P3 ADVISORY
P3 ADVISORY
Our team applies expertise in P3 project planning to assist clients with:
Identifying and Screening for bankable infrastructure projects
Structuring Comprehensive P3 proposals
Designing Equitable P3 Contracts
Leveraging private sector innovation
Imbibing sustainabilty aspects in project design
Integrating smart asset monitoring for enhanced O&M
P3 Analysis
Capabilities
Studies needed to enact sound decision making throughout the development process.
1
COST BENEFIT ANALYSIS
By conducting a CBA analysis, policymakers and project sponors can better understand the social and economic impact of a project.
2
PROJECT FINANCE MODEL
A PFM can help ensure that the project is financiall sustainable, that the risk are appropriately allocated, and that the project deliver maximum value.
3
VALUE-FOR-MONEY ANALYSIS
The VfM analysisIt helps ensure that investments are aligned with public interest. provide value-for-money, and achieve their intended outcomes.
4
LIFE CYCLE COST ANALYSIS
This is a tool used to estimate and evaluate the total costs associated with the project over its entire lifecycle.
5
RISK-REWARD SHARING ANALYSIS
The RSA helped ensure that risks associated with the project are allocated to the party best able to manage them and certify that the project is financially sustinable.
WHAT IS A PRIVATE-PUBLIC PARTNERSHIP
1. A long-term contract between public and private party...
In a P3 it is important that the delegation of management to the private sector is outlined by one legal binding contract. This contract should be established as a long-term agreement. The lengthy nature of the deal addresses two key areas of a project; (i) Effective Risk Transfer and (ii) and Financial Nature of the project.
2. ...for the development and management of a public asset and/or services
In a P3 project, practitioners search for efficiency through involvement of the private contractor. Construction and Operations/Maintenance of the asset are bundled obligations which are transferred to the private party.
3. ...where the private partner bears significant management responsibility
and risks through the life of the contracts
In a P3 project, the private party is materially and integrally in charge of the management of the asset rather than being dedicated to minor areas of the project. There should be significant risk transfer to the private sector over a significant part of the asset lifecycle.
4. ...as well as provides significant portion of the finance,
This P3s incentivizes the private partner to: (i) Be proactive in maximizing the objective of the public party (ii) Manage the "Whole-of-Life" Costs. The Private partner services debt, meets operating budget and provides returns to investors
5. where remuneration is significantly linked to the use of the asset or service.
The link of payback to performance is paramount for aligning the interests of the private partner with objectives of the public. The best way to transfer full lifecycle responsibilities is to compensate the contractor on the basis of performance of the asset.
WHAT ARE THE BENEFITS OF P3 PROJECTS?
Increased Project Efficiency & Effectiveness
1
A bulk of efficiency gains through P3 relate primarily to Risk Management, Cost Management, Lifecycle Management, and Innovation.
Cost Management
Risk Management
Lifecycle Management
Innovation
Tool for Achieving Global
SDGs
2.
P3s strengthen the means of implementing SDGs and, revitalize collaborative partnerships for Sustainable Development.
Strengthen the technology and innovation capacity for least developed areas
Improve Macroeconomic Stability
Encourage Effective Partnerships
Enhance Availability of Reliable Data
Further Develop Measurements of Progress
3.
Alternative Financing for
Public Infrastructure
P3s relieve public budgets of large upfront CapEx expenditures during construction, and transfers the financial risk to the private partner. Governments gain the ability to expand infrastructure even when public budgets and debt are tight.