PPP Project Preparation
& Contract Management

What are the Goals?

By the end of this AZTech training course, participants will be able to:

• Determine project identification, screening and selection
• Address the range of issues in identifying, financing and procurement
• Analyse best practices in conducting financial, economic and technical feasibility studies
• Analyse the principal risk areas and issues common to all PPPs
• Explain the PPP procurement process
• Identify key PPP contract clauses

Who is this Training Course for?

This AZTech training course is suitable to a wide range of professionals, but will greatly benefit:

• Policy makers
• Senior government personnel
• Director and senior management from private infrastructure/public utility sectors (energy & electricity, water & waste water, transportation (roads, airports, ports, and rail), telecommunications, education, health and municipal services
• Project and contracts personnel in both public and private sectors
• Risk management personnel
• Auditors and Comptrollers
• Professionals who have some experience with infrastructure projects and wish to improve their knowledge and decision-making capacity to enact policies related to PPPs

The Course Content

Module 1: Public-Private Partnership (PPP) Project Preparation

Day One: Defining Public-Private Partnerships and Setting the Framework

Competency Description: Conceptualisation and conducting PPP project feasibility studies is paramount to implementing and delivering a sustainable project over a number of years.

Key behaviours:

• Perform a comprehensive Needs Analysis
• Understand the different types of feasibility studies required for any PPP project
• Distinguish between the needs and wants in the project scope
• Interpret and identify social and environmental safeguards

Topics to be covered:

• Needs and options analysis
• Legal feasibility
• Technical feasibility
• Scoping social/environment safeguards analysis
• Preliminary financial viability including expectations of required Government financial support

Day Two: Key Decision Criteria to Select Public or Private Provision for a Particular Infrastructure Sector

Competency Description: It is essentially important that personnel involved in any PPP project understands the full scope and context of the various PPP schemes.

Key behaviours:

• Appreciate the fundamental concepts of the PPP scheme
• Understand the different types of PPP contracts
• Know and understand the critical phases and levels of a PPP project
• Appreciate the rationale behind market needs

Topics to be covered:

• Rationale, aim and motivation for engaging PPP
• Key phases of the PPP project process
• The structure of the PPPs
• Different types of PPPs
• The four levels of preparation and implementation
• Analyse the important factors for the project preparation process

Day Three: Basics of Project Preparation: An Overview of its Key Components

Competency Description: Many vital decisions have to be made and PPP project professionals must recognize and understand the various options in order to make the right decision for a sustainable and successful PPP project.

Key behaviours:

• Appreciate Understanding and knowledge of investment models
• Know how to select suitable PPP projects
• Knowledge and insights of the different PPP models
• Analysis of cost benefits and
• Decision making abilities giving value for money
• Perform a basic project appraisal

Topics to be covered:

• Public investment delivery model
• Economies of scale and project grouping
• Analysis of cost benefits of a PPP project
• How to get value for money in PPP projects
• Commercialisation potential analysis
• Market potential
• Capacity of assuming long term commitments

Day Four: Planning for PPP Project Management

Competency Description: A critical success factor in any PPP project is understanding the various components and best practice to prepare and implement a comprehensive project implementation plan.

Key behaviours:

• Develop a practical ability to identify and mange project risks
• Understand the importance of financial and economic analyses
• Interpret costings estimates and impacts
• Decipher payment mechanisms in PPP projects
• Develop and implement practical project plans

Topics to be covered:

• Project identification, risks, sustainability
• Project design: tender strategy, technical aspects, components, cost estimation, and financing
• Structuring a PPP contracts
• How to avoid common pitfalls
• Importance of project financial and economic analysis
• Understanding and applying payment mechanisms
• Preparing the Project Implementation Plan
• Project Management Arrangements – various types of agreements and monitoring indicators

Day Five: Project Pre-Feasibility Analysis

Competency Description: Preparation and planning in any project is vital.  However, in PPP projects it is even more important that robust and viable project plans are developed to make sure that the project is based on strategic leadership and tactical appraisal.

