Essential Elements Required For PPP

WELCOME
01 A retired Commissioner of Police,

he has the following qualifications
02 PhD(Civil Engineering) - UNIBEN
03 MBA (Strategic Management) –

UNILORIN
04 M. Eng - University of Benin

CHUKWUMA KATCHY PhD
05 BSc UNILAG 1. CP3P, CP3S
06 Dip Law Ado-Ekiti
2. Project Management Professional (PMP)
3. COREN Registered Engineer C.Eng
ESSENTIAL INGREDIENTS REQUIRED FOR
PREPARATION & IMPLEMENTATION OF PPP
PROJECTS
Monday, 12th May, 2021

PPP (in a nutshell)
Transforming a government’s desire to provide
an infrastructure into an investment
opportunity that is attractive to the private
sector.
Life Cycles
1. Project Management Life Cycle
What you need to do to manage the project
2. Project Life Cycle

What you need to do to do work on the project
3. PPP Project Management Cycle = PPP Process

ICRC & Lagos State Cycles
1. Project
Development 2. Procurement
4. Maturity 3. Implementation
Ip3 PPP Cycle
1. Inception 2. Feasibility Study
4. Procurement 3. Development
5. Delivery 6. Exit
APMG PPP Cycle
1. Identification &
Screening 2. Appraisal
3. Structuring &
4. Tender & Award drafting
6. ontract
5. Contract
Management
Management
(O & M)
(Construction)
Identify/select project solution (CBA, CE);
Scoping the project;
 Screening the project as a potential PPP
(VfM); and
1. Prepare the project governance including
Project developing a project management plan and
Identification defining the project team.
& PPP oTechnical expert
oEnvironmental expert
Screening oEconomic/financial expert
oLegal expert
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Detailed Identification of experts, legal,
environ., tech,, fin.,
 Conduct full feasibility studies
Detailed technical requirements
Financial structure
2. Risk structure
Appraisal & Preliminary Contract Structure
Preparation Define procurement strategy- Single or
two stage? Prequalification or shortlist?
design the procurement plan.
9
Structuring means the process followed in
defining the form, composition, main
features (of a contract or tender) and how
they are connected together or arranged.
3.
Structuring & Drafting a contract is about documenting
Drafting the structure in legal and accurate terms
(Contract &
Tender)
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Structure and draft the project contract;
Allocating responsibilities, rights & risks to
each party & subsequently documenting it in
a contract
3(b). Structure and draft the package of
Structuring & procurement documentation, including the
Drafting EOI and RFP
(Contract & The process followed in defining the
Tender) structure & main features of the
procurement process & subsequently
documenting it in an EOI/RFP package
Evaluation criteria – price only or
price/quality?
11
Launching the tender;
Qualify bidders (and short-listing them in
some processes);
Site Visit, Pre-bid conference, Contract
Workshop
Finalize RFQ & refine Contract Agreement
4. Receive/evaluate bids & select preferred
Tender Bidder
Negotiate
Finalize the contract
Contract Award
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5.Contract Management – construction
Execution of contract management by the
Contract Management Team
6.Contract Management – operations to

5 & 6. hand-back
Contract Execution of contract management by the
Maangement Contract Management Team & hand-back
13
11 KEYS TO A SUCCESSFUL PPROCBLESTT
Programmatic & Structured
Top Political Commitment T P
P Public Sector Champion
Transaction Adviser T Successful

R Revenue Stream
PPP
Stakeholder
Management S O Organised Public &
Private Sectors
Environment E C
L B
Legal & Regulatory framework
Contract
Management Plan
Business Plan
PPROCBLEST(1)
01 P (a) Programmatic & (b) Structured approach
a) (Programmatic approach) Pipeline of deals
It generates market interest
•It underscores the commitment of governments in

pursuing a sustainable PPP program
•Tells investors that there is top level political commitment to

PPPs
•The investor benefits from economy of scale in his bidding.
•He is encouraged to put in his best knowing that he has higher
chances of winning
•He benefits from lessons learnt from one project especially in
projects of similar contextual background
PPROCBLEST(2)
01 P (b) Programmatic & (b) Structured approach

b)(Structured approach) PPP framework
a document that contains the policy, the rules,
established procedures, institutional responsibilities,
decision criteria and decision making lines used in
selecting, implementing and managing PPPs
• Increasesthe capability of government agencies to
deliver PPP
•Facilitates probity and oversight
•It saves time and money during PPP project

preparation
PPROCBLEST(2)
02 P Public Sector Champion

Public Sector should identify with PPP advocates
who can minimize misperceptions.
03 R
Revenue Stream
Both Parties should identify clear and predictable
revenue sources with strong growth potentials
and acceptable rate of return
PPROCBLEST(3)
04 O Organised Public & Private Sectors

Public & Private Sectors should establish dedicated
teams to handle PPP projects. Govt. - PSC, PDT,
PPP Unit. Private - SPV
05 C
Contract Management Plan
enables both parties meet their obligations in
order to deliver the contract objectives
PPROCBLEST(3)
06 B Business Plan
Both Parties must insist on a Business Plan &
detailed contract so as to increase the probability of
success. OBC & FBC. Inadequate contract specifics
adversely affected Jakarta Water Concession
07 L Legal & Regulatory Framework
08 E Environment
Procurement environment should be transparent,
fair and competitive while the political
environment should be stable.
PPROCBLEST(3)
09 S Stakeholders’ Management
Public Sector should communicate with
stakeholders transparently to minimize resistance
-Stakeholders’ Management & Public Participation.
10 T
Transaction Adviser
PPP contracts are designed on case to case
basis. Canadian British Columbia at infancy
employed TAs from UK & Australia.
PPROCBLEST(3)
11 T Top Level Political Commitment

In words and in actions, investors must be made to
believe that PPP as a concept has support from the
highest Government officials, President, Prime
Minister etc.
 A properly designed PPP can yield
positive results for government, end
users and the private partner.
Conclusion
However, many PPPs have been poorly
designed with the attendant
consequence of failure and this
experience has in many cases eroded
support for the concept of Public
Private Partnership
22
. THE END
Thank you
23
References
1. Public Private Partnership – Chukwuma

Katchy PhD
2. Attracting Investors to African Public Private
Partnerships, A Project Preparation Guide – a
World Bank, ICA, PPIAF doc.
3. Managing Unsolicited proposal in PPP – Engr
Chidi Izuwah
4. No privatisation of Suresh Prabhu – Press Trust
of India 3rd May 2015
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WELCOME

01 A retired Commissioner of Police,

02 PhD(Civil Engineering) - UNIBEN

03 MBA (Strategic Management) –

04 M. Eng - University of Benin

Monday, 12th May, 2021

2. Project Life Cycle

3. PPP Project Management Cycle = PPP Process

6.Contract Management – operations to

Transaction Adviser T Successful

•It underscores the commitment of governments in

•Tells investors that there is top level political commitment to

01 P (b) Programmatic & (b) Structured approach

•It saves time and money during PPP project

02 P Public Sector Champion

04 O Organised Public & Private Sectors

07 L Legal & Regulatory Framework

11 T Top Level Political Commitment

1. Public Private Partnership – Chukwuma

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