1. 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

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

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

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

5. 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)

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

7. 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

8. 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

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

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

11. 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

12. 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)

13. Mikko AJ Ramstedt mikko.ramstedt@scotland.gsi.gov.uk 0131 244 4940 Questions?