|
|
|
|
Public Private Partnerships in Highways
|
|
|
|
 Â Highlights policy options for private participation in the highways sector (ranging from feeder roads to motorways). | | | | | 1. Overview and diagnosis |  | | | Why embark on PPP? | This section provides a background into the key issues surrounding public-private partnerships and the expected benefits. | | Choosing the right option | Outlines a number of different approaches that can be taken to engage with the private sector and discusses how these different options can be evaluated in order to determine an appropriate long-term strategy. Key options are outlined, ranging from low to high private sector involvement (including works & services contracts, management & maintenance contracts, build operate and transfer (BOT) contracts and full privatization) and a method for performing a sector diagnostic is proposed. |
| | | | | 2. Project characteristics | | | | Tailoring appropriate PPP | Following on from the choice of the most appropriate option, this section looks in more detail at the key parameters of public private partnerships - e.g. scope of work, risk allocation and project financing. | | Equalizer | The equalizer is an interactive graphic that illustrates the key parameters of a public private partnership, such as the scope, degree of autonomy or risk-sharing and allows the user to get a good grasp of the possible variations on each of these parameters for designing private sector participation arrangements in the highway sector. | | Examples of well-known PPP | A wide range of highway private participation case studies from a number of countries is presented. The variations between the different case studies are illustrated using the equalizer tool and each case study is presented in a uniform way, with a project overview and detailed description. An analysis of the contracts is also included, with extracts from the contracts themselves in some cases. |
| | | | | 3. Public sector functions | | | | Failure is our teacher | This introductory section examines a range of public private partnerships where difficulties have been encountered and assesses the reasons for such difficulties to have occurred. | | Protect community welfare | A discussion of the key areas within a public private partnership where public authorities should be particularly aware of their responsibility to protect the interests of the community. Protection of the environment and managing land use and resettlement are key examples of this. | | Planning and policy making | A discussion on the changing role of policy alongside the increasing involvement of the private sector providing, operating and financing transport services and even some of the transport infrastructure. This section specifically focuses on network & project planning, maintenance strategies and the role of economic feasibility studies. | | Provide adequate framework | This section covers the issues surrounding the provision of a framework - legal, institutional and technical - in which the private participation arrangement can operate. In particular, the difficulties associated with the reform of the public sector and the standards that should feature in a contract are discussed. Useful tips on appropriate standards for roads are given e.g. in the areas of road design, operation and maintenance and road signs. | | Facilitator | Once the framework is in place, there are a number of further actions that the public sector must take in order to implement a successful private participation arrangement. A number of possible government actions are outlined, including the provision of direct financial support or risk sharing through the provision of Government guarantees. | | Contract award | A discussion on how contracts should be designed, covering both the key types of contract that can be awarded and the mechanisms that can be used to ensure good performance from the private sector organizations involved. | | Regulation | Following the successful finalization of a private participation contract there are a number of areas (both financial and technical) that the public sector must continue to monitor in order to ensure the smooth running of the contract. The general principles of regulation are discussed. |
| | | | | 4. Laws and contracts | | | | Introduction | This section emphasizes the difficulties that can be involved in defining the scope of private participation arrangements due to the differing objectives of the parties involved and suggests that there is a need for the private consortium or project sponsor to establish a special, ring fenced company in order to undertake the project. | | Legislation | The potential legislative and regulatory impact on the private participation arrangement and the importance of all parties involved in fully understanding the host countries laws and regulations is discussed. This section outlines the key areas of legislation that are likely to impact on private sector participation in highways e.g. toll road law and procurement law. | | Contracts | The main contractual relationships binding the various actors involved in private participation arrangements are illustrated using a series of flow charts for each main contract type. Key contracts are loan agreements, toll collection, operation and consultancy contracts. |
| | | | | 5. Implementation | | | | Actors | The flow charts used under section four to illustrate contractual relations also highlight the key actors likely to be involved for each type of contract. These include international institutions such as the international financing institutions, private actors e.g. operation and maintenance contractors and public actors such as the granting agencies (i.e. the Government agencies) and the road users. | | Main steps | Provides an overview of the key steps involved in developing and operating private participation arrangements , as discussed in the previous four sections. | | Managing the reform | Summarizes the elements that must be of key importance for the public sector such as customer satisfaction and efficient use of public funds and concludes with practical measures that the public sector can undertake to ensure these are delivered. | | Selection and contract award | Outlines methods of selecting possible private partners and awarding contracts using both competitive and non-competitive mechanisms. |
| | | | | 6. Additional tools | | | | Financial simulation tool | Provides financial statements of a fictitious company involved in building and operating a highway concession, with user interaction. A useful way of learning about the key parameters that influence the financial viability of a highway project. | | Graphic simulation tool | The purpose of this tool is to represent the main financial features of a highway project structured on a BOT type of arrangement, and their sensitivity to key assumptions. | | Case study | Based around the road sector of a fictitious country, this case study aims to illustrate public-private partnership development and implementation. It asks the reader a series of questions, designed to test their understanding of the issues, as they progress, step by step, through the process. | | Documentation | A number of papers and case studies providing useful additional information to support the lessons in the toolkit are also stored on the CD-ROM. These reports can be searched by author, type of contract, topic area and region and cover the key issues of institutional framework, appraisal and regulation, contract selection and award, risk assessment and management and finance options. These materials are focused on issues that will be faced by policy makers from low and middle-income countries. |
| | | |
|
|
|
|
|
RSS