Effective Management of Public Private Partnership (PPP) Project

Course Overview

PPP projects are very complex with large financial outputs and consequences. The projects include infrastructure, power generation, utilities all of which should be implemented efficiently and in a sustainable manner. Hence these projects involve major challenges that need to be overcome to deliver a successful project. The success or failure of a project will depend on many factors and the study of case studies included in this training, will help guide participants on the dos and don’ts of successful PPP project delivery and implementation. 

This course will identify the underlying best practices that can be applied in most countries, be they in emerging markets or developing economies, always recognizing the local conditions. The use of a range of case studies and examples will help illustrate both successful and less successful practices. Further, it will help illustrate what parties have learned through experience and how PPPs have evolved in this process. 

The concept of PPP obligates a more collaborative relationship between both sectors, fostered by openness and trust. This presents a major shift from the traditional arms-length approach to procuring services and executing projects. Well designed, feasible projects attract greater interest amongst potential investors and demonstrate the potential benefits of taking the project forward to the procurement phase. Therefore, PPP projects critically require specially trained personnel who possess a deep understanding of the many different constraints involved and who display extensive knowledge of how to prepare and commence a PPP project.

Course Objectives:

At the end of this course, the participants will be able to:

• Determine project identification, screening and selection
• Know the roles and responsibilities of the stakeholders in PPP projects
• Address the range of issues in identifying, financing, and procurement
• Analyze best practices in conducting financial, economic, and technical feasibility studies
• Evaluate risk identification, mitigation, and allocation among parties involved in a PPP project
• Gain from the knowledge transfer and equip public sector to meet projects expectations

Unit 2: Defining Public-Private Partnerships and Setting the Framework & Structure:

• Rationale, aim and motivation for engaging PPP
• Key phases of the PPP project process
• The structure of the PPPs
• Different types of PPPs
• The four levels of preparation and implementation
• Analyze the important factors for the project preparation process

Unit 3: Key Decision Criteria to Identification of PPP Projects, PPP Screening & Cost-Benefit Analysis:

• Public investment delivery model
• Economies of scale and project grouping
• Analysis of cost benefits of a PPP project
• How to get value for money in PPP projects
• Commercialization potential analysis
• Market potential
• Capacity of assuming long term commitments

Unit 4: Basics of Project Preparation: An Overview of its Key Components:

• Project identification, risks, sustainability
• Project design: Tender strategy, technical aspects, components, cost estimation, and financing
• Structuring a PPP contracts
• How to avoid common pitfalls
• Importance of project financial and economic analysis
• Understanding and applying payment mechanisms
• Preparing the Project Implementation Plan
• Project Management Arrangements – Various types of agreements and monitoring indicators

Unit 5: Planning for PPP Project Management, Project Operations and Hand Back:

• Appointing a PPP project manager and project team (Project Implementation Unit)
• Key roles within the project, including decision-making authorities, and sources and funding for assistance
• Preparing the project plan
• Dealing with the main challenges of a PPP project
• The absolute importance of stakeholder consultation and managing the interface
• Risk assessment and analysis
• Going beyond the construction phase to ensure success in Operations
• Hand back of asset upon contract expiry

Targeted Groups:

• Policy Makers
• · Senior Government Personnel
• Legal Advisors
• Financial Advisors
• Directors and Senior Management from Private Infrastructure/ Public Utility Sectors
• Technical and Financial Consultants
• Senior Non-Government Organisation (NGO) officers
• Professionals who have some experience with infrastructure projects and wish to improve their knowledge and decision-making capacity to enact policies related to PPPs