PPP Decision Making Approaches and Tools AC Meeting... · PPP Decision Making – Approaches and...
Transcript of PPP Decision Making Approaches and Tools AC Meeting... · PPP Decision Making – Approaches and...
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PPP Decision Making –Approaches and Tools
11th October, 2017GIF Advisory Council Meeting
Infrastructure, PPPs and Guarantees Group
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Presentation Outline
I. Benchmarking of PPP approaches
II. Tools to improve decision-making around infrastructure and PPPs:
a. PPP Frameworks
b. Infrastructure Project Prioritization Screening for PPP suitability
c. Assessing fiscal risks and affordability
d. Disclosure of Contracts and Projects
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I. Benchmarking of PPP approaches
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I. Benchmarking of PPP Approaches Global Perspective: PPP regulatory framework goes hand-in-hand with
institutional arrangements to ensure successful PPPs- however there is no one size fits all!
All 82 economies adopted specific
frameworks for regulating PPPs with
different arrangement to fit their markets
49%
15%
11%
18%
7%
Specific law or act regulating PPPsConcession and PPP lawPPP guidelines or similar instrumentsGeneral procurement law for PPPsConcession or act exclusively
Types of PPP regulatory
framework in 82 countries
All 82 economies adopted specific
institutional arrangement but in itself is
not a guarantee of successful PPPs
Role of PPP Unit in Procurement
16% lead or formally co-lead procurement of PPP
69% play active clearance or advisory role
15% do not play a role
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Benchmarking of PPP Approaches (2)While scores decline with income group, in general most improvement needed in preparation
and contract management
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Benchmarking of PPP Approaches (3)Only 23 % have detailed procedures to ensure PPPs are strategically prioritized
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I. Benchmarking of PPP Approaches (4)One-third have adopted specific methodologies for conducting assessments during preparation
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Benchmarking of PPP Approaches (5) 23 % of the countries publish the PPP contract, and very few publish it online
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Benchmarking of PPP Approaches (6)68 % regulate USPs. Only 21% have detailed procedures to evaluate consistency of USPs
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II. Tools to improve decision-making around infrastructure and PPPs:
a. PPP Frameworks
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II. Tools to improve decision-making around infrastructure and PPPs
a. PPP Frameworks - Country PPP Readiness Assessment Tool
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Desktop Preparation
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Undertake preparatory work to establish the status quo, initial baseline of the Country’s needs, readiness and enabling environment for undertaking PPPs.
Mission Diagnostic Drafting a Strategy
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Confirm existing baseline, readiness and enabling environment for undertaking PPPs by running through the Diagnostic’s questions.
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Based on the information gathered and due diligence done under the last Phase, develop a PPP Strategy and options for structuring a robust PPP program; select and recommend the most appropriate customized option.
II. Tools to improve decision-making around infrastructure and PPPs
a. PPP Frameworks - Country PPP Readiness Assessment Tool (2)
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II. Tools to improve decision-making around infrastructure and PPPs:
b. Infrastructure Project Prioritization Screening for PPP suitability
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II. Tools to improve decision-making around infrastructure and PPPs
b. Infrastructure Project Prioritization Screening for PPP suitability (2)
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II. Tools to improve decision-making around
infrastructure and PPPs b. Infrastructure Project Prioritization Screening for PPP suitability (2)
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Six key dimensions
User friendly approach
Decision-makers’ tool
• Weighted aggregates of scores on six parameters:o Strategic Suitabilityo Preliminary Feasibilityo Risk Assessmento PPP Suitability (VfM, Market Appetite)o Fiscal Affordabilityo Institutional Capability
• Sub-Parameters and Questions at second and third level• Links Parameters with Quantitative Elements• Variability of some Questions based on initial project data
• Easy data input screens• Drop-down menus for qualitative questions• Scores (between 0-5)• Dashboard with key conclusions• Detailed Output Sheet
• Pre-requisites• Potential Deal Breakers • Areas of strength and weakness of the project and suggestions 16
II. Tools to improve decision-making around
infrastructure and PPPs b. Infrastructure Project Prioritization Screening for PPP suitability (3)
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II. Tools to improve decision-making around infrastructure and PPPs:
c. Assessing fiscal risks and affordability
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II. Tools to improve decision-making around
infrastructure and PPPs c. Assessing fiscal risks and affordability
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• Expected cash flow for the private partner• Only to check
• Government income statement, balance sheet & cash statement• Cash and accrual
• Charts comparing fiscal situation with and without the project
• Fiscal risk retained by the government• Risk heat-map
• Nominal exchange rate (NER)• Gross domestic product (GDP)
Private partner cash flow
Public financialstatements
Macroeconomicimpact
Fiscal risk matrix
Sensitivityanalysis
PPP Fiscal Risk Assessment Model: PFRAM - Outcomes
II. Tools to improve decision-making around
infrastructure and PPPs c. Assessing fiscal risks and affordability
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II. Tools to improve decision-making around infrastructure and PPPs:
d. Disclosure of Contracts and Projects
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II. Tools to improve decision-making around
infrastructure and PPPs d. Disclosure of Contracts and Projects
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Guidance on Confidential Information
Standard Clauses
Template
Data Standards
PPP Policy/ PPP
Disclosure Guidelines
FOI Legislation
PPP Legislation
- Proactive disclosure
- Application to contracts/ PPP
- Pre- and post-procurement disclosure
- Institution responsible for disclosure
-Elements to be disclosed
-Timing of disclosure
- Process, roles and responsibilities
- Validation- Strategic: security, safety
- Public interest
- Commercial sensitivity
- Government negotiating position
-Timing issues-
- For RFP, contract documents
- By reference to PPP Disclosure
Guidelines/ template/ specific
information
- Dynamic
- Simple and short
- Linked to objectives, uses, benefits
- Cognizant of challenges, costs
- Structured, consistent and exploitable
data
II. Tools to improve decision-making around
infrastructure and PPPs d. Disclosure of Contracts and Projects (2)
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