The document provides an introduction to Scotland's Hub initiative, which divides Scotland into 5 territories for public infrastructure procurement. Each territory has a dedicated company called a "hubco" to deliver public sector body (PSB) projects through public-private partnerships. The key objectives are faster and more cost-effective procurement, flexible solutions, improved community buildings, delivering an optimal public-private partnership, and creating local opportunities. Projects are procured through long-term partnerships between hubcos, PSBs, and private developers, aimed at reducing costs through standardized processes while allowing flexibility.
This ppt was prepared for educational purpose, and to teach about PUBLIC PRIVATE PARTNERSHIP scheme and their models for using this scheme. Many projects now days are using this method with help of gov. parties or private parties. This methods helps in decreasing load on construction and infrastructure, and road development load from government, as they are not participating in finance of project but let the construction firm, construct the project and run by their names to recover their cost and profit for predetermined time period and on predetermined rate of recovery, either by tolling system or annuity system.
A public–private partnership (PPP) is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies
The PPP projects are good as it do not put financial implications on union and states and creating better infrastructural facilities to the people
Burness NHS Procurement Seminar - 30 March 2010Elaine Creamer
How does the NHS ensure that it obtains best value when procuring its construction needs? No doubt this will be a question that will increasingly concern the NHS should they be called upon to bear a share of the widely anticipated cuts in public spending.
Over the last 18 months, the NHS has sought to achieve best value through the application of Frameworks Scotland. HFS Frameworks Scotland operates on a design and build basis along with a target cost payment mechanism. Will HFS Frameworks Scotland always be the most appropriate way to procure the construction needs of the
NHS? Can local frameworks be used to procure projects for which Frameworks Scotland is not suitable? Burness, with the assistance of procurement specialists within the NHS and the private sector, will be offering answers to these questions.
Frameworks are no longer the only option for the NHS and a new era of the hub is now dawning. How will hub operate and how will it interact with national and local frameworks? Burness, as legal advisors to the hub South East Territory, is ideally placed to offer views of these important issues.
Public Private Partnership in Civil Engineeringvivatechijri
This report majorly focuses on the principles of Public Private Partnership (PPP), its different forms and their suitability as a possible procurement route to be used for the development of road sector in a developing country like India. The report also critically analyse the viability of Private Finance Initiative (PFI) and basic procurement routes for road projects. The report recommends the most suitable types of PPP for the new and maintenance project.
Private Finance Initiative (PFI) changes model of funding for large-scale investment projects
First launched in 1992 by a Conservative government and was extended heavily by the Labour government of 1997-2010.
By 2011, more than 700 hospitals, schools, prisons and other public sector projects had been built under the PFI scheme
Encourages private investors manage the design, build, finance and operation of public infrastructure such as new schools, hospitals, social housing, defence contracts, prisons and road improvements.
Typical PFI contract repaid by government over 30 year period
This ppt was prepared for educational purpose, and to teach about PUBLIC PRIVATE PARTNERSHIP scheme and their models for using this scheme. Many projects now days are using this method with help of gov. parties or private parties. This methods helps in decreasing load on construction and infrastructure, and road development load from government, as they are not participating in finance of project but let the construction firm, construct the project and run by their names to recover their cost and profit for predetermined time period and on predetermined rate of recovery, either by tolling system or annuity system.
A public–private partnership (PPP) is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies
The PPP projects are good as it do not put financial implications on union and states and creating better infrastructural facilities to the people
Burness NHS Procurement Seminar - 30 March 2010Elaine Creamer
How does the NHS ensure that it obtains best value when procuring its construction needs? No doubt this will be a question that will increasingly concern the NHS should they be called upon to bear a share of the widely anticipated cuts in public spending.
Over the last 18 months, the NHS has sought to achieve best value through the application of Frameworks Scotland. HFS Frameworks Scotland operates on a design and build basis along with a target cost payment mechanism. Will HFS Frameworks Scotland always be the most appropriate way to procure the construction needs of the
NHS? Can local frameworks be used to procure projects for which Frameworks Scotland is not suitable? Burness, with the assistance of procurement specialists within the NHS and the private sector, will be offering answers to these questions.
Frameworks are no longer the only option for the NHS and a new era of the hub is now dawning. How will hub operate and how will it interact with national and local frameworks? Burness, as legal advisors to the hub South East Territory, is ideally placed to offer views of these important issues.
