UNECEPPP Centreof Excellence

UNECEInternationalPPPCentreofExcellence ProfessorDr.DavidH.Dombkins

Overview of the UNECE PPP Program

UNECE InternationalPPP Centreof Excellence

ThepurposeoftheUNECEPPPprogramisto,throughworkingincollaborationwithotherinternationaland regionalinstitutions,toassistMemberStatesintheirongoingdevelopmentofbothinternalPPP capabilitiesandnationalPPPmarkets.TheUNECEInternationalPPPCentreofExcellencetodeliverthe following: tobeaOneStopShopreferenceandreferralcentre thedevelopmentandimplementationofasetofbestpracticeguidelinesinPPPcapacitybuilding andPPPprojectdelivery(theUNECEPPPToolkit)

Howtomanual SectorSpecificBestPracticeGuides TraintheTrainerManualsinkeyfunctionalareas

theestablishmentofUNECEPPPSpecialistCentres,eachwithaglobalsectorspecificfocusuponan areaofPPPpublicassetandservicedelivery. assistcountriesintheestablishmentof:

PPPpolicies,strategiesandunits PPPcapabilitiesandmarkets contextualisingPPPlaws,strategies,tools,andprocessestofitlocalcircumstances; increasingthenumberofPPPprojectsglobally increasingtheoverallmagnitudeofglobalPPPinvestment.

researchtodeveloplowerriskmodelsforPPPdeliveryandfinance,withtheobjectiveof:

THEPublicPrivatePartnerships(PPP)Family

UNECE InternationalPPP Centreof Excellence

PubliclyFinanced

PrivatelyFinanced

StructureofUNECEPPPTOOLKIT

UNECE InternationalPPP Centreof Excellence

1. HowtoManual 2. SectorSpecificBestPracticeGuides 3. TraintheTrainerCourses

TheinitialfocushasbeenonEstablishingSpecialist Centres asthefoundationfortheongoing developmentoftheCentreofExcellenceandthe Toolkit

KEYassumptionforSpecialistCentres

UNECE InternationalPPP Centreof Excellence

Countrieswillbewillingtoinvesttherequiredfundsto establish,operate,anddevelopasectorspecific SpecialistCentrewhentherearetangibleand measurablebenefitsdirectlyflowingfromthe SpecialistCentretothecountry.

HowToManual

UNECE InternationalPPP Centreof Excellence

1. Tangibleanduserfriendly 2. Buildsonintegrationofinternationaldocumentation 3. Includestoolsandproformadocuments 4. DetailedcontentandpriorityareasincludedonCD 5. FormatandstylearemodeledontheInternational InfrastructureManagementManual copyavailablefor viewing 6. Internationallyvalidatedthroughpeerreview

SectorSpecificBestPracticeGuides
UNECE InternationalPPP Centreof Excellence

FormulaforSuccess

UNECE InternationalPPP Centreof Excellence

SolutionsforPractitioners aResearchAgenda

UNECE InternationalPPP Centreof Excellence

CaseStudyExample
UNECE InternationalPPP Centreof Excellence

TheM4tollwaywasoneofthefirstPFIs establishedbytheNSWGovernmentin1989. ItwasthefirstPFItobereturnedto Governmentownershipandoperation.

CaseStudyExample
CostoftheM4 TheAuditOfficedoesnotauditprivatesectorcompanieslikeSWR,sowecannotcommenton theactualcoststoSWRofthePPP.Our1994performanceaudit,PrivateParticipationinthe ProvisionofPublicInfrastructure TheRoadsandTrafficAuthority,givesanindicationofthe scaleoftheproject.Thatauditreported: theestimatedtotalcostoftheM4PPPwas$246million(1988dollars)including construction,interest,operations,maintenance,andtaxation(thiswouldequateto$453 millionin2008prices) theestimatedconstructioncostwas$110million(1988dollars) SWRwastomakeaoneoffpaymentof$46.6millioninrentforthelandonwhichthe tollwaywasbuilt iftheinternalrateofreturnexceeded17.64percentatanytime,theleasetermwouldbe reducedortheformulaforincreasingtollsrevised. TheRTAadvisedusthat: theinternalrateofreturnhasnotandisnotlikelytoexceed14.73percent SWRpaidthe$46.6millioninrent duringthecourseofthePPP,thedeedwasamendedwithSWRundertakingadditional roadworksinexchangeforanincreaseinthetoll(thecostwouldhaveaddedtothe$246 million). Tollrevenue Thecurrenttollis$2.75forcarsandbikesand$6.60forlarge vehicles.SWRreceived$88.5 millioningrossrevenuefromM4tollsin2008,and$970million ingrossrevenueuptoJune 2008.
UNECE InternationalPPP Centreof Excellence

CaseStudyExample
Tollrevenue Thecurrenttollis$2.75forcarsandbikesand$6.60forlarge vehicles.SWRreceived$88.5 millioningrossrevenuefromM4tollsin2008,and$970million ingrossrevenueuptoJune 2008.
UNECE InternationalPPP Centreof Excellence

HowToManualprioritydraftinglist

PilotProject
ReviewofPPPModelLaw Reviewcompleted

UNECE InternationalPPP Centreof Excellence

2011Drafting
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. ImplementModelLawReviewrecommendations Appraisal WhatarePPPs WhenshouldPPPs beused ProgramDeliveryFramework TheFinancialFramework InitialPlanningandStrategicFormulation SelectingPPPprojects PPPRiskManagement Earlyworksactivities ContractManagement

Invitethosewithcompetencesinspecificareastooffertheirservicesasproduct leaders,writers,orreviewers

SpecialistFunctionalCentres
CurrentlydevelopingaplantoestablishFunctionalSpecialistCentres for: Finance PPPUnits

UNECE InternationalPPP Centreof Excellence

TraintheTrainer
InitiallyidentifyingandsharingappropriatePPPtrainingmaterial
UNECE InternationalPPP Centreof Excellence

ReferCD

CurrentlyestablishingformalrelationshipswithkeyinstitutionsincludingWorld Bank,ADB,ERDB,IFC,andEPECtosharedtheirtrainingmaterial

UNECEPPP Centreof Excellence