Key behaviours:

• Appreciate the importance of proactive project management strategy
• Know the fundamental concepts of project management
• Identify the challenges parties face in a PPP projects and how to overcome them
• Choose the right people and skills for the various roles
• Formulate clear and concise management plans
• Appreciate the strategic objectives of stakeholder management

Topics to be covered:

• Appointing a PPP project manager and project team (Project Implementation Unit)
• Key roles within the project, including decision-making authorities, and sources and funding for assistance
• Preparing the project plan
• Dealing with main challenges of a PPP project
• The absolute importance of stakeholder consultation and managing the interface
• Risk assessment and analysis
• Going beyond the construction phase to ensure success in Operations
• Hand back of asset upon contract expiry

Module 2: Public-Private Partnership (PPP) Contract Management

Day Six: Dynamics of PPPs

Competency Description: As a project/contract professional you need to understand the background and challenges of PPP infrastructure procurement.

Key Behaviours:

• Appreciate the nature of PPPs
• Understand the scope and structure of PPPs
• Recognise the challenges both public and private sectors face
• Understand how PPPs are financed
• Identify the principal limitations of PPPs

Topics to be covered:

• Commercial landscape and background to PPPs
• PPP types and structures
• How PPPs are financed
• Implications of fiscal commitments
• Limitations and pitfalls of PPP procurement

Day Seven: Development and Implementation of a PPP Transaction

Competency Description: As a project/contract professional you need to develop an understanding of the key stages and inputs of PPP infrastructure procurement.

Key Behaviours:

• Develop an appropriate procurement strategy
• Understand how to develop an output specification
• Identify key qualification and evaluation criteria
• Appreciate what financial close means
• Understand how to deal with unsolicited bids

Topics to be covered:

• Procurement strategies
• Managing the bid process
• Performance-based output specifications
• Reaching financial close
• Dealing with unsolicited bids

Day Eight: Structuring the PPP Contract

Competency Description: As a project/contract professional you need to be able to identify, assess and allocate the principal risks associated with the PPP form of procurement.

Key Behaviours:

• Identify key risk areas in PPP contracts
• Be able to interpret performance requirements
• Understand payment structures and mechanisms
• Recognise how to manage and resolve disputes
• Appreciate principal triggers to termination

Topics to be covered:

• Identification, assessment and allocation of principal risks
• Performance and service requirements
• Different payment mechanisms
• Management and resolution of disputes
• Triggers and implications of termination

Day Nine: Managing Other Key Elements of PPP Contracts

Competency Description: As a project/contract professional you need to understand and manage other key risk areas under a PPP contract.

Key Behaviours:

• Distinguish between relief and compensation events
• Understand price and payment issues
• Identify types of warranty and guarantee
• Recognise other key liability issues
• Understand the nature of ‘step-in’ rights

Topics to be covered:

• Compensation and other relief events
• Price and payment terms
• Warranties, guarantees, indemnities
• Intellectual property
• ‘Step-in’ rights

Day Ten: Operation of the PPP Contract

Competency Description: As a project/contract professional you need to develop both qualitative and quantitative management skills to support the long term nature of PPP contracts.

Key Behaviours:

• Appreciate the nature of the relationship between public and private partners
• Understand ways of monitoring delivery and risk
• Recognise how to deal with change
• Develop a practical ability to manage contract expiry
• Identify key elements of asset handover

Topics to be covered:

• Relationship management between public and private partners
• Monitoring performance delivery and risk
• Dealing with change
• Managing contract expiry
• Handover of the asset or service

The Certificates

• AZTech Certificate of Completion for delegates who attend and complete the training course
• The applicable PMI Professional Development Units/Contact Hours will be reflected in the Certificate of Completion

Accreditation

AZTech as an A.T.P. (Authorised Training Partner) has been approved by PMI to issue applicable Professional Development Units (PDUs) for its Project Management training courses. PMI allows credential holders to apply PDUs to the maintenance of their credentials where one contact hour of training is equivalent to one PDU.

PMI is a registered mark of the Project Management Institute, Inc.

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