• Home
  • Courses
  • About Us
  • Contact
Have any question?
(+255 27) 254 3226
training@ealawsociety.org
RegisterLogin
East Africa Law Society InstituteEast Africa Law Society Institute
  • Home
  • Courses
  • About Us
  • Contact

Public Private Partnerships in the Infrastructure Sector

  • Home
  • All courses
  • eals
  • Public Private Partnerships in the Infrastructure Sector
CoursesealsPublic Private Partnerships in the Infrastructure Sector
  • Introduction to PPP in the infrastructure sector 6

    • Lecture1.1
      What is PPP and how is the concept defined? 30 min
    • Lecture1.2
      The growth of PPP from an historical perspective 30 min
    • Lecture1.3
      The concept of privatisation in the context of PPPs 30 min
    • Lecture1.4
      Conventional procurement and PPP procurement 30 min
    • Lecture1.5
      Examples of PPP reform 30 min
    • Lecture1.6
      Summary of key characteristics and criteria of PPPs 30 min
  • Chapter 2: Structuring a PPP project 5

    • Lecture2.1
      Structuring a PPP project 30 min
    • Lecture2.2
      Project structuring: feasibility study 30 min
    • Lecture2.3
      PPP economics 30 min
    • Lecture2.4
      PPP economics 30 min
    • Lecture2.5
      Alternative PPP structure: rail project case study 30 min
  • Chapter 3: Financing an infrastructure PPP project 6

    • Lecture3.1
      Sources of financing for an infrastructure PPP project 30 min
    • Lecture3.2
      What is Project Finance? 30 min
    • Lecture3.3
      Drawbacks of using project finance in infrastructure PPP transactions 30 min
    • Lecture3.4
      Structure 30 min
    • Lecture3.5
      Key parties 30 min
    • Lecture3.6
      Timeline for financing an infrastructure PPP project 30 min
  • Chapter 4 :Documenting the transaction: anatomy of a PPP concession agreement and key risk allocation issues 11

    • Lecture4.1
      Scope and term of a PPP Concession Agreement 30 min
    • Lecture4.2
      Construction period obligations 30 min
    • Lecture4.3
      Operation period obligations 30 min
    • Lecture4.4
      Payment regimes 30 min
    • Lecture4.5
      Supervening events 30 min
    • Lecture4.6
      Termination and compensation 30 min
    • Lecture4.7
      Liability and insurance 30 min
    • Lecture4.8
      Dispute resolution 30 min
    • Lecture4.9
      Government controls 30 min
    • Lecture4.10
      Government support obligations 30 min
    • Lecture4.11
      Additional terms and conditions 30 min
  • Chapter 5: Documenting the transaction: finance documents 8

    • Lecture5.1
      Core finance documents 30 min
    • Lecture5.2
      Equity arrangements 30 min
    • Lecture5.3
      Impact on the concession agreement 30 min
    • Lecture5.4
      Direct Agreements 30 min
    • Lecture5.5
      Security 30 min
    • Lecture5.6
      Enforcement and insolvency 30 min
    • Lecture5.7
      Involvement of multilateral development banks (MDBs), development finance institutions (DFIs) and export credit agencies (ECAs) 30 min
    • Lecture5.8
      Government shareholder arrangements 30 min
  • Chapter 6:Documenting the transaction: other project documents 2

    • Lecture6.1
      Construction contract, O&M contract and interface issues 30 min
    • Lecture6.2
      Sub-contract risk pass-down 30 min
  • Chapter 7:Procurement arrangements 2

    • Lecture7.1
      A typical PPP timetable 30 min
    • Lecture7.2
      Unsolicited proposals 30 min
  • Chapter 8:Introduction to key sector issues 7

    • Lecture8.1
      Road projects 30 min
    • Lecture8.2
      Urban rail projects 30 min
    • Lecture8.3
      Freight rail projects 30 min
    • Lecture8.4
      Airport projects 30 min
    • Lecture8.5
      Port projects 30 min
    • Lecture8.6
      Accommodation projects 30 min
    • Lecture8.7
      Glossary 30 min

    The growth of PPP from an historical perspective

    PPP investment has shown a steady growth in many countries worldwide; the graph below shows an example from low and middle income countries where growth was steady until about 2011. The combined effect of falls in the price of oil and other natural resources, as well as the knock-on effects of the credit crunch (loss of liquidity) brought on by the global financial crisis may have slowed progress somewhat.

