Techno Financial Feasibilities for Public Private Partnerships in Infrastructure Projects Surya Sagi Spring, 2008 Capstone

Introduction PPP – Public Private Partnership ? Traditional approach – Government PPP - Involving private partner Sourcing investments Setting criteria for construction and operation standards

Why PPP? Sharing/delegating risks Utilize planning and management resources of private field Faster construction and better operation standards Reducing public debt Helping government in answering growing demand for infrastructure

Technical Feasibility/risk Scope – well defined? Government willing to share risk? More incentives for risk? How to approach unique projects? Life cycle and cost Technical knowledge transfer Advantage of consortium – combination of different experts

Financial Feasibility PSC (Public sector comparator) i.e., tradition procurement vs PPP costs Value for money by bidding Cost benefit Economic viability – Long term demand and limited competition Profitability and cash flow to lender

Why? What? How? ISE Theme: Funding, Funding and Funding…Infrastructure needs money Goals and deliverables: Compare various existing methods used to evaluate the technical and financial feasibilities for PPP projects Risk factor in PPP

Data: UMN library, case studies WB ADB etc., Analysis: comparison of established methods and new developments A cookbook for consideration of technical and financial issues on PPP projects Suggestions and Comments