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Dispute Resolution Mechanisms
Because PPP arrangements are long-term and complex, contracts tend to be incomplete, as described in Adjustment Mechanisms. Where this creates room for differences in interpretation, disputes can…
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Adjustment Mechanisms
PPP projects are long-term, and are often risky and complex. For example, a new toll highway faces obvious risks such as fluctuations in demand, but also hidden risks such as demand to provide more…
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TOR Toolkit – DMA Rollout
The Terms of Reference can be used as a basis for contracting out various PBC models. These TORs need to be adapted to suit the local situation and the specific scope of work required, but provide a…
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World Bank Board Approves New Environmental and Social Framework
WASHINGTON, August 4, 2016 -- The World Bank’s Board of Executive Directors today approved a new Environmental and Social Framework (ESF) that expands protections for people and the environment…
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TOR Toolkit – Cost-Plus
The TOR for Non-Revenue Water (NRW) reduction contracts.
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Payment Mechanism
The payment mechanism defines how the private party to the PPP is remunerated. Adjustments to payments to reflect performance or risk factors are also important means for creating incentive and…
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Performance Requirements
The PPP contract should clearly specify what is expected from the private party in terms of the quality and quantity of the assets and services to be provided. For example, this could include…
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Translating Risk Allocation into Contract Structure
Much of the PPP literature focuses on risk allocation. Some of it can give the impression that, once a preferred risk allocation has been settled, this can somehow translate smoothly into a detailed…
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Allocating Risks
Allocating risk, in the context of a PPP, means deciding which party to the PPP contract will bear the cost (or reap the benefit) of a change in project outcomes arising from each risk factor.…
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Identifying Risks
The first step toward structuring the PPP is often to put together a comprehensive list of all the risks associated with the project. Such a list is known as a risk register. In this context, a risk…
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Assessing the Ability to Manage the Project
A less common but still highly relevant component of project assessment focuses on the ability of the procuring authority to manage the delivery of the project, i.e. project preparation, tendering,…
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Assessing Fiscal Implications
A proposed PPP project may be feasible and economically viable, and value for money analysis may show that the PPP is the best option to procure it. Nonetheless, the government also needs to decide…
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PPP Structuring Toolkit
This PPP Toolkit has been designed to strengthen decision-making at all key stages of the project cycle and improve the quality of the PPPs being developed. This web-…
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Assessing Commercial Viability
Once a project is established as viable, the next step is to determine whether it would be attractive to the market if structured as a PPP. Generally speaking, private parties will find a project…
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Environmental and Social Studies and Standards
Potential damage to the environment and the impact on populations are key issues when planning infrastructure projects. Besides the cost-benefit analysis that determines whether the expected benefits…
Library
Allocating Risks in PPP Contracts
The guide is made up of 18 annotated risk allocation matrices each specifically tailored to a given project type (such as a road, airport, solar plants or hospital project).…
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PPP Qualitative Value-for-Money Toolkit
UNESCAP. Accessed March 10, 2017. Qualitative Value-For- Money Toolkit. Bangkok: United Nations Economic and Social Commission for Asia and the Pacific. [#3793]
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PPP Project Screening and Analytics Tool (PSAT) User Guide
The Project Screening and Analytics Tool (PSAT) is a decision-making tool for preliminary screening to determine projects’ potential suitability for PPP procurement and project…
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Assessing Project Feasibility and Economic Viability
Implementing a project as a PPP only makes sense if the project itself is sound. Most governments therefore subject proposed PPP projects to the same technical and economic appraisal as any other…
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Building an Initial PPP Pipeline
In countries with relatively new PPP programs, project selection often means sifting through the project concepts generated by sector agencies and screening them for PPP potential using the approach…
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Screening for PPP Potential
At some point in the process of identifying priority public investments, or sector reform options, projects may be screened for their potential to be implemented as a PPP. The objective of this…
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Identifying Priority Public Investment Projects
The starting point—or precursor—to identifying a potential PPP is identifying a priority public investment project. Many governments have well-defined processes and methodologies for public…
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Role of Independent Regulators
PPPs and sector regulationPPPs often supply essential services in monopoly (or near-monopoly) conditions, for example, in the water, electricity, gas, telecommunications, airports or highways sectors…
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Role of Legislative Bodies
The legislative branch of government—that is, the elected, law-making parliament or assembly—may engage in the PPP process in several ways. These include:Defining the PPP framework—the PPP Framework…
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Role of Supreme Auditing Institutions
Supreme audit entities, such as courts of accounts and top audit offices, are an important link in the chain of accountability for public expenditure decisions. They provide independent reviews of…