Training On PPP Project Preparation and Contract Management
INTRODUCTION
It is widely recognized that good project preparation and contract management is fundamental to a successful PPP project. The concept of PPP obligates a more collaborative relationship between both sectors, fostered by openness and trust. This presents a major shift from the traditional arms-length approach in procuring services and executing projects. Well designed, feasible projects attract greater interest amongst potential investors and demonstrate the potential benefits of taking the project forward to procurement phase.
This career building training course in Dubai will focus on how best to prepare for a PPP project and then manage the PPP procurement process; identifying, assessing and allocating the principal risks in structuring the PPP contract, and other key issues that need to be considered in managing these long term high risk contracts. Exposure to both of the commercial landscape and background to PPP as well as its implementation will promote greater understanding of its place in infrastructure procurement.
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
At the end of the course, the 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
COURSE OUTLINE
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
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