Public Private Partnership in Civil Engineeringvivatechijri
This report majorly focuses on the principles of Public Private Partnership (PPP), its different forms and their suitability as a possible procurement route to be used for the development of road sector in a developing country like India. The report also critically analyse the viability of Private Finance Initiative (PFI) and basic procurement routes for road projects. The report recommends the most suitable types of PPP for the new and maintenance project.
Private Finance Initiative (PFI) changes model of funding for large-scale investment projects
First launched in 1992 by a Conservative government and was extended heavily by the Labour government of 1997-2010.
By 2011, more than 700 hospitals, schools, prisons and other public sector projects had been built under the PFI scheme
Encourages private investors manage the design, build, finance and operation of public infrastructure such as new schools, hospitals, social housing, defence contracts, prisons and road improvements.
Typical PFI contract repaid by government over 30 year period
Presentation of the “SIGMA Workshop on PPP characteristics, models & sectors”, held in Ankara on 11-12 April 2018. Presentation made by Mr. Mario Turkovic, SIGMA.
Програма розвитку державно-приватного партнерстваKukurudziak Ivan
Програма розвитку ДПП – п’ятирічна програма Агентства США з міжнародного
розвитку (USAID), що впроваджується компанією FHI Development 360, LLC,
з метою поширення державно-приватного партнерства (ДПП) як
механізму для покращення надання комунальних послуг та
інфраструктури в Україні.
Presented by Solomon Gizaw at the HEARD project regional public-private partnerships task force workshop, Amhara, 18 November 2019: Somali, 21 November 2019: Oromia, 26 November 2019
There is a massive gap between the need for infrastructure investment around the world and the ability of governments to pay for those investments. Public-private partnerships, in which the private sector builds, controls, and operates infrastructure projects subject to strict government oversight and regulation, can help bridge that gap. (www.bcgperspectives.com)
Presentation on the Brazilian Program of Private Participation in Infrastructure, describing its main features and current problems.
The presentation was delivered to a trade mission to Brazil of the Government of Pennsylvania. São Paulo, April 9th 2013.
First International Conference
Perspectives for Ukraine on Implementation of
Public Private Partnerships
PPP – The EIB Experience
by Tilman Seibert
Kyiv, 21 March 2006
Piloting Social Impact Bonds in Homelessness ServicesFEANTSA
Presentation given by Tim Gray during the "New forms of finance for homelessness services: threat or opportunity?" seminar at the FEANTSA 2014 Policy Conference, "Confronting homelessness in the EU: Seeking out the next generation of best practices", 24-25 October 2014, Bergamo (Italy)
Presentation of the “SIGMA Workshop on PPP characteristics, models & sectors”, held in Ankara on 11-12 April 2018. Presentation made by Mr. Mario Turkovic, SIGMA.
Програма розвитку державно-приватного партнерстваKukurudziak Ivan
Програма розвитку ДПП – п’ятирічна програма Агентства США з міжнародного
розвитку (USAID), що впроваджується компанією FHI Development 360, LLC,
з метою поширення державно-приватного партнерства (ДПП) як
механізму для покращення надання комунальних послуг та
інфраструктури в Україні.
Presented by Solomon Gizaw at the HEARD project regional public-private partnerships task force workshop, Amhara, 18 November 2019: Somali, 21 November 2019: Oromia, 26 November 2019
There is a massive gap between the need for infrastructure investment around the world and the ability of governments to pay for those investments. Public-private partnerships, in which the private sector builds, controls, and operates infrastructure projects subject to strict government oversight and regulation, can help bridge that gap. (www.bcgperspectives.com)
Presentation on the Brazilian Program of Private Participation in Infrastructure, describing its main features and current problems.
The presentation was delivered to a trade mission to Brazil of the Government of Pennsylvania. São Paulo, April 9th 2013.
First International Conference
Perspectives for Ukraine on Implementation of
Public Private Partnerships
PPP – The EIB Experience
by Tilman Seibert
Kyiv, 21 March 2006
Piloting Social Impact Bonds in Homelessness ServicesFEANTSA
Presentation given by Tim Gray during the "New forms of finance for homelessness services: threat or opportunity?" seminar at the FEANTSA 2014 Policy Conference, "Confronting homelessness in the EU: Seeking out the next generation of best practices", 24-25 October 2014, Bergamo (Italy)
A presentation on what is Public, Private partnership. It also depicts the use, benefits, defects and why it should be adopted or avoided in the tourism sector.
