The document discusses the importance of operating models in tracking the performance of public-private partnership (PPP) projects during their operational phase. It highlights how these models support performance updates, invoice reconciliation, and financial forecasting for stakeholders like bondholders and project sponsors. Furthermore, it promotes the availability of an easy-to-use PPP operating model template from Operis, which can be customized for specific project needs.

1. OPERATING MODEL
Tracking the Performance of a PPP
Project Against the Original Plan

2. It Is Not Even The Beginning Of The End…
As projects transition into the operational phase, both public
and private partners begin to realise the need for operating models.
The operational phase is just as important as the final funding stages,
as many SPV managers would attest as they take-over, looking after
the operations of the concession.

3. Perform periodic updates
and performance tracking1
33 Support internal and external reporting
22 Facilitate invoice reconciliation
PAID
OPERATING
MODELS
KEY
STEPS5
55 Allow for portfolio modelling
REPORT
434
Provide a project management tool used for on-boarding
a project team
PAYMENT

4. Support complex updates
on traffic, demand or tariff risk
Track the private
partner’s performance
Facilitate potential payment
deductions to the Availability
Service Payment (ASP) ASP
PERFORM PERIODIC UPDATES AND
PERFORMANCE TRACKING1

5. FACILITATE INVOICE RECONCILIATION
2
PAID Enable efficient tracking and pro-
cessing of invoices issued by the
private partner
Allow the confirmation of
amounts due to be paid
Help the authority justify any
changes to the payment schedule

6. SUPPORT INTERNAL AND EXTERNAL REPORTING
3
Easily produce customised
output sheets for archiving
and reporting purposes,
like a request for payments
to the Treasury board

7. PROVIDE A PROJECT MANAGEMENT TOOL USED
FOR ON-BOARDING A PROJECT TEAM4
Provide a historical
perspective on the project
Clearly lay out the payment
mechanism and related
project finance calculations

8. ALLOW FOR PORTFOLIO MODELLING
5
Facilitate the management of
multiple PPP projects
Allow extraction of critical information
from individual operating models
Enable the aggregation of sensitive
outputs in a standalone report
REPORT

9. PPP OPERATING MODELS
FOR PRIVATE PARTNERS
Once a project is operational, the day-to-day
implementation of contracts continues for many years
to come and there are certain parties who have a
strong interest in monitoring the general
performance of the project.

10. BONDHOLDERS
AND SENIOR LENDERS
Bondholders and senior lenders will require scheduled
interest and debt repayments under the senior facilities.
This is where an operating model is useful as it can be used to
track the project’s past performance as well as forecast its
future cashflows.
past
performance
future cashflows

11. PROJECT SPONSORS AND SHAREHOLDERS
Sponsors will be keen to prove that distributions can
be made in order to meet their target returns.
Shareholders would also use an operating model to
refinance any of the senior debt as any new lender
would want to lend based on analysis which takes into
account the project’s performance to date.

12. Monitoring PPP Operations
For The Public Authority
The primary objective of
the operating model for the public
authority is to ensure the risks that
were meant to be transferred
to the private partner are monitored
and addressed, generating
the value for money originally
tought at financial close.

13. Get your elegant and easy to use
PPP operating model template today.
A GAME CHANGER
FOR PPP ASSET MANAGERS
Operating models mirror the transactions they describe
in ranging from the simple to the complex, but whatever their
sophistication, they serve their purpose only if they are dependable
and easy to understand.
The straightforward, elegant and easy to use PPP
operating model is available for download from the Operis website.
http://www.operis.com/campaigns/ppp-operating-model-template/

14. Modelling for project finance transactions has been at the heart of Operis’s expertise
for over 25 years.
With nearly
1000 projects
worked on to date, our modelling teams have been mandated on a wide array of sectors
and in an ever growing number of geographies around the world.
ABOUT OPERIS
Healthcare Oil, Gas & Mining
Transport
Education
Power & Utilities Public Sector

15. Whether you need assistance in adapting the
template to fit the exact requirements of your
project, or would like a custom-made model,
a dedicated team of Operis professionals is
available to answer your questions.
+44 207 562 0400
+1 647 846 7382
info@operis.com
WE ARE HERE TO HELP