02101103tjb TL (Presentation)(1)

1.0INTRODUCTION
PROJECT MANAGEMENT ON PUBLIC SECTOR TRANSPORTATION
PROJECTS FUNDED BY THE PRIVATE SECTOR
16TH
OCTOBER 2002
TONY LATIENDA – MPM CAPITA
1.0 Introduction
1.1 The first part of this document analyses the case where the Government
needs Private Finance Initiatives in order to meet the needs and finance for
Infrastructure Works and Transportation Works and implementing the term
‘Transportation Projects’.
1.2 The organisational system and structure which allows collaboration between
the Public Sector and Private Sector for a Development Project is carried out
by the Nominated Consortium which integrates the following component
parts:
• Government / Client / Sponsor
• Finance
• Project
• Construction
• Operational Concessionaire
The relationship between such diverse parties as a voice: the Project
Finance Team, the Design Team, the Contractors and finally the Operators
should be contained in an Agreement which defines their roles,
responsibilities and obligations in each particular case.
The idea or the opportunity can be originated by any member of the Team.
MPM/l3239/BARCELONA/PRESENTATION/02101103/TL/vCi/tjb Page 1

1.0INTRODUCTION
16TH
OCTOBER 2002
1.0 Introduction (continued)
1.3 The complexity of this Agreement implies and explains the need to have an
Independent Group of Specialists whose mission is to achieve the following:
• The integration of all the parts of the Agreement, in order to ensure these
comply with the objectives of both the Client and the Operator
• The co-ordination of the Project and the Construction Activities in order to
ensure these comply with the planned objectives
• The direction of the project, in order to guarantee, costs, programme and
quality are met within the specified limits
The functions of this independent Group of Specialists are known as the
Project Management Team
1.4 It is important that a Total Process is implemented – The Process controls
the development of the initial idea through to final delivery and operation.
Responsibility for delivering the benefits is also integrated with the
responsibility for controlling the delivery of the physical Project Components.
(This shows a High Level Project Framework Process.)
1.5 It is critical to have this Project Framework Process underpinned by a
Process Map as a Matrix of Stages and Principles that are linked through a
series of gates which ensure overall objectives are maintained.
(This shows the Process Map Project Stages across the top and the
Business Activities at the side.)

1.0INTRODUCTION
16TH
OCTOBER 2002
1.6 The Project Management Team will be appointed to cover and manage the
following items:
• Stakeholder Management
• Risk Management
• Revenue Benefit Forecast
• Supply Chain Management
• Initial Business Case
• Establish Work Breakdown Structure
• Feasibility Studies
• Quality Plan
• Assemble and Brief the Study Team
• Cost Management (including Life Cycle Costs)
• Change Management
• Establish Reporting Systems
• Value Management
• Planning / Programming
• Analysis and Co-ordination of the Project
• Operational Analysis
• Health & Safety Issues
• Environmental Issues
1.7 The Project Management Team can act on behalf of the Government, Client,
or Consortium, working in each case, based on similar directives.

1.0INTRODUCTION
16TH
OCTOBER 2002
1.8 The Project Management Team will give the Client, through its extensive
network of people, experts in finance, management and planning - highly
qualified inter-disciplined Specialist Professionals, the complete comfort that
the Project will meet its planned objectives and that this will be carried out
within the planned time and costs limits, guaranteeing a permanent and
systematic control of process and procedures throughout its evolution.

2.0TRANSPORTATIONPROJECTS
16TH
OCTOBER 2002
2.0 Transportation Projects
2.1 The financial elements for the project construction and operation for a
development project require solid documentation co-ordinated to the
Contract which can be used during periods of conflict and ambiguity but with
the criteria available established will these meet the strict perimeters of cost
and programme. Therefore the documentation should be strong, clear and
unambiguous and the Project Management Team can assess all these
aspects in which it actively participates.
2.2 There are different sections in the Contract which are described in detail,
there should be for example, in order to compliment both the financial and
operational activities the preparation of regulated legal documentation in
order to protect the instructions of the Client and meet the needs of the
Operators on the project all within the determined programme and costs
established. The Project Management Team are appointed in order to
ensure both the technical and financial expectations of each party are
satisfied and ensure these are integrated properly.
2.3 The stages of design and construction can be the periods of major risk to the
programme, given the significant number of key players and the influence
this can cause on a number of factors, therefore it is especially important to
review the following critical points:
• A rigorous analysis on the capability of all the proposed objectives
• A check on income and cost cash flows
• The implementation of a process, procedures and controls to cover time
and cost during the life cycle of the project

2.0TRANSPORTATIONPROJECTS
16TH
OCTOBER 2002
2.0 Transportation Projects (continued)
The Project Management Team will be responsible for the co-ordination of
the Project, notice any changes to the established objectives, checking at
each stage that the global strategy satisfies those same objectives and
proposing any necessary changes in each case
2.4 A clear understanding of the Operational Requirements between the
Government and the End User (if there is one) or Operator is as important as
any particular instructions on the Project.
These requirements should be reflected in infinite detail in the Agreement
between all the interested parties and should be interpreted correctly, that is
to say that the project should satisfy all their requirements. The Project
Management Team is appointed to translate, interpret, manage and check
the full compliment of all these Operational Requirements across the
functional spectrum.
2.5 The Government as well as the Consortium are interested in the compliance
of the Project within the established objectives (cost, quality, and time). The
role of the Project Management Team is to achieve these objectives, through
the use of permanent processes and controls which generate a climate of
confidence and a clear perspective of the Transportation Project at all times.

