1. P3?

2. Principles of P3
Projects Types
Common P3 Models
P3 Structure

3. A Public–Private Partnership (PPP or 3P or P3) is a government service or private business venture that is funded and operated through a partnership of government and one or more private sector companies
Principles of P3

4. Financing - who, at the outset, raises the cash.
Funding - who ultimately pays for it over the long term –end user - taxpayer/customer
Note: the private sector will want to be repaid for its investment i.e. for the finance it has provided.
Principles of P3

5. P3 Considerations Service Requirement Revenue Stream Risk Transfer
Value for Money
Principles of P3

6. Electricity
Water
Gas
Types of Project

7. Types of Project

8. Types of Project

9. Types of Project

10. Types of Project

11. First P3 - Dartford River Crossing UK
Contract Signed in 1988
Completed in 1991
Types of Project

12. Types of Project

13. Design Build Arrangement Operations Concession Arrangement
Government
Services Contract
Management Contract
Design Build Arrangement
Operations Concession Arrangement
Design Build Operate Maintain
Design Build Finance Operate
Build Operate Transfer
Build Own Operate
Privatisation
P3 Models

14. Government SC
MSA DB
OCA
DBOM
DBFO
BOT
BOO
Privatisation
P3 Models

15. Financing Methods
Banks
Bonds
Equity
Funds
P3 Models

16. Off Balance Sheet Reporting Political (want) driven programmes
P3 Issues/Concerns
Off Balance Sheet Reporting
Political (want) driven programmes
Rates of Borrowing
IRR v Income Risk
P3 Models)

17. Project Co Representative
Chief Executive Officer of Arctic Infrastructure Limited Partnership
(AILP)
Project Co Representative
(PCo)
Special Purpose Company/Vehicle Project Director
(SPC/SPV)
P3 Structure

18. Client Project Co Design-Builder Service Provider
(SPV/SPC)
Design-Builder
Service Provider
P3 Structure

19. P3 Structure

20. Project Agreement P3 Structure Shareholders Agreement Financing
Agreements
Design-Build Agreement
Services Contract
Parent Company Guarantee
Interface Agreement
Parent Company Guarantee
P3 Structure

21. Design-Build Agreement
Project Agreement
Schedule
Description 16
Financial Model 18
Lenders Remedies Agreement 26
Planned Refinancing 27
Project Co’s Ownership Information
Design-Build Agreement
Interface Agreement
Services Contract
Schedule
Description 4
Project Schedule 5
Design and Construction Protocols 6
Design and Construction Specifications
Schedule
Description 7
Services Protocols & Specification 11
Communication 12
Third Party Agreements
P3 Structure

22. Shareholders
10%
P3 Structure

23. Lenders Technical Advisor
Bondholders
45%
Trustee
Lenders Technical Advisor
P3 Structure

24. Independent Certifier
Capital Funding
40%
Independent Certifier
P3 Structure

25. Spend During Construction Period
Design & Construction Operating & Maintenance SPV Life Cycle Senior Debt Fees Senior Debt Interest
P3 Structure

26. Spend During Operation Period
Operating & Maintenance Life Cycle SPV Senior Debt Service Equity Distributions
P3 Structure

27. AILP Consultants
Design Builder
Service Provider
P3 Structure

28. Independent Certifier Lenders Technical Advisor
Shareholders
Capital Funding
Bondholders
Trustee
Independent Certifier
Lenders Technical Advisor
AILP Consultants
Design Builder
Service Provider
P3 Structure

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