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Questions and Answers
Why is a PPP framework important?
Why is a PPP framework important?
Define PPP framework.
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.
PPP frameworks are important for ensuring that the public and private sector objectives are aligned.
True
What does the APMG PPP Certification Guide cover?
What does the APMG PPP Certification Guide cover?
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The APMG PPP Certification Program allows individuals to use the title 'Certified PPP Professional'.
The APMG PPP Certification Program allows individuals to use the title 'Certified PPP Professional'.
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Who are some of the organizations involved in the APMG PPP Certification Program?
Who are some of the organizations involved in the APMG PPP Certification Program?
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What is the best way to address conflicting objectives in a PPP?
What is the best way to address conflicting objectives in a PPP?
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The APMG PPP Certification Guide is the Book of Knowledge (BoK) detailing all relevant aspects of creating and implementing efficient, sustainable public-private ______ (PPP).
The APMG PPP Certification Guide is the Book of Knowledge (BoK) detailing all relevant aspects of creating and implementing efficient, sustainable public-private ______ (PPP).
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A PPP framework helps in managing expectations, training, and skills development.
A PPP framework helps in managing expectations, training, and skills development.
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What is the purpose of codifying standard practices in a PPP framework?
What is the purpose of codifying standard practices in a PPP framework?
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A key factor for a successful PPP is a competitive __________ process.
A key factor for a successful PPP is a competitive __________ process.
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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?
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?
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Which of the following are considered as objectives of a PPP Framework? (Select all that apply)
Which of the following are considered as objectives of a PPP Framework? (Select all that apply)
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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.
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.
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A PPP framework should aim to promote sustainable delivery of the PPP program in the jurisdiction.
A PPP framework should aim to promote sustainable delivery of the PPP program in the jurisdiction.
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What is an example of a framework discussed in the context?
What is an example of a framework discussed in the context?
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Why is a unified framework beneficial for agencies and investors?
Why is a unified framework beneficial for agencies and investors?
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Creating unified frameworks across sectors and jurisdictions makes development easy and flexible.
Creating unified frameworks across sectors and jurisdictions makes development easy and flexible.
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In South Africa, different PPP frameworks exist for highways and __________.
In South Africa, different PPP frameworks exist for highways and __________.
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Match the legal traditions with the typical ways PPP frameworks are enacted:
Match the legal traditions with the typical ways PPP frameworks are enacted:
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What term was used to refer to the sales of electricity, water, railways, buses, ports, and airports?
What term was used to refer to the sales of electricity, water, railways, buses, ports, and airports?
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In the United States, under which administration did federal government involvement in financing infrastructure start to increase?
In the United States, under which administration did federal government involvement in financing infrastructure start to increase?
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Common law countries generally need laws to establish PPP frameworks.
Common law countries generally need laws to establish PPP frameworks.
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In the UK, by 2001, £100 billion (US$ 150 billion equivalent) had been committed by the government for ______ contracts.
In the UK, by 2001, £100 billion (US$ 150 billion equivalent) had been committed by the government for ______ contracts.
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What must the National Treasury in South Africa do during the development of PPPs at the municipal level?
What must the National Treasury in South Africa do during the development of PPPs at the municipal level?
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What is the purpose of reviews by the National Treasury for PPPs in South Africa?
What is the purpose of reviews by the National Treasury for PPPs in South Africa?
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Match the following countries with their PPP policy scopes:
Match the following countries with their PPP policy scopes:
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Contracts involving private ownership of assets are considered as PPPs in India according to the policy.
Contracts involving private ownership of assets are considered as PPPs in India according to the policy.
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In common law jurisdictions, what gives government policy statements their force?
In common law jurisdictions, what gives government policy statements their force?
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Governments in countries with Westminster systems need legislation to enable them to enter Public-Private Partnership contracts.
Governments in countries with Westminster systems need legislation to enable them to enter Public-Private Partnership contracts.
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Why do some US states pass specific PPP laws?
Why do some US states pass specific PPP laws?
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In civil law countries, government agencies are explicitly authorized to do only what?
In civil law countries, government agencies are explicitly authorized to do only what?
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What legislative and administrative factors must the transaction process for a PPP comply with?
What legislative and administrative factors must the transaction process for a PPP comply with?
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Which sector-level laws and regulatory frameworks may constrain the government's ability to contract with the private sector?
Which sector-level laws and regulatory frameworks may constrain the government's ability to contract with the private sector?
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Discrimination against foreign investors should be reviewed in order to attract the participation of international investors and developers.
Discrimination against foreign investors should be reviewed in order to attract the participation of international investors and developers.
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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.
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.
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Match the country with its approach towards local government entering into PPP contracts:
Match the country with its approach towards local government entering into PPP contracts:
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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.
Legal and Administrative Instruments
- 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.
