APMG Public-Private Partnership (PPP) Certification Guide
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Why is a PPP framework important?

  • To limit and manage government risk
  • To ensure consistency in PPP projects
  • To align the objectives of the public and private sector
  • All of the above (correct)

    • Define PPP framework.

    A PPP framework consists of established procedures, rules, and institutional responsibilities that govern how the government selects, implements, and manages PPP projects.

    PPP frameworks are important for ensuring that the public and private sector objectives are aligned.

    True

    What does the APMG PPP Certification Guide cover?

    <p>All aspects of public-private partnerships</p> Signup and view all the answers

    The APMG PPP Certification Program allows individuals to use the title 'Certified PPP Professional'.

    <p>True</p> Signup and view all the answers

    Who are some of the organizations involved in the APMG PPP Certification Program?

    <p>ADB, EBRD, IDB, IsDB, WBG</p> Signup and view all the answers

    What is the best way to address conflicting objectives in a PPP?

    <p>Clearly define the objectives of the PPP program and each PPP project upfront.</p> Signup and view all the answers

    The APMG PPP Certification Guide is the Book of Knowledge (BoK) detailing all relevant aspects of creating and implementing efficient, sustainable public-private ______ (PPP).

    <p>partnerships</p> Signup and view all the answers

    A PPP framework helps in managing expectations, training, and skills development.

    <p>True</p> Signup and view all the answers

    What is the purpose of codifying standard practices in a PPP framework?

    <p>Reduce learning costs and the risk of mistakes.</p> Signup and view all the answers

    A key factor for a successful PPP is a competitive __________ process.

    <p>procurement</p> Signup and view all the answers

    What should be a criterion at the Appraisal Phase when deciding whether to proceed with a project as a PPP or a conventional public sector project?

    <p>whether the public interest will be better served by doing this as a PPP or as a conventional public sector project</p> Signup and view all the answers

    Which of the following are considered as objectives of a PPP Framework? (Select all that apply)

    <p>Enabling more investment in infrastructure</p> Signup and view all the answers

    In a PPP framework, objectives are essential to provide the direction needed to formulate appropriate processes, decision criteria, and institutional responsibilities. These objectives align with the government's __________ and priorities.

    <p>policies</p> Signup and view all the answers

    A PPP framework should aim to promote sustainable delivery of the PPP program in the jurisdiction.

    <p>True</p> Signup and view all the answers

    What is an example of a framework discussed in the context?

    <p>Australia's National PPP policy framework</p> Signup and view all the answers

    Why is a unified framework beneficial for agencies and investors?

    <p>Simplifies development of PPPs</p> Signup and view all the answers

    Creating unified frameworks across sectors and jurisdictions makes development easy and flexible.

    <p>False</p> Signup and view all the answers

    In South Africa, different PPP frameworks exist for highways and __________.

    <p>non-highways</p> Signup and view all the answers

    Match the legal traditions with the typical ways PPP frameworks are enacted:

    <p>Civil Law = Enacted in statute law with detailed rules and regulations Common Law = Reliance on policy documents and administrative guidance materials</p> Signup and view all the answers

    What term was used to refer to the sales of electricity, water, railways, buses, ports, and airports?

    <p>Privatizations</p> Signup and view all the answers

    In the United States, under which administration did federal government involvement in financing infrastructure start to increase?

    <p>New Deal Administration of Franklin D Roosevelt</p> Signup and view all the answers

    Common law countries generally need laws to establish PPP frameworks.

    <p>False</p> Signup and view all the answers

    In the UK, by 2001, £100 billion (US$ 150 billion equivalent) had been committed by the government for ______ contracts.

    <p>PFI</p> Signup and view all the answers

    What must the National Treasury in South Africa do during the development of PPPs at the municipal level?

    <p>Review and comment four times</p> Signup and view all the answers

    What is the purpose of reviews by the National Treasury for PPPs in South Africa?