Private sector’s role in cities regeneration drive, by Noël ChalamandaIFPRIMaSSP
National governments have a social and political responsibility of providing basic services to its nation and citizens. Many governments have a reputation for reneging on this responsibility with aplomb. In this presentation I argue that it is time for regeneration in terms of meaningful infrastructure that takes into account today’s needs and will remain relevant for some decades. Endemic budget deficits and the inefficient management of large infrastructure projects and delivery of services within the public sector are a few of the reasons why the traditional procurement method of governments funding infrastructure projects through fiscal budgets is increasingly considered unviable. Elsewhere, PPP strategies have been successfully utilized and adapted to the needs of different sectors of the economy and to different cities. Could Public Private Partnerships (PPP) offer a solution to this problem in Malawi?
Private and Public Partnerships Move MainstreamKerry Carey
All across the country, infrastructure projects are in need of repair, and creative organizational solutions are in-demand. Public-Private Partnerships are long-term contracts between a private party and a government entity allowing for an alternative approach to federal, state and municipal construction projects. The private party bears a large share of risk and management responsibility, and remuneration is linked directly to performance. This webinar discusses the nature of this collaboration across sectors.
Presented by:
Gregory Fitch
Black and Veatch
View the on-demand webinar: http://cpe-wpi.hs-sites.com/construction-project-management-webinar-series
PUBLIC PRIVATE PARTNERSHIPS ARE MOSTLY PURSUIED TO SATISFY THE INFRASTRUCTURAL NEEDS OF A COUNTRY, REGION OR A CITY . PPP Is an instrument for infrastructure development AND HAS BASIC TENETS AND PRINCIPLES UNDERLYING ITS SUCCESSFUL IMPLEMENTATION.
.
An introduction to the hub Initiative for Contacts Fair Conference 2.10.15
1. An introduction to the Hub initiative in
Scotland
Euan Pirie
October 2015
2. hub territories and participants
• Scotland divided into 5 hub Territories
each with approximately 1 million
people and a dedicated "hubco"
• Territories based on boundaries of pre-
existing (local) municipalities and
(regional) health authorities
• National ambulance, fire and police
authorities join municipalities and
health authorities as “participants” in
each Territory
• Urban regeneration companies and
housing associations also participants
in later Territories – significant overall
public sector participation and
representation
3. What is “hubco”?
• Institutional public (to public and) private partnership
– Public Sector Bodies (PSBs) along with Private Sector
Development Parter (PSDP) and Scottish Futures Trust
Investments (SFTI) are shareholders in corporate joint venture
company (hubco)
• Delivers services to PSBs (through PSDP)
• Long term partnership not one off project procurement
– 10 year exclusivity period for primary care projects; 20 year
overall framework; and 5 year extension option
• Costs benchmarked to ensure value for money (enhanced by
tendering at supply chain level)
• Secure supply chain but not fixed for duration of framework
• Offers PSBs capital or revenue funded (PPP) project
development options
5. Key objectives for the hub initiative
• Achieving faster and more cost effective
procurement
• Offer more flexible procurement solutions
• Improving community buildings and the
“user experience”
• Delivering the “ultimate” PPP
• Creating employment opportunities and
community benefits
6. Faster and more cost effective
procurement
• At outset PSBs in each hub Territory advertised PSDP role in OJEU and tendered hubco
establishment documents and PSDP services under detailed competitive dialogue process
• hubco appointed on framework contract basis and faster procurement achieved through
– removal of requirement to advertise individual projects
– replacing competitive dialogue procedure with streamlined new project development process under
TPA allowing PSB and community involvement at early stage and throughout project development
– project planning improved and project progression facilitated through partnership approach and
“adversarial” environment present in some PPPs removed
• Pricing protection ensured through
– capping cost of key elements in new projects by reference to tendered sample projects included in
original bids (adjusted for inflation)
– requiring hubco to tender key supply chain roles to minimum pool of 3 potential providers
– supply chain bidding for more than single project and hubco subject to loss of exclusivity and TPA
termination if it does not perform, strengthening PSB negotiating position
• Repetition of new project development process across all new projects and involving a
consistent supply chain facilitates efficiency and continuous improvement in quality and
speed of responses and significantly reduces tender costs
