Roads & Highway PPP (P3) Toolkit World Bank

1,243 views

Published on

World Bank Roads & Highways PPP (P3) Toolkit

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,243
On SlideShare
0
From Embeds
0
Number of Embeds
26
Actions
Shares
0
Downloads
42
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Initial version was a good introduction of PPP for developed countries but a bit too complex for developing countries in 2001. Now, too simple for OECD countries but taking into account the development of PPP through, it seems adapted to be understood by public decision makers in developing countries.
  • Initial version was a good introduction of PPP for developed countries but a bit too complex for developing countries in 2001. Now, too simple for OECD countries but taking into account the development of PPP through, it seems adapted to be understood by public decision makers in developing countries.
  • Roads & Highway PPP (P3) Toolkit World Bank

    1. 1. Toolkit for Public-Private Partnership in Roads & Highways IRF Seminar Cairo 12/13 October 2009
    2. 2. <ul><li>Toolkit overview and features </li></ul><ul><li>Enabling environment for PPP </li></ul><ul><li>PPP Policy Framework </li></ul><ul><li>Project preparation for PPP </li></ul><ul><li>Financial model for project evaluation </li></ul>
    3. 3. Reference manual for PPP <ul><li>Toolkit complements existing information sources, rather than competes with them </li></ul><ul><li>“ Fills the gaps” to provide a comprehensive manual for PPP development </li></ul><ul><li>Provides for an adapted approach to PPP: descriptive not proscriptive </li></ul><ul><li>Self-contained on CD-ROM and internet: http://www.ppiaf.org/documents/toolkits/highwaystoolkit/index.html </li></ul>
    4. 4. Content of Toolkit <ul><li>Six Modules: core subjects </li></ul><ul><li>Additional Tools: site map, glossary & abbreviations, search, feedback </li></ul>
    5. 5. Objective of the Toolkit <ul><li>“ to assist transport sector policy makers in the Bank’s client countries in implementing procedures to promote private sector participation and financing in the development of their road and highway sector. </li></ul><ul><li>The toolkit will serve as a manual for World Bank clients and Bank staff when they recommend and implement processes to increase or to introduce private sector participation in road and highway development ” </li></ul>Supported by Public-Private Infrastructure Advisory Facility (PPIAF)
    6. 6. Use of toolkit <ul><li>Complete manual for PPP policy and development: a focal point for World Bank staff and public sector clients </li></ul><ul><li>Assists in each stage of PPP preparation by defining objectives and components (“terms of reference” for consultants) </li></ul><ul><li>Describes the PPP framework necessary to develop private sector interest </li></ul><ul><li>Presents “most applicable practices” comprising both latest examples and those most suited to developing countries </li></ul><ul><li>Allows inexperienced practitioners to understand PPP </li></ul>
    7. 7. Toolkit case studies <ul><li>Brazil – country case study </li></ul><ul><li>Chile – urban highway concessions in Santiago </li></ul><ul><li>Croatia – A6 motorway </li></ul><ul><li>France – country case study </li></ul><ul><li>Hungary - M1/M15 motorway </li></ul><ul><li>India – country case study </li></ul><ul><li>Indonesia – country case study </li></ul>Korea – country case study Serbia – country case study (PBC contracts) South Africa / Mozambique – N4 toll road UK – M6 toll road US – country case study Zambia – country case study (PBC contracts)
    8. 8. <ul><li>Toolkit overview and features </li></ul><ul><li>Enabling environment for PPP </li></ul><ul><li>PPP Policy Framework </li></ul><ul><li>Project preparation for PPP </li></ul><ul><li>Financial model for project evaluation </li></ul>
    9. 9. Why enable PPPs? <ul><li>90% of investment in PPP since 1990 has been concentrated in only 10 countries </li></ul><ul><li>117 developing countries did not receive any private investment at all in the highway sector. </li></ul><ul><li>Source: World Bank/PPIAF PPI database (1990-2006) </li></ul>
    10. 10. There is wide acceptance that the role of PPP is to complement rather than replace conventional public sector procurement. PPP cannot pretend to represent the best solution for numerous low volume roads and local contracts implemented at local and regional level in developing and even industrialized countries. To attempt to do so would be counter-productive to efforts to develop PPP on a national scale. Application of PPP
    11. 11.
    12. 12.
