Book contents
- Frontmatter
- Contents
- List of Figures
- Acknowledgments
- 1 Introduction
- 2 Project Selection and Preparation
- 3 Financing PPP and the Fundamentals of Project Finance
- 4 Allocation of Risk
- 5 The Contractual Structure
- 6 Project Implementation
- 7 Specific Characteristics of PPP in Different Sectors
- 8 Financial and Economic Crises
- Aggregate Key Messages for Policy Makers
- Glossary
- Selected Readings
- Index
6 - Project Implementation
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- List of Figures
- Acknowledgments
- 1 Introduction
- 2 Project Selection and Preparation
- 3 Financing PPP and the Fundamentals of Project Finance
- 4 Allocation of Risk
- 5 The Contractual Structure
- 6 Project Implementation
- 7 Specific Characteristics of PPP in Different Sectors
- 8 Financial and Economic Crises
- Aggregate Key Messages for Policy Makers
- Glossary
- Selected Readings
- Index
Summary
Managing the PPP agreement starts at the inception phase of the PPP project cycle with designing appropriate solutions and managing input from different advisers. It continues through the selection of the investors and then during implementation of the project. After the exuberance of financial close, the real work begins. This is a critical point, one often ignored by policy makers, to their detriment.
After procurement, the government must manage the development phase, transitioning the project toward delivery of services. This involves:
establishing the government management team;
approving construction arrangements, design, and detailed design;
establishing performance monitoring systems;
arranging asset, property, and staff transfers;
monitoring and assisting with applications by the project company for approvals and permissions;
monitoring and managing subsidy payments (including triggers for payments) and government liabilities;
approving construction completion and commencement of operations;
establishing the mechanism for periodic review of end-user requirements.
Key Messages for Policy Makers
✓ Put in place the right grantor team. The project will not manage itself; failure to assign a sufficiently expert team to manage project implementation (i.e., after financial close), with necessary funding, can turn the best project into a failure.
✓ Prepare for the future. Decide up front what happens later in the project; deferred decisions only become more expensive and contentious. Decisions to make changes need to be made in advance; such decisions later in the process, during implementation, can be expensive and time-consuming.
✓ Be flexible and prepare for conflict resolution. No contract can contemplate every eventuality, so plan to resolve challenges collaboratively – in other words, a PPP should be managed like a partnership.
- Type
- Chapter
- Information
- Public-Private Partnership Projects in InfrastructureAn Essential Guide for Policy Makers, pp. 156 - 167Publisher: Cambridge University PressPrint publication year: 2011