Post on 13-Jul-2020
What is PPP (recap) ?
Some sectors
Best Practice: Toll Road
Best Practice:
Hydro Power
Best Practice:
Smart University
Worst Case: Toll Road
Worst Case: Train route
Remarks
What is PPP
(recap) ?
Some sectors
Best Practice: Toll Road
Best Practic
e: Hydro Power
Best Practic
e: Smart
University
Worst Case: Toll
Road
Worst Case: Train route
Remarks
Jan van Schoonhoven Jan
- Navy officier (1982 – 1999)
- Director IRZM (1999 – 2003)
- PPP Project mng (2003-2006)
- Director PPP (2006-2012)
- United Nations (2012 – now)
Independent director PPP Center Kazachstan
Board member IPFA Netherlands
Added value
- PPP from a government perspective
- Public Sector Comparator
- Public Private Comparatoror
- Value for Money Government
- PPP Strategy for PPP Pipeline
- 3 continents
• In 8 years time
– 2 projects to 8 financial closes
– 20 Billion US$ projects
– 20 projects in tendering
Awarded projects
HSL
A59 (Provincial)
2nd Coentunnel near Amsterdam
N31 Road project
A12 Lunette – Veenedaal
A15 Mava
DBFM Light (Eelde- Airfield)
N33 Assen
Ring Road Amsterdam
A12 Ede – Grijsoord
N18 Varsseveld - Ede
A12/A15 doortrekking (VIA A15 / TOLL?)
13 / A16 / A 20 Rotterdam
A27 Lunetten-Hooipolder
Light Rail Groningen (City of Groningen
PPP in the Netherlands
PICTURES
WHAT IS PPP PUBLIC-PRIVATE PARTNERSHIP (PPP) REFERS TO ARRANGEMENTS, TYPICALLY MEDIUM TO LONG TERM, BETWEEN THE PUBLIC AND PRIVATE SECTORS WHEREBY SOME OF THE SERVICES THAT FALL UNDER THE RESPONSIBILITIES OF THE PUBLIC SECTOR ARE PROVIDED BY THE PRIVATE SECTOR, WITH CLEAR AGREEMENT ON SHARED OBJECTIVES FOR DELIVERY OF PUBLIC INFRASTRUCTURE AND/ OR PUBLIC SERVICES, IN MANY CASES ALSO WITH (PROJECT) FINANCE ARRANGEMENTS. ’INFRASTRUCTURE’ IS WATER, ROADS, TRANSPORT, (RENEWABLE) ENERGY , SCHOOLS AND HOUSING.
What is PPP
(recap) ?
Some
sectors
Best Practice: Toll
Road
Best Practice:
Hydro
Power
Best Practice:
Smart
Universit
y
Worst
Case: Toll
Road
Worst
Case: Train rout
e
Remarks
WHO NEEDS PPP ?
AID INSTRUMENT (FDA)
FOREIGN INVESTMENT
STRATEGIC PROCUREMENT
DEVELOPING / TRANSITION TRANSITION/DEVELOPED DEVELOPED
(ALMOST) ALL COUNTRIES, BUT, FOR DIFFERENT REASONS
NEEDED : ESSENTIAL MOR SURVIVAL
•WATER AND SANITATION
•HEALTH
•SCHOOLS
DESIRED : ESSENTIAL FOR DEVELOPMENT
• HEALTH AND SCHOOLS
•TRANSPORT (ROADS, AIRPORTS)
• ENERGY AND WATER
QUALITY AND SUISTAINABILITY: FOR THE FURRE
•WITHIN TINE AND BUDGET
• BETTER SERVICE FOR TAXPAYER
• INNOVATION AND MDG’S
INTERNATIONAL
• FINANICING PROBLEM
- Toll roads
- User Payment
- Foreign Investment
- BOT
- BTO
- VfM Financing
• BUDGET PROBLEM
• PFI scheme (UK)
• Availability Payment
• Quality and innovation
• Within Time
• Within Budget
• VfM quality
BEST PRACTICE ROADS
TOLL ROAD
MOTHER OF ALL CONTRACTS
(BOT – BFOT – BOOT - DBFMO)
TOLL ROAD (BOT): A71 WITH FAMOUS
MILLEAU BRIDGE 350 M EURO
75 YEAR CONSESSION
320 PRIVATE SECTOR
50 MILLION EIB
SAFE APP. 250 KM OF TRAVEL
UP TO 3-4 HOURS
RATES
JULY AND AUGUST: 6.1 EURO/CAR
REST: 4.6 EURO/ CAR
TRUCKS 19 EURO / TRUCK
SEE INFORMATION SHEET
10.000 CARS AS MINIMUM
CALCULATED 20.000
IN REALITY 25000 AVERAGE
IN HOLLIDAYS UP TO 50.000
Video Millau Bridge Mega Structure
BEST PRACTICE
• USER PAYMENT
• 350M CAPEX
• 100M 30 YEARS MAIN
• 100M TOLL COSTS
• 100M INTEREST
• 150M RISKS
• 200M TAX
• 1000M LCC
