PUBLIC–PRIVATE PARTNERSHIP (PPP) FRAMEWORK AND GUIDELINES
Syed M. Ali Zaidi, P.Eng. PM(Stanford), Ph.D.
Director, Strategic PartnershipsAlberta Infrastructure. Government of Alberta
Canada
World Bank Group’s Public-Private Partnerships (PPP) CCSA Webinar – November 10, 2015
2
OVERVIEW
The overall discussion will be in Canadian context but the focus will be on Alberta's PPP Framework and Guidelines.
PPP Framework Objectives
PPP Framework Components
Concluding Comments
COMPONENTS OF PPP
3
Full / Partial Private Financing
Design Build Obligation
Maintenance / Operations Obligations
Assets Rehabilitation Obligations
Performance Based Payment Mechanism
PPP FRAMEWORK OBJECTIVES
4
Is Intended to set the principles around which PPPs are conducted.
To ensure decisions on using PPPs are made based on VfM over the life cycle of the projects.
To use consistent procurement and documentation approach but also allows for variances for different types of infrastructure.
To ensure approval process is understood and followed for PPPs.
PPP FRAMEWORK COMPONENTS
5
Capital Projects Planning
Public–Private Partnerships Principles
PPP Project Assessment Process
PPP Procurement Process
CAPITAL PROJECTS PLANNING & PPP FRAMEWORKS
6
Infrastructure Management
Project Implementation
Project Planning Design & Tendering
Projects Identified as High Priorities
Identify Potential Projects
PPP Operations and Management
Project Implementation
PPP Procurement : RFQ, RFP Process
Business Case Approval for PPP
Project's Assessment as PPP
Capital Plan is the current approved capital expenditure plan that documents projects approved to commence in the five years.
CAPITAL PLANNING FRAMEWORK
PPP FRAMEWORK
Project Selection
Project Approval
Project Procuremen
t
Project Implementati
on
Project Operations
PPP PRINCIPLES
7
• Reason for PPPs
• PPP Project Assessment
• PPP Review and Approval
• PPP Project Execution
• Determination of Value for Money• Accounting and Budgeting for PPP
Projects• Third Party Revenues
• Roles and Responsibilities
• Fairness
PPP PROJECT ASSESSMENT PROCESS
8
INIT
IAL
AS
SE
SS
ME
NTWhether a PPP
would add value to the project:
Scope well defined.
Min. $100 million cost.
Greenfield project.
Potential of integrating design, construction & maintenance / operations.
Performance requirement can be defined.
No legal / legislative barriers.
OP
PO
RT
UN
ITY
PA
PE
RPreliminary analysis that provides evidence that PPP will provide VfM:
Project description.
Business and operational impacts.
Preliminary risk assessment.
Preliminary VfM Assessment.
Preliminary project schedule and team.
BU
SIN
ES
S C
AS
E It is an in-depth analysis:Project team and reporting structure.
Final business needs and project description.
Strategic alignment.
Business and operational impacts.
Project risk assessments.
Final VfM analysis.
Implementation strategy.
Review and approval of project procurement. Depending on factors such as results of the initial Assessment, project timing,
size, asset class, scope and the details of the proposed project, an Opportunity Paper may not be required and the Project may go directly to Business Case stage.
ROLES AND RESPONSIBILITIES
9
CABINETAPPROVES
PROJECT
PROJECT REVIEW COMMITTEE
EXECUTIVE SUPPORT
PROJECT TEAM Project Director + Member from PM team, Legal, Finance & Client Departments + Advisors /
ConsultantsPLAN, DEVELOP, PROCUREMENT AND MANAGE PROJECT
TREASURY BOARD
PROCESS SUPPORT
OVERSIGHT COMMITTEE
OVERSEES THE PROJECT
* Typical Alberta PPP Project Organizational Structure
10
PPP PROCUREMENT KEY CONSIDERATIONS
FairOpenTransparent
PPP PROCUREMENT PRINCIPLES
Process Integrity
Confidentiality
Schedule Certainty
PPP PROCUREMENT GUIDELINES
Consistent and Clear approach Policy and Legal Alignment Compliance with 'Trade Agreements' Evaluation Process and Guidelines Communication Protocols Conflict of Interests / Relationship
Review Disclosure Guidance Confidentiality Undertaking Managing FOIP Act Confidential Information in
Electronic Data Room Record Managements: Electronic
Mail, Personal Records, Documents
Identify Key Tasks and Milestones Align Processes and Approvals
accordingly
PPP PROCUREMENT PROCESS
11
RFQ STAGE RFP STAGE CLOSING
12-16 Weeks 32-40 Weeks 2-8 Weeks
Announce Project. Issue RFP. Execute Project Agreement.
Hire Consultants / Advisors.
Open RFP Electronic Data Room.
Financial Close.
Hire Fairness Auditor. Provide Site Access.
Prepare Draft Agreement Documents / Schedules.
Receive and Evaluate Staged Technical Submissions.
Hold Information Meetings.
Arrange Technical Meetings with Proponents.
Open RFQ Electronic Data Room.
Receive Comments on Draft Agreement Documents.
Issue RFQ and Receive Submissions.
Issue Final Agreement version.
Evaluate Submissions.
Receive and Evaluate Financial Submission.
Shortlist 3 Proponents.
Select Preferred Proponent.
12
THANK YOU
CONCLUDING COMMENT: Government must have robust PPP Framework and Guidelines to assist public sector with assessing potential PPP projects and delivering them in accordance with established practices and protocols.