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
2
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
3
©"Civil"Service"College,"Singapore,"Jan"2013"
5
1. Better delivery of services 2. Innovation and change 3. Catalyst for public sector reform 4. Smoothen the government expenditure
Why Government Does It?
©"Civil"Service"College,"Singapore,"Jan"2013"
6
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?
4
©"Civil"Service"College,"Singapore,"Jan"2013"
7
1. Mutually Beneficial 2. Open to Innovation and Ideas 3. Transparent and Fair 4. Efficient Procurement Process
Principles for Partnership
STRUCTURING A PPP MODEL
5
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)
©"Civil"Service"College,"Singapore,"Jan"2013"
10
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)
6
©"Civil"Service"College,"Singapore,"Jan"2013"
11
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)
7
PPP PROJECT MANAGEMENT
©"Civil"Service"College,"Singapore,"Jan"2013"
14
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
8
(Source: MOF�s PPP Handbook)
PPP PROCUREMENT PROCESS
9
©"Civil"Service"College,"Singapore,"Jan"2013"
17
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
©"Civil"Service"College,"Singapore,"Jan"2013"
18
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
10
©"Civil"Service"College,"Singapore,"Jan"2013"
19
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
11
Source: MOF
Source: MOF
12
Source: MOF
Source: MOF
13
Source: MOF
Source: MOF
14
Source: MOF
Source: MOF
15
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.
16
©"Civil"Service"College,"Singapore,"Jan"2013"
www.cscollege.gov.sg"
www.facebook.com/CivilServiceCollegeSingapore"
31
©"Civil"Service"College,"Singapore,"Jan"2013"
All"copyright,"trade"marks"and"other"intellectual"property"rights"comprised"in"the"informaDon,"text,"graphics,"data"or"any"other"materials"or"works"used"on"or"contained"in"this"document"(collecDvely""the"Materials")"are"the"sole"and"exclusive"property"of"Civil"Service"College,"Singapore"and/or"its"licensors.""
""No"part"of"the"Materials"may"be"reproduced,"copied,"reverse"compiled,"
adapted,"distributed,"commercially"exploited,"displayed"or"transmiKed"in"any"manner"or"by"any"means"or"stored"in"any"informaDon"retrieval"system"without"
prior"wriKen"consent"of"Civil"Service"College,"Singapore."