Training On PPP Project Preparation and Contract Management
INTRODUCTION
Public-Private Partnerships (PPP) have become an essential model for financing and delivering infrastructure and public services. However, preparing and managing PPP projects requires specialized knowledge to ensure that they are designed to meet public goals while being attractive to private investors. This PPP Project Preparation and Contract Management training provides participants with the tools and strategies needed to prepare, implement, and manage PPP projects effectively from inception to contract closeout. The course covers project identification, feasibility analysis, risk allocation, contract drafting, and management, ensuring that both public and private sector interests are balanced for sustainable success.
Participants will gain insights into best practices for managing the complexities of PPPs, such as handling risks, ensuring performance standards, and maintaining the flexibility to adapt to evolving project needs. Whether you're a public official, project manager, or financial analyst, this training will enable you to navigate the entire PPP lifecycle confidently.
This 10-day comprehensive training on Public-Private Partnership (PPP) Project Preparation and Contract Management is structured to give participants a deep understanding of the key phases in PPP project preparation, execution, and contract management. The course is divided into thematic modules that cover the entire lifecycle of PPP projects—from identifying potential opportunities to managing contracts and ensuring sustainable outcomes.
DURATION
10 Days
TARGET AUDIENCE
This 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
OBJECTIVES
By the end of this training, participants will be able to:
- Understand the PPP Framework: Grasp the fundamentals of Public-Private Partnerships, including models, principles, and advantages.
- Identify Suitable PPP Projects: Learn how to identify and select projects that are appropriate for PPP arrangements.
- Conduct Feasibility Studies: Develop the skills to carry out technical, financial, and economic feasibility assessments to ensure project viability.
- Structure and Draft PPP Contracts: Gain the knowledge to structure PPP contracts, allocate risks appropriately, and ensure that both parties’ interests are protected.
- Navigate Legal and Regulatory Requirements: Understand the legal, institutional, and regulatory frameworks governing PPPs.
- Manage PPP Contracts: Learn best practices for managing PPP contracts to ensure performance, compliance, and successful project outcomes.
- Monitor Performance and Ensure Accountability: Implement systems for monitoring service delivery, performance standards, and stakeholder expectations.
- Handle Dispute Resolution and Contract Changes: Gain the skills to manage conflicts, renegotiate terms, and adapt contracts to changing circumstances during project implementation.
- Ensure Sustainability and Public Interest: Incorporate social, environmental, and governance (ESG) considerations into PPP project design and management.
- Assess the Long-Term Impact of PPP Projects: Evaluate project outcomes and manage the contract closeout, ensuring both short- and long-term objectives are met.
COURSE OUTLINE
Module 1: Introduction to PPPs and Project Preparation
Understanding Public-Private Partnerships (PPP):
- Definitions, characteristics, and rationale for using PPPs.
- Key PPP models: Build-Operate-Transfer (BOT), Design-Build-Finance-Operate (DBFO), concessions, and hybrid models.
Global Trends and Examples in PPPs:
- Case studies of successful PPP projects worldwide.
- Lessons learned from PPP failures and challenges.
PPP Project Life Cycle:
- Overview of the PPP project lifecycle: Preparation, procurement, implementation, and contract management.
- Stakeholders and their roles throughout the PPP project lifecycle.
Module 2: Identifying and Selecting PPP Projects
Project Identification and Screening:
- Criteria for selecting projects suitable for PPP arrangements.
- Assessing project size, complexity, risk-sharing potential, and private sector interest.
Strategic Alignment:
- Ensuring project alignment with national development plans and public service goals.
- How to conduct initial project assessments for suitability as a PPP.
Public Sector Comparator (PSC) Analysis:
- Using the Public Sector Comparator (PSC) to determine if PPP is the right procurement method.
Module 3: Feasibility Studies and Project Structuring
Conducting Feasibility Studies:
- Overview of technical, economic, financial, and environmental feasibility studies.
- Key tools and methodologies used in feasibility assessments.
Financial Modeling for PPP Projects:
- Basics of financial modeling, including cash flow projections, Net Present Value (NPV), and Internal Rate of Return (IRR).
- Cost-benefit analysis and sensitivity analysis.
Risk Analysis and Mitigation:
- Identifying risks (technical, financial, operational, political) and how to mitigate them.
- Using risk allocation matrices to assign risks to the appropriate party.
