PROJECT FINANCE INITIATIVE and PUBLIC PRIVATE PARTNERSHIPS Simon Par Keeling, Société Générale Paris.

Slides:



Advertisements
Similar presentations
Project Finance & PPPs A Mechanism of Optimising Private Sector Involvement in Infrastructure Investment Public-private partnership in Ukraine: opportunities.
Advertisements

Organised by Civil Service College, Dhaka Md. Abu Rashed Senior Consultant (PPP) Infrastructure Investment Facilitation Center 18 February 2012 PPP Frameworks.
Public Private Partnerships and Development Razvojni program ujedinjenih nacija.
Options appraisal, the business case & procurement
Introduction to Public Private Partnerships
Governor’s Center for Efficient Government. Mission The mission of the Governor's Center for Efficient Government is to promote fair and transparent best.
International Conference on Small States and Economic Resilience April 2007 Valetta, Malta Islands and Small States Institute Government intervention.
 Definitions & Background  P3 Markets – Global & Canadian  Canada’s Infrastructure Deficit  P3 Policy Debate and Drivers  Why the debate matters 
HEALTH PPPs An introduction Is there a recipe for success?
Public-Private Partnerships: Basic Considerations, Accounting and Reporting Issues Presentation by Max Alier Resident Representative in Brazil International.
Simon Par Keeling, Société Générale Paris
v1 The Future of PPPs in Hong Kong Project Chambers Forum 28 May 2010 Presented by Sam Farrands.
PPP’s IN NIGERIA: Prospects in the Water Sector
1 Water Services Training Group 16 th Annual Conference Water Sector Reform Programme Implementation INEC, Killarney, 8 th November 2012.
Kpmg 1 Independent Contractors and and Businesses Association PPP’s and the Infrastructure Agenda Stephen Beatty January 29, 2002 Burnaby, BC.
Structure of Project in PPP- (2) John Plumb. Agenda Following on from the Strategy and business case to develop the ideas Structure of PPP arrangements.
The Outsourcing Process
Framework for Port Reform
CISB444 - Strategic Information Systems Planning
Jeff Delmon FEU Financial Solutions World Bank. Why PPP? Procurement efficiency Lifecycle management Design/construction/operation management Monetizing.
1 Public Private Partnerships in the Baltics and Europe Vilnius, November 2006 DAY I, TOPIC IV Structuring and Implementing PPPs: Risk Allocation.
22 February 2007 Analysis of European road organization and infrastructure funding CEDR Conference of European Directors of Roads Paris, 22 February 2007.
© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Steven P Janes Sherrards Solicitors London UK CASE STUDIES:
New Procurement & Delivery Arrangements for the Schools’ Estate Presentation to Strategic Advisory Group 18 April 2005.
The New Market of Public Private Partnerships (PPPs) in Greece by Alexandros Lykourezos Lykourezos Law Offices New York, November 17 th, 2006.
Wales Infrastructure Investment Plan Gerald Holtham Adviser to Welsh government.
ProFina - Project and Private Finance Feb 2002 Whither Private Sector Participation? Private Investment in the Utility Industries – Energy, Transport,
PPP in the UK Ian Rylatt, Chief Executive Officer, Balfour Beatty Investments.
1 Algemene Rekenkamer | Postbus | 2500 EA Den Haag Audit of Public Private Partnerships Introduction and international Experiences Freek Hoek, Netherlands.
The main Legal and Business Aspects of: Public Private Partnerships (PPPs) by Alexander Lykourezos Lykourezos Law Offices Belgrade, May 11 th, 2006.
Information Seminar on the Framework for Public Private Partnerships in Ireland Alexander Hotel, Dublin 3 rd June 2003.
Session 5: Making a choice: partners and options 1. Identifying partners 2. Role of different partners in providing public services 3. Partnership processes.
Maximising Investment Opportunities: releasing value from estates Barclays Private Equity 15 th May 2008.
An Introduction to Public Private Partnerships: Why Government needs to work with the private sector Vilnius 22 nd November 2006 Stephen Harris - Head,
