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 Senior Project Adviser Financial Partnerships Unit

Introduction Involvement of private sector advisers Type and role of advisers How to benefit from their expertise? Management of private sector advisers

Involvement of private sector advisers 1 Project development –Needs analysis –Options appraisal –Feasibility study

Involvement of private sector advisers 2 Procurement –Documentation –Market engagement –Negotiation

Type and role of advisers 1 Technical –Specification, risk assessment, costing, deliverability assessment, payment mechanism calibration, negotiation, bid / bidder evaluation, FM Financial –Financial modelling, funding solutions, tax, accounting, bidder / bid evaluation Legal – Statutory powers, procurement strategy, contract development, negotiation, bid / bidder evaluation, specialist advice (property, tax, environmental law, IP, etc)

Type and role of advisers 2 Project Management –Lead advisor, quality assurance Specialist –Insurance –Education –Sustainability –etc

How to benefit from their expertise? Critical success factors: –Experience: ask questions and check experience / references –Availability: specify the people you want –Affordability / VfM: be clear of value added and cost –Management: only use advisers where they add value

Management of private sector advisers 1 Indentify what expertise is needed and when Create a strong client presence & manage negotiations Clear advice and agree lines in advance of meetings Share information

Management of private sector advisers 2 Drive progress & retain control Clearly define approvals / sign off processes Agree outcomes and review performance

Management of private sector advisers 3 Risks involved in the use of private sector advisers –Project ownership –Knowledge transfer –Accountability

Summary Complement (don’t duplicate) resources Develop clear advisory briefs Build in flexibility Test bidders knowledge, understanding and commitment Check references Build a relationship and ensure knowledge transfer Pay for results

Summary “If you structure and conclude a deal well, value for money should be improved. If you appoint the right team of advisers, they should achieve this for you and effectively be self financing.” (TTTNote3)

Mikko AJ Ramstedt Questions?