Questions and Answers
Contracts whose scope is only maintaining or operating infrastructure or a service can be regarded as PPPs in the broad sense if they transfer significant risks.
True
Which of the following statements about Multilateral Development Banks (MDBs) is correct?
Which of the following categories/instruments are correctly associated with their descriptions?
Which describes a Special Purpose Vehicle (SPV)?
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The Guide considers that an institutional PPP may only be regarded as a true private finance PPP when the [ ?] the project company.
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What is the PPP process?
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Which type of social infrastructure asset is developed with PPP private finance?
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Which describes Common Law?
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Which is an advantage for government of the project finance technique?
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Which is an essential feature of a private finance PPP contract?
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Which of the following definitions of the Procurement Decision are true?
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How will having a legal system based on codified statutes influence the way a PPP framework is implemented in a country?
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Which attributes must a contract for managing services or existing infrastructure contain for it to be regarded as a PPP?
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Which is NOT a role undertaken by the Multilateral Development Banks?
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Which is a source of equity finance for a project company?
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Study Notes
Foundation Examination Overview
- 50 multiple-choice questions with a time limit of 40 minutes.
- Required to answer all questions and mark answers with a pencil on the provided grid.
- Passing criterion is 25 correct answers.
Special Purpose Vehicle (SPV)
- An SPV is specifically created to enter into and manage a Public-Private Partnership (PPP) contract.
- Formed by a consortium of companies post-award of the contract.
Institutional PPP Definition
- An institutional PPP is recognized as a true private finance PPP when the private sector significantly invests in equity.
- Indicates substantial risk transfer and management responsibility to the private partner.
PPP Process Description
- The PPP process involves steps to deliver projects, including identification, appraisal, structuring, and tendering.
- Different from the broader PPP program which encompasses planning for future project development.
Types of Social Infrastructure in PPPs
- Fire stations are classified as social infrastructure assets developed through PPPs in the emergency response sector.
Common Law Characteristics
- Common law is generally uncodified, relying primarily on judicial precedents rather than comprehensive legal statutes.
Project Finance Advantages for Government
- In project finance, lenders have increased oversight and recover their loans based on project cash flows, which incentivizes due diligence.
Key Features of Private Finance PPP Contracts
- A private finance PPP contract requires significant risk transfer to the private party and ongoing management responsibility.
Procurement Decision Definition
- The Procurement Decision involves authoritatively proceeding with the procurement of a project, typically confirmed after the appraisal phase.
Legal System Influence on PPPs
- A codified statute-based legal system tends to adopt a strict adherence to law in implementing PPP frameworks, as opposed to policy guidance.
Service Management Contracts as PPPs
- Contracts for managing services or existing infrastructure should transfer significant risks and be performance-oriented to be considered true PPPs.
Role of Multilateral Development Banks (MDBs)
- MDBs provide financing that typically spans longer durations than that of commercial lenders and offer policy advice for PPP frameworks.
Sources of Equity Financing
- Initial Public Offerings (IPOs) serve as a method for raising equity capital for project companies, distinct from debt financing sources like Export Credit Agencies.
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Description
This quiz consists of 50 multiple choice questions designed to assess your foundational knowledge. You will have 40 minutes to complete the exam, and a minimum of 25 correct answers is required to pass. Ensure that you mark your answers clearly on the provided answer sheet.