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Introduction to PPP in the infrastructure sector 6
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Lecture1.1
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Lecture1.2
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Lecture1.3
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Lecture1.4
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Lecture1.5
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Lecture1.6
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Chapter 2: Structuring a PPP project 5
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Lecture2.1
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Lecture2.2
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Lecture2.3
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Lecture2.4
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Lecture2.5
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Chapter 3: Financing an infrastructure PPP project 6
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Lecture3.1
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Lecture3.2
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Lecture3.3
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Lecture3.4
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Lecture3.5
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Lecture3.6
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Chapter 4 :Documenting the transaction: anatomy of a PPP concession agreement and key risk allocation issues 11
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Lecture4.1
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Lecture4.2
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Lecture4.3
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Lecture4.4
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Lecture4.5
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Lecture4.6
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Lecture4.7
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Lecture4.8
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Lecture4.9
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Lecture4.10
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Lecture4.11
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Chapter 5: Documenting the transaction: finance documents 8
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Lecture5.1
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Lecture5.2
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Lecture5.3
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Lecture5.4
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Lecture5.5
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Lecture5.6
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Lecture5.7
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Lecture5.8
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Chapter 6:Documenting the transaction: other project documents 2
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Lecture6.1
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Lecture6.2
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Chapter 7:Procurement arrangements 2
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Lecture7.1
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Lecture7.2
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Chapter 8:Introduction to key sector issues 7
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Lecture8.1
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Lecture8.2
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Lecture8.3
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Lecture8.4
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Lecture8.5
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Lecture8.6
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Lecture8.7
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Summary of key characteristics and criteria of PPPs
The criteria listed below are the expected outcomes of a well-structured PPP project.
(a) Criteria
- Economically viable for the public sector
- Financially viable for the private sector
- Appropriate balance of risk and reward
- Value for money
(b) Key elements of a successful PPP
- Political commitment
- Focused, dedicated and experienced public sector team
- Clear legal and institutional framework
- Transparent and competitive procurement
- Realistic risk sharing
The key elements listed above fall across a number of disciplines: political, commercial, financial, legal and technical. A co-ordinated team approach is required by the government parties throughout the planning, procurement and implementation process to secure the best outcome.
To summarise, the key issues relating to PPP projects which must be kept in mind are that they are very versatile and can be used across a variety of sectors; they allow the government to have recourse against a single private sector entity throughout the project’s lifecycle and it can benefit from the funding opportunities, expertise and experience of the private sector. However, the costs and time involved in setting up a PPP project cannot be underestimated and the long-term commitment by way of an inflexible contract could also be viewed as disadvantageous.