World Experience in Railway Restructuring Clell Harral, John Winner, Richard Sharp, Jonathan Klein HWTSK, Inc 15 December 2009.
Fundamentals of PPPs VASCUPP September 25, 2013 Rick Norment, NCPPP.
Policy options and recommendations José Palacín Chief, Innovative Policies Development UNECE Minsk, 19 June 2014.
PPP International Best Practice and Regional Application Overview of Public Private Partnerships (PPPs) April, 2008 Tegucigalpa, Honduras Filip Drapak.
Building Blocks for a Successful Public- Private Partnerships Presented by Igor Abramov Counsel & Co-chair, Eurasia and Russia Practice Group, Heenan Blaikie.
Challenges in Meeting Public Sector Financing Needs – Financing Key PPP Projects. A Paper Delivered at the 2008 Perchstone & Graeys Annual Lecture by Jide.
Economic Growth Strategy: A Challenge for our Future Efficient Financial Flows and Institutional Environment: Description and Comments Petr Zahradník,
The Bolkestein Directive at the European Union level Marjatta Melto EI Pan-European/ETUCE Vice-President.
© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Selecting and Designing Concession / PPP Projects Martin Darcy.
Public Private Partnerships (PPPs) and The World Bank
© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Ensuring Good Quality PPP Projects Martin Darcy United Kingdom.
Africa Utility Week 05 Challenges of Undertaking an IPP in South Africa as a PPP James Aiello 17 May 2005.
 PPP for Infrastructure Financing in the MENA region Istanbul, November 8, 2006 PPP P ublic P rivate P artnerships * Nuran Durmaz *connectedthinking.
The Basic Policy Issues of Public Private Partnerships (PPPs) by Alexandros Lykourezos Lykourezos Law Offices World Bank Conference Athens, December 19.
Economic Environment of Business Privatisation and Deregulation: The case for and against.
WSSB Capacity Enhancement Workshop1.  Definition: Public-Private Partnerships (PPPs) are a form of legally enforceable contracts between the public and.
MAKING IT HAPPEN. TRB 88 th Annual Meeting Risk Management in Public-Private Partnerships January 14, 2009 Statutory and Public Policy Approaches to PPP.
Public Private Partnerships An Academic Understanding, or Not 2003 NEFPP Annual Conference.
Public–Private Partnerships in Health Carmen Carpio Senior Operations Officer
Training for Rebuilding Europe Retrofitting buildings, training and improved skills, and financing energy efficiency in buildings. 10 December 2010 – 10.
Railway Infrastructure Financing and PPPs November 2015.
 Contract by Public Authority for provision of asset and/or services  With private entity  Private finance used to fund asset/service  Long-term in.
DELIVERING ECONOMIC INFRASTRUCTURE USING PUBLIC PRIVATE PARTNERSHIPS – CAN TRANSPORT SHOW THE WAY? The OECD estimates that $53tn of investment is required.
Virginia Office of Public-Private Partnerships (VAP3) Adopted Public-Private Transportation Act (PPTA) enabling legislation in 1995 Public-Private Education.
Managing private sector advisers Training event on PPP programming and process management 27 May 2008 Twinning Project CZ/2005/IB/FI/04 Mikko AJ Ramstedt.
Presentation to the Joint Oireachtas Committee on Transport Assessment, Approval, Public Sector Benchmark and Procurement of PPPs 23rd September 2003.
Jacobs Aston Conference 2009 The vital role of local government and PPP capital programmes Chris Wilson Executive Director 4ps 30 th April 2009.
Michael Replogle Chairman, Partnership on Sustainable, Low Carbon Transport And Deputy Commissioner for Policy, New York City Department of Transportation.
SESSION 2 Tuesday 9.30 – Selection of PPP Projects.
Changes and Benefits brought from Modern Procurement to Bridge the Infrastructure Gap Remo Bucci, P.Eng Infrastructure and Capital Projects October 27,
Overview – financing the ‘new’ Public capital programme
Public Private Partnerships (PPP)
PUBLIC PRIVATE PARTNERSHIPS KERJASAMA PEMERINTAH SWASTA
progress of the water reform in bulgaria
Funding the full economic costs of research
BASICS OF PUBLIC PRIVATE PARTNERSHIPS
Presentation transcript:

PROJECT FINANCE INITIATIVE and PUBLIC PRIVATE PARTNERSHIPS Simon Par Keeling, Société Générale Paris

Public Private Partnerships u Project Finance Initiative / Public Private Partnership (PPPs) is a partnership between the public sector and the private sector for the purpose of delivering a project or a service traditionally provided by the public sector u The overall aim of PPPs is to structure the relationship between the public sector and the private sector, so that the risks are borne by those best able to manage them u Increased value is achieved for public services through the exploitation of private sector skills and competencies  Transfer of appropriate level of risks and responsibility  But, government maintains control where appropriate (e.g. regulation, transport policy)

Public Private Partnerships in Europe u PPPS are increasingly being seen as an attractive approach to the provision of infrastructure projects and services across Europe u An ever increasing number of countries are embarking upon PPP programmes (Greece, Ireland, Finland, Italy…) that will lead to a significant redefinition in the role of the public sector in the financing and provision of public services

limiteddevelopingmature SpainNetherlandsUnited Kingdom FranceItaly Portugal BelgiumGreece FinlandIreland Germany Degree of PPP development Public Private Partnerships in Europe

Objectives of PPPs: Public Sector u Value for Money: better services at lower prices for customers u Competition - ensures that Value for Money achieved for taxpayers u Risk Transfer u Introducing private sector expertise u Innovative solutions u Off balance sheet financing and long-term private funding

Implications of PPPs: Public Sector u Change in procurement process u Development of core requirement (output specifications, frequency of trains) u Consideration of whole-life costing u Detailed analysis of project risks u Regulation of the provision of services u Relationship with funders and sub-contractors through Direct Agreements u Consistency of approach through central government

Objectives of PPPs: Private Sector u Long-term projects with strong underlying economics u Proper risk allocation - risks that can be managed u Acceptable returns

Possible Benefits derived from PPPs u Experience of PPPs suggest that significant benefit could be achieved in the followings areas :  acceleration of infrastructure provision / faster implementation  reduced whole life costs  better allocation of risk  better incentives to perform  improve quality of service  generation of additional revenues for the public sector (revenue share, concession fee…)

Lessons learnt u PPPs: Learning the lessons  laying the foundations (experienced external advisors, clear regulatory regime..)  clearly defined process to reduce the time and cost  clearly defining project and performance requirements  removing unintended obstacles (parliamentary appraisal, trade unions…)  critical role of the central and local government agencies to play in the management and regulation of PPPs

u Private ownership, control and investment u Incentives for efficiency Service contract Management contracts Outsourcing contracts BOTsConcessions contracts % Trade sale or IPO Types of PPPs u Potential benefits for consumers u Risk u Wide range of options : allocation of responsibility for asset ownership, management and capital investment between the public and private sectors

Traditional Risk Allocation for Public Sector Procurement Roll Out Design Technology Operation Finance Approval Process Maintenance Asset Value Market Public Sector Quality/Cost Cost/Obsolescence Cost/Availability/Terms Cost/Quality Time/Cost Cost/Quality Residual Value Usage/Price

Public Private Partnership Risk Allocation Commissioning DesignTechnology Operation FinanceApproval Process Maintenance Asset ValueDemand Private Sector Quality/Cost Cost/Obsolescence Cost/Availability /Terms Cost/Quality Time/Cost Cost/Quality Residual Value Usage/Price Public Sector Regulatory Process Time/Cost Procurement Contract Residual Value