    <p>To ensure government procedures are followed and contingent liabilities are controlled.</p> Signup and view all the answers

    Match the following countries with their PPP policy scopes:

    <p>Australia = PPP projects over US$50 million Brazil = Contract types considered as PPPs and project size over 20 million Reals Chile = Maximum duration for concession contracts of 50 years Colombia = PPP contracts involving operations and maintenance responsibilities for less than 30 years India = Preferred PPP contract types and exclusions</p> Signup and view all the answers

    Contracts involving private ownership of assets are considered as PPPs in India according to the policy.

    <p>False</p> Signup and view all the answers

    In common law jurisdictions, what gives government policy statements their force?

    <p>General elections</p> Signup and view all the answers

    Governments in countries with Westminster systems need legislation to enable them to enter Public-Private Partnership contracts.

    <p>False</p> Signup and view all the answers

    Why do some US states pass specific PPP laws?

    <p>To create exceptions to existing laws that prevent PPP contracts and to provide stability and transparency to the program.</p> Signup and view all the answers

    In civil law countries, government agencies are explicitly authorized to do only what?

    <p>they are explicitly authorized to do</p> Signup and view all the answers

    What legislative and administrative factors must the transaction process for a PPP comply with?

    <p>public procurement law and regulations</p> Signup and view all the answers

    Which sector-level laws and regulatory frameworks may constrain the government's ability to contract with the private sector?

    <p>Employment law</p> Signup and view all the answers

    Discrimination against foreign investors should be reviewed in order to attract the participation of international investors and developers.

    <p>True</p> Signup and view all the answers

    The tax treatment of the project company favors one type of contracting structure which may not be the most efficient. For example, in Brazil and India, the subcontracting of O&M services attracts __% services tax.

    <p>12.36</p> Signup and view all the answers

    Match the country with its approach towards local government entering into PPP contracts:

    <p>Australia = Local government is a state responsibility France = Local governments follow national laws and jurisprudence Spain = Local authorities must respect national procurement legislation</p> Signup and view all the answers

    Study Notes

    The APMG Public-Private Partnership (PPP) Certification Guide

    Establishing a PPP Framework

    • A PPP framework is a set of established procedures, rules, and institutional responsibilities that determine how the government selects, implements, and manages PPP projects.
    • The purpose of a PPP framework is to ensure that PPP projects are developed, delivered, and managed in a structured, transparent, and efficient way, while minimizing risks and ensuring Value for Money.

    Why have a PPP Framework?

    • A good PPP framework aims to:
      • Ensure the right projects are selected as PPPs
      • Minimize the risks that a PPP project will not deliver Value for Money
      • Address conflicting interests and risks in PPPs
    • Risks of not having a PPP framework include:
      • Inappropriately allocated risks
      • Uncompetitive procurement processes
      • Unmonitored contingent liabilities
      • Unexpected fiscal obligations

    Benefits of a PPP Framework

    • Increases the likelihood of PPP success
    • Addresses risks associated with not having a framework
    • Increases the capability of government agencies to deliver PPPs
    • Provides a structured way of reconciling disparate objectives
    • Limits whole-of-government risk

    Key Components of a PPP Framework

    • Objectives of the PPP framework
    • Scope of the PPP framework
    • Institutional responsibilities
    • Procedures for developing and procuring PPPs
    • Decision criteria for each stage of the PPP process
    • Management of fiscal commitments
    • Oversight and transparency of PPP programs### A Good PPP Framework
    • A good PPP framework builds in processes and responsibilities for identifying and mitigating risks.
    • It generates market interest by communicating the quality of the PPP program to potential investors.
    • It facilitates probity and oversight of the PPP program by establishing clear processes, decision-making criteria, and allocation of responsibilities.

    Key Characteristics of a PPP Framework

    • Establishes general principles and provides detailed guidelines in parallel with the development and delivery of the first projects.
    • Guides governments and private partners through each step of developing a PPP, ensuring that projects are well-structured and delivered in line with expectations.
    • Articulates its objectives, which provide a basis for subsequent evaluation of the framework.
    • Sets out its scope, which defines the types of projects to which it applies.
    • Takes into account the legislative and administrative contexts.