3.0PROJECTMANAGEMENTONPUBLICSECTORTRANSPORTATIONPROJECTSFUNDEDBYTHEPRIVATESECTOR
16TH
OCTOBER 2002
3.0 Project Management on Public Sector Transportation Projects funded by the
Private Sector
3.1 The principle role of the Project Management Team consists in establishing
a climate of confidence between all the key players using a set of
management tools and techniques appropriate to each phase and stage of
the development process adding authenticity to its functional independence.
3.2 During the Initial Investigation and Feasibility & Definition Stage – the Project
Management Team will focus and actively participate in the preparation of
the following items:
• Initial Risk Assessment
• Initial Business Case
• Feasibility Study
• Procedures Manual and Information Flow (Reports / Change Management,
etc.)
• Development Programme and Objectives
• Conditions of Contract(s) – Key Issues
• Cost Plan
• Income Cash Flow
• Full Business Case
• Selection of Consultants, Designers etc.
• Selection of Contractors
• Bid Documents – Key Criteria for the Receipt of Bids (Procurement Plan)

16TH
OCTOBER 2002
Private Sector (continued)
During the receipt of any Bids – The issue receipt and analysis of Bids and
the selection will be determined by the best value for money which
guarantees the compliance of the objectives stated (economic, technical,
programme).
3.3 During the Development Stage – Exercising the important mission of co-
ordination of all the multi-disciplinary teams and establishing:
• Client Decision Programmes
• Construction Development Programmes (including Phases)
• Cash Flow Programme – Costs
• Cash Flow Programme – Income
• Acquisition / Expropriation and Appointment Programme
• Information Flow on the Project.
3.4 During the Implementation Stage – Acting as the principle control mechanism
and co-ordinating generally through the following list of actions:
•The establishment of a System which covers the receipt, communication
and distribution of information and relative data through the life cycle of
the project
•The preparation, including method statements and analysis of planned
informed programmes covering the two inter-related items of time and
cost
•Informative Analysis of Income Flow

16TH
OCTOBER 2002
•Periodic Progress Reports with analysis on delays, their causes and
consequences, including the recommendation of corrective measures
of the appropriate type for implementation
Private Sector (continued)
3.5 During the Validation of the Project:
• Co-ordination of Testing and Commissioning, including quality control
• Complete Analysis of Results
• Agreement on all Final Accounts
• Control during Guarantee Period
• Full Completion of the Works including Certificates / Validations

4.0THEMANAGEMENTOFEXISTINGTRANSPORTATIONPROJECTS
16TH
OCTOBER 2002
4.0 The Management of Existing Transportation Projects
4.1 Up to the present, we have focused on the Project Management Team at the
start of the projects.
4.2 However there is a full role for the Project Management Team to work on
both existing projects and other types of projects, where for example the
Government is having problems with the Consortium or whom whoever they
are associated with.
4.3 In these cases, the Project Management Team can be appointed by the
Client or the Consortium in order to carry out an audit on the project in
relationship to the particular terms of reference, for example to study the
costs, review the project and construction against the programme, equally
the actual position in connection with planned income, and any other aspect
the Government, The Consortium or the Project Management Team deem
appropriate.
4.4 The results of this investigation will not only reflect on the difficulties
encountered but will also indicate the best way to minimise the impact of the
problems faced and conclude with a systematic and controlled solution which
will ultimately achieve success on the project.
4.5 The ongoing role of the Project Management Team, who can enter at any
stage of the Project, is to prepare, comply and follow all the contractual
points of the Contract, ensuring the objectives of their investigation are fully
complied.

5.0CONCLUSION
16TH
OCTOBER 2002
5.0 Conclusion
5.1 The present document has thoroughly explained the essential role of the
Project Management Team in achieving total success in transportation
projects funded by the private sector in terms of design, cost, programme
and in accordance with the specific instructions of the public sector. Their
professional and independent services can equally be used on private sector
projects with the same objectives on the project, of cost, time and quality.
5.2 The role of the Project Management Team is independent and can vary in
accordance with the structure of the Contract between the Government and
the Private Sector, and equally meeting the precise and exact requirements
of all the parties to the Contract.
5.3 However, the parameters for the appointment of individual professionals in
the Independent Project Management Team can also vary on each project,
dependant on their specific roles, obligations and responsibilities, each
professional / member having an essential role to play in the finalisation of
the scheme.
5.4 Using the proposed Consortium for a Transportation Project, the Client can
have trust on the responsibilities of all the parties to the Contract, including
the Project Management Team and other Professionals who have the
guarantee of Professional Indemnity to recover for commercial losses
suffered by the Government or Client.
5.5 The importance of having such real guarantees that a project completed can
achieve the planned objectives of cost, time and quality are extraordinary.
Using the professional services provided by the Project Management Team,
it is possible to obtain control guarantee real results and achieve success.

5.0CONCLUSION
16TH
OCTOBER 2002
Tony Latienda
Senior Project Manager
MPM CAPITA
26A Albemarle Street
London
W1S 4HY
Telephone: 44 120 7499 1122
Facsimile: 44 120 7499 6611
E-mail: tony.latienda@mpmcapita.co.uk

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