• PSBs supported by centrally appointed “Territory advisers” addressing “experience gap”
• Speed of procurement and cost reduction further aided by mandatory use of standard form
contracts
7. Offering more flexible procurement
solutions
• hub provides PSBs with flexible contract options
– appoint hubco to design and build works under “design and build development
agreement” (and pay for works from capital budgets or via PSB borrowing)
– appoint DBFM Co to design, build, fund and maintain (DBFM) facilities under DBFM
Project Agreement (DBFM Co borrowing to finance works and PSB paying service
payment over 20 years+)
• 10 year exclusivity for primary health care projects applies but PSBs option to
procure other projects through hubco
• hubco’s services also include services relevant to preparation for future projects,
including feasibility studies, option appraisals and concept designs
• Smaller projects may be “bundled” to form single larger project
– justifying costs associated with DBFM structure and supporting project finance funding
solution
– option to group PSBs own projects or “bundle” with smaller projects of another PSB
– significant reduction in construction and operational costs compared to progressing
projects on an individual basis
8. Improving the user experience
• hubco delivers “state of the art” modern facilities to replace old and
poorly maintained buildings
• Collaboration between PSBs promotes sharing of facilities or co-
location on single site
– users benefit from improvements in community services, delivered from
better community buildings
– users also enjoy convenience of multi agency solution/integrated service
provision from single location
– scope to align with transport policy
– better public services at lower overall cost to public sector
• Continuous improvement targets (underpinned by KPIs) drive
innovation and learning from previous projects
– KPIs include “user benefit” tests at both Territory and individual project
levels
– Knowledge transfer between projects procured under hub
9. Delivering the “ultimate” PPP
• hub encourages “public to public” partnerships
– PSBs (within same Territory) encouraged to undertake joint procurements and share
accommodation, delivering lower construction and operational costs
• Each hubco is a corporate joint venture (limited company) with 60:30:10 ownership model
– PSBs invest for shares in and provide working capital to hubco alongside PSDP
– PSBs appoint 1 director to hubco board and participate in management of company
• Relationships between hubco shareholders regulated by contract (Territory Shareholders’
Agreement)
• Relationships between hubco and individual PSBs regulated by Territory Partnering
Agreement
• TPA and TSA secure right (but not obligation) for PSBs to invest in DBFM projects
• PSB also appoints director on project company board
• hubco incentivised to successfully deliver projects
– payment of hubco’s return deferred until financial close
– hubco’s performance measured on ongoing basis by KPIs at individual project level and also across
whole of Territory
– no annual service payments due on DBFM facilities until construction complete and buildings
comply with service requirements
• hubco develops relationships with PSBs and may propose projects to them
11. Creation of employment opportunities
and community benefits
• Method statements for performance of new project
development services include commitments to tender
minimum percentage of works and services to local
supply chain and SMEs
– Compliance with method statements measured by KPIs
• KPIs also incentivise creation of employment and
training opportunities and community engagement by
hubco
• Achievement of hubco against these requirements key
aspect of reports to TPB
– TPB made up of representatives from all Territory
PSBs/encouraging spread of opportunities across the Territory
12. Successes achieved in hub and should
Lithuania consider adopting the initiative?
• Use of hub to deliver projects is increasing in Scotland - HM advised on 13
completed projects with combined value of £275m+ since April 2012
• Clear evidence of reduced transaction costs
– legal fees in hub DBFM c25% of those in other similar PPP projects
– other fees also lower and payment deferred until financial close
– advisers accept lower fees due to repeat business opportunities and greater
efficiency in processes
• FWT health bundle project delivered c£100k annual operational cost
savings for PSBs compared to costs if procured individually
– PSBs could achieve further savings by reviewing staffing in shared
accommodation
• Kittybrewster project evidences faster procurement times
• hub is flexible delivering projects in sectors other than primary health
• Early involvement of community and PSBs and “open dialogue” approach
allows PSB to properly scope the accommodation and services that are
needed and refine requirements pre-close in non adversarial environment
13. Contact details
Euan Pirie
Partner and Head of Infrastructure & Projects
t: +44131 247 2505
m: +447795100183
e: euan.pirie@harpermacleod.co.uk