    13. 13. <ul><li>Toolkit overview and features </li></ul><ul><li>Enabling environment for PPP </li></ul><ul><li>PPP Policy Framework </li></ul><ul><li>Project preparation for PPP </li></ul><ul><li>Financial model for project evaluation </li></ul>
    14. 14. PPP Policy Frameworks <ul><li>A specific PPP policy framework would include; </li></ul><ul><ul><li>The legal and regulatory framework, </li></ul></ul><ul><ul><li>Procurement guidelines, </li></ul></ul><ul><ul><li>Model PPP contracts, and </li></ul></ul><ul><ul><li>Risk Management Framework, </li></ul></ul><ul><ul><li>Financial guidelines (Tariffs, payments and Government support), </li></ul></ul><ul><ul><li>The Project Cycle and the role of Advisors, </li></ul></ul><ul><ul><li>Technical design and service standards, </li></ul></ul><ul><ul><li>Institutional and Approvals Framework (Including Dispute resolution mechanisms). </li></ul></ul>
    15. 15. Technical and Performance Standards  <ul><li>According to ISO, the International Standards Organization, &quot;standards are documented agreements containing technical specifications or other precise criteria to be used consistently such as rules, guidelines, or definitions of characteristics, to ensure that materials, products, processes and services are fit for their purpose&quot;. </li></ul><ul><li>Setting up an appropriate set of standards relative to the various sectors of the economy, under the authority of the public powers, is a necessity for any modern country. </li></ul><ul><li>The standards to be used should be listed in highway contracts </li></ul>
    16. 16.
    17. 19. <ul><li>Toolkit overview and features </li></ul><ul><li>Enabling environment for PPP </li></ul><ul><li>PPP Policy Framework </li></ul><ul><li>Project preparation for PPP </li></ul><ul><li>Financial model for project evaluation </li></ul>
    18. 20.
    19. 21.
    20. 22. Procurement procedures
    21. 23. <ul><li>Toolkit overview and features </li></ul><ul><li>Enabling environment for PPP </li></ul><ul><li>PPP Policy Framework </li></ul><ul><li>Project preparation for PPP </li></ul><ul><li>Financial model for project evaluation </li></ul>
    22. 24. Introduction <ul><li>Purpose </li></ul><ul><ul><li>Familiarization of non-financial users with the basics of project finance and financial simulations for a highway PPP project </li></ul></ul><ul><ul><li>Better understanding of key parameters which affect the financial viability of a highway project </li></ul></ul><ul><li>Limits </li></ul><ul><ul><li>Simplified financial models not suitable for the detailed and specific project assessment </li></ul></ul><ul><ul><li>Public authorities would need to apply more developed models available with experienced financial practitioners in order to analyse potential PPP projects during project preparation and transaction </li></ul></ul>
    23. 25. Financial model of the Toolkit - graphical
    24. 26. Financial model of the Toolkit - numerical
    25. 27. Financing Trends <ul><li>Up to 2008 </li></ul><ul><ul><li>Growth in PPPs being financed </li></ul></ul><ul><ul><li>Infrastructure Funds set up </li></ul></ul><ul><ul><li>Low Real Interest rates </li></ul></ul><ul><ul><li>High Debt/Equity </li></ul></ul><ul><ul><li>Relatively easy Syndication </li></ul></ul><ul><li>Transition-End 2008 and Onwards </li></ul><ul><ul><li>Difficult Syndication </li></ul></ul><ul><ul><li>Higher margins and Fees </li></ul></ul><ul><ul><li>Bond Market Dormant </li></ul></ul><ul><ul><li>Major devaluations </li></ul></ul><ul><ul><li>Tenor reduced </li></ul></ul><ul><ul><li>More Risk averse lending </li></ul></ul><ul><ul><li>Higher equity stakes </li></ul></ul>
    26. 28. The Toolkit is available: <ul><li>Website </li></ul><ul><ul><li>http://www.ppiaf.org/documents/toolkits/highwaystoolkit/ </li></ul></ul><ul><li>CD Rom </li></ul><ul><ul><li>Download available in “toolkit files” (ISO file) </li></ul></ul><ul><li>Can be copied to hard-drive, USB key.. </li></ul>
    27. 29. Contacts <ul><li>World Bank: </li></ul><ul><ul><li>Thillainath Chelliah (TC): tchelliah@worldbank.org </li></ul></ul><ul><ul><li>Cesar Queiroz: cqueiroz@worldbank.org </li></ul></ul><ul><li>PPIAF: </li></ul><ul><ul><li>Clemencia Torres de Mästle: ctorres@worldbank.org </li></ul></ul><ul><li>EGIS toolkit team (presenters): </li></ul><ul><ul><li>Ian Jennings (Project Coordinator/Highway Engineer): ian.jennings@egis.fr </li></ul></ul><ul><ul><li>Robert Brown (Team leader/PPP Specialist):rbajubob@dnet.net.id </li></ul></ul><ul><ul><li>Philippe Dewast (Legal Specialist): philippe.dewast@gmail.com </li></ul></ul><ul><ul><li>Project office : EGIS BCEOM International, Guyancourt, France </li></ul></ul><ul><ul><li>Tel: +33 1 30 12 49 69 / Fax: +33 1 30 60 04 89 </li></ul></ul>
    28. 30. Thank you

    ×