    Objectives of a PPP Framework

    • Promote the effective, efficient, and sustainable delivery of the PPP program.
    • Enable more investment in infrastructure by increasing project financing options.
    • Achieve Value for Money in the provision of infrastructure and public services.
    • Improve accountability in the provision of infrastructure and public services.
    • Harness private sector innovation and efficiency.
    • Ensure that the long-term delivery and management of PPPs is sustainable.

    Scope of a PPP Framework

    • Defined by jurisdiction, sector, size, and contract type.
    • Limited by the jurisdiction of the government that promulgates it.
    • In federal systems, the scope of a PPP framework promulgated by the federal government is limited to PPPs that fall within the government's competence.

    Examples of PPP Objectives

    • Australia: deliver improved services and better Value for Money through appropriate risk transfer, innovation, and private financing.
    • Bulgaria: ensure the development of high-quality and accessible services, create prerequisites for private investments, and ensure transparency and competition.
    • India: harness private sector efficiencies, provide a lifecycle approach, create opportunities for innovation, and facilitate affordable and improved services.
    • Indonesia: fulfill sustainable funding requirements, improve the quality of management and maintenance, and encourage user pays principle.
    • São Paulo (Brazil): promote, coordinate, regulate, and audit the activities of private sector agents who participate in the implementation of public policies.
    • México: increase social wellbeing and investment levels.
    • United Kingdom: achieve better Value for Money for the taxpayer by ensuring that infrastructure projects are delivered on time and to cost, and that assets are well-maintained.### PPP Frameworks
    • Developed at the provincial level in Canada, with the federal government having its own PPP program for national projects.
    • In non-federal systems, sub-national governments may develop PPP frameworks, such as in Spain, where regional governments have competence in certain infrastructure and services.

    Scope of PPP Frameworks

    • Can be defined by sector, size, and contract type.
    • Sector: Focus on specific sectors, such as highways, power plants, or education facilities.
    • Size: Minimum size or value for PPP projects, such as in Singapore, where PPPs are only pursued for projects over $50 million.
    • Contract type: Specific types of contracts, such as government-pays or user-pays contracts, which are used in different countries.

    Example Scope Definitions

    • Australia: PPPs are likely to be applicable for projects over $50 million.
    • Brazil: Only two types of contracts are considered PPPs, sponsored concessions and administrative concessions, with a minimum project size of 20 million Reals.
    • Chile: Maximum duration for concession contracts is 50 years.
    • Colombia: PPP contracts must make the private investor responsible for operations and maintenance, and must be for less than 30 years.
    • India: PPP policy lists preferred contract types and exclusions, and does not intend to use contracts involving private ownership of assets.
    • Mauritius: Focuses on key areas, such as transport, public utilities, and health.
    • Mexico: Defines PPPs as long-term contractual relationships, with contracts not exceeding 40 years in duration.
    • Puerto Rico: Defines ten eligible sectors, including sanitary landfills, electricity generation plants, and education facilities.
    • Singapore: Limited to sectors with successful PPP examples in other countries, with a minimum project size of $50 million.

    Unified Frameworks

    • Can be applied across all sectors and jurisdictions within a country.
    • Examples include Australia's National PPP policy framework.
    • Advantages: Simplifies things for agencies and investors, and results in greater efficiency.
    • Disadvantages: Difficult to develop and inflexible to change, and may not address unique infrastructure challenges.
    • PPP frameworks need to be documented and given legal force.
    • Methods vary widely between jurisdictions, including enacting laws, policy documents, and administrative guidance materials.
    • Common law countries tend to rely on policy documents and administrative guidance materials.
    • Civil law countries tend to enact PPP frameworks in statute law, with detailed rules and regulations.

    Historical Context

    • PPP frameworks build on and incorporate existing public sector management frameworks.
    • These frameworks typically include public procurement and financial management frameworks.
    • Historical context is important to understand the choices that different jurisdictions make regarding PPP laws and documents.

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    Description

    The APMG PPP Certification Guide is a comprehensive resource for creating and implementing efficient public-private partnerships. It covers all relevant aspects of PPPs, intended for professionals, governments, and investors.

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