Module 4: Legal and Regulatory Frameworks for PPPs
Understanding Legal and Regulatory Frameworks:
- Key components of national and international PPP legal frameworks.
- The role of legislation, regulations, and policy guidelines in PPP project governance.
Institutional Framework for PPPs:
- Public agencies, regulatory authorities, and their roles in PPP projects.
- How to establish a PPP unit or body within the public sector.
Compliance and Regulatory Requirements:
- Ensuring that PPP contracts comply with legal and regulatory standards.
- Role of environmental and social impact assessments.
Module 5: Contract Structuring and Drafting
Key Elements of PPP Contracts:
- Understanding essential components of a PPP contract: Risk allocation, financial structure, performance standards, and payment mechanisms.
- Service-level agreements (SLAs), availability payments, and user fees.
Drafting Contracts to Protect Public and Private Interests:
- Structuring contracts to ensure balanced risk allocation and clear obligations.
- Provisions for contract renegotiation, force majeure, and termination.
Dispute Resolution Clauses:
- Embedding dispute resolution mechanisms within PPP contracts.
- Mediation, arbitration, and legal remedies for resolving conflicts.
Module 6: Risk Management in PPP Contracts
Risk Allocation and Management:
- Strategies for allocating risks between the public and private sectors based on capability to manage them.
- Key risk areas in PPP contracts: Construction risks, operational risks, financial risks, and political risks.
Risk Mitigation Tools:
- Insurance, guarantees, and risk-sharing mechanisms in PPP projects.
- Use of public sector guarantees, multilateral guarantees, and risk mitigation instruments.
Monitoring Risks Throughout the Project Lifecycle:
- Establishing monitoring mechanisms to track risks and trigger mitigation actions during project execution.
Module 7: PPP Procurement and Financial Close
Procurement Processes in PPPs:
- Understanding PPP procurement methods: Competitive bidding, direct negotiations, and unsolicited proposals.
- Preparing request for proposals (RFPs) and managing the tender process.
Evaluating PPP Bids:
- Developing bid evaluation criteria based on technical, financial, and operational capabilities.
- Selecting the preferred bidder and conducting due diligence.
Achieving Financial Close:
- Steps involved in reaching financial close: Securing funding, financial agreements, and finalizing contract terms.
- Understanding the roles of equity investors, lenders, and financial institutions.
Module 8: Contract Management and Performance Monitoring
Managing PPP Contracts Post-Financial Close:
- Establishing contract management teams and monitoring mechanisms.
- Key tools for managing contracts: Performance-based management, contract variations, and payment adjustments.
Performance Standards and Monitoring Tools:
- Developing key performance indicators (KPIs) and service delivery benchmarks.
- Using performance monitoring to trigger payments or penalties.
Managing Contract Modifications and Renegotiations:
- Handling contract amendments and renegotiations during the life of the project.
- Legal, financial, and operational considerations in contract renegotiation.
Module 9: Dispute Resolution and Crisis Management
Handling Disputes in PPP Contracts:
- Common causes of disputes in PPPs: Performance shortfalls, payment disputes, and changes in conditions.
- Techniques for preventing and managing disputes: Negotiation, mediation, and arbitration.
Crisis Management in PPP Projects:
- Identifying potential crises (political, financial, operational) and developing contingency plans.
- Managing stakeholder relations and communications during crises.
Exiting and Terminating Contracts:
- Conditions for contract termination, project handover, or early termination clauses.
- Ensuring smooth transition in case of contract termination or project closure.
Module10: Sustainability, Public Interest, and Project Closeout
Ensuring Sustainability in PPP Projects:
- Incorporating environmental, social, and governance (ESG) criteria into PPP contracts.
- Monitoring long-term project sustainability and community impact.
Public Interest and Value for Money:
- Ensuring that PPP projects deliver value for money while protecting public interest.
- Balancing profit motives of the private sector with public service goals.
Post-Implementation Review and Project Closeout:
- Steps involved in project closeout and handover: Operational transfer, asset transfer, and final reporting.
- Conducting post-implementation reviews and lessons learned for future PPP projects.
CERTIFICATION
- Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate
TRAINING VENUE
- Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.
AIRPORT PICK UP AND ACCOMMODATION
- Airport pick up and accommodation is arranged upon request
TERMS OF PAYMENT
- Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com