• 1000 EURO/ 20 YEARS
• YEAR: 50 M/ YEAR
• 160.000 DAILY CARS: TRUCKS 1:2
CAR 5 – TRUCK 19
• 3700 CARS
• 7440 TRUCKS
• TOTAL 11000 CARS
BEST PRACTICE HYDRO
ENERGY PPP
SISTER OF ALL CONTRACTS
PPA: Power Purchase Contract - BOT)
Tala Hydropower Plant PPP and Hydo Plant
Power purchase agreements (PPAs) may be appropriate where:
- The projected revenues of the project is uncertain;
- Protection from cheaper or subsidized domestic or international competition;
- There is one or a few major customers that will be taking the bulk of the product.
- The project company will want certainty of revenue; and,
- the purchaser wishes to secure security of supply
http://www.drukgreen.bt/index.php/khp-menu/pf-khp
FROM PPP PERSPECTIVE
ONE OF THE BEST (MAYBE THE BEST) INFORMATION (WEBSITE) FOR INVESTORS AND PRIVATE SECTOR REGARDING TRANSPARENCY,
INFORMATION AND ACCESSIBILITY
PPP construction
PPA essential
• Straight PPP Public body enters into an arrangement for a private power company to establish a power plant and then sell the power: PPA.
• Plant is BOT
• User payment: the PPA Sale of capacity and energy - the power producer agrees to make available to the Purchaser the contracted capacity of energy and deliver the energy in accordance with the PPA.
Neighbour Nepal
SUGGESTIONS
Current situation:
Funding by Indian and Bhutan government
Future situation
Attract private investors,
BOT towards private sector
• The United Nations works with Centre of Excellence.
• Bhutan Centre of Excellence on Hydropower and PPP?
BEST PRACTICE HOSPITALS
DBFM /PFI TYPE
PROJECT FINANCE TYPE
Hospital do Suburbio (Brazil)
PPP IN HOSPITAL
Free healthcare is essential to the pubic, but a burden for the budget.
If privatisation is (political) no option, PPP is a good solution:
- Increase efficiency
- Release Budget pressure
- Increase quality
1.68 MILLION medical procedures Including 680 emergency prcodures 298 beds
PPP construction
Private Sector
• Hospital 298 beds
• Medical equipment
• Daily operations – Cleaning and Washing
– Preparing rooms
– Medical equipment
10 year Concession
• Invest US23 million DBM
• Invest US 9 Million for O
• Extra: created: 1200 jobs
Old situation
• 298 beds
• Beds in Brazil cost (BTR WHO)
– Public hospital 32,3%
– PPP hospitals 50,2% %
• Bed occupancy (BOR) – Public hospitals 64
– PPP hospital 35
Remarks
• Make a distinction between budget and financing challenge – (toll road versus hospital)
• Apart law and regulations for this distinction (tax law, procurement law) – Toll road, concessionaire tax!
– Availability payment and tax?
• Value for Money is different – Toll road: lowest User Fee
– Hospital price/quality
• Define VfM very well in in relation with project outcome or challenge: – Number of beds
– Number of occupancy of beds
– Number of treatment
- PPP only works if there is a pipeline of projects
- PPP is only successful if next to PPP law, PPP policy and framework there is a open and transparent procurement process as well
Synonym:
- PPP Law is the car
- PPP Framework is the Engine
- PPP Tender process the Road
- PPP Unit the driver
CHALLENGES AHEAD
SAFE JOURNEY
JAN VAN SCHOONHOVEN COUNSELLOR ON INFRA AND PPP MANAGER UNECE INTERNATIONAL CENTRE OF EXCELLENCE JAN.VANSCHOONHOVEN@UNECE.ORG WWW.UNECE.ORG 0041 78 6465162