PPP Body of Knowledge
What is the PPP Guide about
The Body of Knowledge of CP3P© Certification is only the PPP Guide, the “the PPP Certification Program Guide” (also calls PPP Guide). The intellectual property / copyright of PPP Guide owns to EBRD, IDB, IsDB, PPIAF y WBG.
Andres Rebollo is the Lead Author of the PPP Guide, supervising a group of international experts, and elaborating himself, with support of Richard Foster, a great part of its contents.
The main aim of the PPP Guide is to help the people in charge of the public sector / governments and its advisers to develop efficient and sustainable PPPs, helping them to apply “good practices” proven on a global scale and to facilitate the access of its PPP programs to the investors and developers market.
The PPP Guide identifies the essential principles that rule the processes of Public Private Partnerships, at the same time tries to point some of the main “local or regional variations” that we can observe on a global scale.
The PPP Certification Guide has free access, and here you can download it:
Contents of the PPP Guide
The Guide consists of 8 Chapters.
- The first one is the “initial” level, giving a general knowledge on PPPs, on contents of the PPP Guide, and presents the standard process.
- The second one focuses on the configuration and functioning of PPP frames and programs.
- The rest of the chapters presents to the reader the main phases of the management cycle of a PPP project.
Chapter 1: PPP Introduction and Overview
It explains the focus of the PPP Guide and it describes:
- the typical characteristics of a Public Private Partnership Contract
what is and is not a PPP
- terminological variations
- the basic structure of a PPP contract
- the instruments and structures of financing, and issues related with the projects bankability
- the benefits, challenges and dangers of the PPP
- the need of a PPP Frame
- the need for a careful management of the PPP Process
- the main phases and components of a PPP Process
Chapter 2: Establishing a PPP Framework
It describes the main elements of a PPP Frame and the challenges and keys of its implementation and functioning, emphasizing the description of:
- The role of the legal tradition and the legal and administrative instruments to create the frame
- The institutional responsibilities and the role of the PPP Units
- The frame of public financial management
- The function of supervision / evaluation ex-post of PPP Projects and Programs
Chapter 3: Project Identification and PPP screening
It describes the main aspects of a solid identification, explaining also how to analyze the appropriateness of a project to be developed as a PPP. Also it introduces the cost – benefit analysis (CBA).
Chapter 4: Appraising PPP Projects
It describes the requirements to perform the analysis and evaluation of a project, as well as how to prepare a PPP Project, including information / knowledge about the different analyses to be realized in this preliminary phase before taking the decision of investment and tender, especially the “analysis of commercial feasibility”, but also the VFM, analysis of the impact in public debt and others.
Chapter 5: Structuring and Drafting Tender and Contract
It describes how to design the strategy of PPP tender and the structure and design of the PPP Contract. It emphasize mostly the:
- the financial structure, the income systems and the payment mechanisms
- the allocation and structure of risks
- the key aspects of the design of the Requests for Qualification (RFQ) and Requests for Proposal (RFP)
- the incorporation for the RFP and Contract of the contractual structure and tender strategy
Chapter 6: Tendering and Awarding the Contract
It describes the main challenges and requests that affect the management process of tender from its start until the signing of contract. The Appendix of this chapter has to be highlighted, which reviews the vision and tasks of the private partner while regards the Preparation and Presentation of Offers and the financial closure, fulfilling this way the description of the PPP cycle from a standard view of the public partner.
Chapter 7: Strategy, delivery and Commissioning
It explains the need and importance of a proactive and prior strategy of contractual management. The main elements of contract management function and its main challenges, focusing in this way on the construction phase and “commissioning”.
Chapter 8: Operations and Hand-Back
It describes the relevant aspects, challenges and peculiarities of the contract management in the contractual operations phase, up to the reversion / hand-back of the assets in the moment of the contract termination.
Other basic characteristics of PPP Certification Guide
- It includes a detailed Glossary with most of the main terms relative to PPP.
- Although it focuses on the needs and perspective of the EMDE (emergent markets) its application is also valid and relevant for most of markets and developed economies.
- The focus of the PPP Guide are the PPP contracts with Private Financing (Private Finance Infrastructure PPPs), although many of its contents explain processes and show good praxis applicable to processes of any PPP (included PPPs of services).
- It is dedicated to the governments / tender authorities (and its advisers), but it brings also clear benefits to the managers of the private sector, helping them to understand the motivations and worries of its “public partner” and the knowledge of its decision processes and functioning of its operational and legal frames.