The Structure of the PPP Guide
The PPP Guide consists of eight chapters and a glossary that defines common terms.
Chapter 1 – PPP Introduction and Overview explains the focus of the PPP Guide and describes the particular features of a PPP contract, the variations in terminology and contract structure, the potential benefits of PPPs as a procurement option, the particular challenges and potential pitfalls, the need to develop a PPP framework, the need to carefully manage the PPP process, and the main elements of the PPP process.
Chapter 2 – Establishing a PPP Framework describes the elements of a PPP framework and the challenges that arise. The chapter includes guidance on PPPs’ strategic management and governance.
The remaining chapters guide readers through the phases of a typical PPP cycle.
Chapter 3 – Project Identification and PPP Screening describes the main features of a robust project identification process, and explains how to assess the suitability of a project for PPP delivery. The chapter also includes an introduction to the cost-benefit analysis to confirm the Value for Money (VfM) of projects.
Chapter 4 – Appraising PPP Projects describes the need for and approaches to PPP project appraisal and preparation, including an introduction to commercial feasibility analysis and other related analyses that should be undertaken before a government decides to invest in and procure the PPP project.
Chapter 5 – Structuring and Drafting the Tender and Contract describes how to design a PPP tender strategy and structure a PPP contract. The chapter explains financial risk structuring, revenue, and payment mechanisms. It outlines the most common and advisable approaches to risk allocation and the key requirements of the Request for Qualifications and Request for Proposals. The chapter also describes how to incorporate the contract structure and tender strategy into the tender package.
Chapter 6 – Tendering and Awarding the Contract describes the main challenges and requirements for managing the tender process up to executing the contract.
Chapter 7 – Strategy, Delivery and Commissioning explains the need for and importance of a proactive contract management strategy, the main features of a contract management function, and the main challenges of contract management during the construction phase of a PPP project.
Chapter 8 – Operations and Hand-Back describes the main challenges and particularities of contract management during the operations phase of the contract, up to and including the hand-back of the asset upon the contract’s expiration.