP
• Types of PPP and Terminology Issues
• Where PPPs are Used – Infrastructure Sectors
• When to Use PPPs: Motivations and Caveats
• Typical Basic Structure of a PPP Project
• How a Private Finance PPP Project is Financed: Where the Money to Pay Construction, Costs Comes From
• Causes of Project Failure: The Need for Sound Process Management and Preparation of Projects
• Introduction to the PPP Framework Concept and Initial Framework Considerations. Private Sector Concerns About Frameworks and Markets.
• An Overview of the PPP Process Cycle: How to Prepare, Structure and Manage a PPP Contract

PPP Project Financing
• Basic Considerations of PPP Project Finance
• Ideologies of Project Finance
• A Basic Description of Major Sources of Funding
• Project Finance — Benefits and Limitations

Establishing PPP Framework
• Why have a PPP Framework?
• What is in a PPP Framework?
• Objectives of the PPP Framework
• Scope of the PPP Framework
• Choice of Legal and Administrative Instruments to Create PPP Framework
• Defining the PPP Process
• Institutional Responsibilities
• Public Financial Management of PPPs
• Oversight of PPP Programs and Projects

Project Identification & PPP Screening
• Objectives of the Project Identification and Screening Phase: Where We are in the Project Cycle
• Overview of the Project Identification and Screening Phase
• Identifying Needs: Entry Routes to the Pipeline (Up to Full Feasibility)
• Project Prioritization
• Option Analysis and Selection Techniques
• Technical Outline of the Selected Solution
• Information Requirements/Data Checklist
• Economic Soundness. Introduction to Cost-Benefit Analysis
• Scoping the PPP Project and its Challenges
• Testing PPP Suitability and Affordability
• Project Management Plan and Project Governance Considerations
• Identifying Stakeholders and Developing the Communication Strategy: Ensuring Government Support and Managing the Stakeholders
• Assessing Capabilities and Needs, and Hiring Advisors

Appraising PPP Projects
• Where We are in the PPP Process
• Objectives of this Phase
• Overview of the Appraisal Phase/Process
• Detailing the Scope of the Contract, Designing the Technical Requirements and Assessing Costs
• Designing a Preliminary Structure of the PPP
• Developing the Financial Model
• Assessing the Technical Feasibility
• Assessing Commercial Feasibility
• Market Sounding
• Confirming Economic Feasibility: Refining the Cost-Benefit Analysis
• Assessing Fiscal Feasibility (Affordability)
• Analysis of Impact on Government Deficits and Debt
• Assessing Environmental Feasibility
• Assessing Social Feasibility
• Assessing Legal Feasibility
• Value for Money Assessment
• The Procurement Strategy
• Formal Requirements Regarding the Appraisal of PPPs and the Conditions Established by the Framework for the Green Light Decisions
• Planning Ahead
• Appraisal Report
• Obtaining the Final Approvals

Procurement procedures, Drafting Tender & Contracts and Award
• Introduction to tender approaches
• Main Types of PPP Tender Processes
• Where We are in the Project Cycle
• Objectives of this Phase
• Special Characteristics of the PPP Tender Process
• Overview of the Phase
• Time to Prepare and Submit Offers: Requirements for Proper Assessment and Preparation by the Prospective Bidders
• Managing Matters during the Bid Submission Stage in Open Tenders
• Qualification Matters
• Specific Matters on Managing Dialogue and Interactive Processes: Managing the Dialogue Period and One-on-One Meetings
• Evaluation of Proposals
• Negotiation with a “Preferred” Bidder
• Award
• Contract Signature
• The Financial Close
• Oversight / Integrity of the Tender Process
• Outcomes of this Phase

Way forward After the Training
Participants will develop a work plan through the help of facilitators that stipulates application of skills acquired in improving their organizations. ASPM will monitor implementation progress after the training.

Training Evaluation:
Participants will undertake a simple assessment before the training to gauge knowledge and skills and another assessment will be done after the training in-order to demonstrate knowledge gained through the training.

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