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1 © Civil Service College, Singapore, Jan 2013 2 1.Introduction to Public Private Partnership (PPP) 2.Structuring a PPP Model 3.PPP Project Management 4.The PPP Procurement Process 5.Examples of PPP in Singapore Session Outline

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Page 1: PPP (Aug 2013) · ©"Civil"Service"College,"Singapore,"Jan"2013" 2 1.Introduction to Public Private Partnership (PPP) 2.Structuring a PPP Model 3.PPP Project Management 4.The PPP

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©"Civil"Service"College,"Singapore,"Jan"2013"

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1. Introduction to Public Private Partnership (PPP) 2. Structuring a PPP Model 3. PPP Project Management 4. The PPP Procurement Process 5. Examples of PPP in Singapore

Session Outline

Page 2: PPP (Aug 2013) · ©"Civil"Service"College,"Singapore,"Jan"2013" 2 1.Introduction to Public Private Partnership (PPP) 2.Structuring a PPP Model 3.PPP Project Management 4.The PPP

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INTRODUCTION TO PPP

A Generic Definition of PPP

Public Private

Partnership

Purchaser of service

Bring in innovation, efficiency and finance to provide public service

Co-operation and sharing of risk

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©"Civil"Service"College,"Singapore,"Jan"2013"

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1. Better delivery of services 2. Innovation and change 3. Catalyst for public sector reform 4. Smoothen the government expenditure

Why Government Does It?

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1. Long term income and sustainability 2. Increased support from capital market through government involvement 3. Relationship with the government 4. Establish and grow new sectors

Why Private Sector Gets Involved?

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1.  Mutually Beneficial 2.  Open to Innovation and Ideas 3.  Transparent and Fair 4.  Efficient Procurement Process

Principles for Partnership

STRUCTURING A PPP MODEL

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Typical PPP Models

Traditional Procurement of Assets

Design - Build - Operate DBO

Design - Build - Finance - Operate DBFO (Govt-Own)

DBFO & Private-Own, but Transfer to Govt at end of contract

Private Provision (Govt is regulator)

DBFO & Private-Own (No Transfer)

(Adapted from MOF�s PPP Handbook)

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1. A common form of PPP model 2. The PPP Provider will:

Raise financing from private financiers Build, maintain and operate the facilities Be paid in accordance to the services provided

3. Main benefits include; Flexibility to plan its capital investment to maximise returns Ensures optimal use of capital resources

Design-Build-Finance-Operate (DBFO)

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©"Civil"Service"College,"Singapore,"Jan"2013"

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1. Public sector provides the funds 2. Private vendor operates the facility

Operator will be paid with management fee

3. Main benefits Ideal for very large projects for which the private sector is unable to finance wholly

Design-Build-Operate (DBO)

(Source: MOF�s PPP Handbook)

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PPP PROJECT MANAGEMENT

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Key Considerations in Getting the Contract Right in the First Instance

Providing enough resources; Getting the right people;

Effective monitoring and management.

Key Considerations in Managing a PPP Project

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(Source: MOF�s PPP Handbook)

PPP PROCUREMENT PROCESS

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Ensure an Efficient Procurement Process Through: A strong procurement team; Committed, transparent and fair selection process; Consult private sector views; A robust and balanced contract.

Setting the Stage for Procurement

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Consulting the Private Sector: Pre-procurement briefing; Market sounding sessions.

Key Benefits from Consultative Approach Cut procurement time and lower procurement costs; Better understanding of public and private sector needs; Seek private expertise on key issues such as bankability, alternative PPP models, alternative uses for facility, payment mechanism, etc.

Setting the Stage for Procurement

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PPP Procurement Process

Stage 1 - Invitation for Expressions of Interest

Stage 2 - Pre-qualification of Bidders

Stage 3 - Request for Proposal from Selected Bidders

Stage 4 - Market Feedback Period

Stage 5 - Issue of Final Tender

Stage 6 - Closing of Tender

Stage 7 - Contract Award

(Adapted from MOF�s PPP Handbook)

EXAMPLES OF PPP IN SINGAPORE

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Source: MOF

Source: MOF

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Source: MOF

Source: MOF

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Source: MOF

Source: MOF

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Source: MOF

Source: MOF

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References For more details, please refer to MOF website:

http://app.mof.gov.sg/ppp.aspx

What are the key points that I have learnt?

How is it relevant to me?

How can I modify the concepts to better suit my own framework?

Areas that I am not sure.

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©"Civil"Service"College,"Singapore,"Jan"2013"

www.cscollege.gov.sg"

www.facebook.com/CivilServiceCollegeSingapore"

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©"Civil"Service"College,"Singapore,"Jan"2013"

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