© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ensuring Good Quality PPP Projects Martin Darcy Regional Workshop on Concessions/Public-Private Partnerships Tirana, December 2007

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Requirements necessary to create interest from the Private Sector At a national level v Strong political will and leadership v Clear and permissive legal framework v A skilled co-ordinating body at the centre of government, providing support v Clarity about the overall objectives of private sector involvement v Setting priorities v Awareness, education and training

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Requirements necessary to create interest from the Private Sector At a sectoral level (the Ministry) v Ministerial commitment v Realistic expectations v Identifying and supporting priority projects v Concentrating efforts on the priorities v Regulation where necessary

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Requirements necessary to create interest from the Private Sector At the Project level v Clarity about the objectives of the project v Realistic timetable v Realistic development budget v Good governance and management in place v Good quality, experienced advisers v Clear support from the necessary stakeholders v The project is clearly defined, necessary and affordable v Size of project

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU How a PPP project is created v Three main phases 1.Project preparation and development 2.The bidding phase 3.Implementation and operating phase

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Project preparation and development Project preparation and development v Define need, project objectives, options analysis and business case v Devise governance and project management structure v Create the team (including external advisers) v Assess affordability via reference project v Risk assessment and strategy v Procurement strategy and realistic timetable v Develop bid evaluation criteria v Draft contract documentation v Approvals and marketing v Without proper preparation the project will probably fail (before or after award )

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Bidding Process Bidding Process v Advertisement and calls for expressions of interest v Prequalification and selection of bidders v Competitive Dialogue Procedure often used in EU v Outline bids v Issue of tender documents v Return of bids v Evaluation of bids v Select Preferred Bidder v Contract clarifications v Commercial / financial close v At least months

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Operation and Contract Management Operation and Contract Management v The important bit ! v Creating a working partnership v Managing contractual obligations v Extracting the efficiencies v Delivering / improving the services v Change management