    In the UK, about 750 PPP projects were signed over this period, and many other developed countries adopted a similar model and also have impressive tallies of projects. Some countries, such as the US, have come later to the game as different financing structures such as municipal bonds have been an option instead of external financing. Nevertheless, it is clear that in the US market a large infrastructure deficit exists, so PPP is increasingly being seen as an answer to increase the pace of delivery.

    The diagram below illustrates the growth of private investment in Africa specifically. These
    figures from 2015 show where the majority of private investment has been directed in the
    region, and it is not surprising to see that telecoms had the highest investment given the rapid
    expansion of mobile telephony in Africa and a rapid growth of telecom towers and undersea
    cables provided by private initiatives.

    PPP is still a relatively small component when it comes to private investments in infrastructure in
    Africa as is demonstrated in the diagram below:
    (a) Energy infrastructure forms the next highest level of investment. This can be seen
    as a form of PPP, in so far as the government promotes private investment by
    guaranteeing an offtake of generated power.
    (b) Outside of energy, ports represent the next-largest investment sector – this is
    perhaps not surprising given the increasing desire for manufactured goods and
    container traffic as economies improve and increasing middle class populations
    drive demand.
    (c) However, the number of financially closed projects in the non-energy infrastructure
    space remains low. One recent World Bank study from 2017 concluded that only
    14 PPP projects had reached financial close in the preceding five years in Africa
    with a total investment of $8bn. Another study put the success rate of projects in
    Africa – from publication of concept to financial close – at a mere 8%.

     

    SUMMARY OF KEY POINTS
    Sectors where PPP is used

    ·         Fixed-infrastructure projects with a long lifespan form the majority of PPP projects because the project requirements are easier to define, the concessionaire has greater control over how these requirements are met, and therefore it is easier to allocate risk between the parties.

    ·         The PPP model has been applied to some novel sectors, but the newer the sector, the more bespoke the contract and the harder it is to allocate risk without a good precedent to follow.

    Growth of PPP projects

    ·         As can be seen in the graph at section 1.4, PPP has shown a steady growth until 2011 when the combined effect of falls in the price of oil and other natural resources, as well as the knock-on effects of the credit crunch (loss of liquidity) brought on by the global financial crisis slowed progress.

    ·         The pie chart at section 1.4 illustrates how private investment in infrastructure in Africa has grown. Telecoms had the largest amount of investment, PPP had a relatively small amount of investment but this included energy infrastructure projects where the government often promotes private investment by guaranteeing an offtake of generated power and ports, which is not unsurprising given the more frequent container traffic, the growth of economies globally and the increasing desire for manufactured goods.

    Prev What is PPP and how is the concept defined?
    Next The concept of privatisation in the context of PPPs

    Leave A Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    logo-eduma-the-best-lms-wordpress-theme

    (+255 27) 254 3226

    hello@ealawsociety.org

    Company

    • About Us
    • Blog
    • Contact

    Links

    • Courses
    • Events
    • Gallery
    • FAQs

    Support

    • Documentation
    • Forums
    • Partners
    • Accreditation

    Recommend

    • Law Society of Kenya
    • Tanganyika Law Society
    • Uganda Law Society
    • Rwanda Bar Association

    East Africa Law Society Institute by Perception Concepts limited.

    • Home
    • Courses
    • About Us
    • Contact
    No apps configured. Please contact your administrator.

    Login with your site account

    No apps configured. Please contact your administrator.

    Lost your password?

    Not a member yet? Register now

    Register a new account

    Are you a member? Login now

    Modal title

    Message modal