Attracting Investors to African Public-Private Partnerships: A Project Preparation Guide

CONTENTS......Page 6
ABOUT THE AUTHORS......Page 10
ABBREVIATIONS......Page 12
1. INTRODUCTION......Page 14
FIGURE 1.1 Number and Value of Private Participation in Infrastructure Projects, by Region, 1996–2006......Page 15
Scope of the Guide......Page 16
Limits to the Guide......Page 18
Privatization and Management Contracts......Page 20
Types of Public-Private Partnerships......Page 21
Policy Rationale......Page 26
Legal Framework......Page 27
Operating Framework......Page 29
Summary......Page 31
4. SELECTING PROJECTS......Page 32
FIGURE 4.1 Stages of Project Selection......Page 33
Expressing Projects in Terms of Outputs......Page 34
Can the Project Be Delivered as a Public-Private Partnership?......Page 36
FIGURE 4.3 Typical Contractual Structure of a Public-Private Partnership......Page 41
Initial Market Assessment......Page 42
Lessons from Private Sector Engagement in Projects in Africa......Page 43
5. PREPARING PROJECTS FOR MARKET......Page 48
Management of the Process......Page 49
BOX 5.2 Common Mistakes in Project Preparation......Page 54
Unsolicited Proposals......Page 55
Project Assessment......Page 56
When to Use Advisers......Page 60
Management of Advisers......Page 63
7. MANAGING THE INTERFACE WITH THE PRIVATE SECTOR......Page 66
Preparation for Market Sounding......Page 67
Before the Launch......Page 68
Role of Development Finance Institutions, Regional Investors, and Donors......Page 70
BOX 7.3 Major Concerns of Project Lenders......Page 72
Outcome of the Procurement Phase......Page 76
Bid Stages......Page 77
Project Launch......Page 79
FIGURE 8.2 Outline of the Prequalification Phase......Page 82
Request for Proposals......Page 84
Preferred Bidder and Financial Close......Page 87
9. AFTER SIGNING......Page 88
APPENDIX A. World Bank/PPIAF Private Participation in Infrastructure Project Database......Page 94
APPENDIX B. Sample Extract of a Risk Management Register for Managing the Public-Private Partnership Project Process......Page 98
APPENDIX C. Public-Private Partnership Web Sites......Page 100
APPENDIX D. Profiles of Five African Public-Private Partnership Projects......Page 104
Songas Processing Plant in Tanzania......Page 105
Maputo Port in Mozambique......Page 107
Skikda Desalination Plant in Algeria......Page 109
Lesotho National Referral Hospital......Page 111
Water and Electricity Services Provision in Gabon......Page 113
REFERENCES......Page 116
INDEX......Page 118
BOX 5.1 Common Problems in Project Governance......Page 53
BOX 7.1 Top 10 Tips for a Successful Market-Sounding Exercise......Page 69
BOX 7.2 Major Concerns of Contractors and Investors......Page 71
BOX 8.1 Project Information Memorandum......Page 80
BOX 8.2 Bidders’ Conference......Page 81
BOX 8.3 Summary of a Model Request for Qualification for Public-Private Partnership Projects, Government of India......Page 83
BOX 9.1 Tips on Contract Management......Page 90
FIGURE 1.2 Key Phases of the Public-Private Partnership Project Process......Page 17
FIGURE 4.2 Elements of a Risk Management Plan......Page 39
FIGURE 4.4 Number of Private Participation in Infrastructure Projects in Africa, by Sector and Type of Contract, 1996–2006......Page 44
FIGURE 4.5 Number of Transport Projects in Sub-Saharan Africa in World Bank PPI Database, by Sector, 1996–2007......Page 46
FIGURE 5.1 Project Preparation Process......Page 50
FIGURE 5.2 Outline of a Structure of Project Governance......Page 51
FIGURE 8.1 Outline of the Procurement Process......Page 78
FIGURE 8.3 Outline of the Request-for-Proposals and Financial Close Phases......Page 85
FIGURE 9.1 Structure of Contract Management......Page 91
TABLE 4.1 An Example of Output Specifications for an Accommodation Public-Private Partnership......Page 35
TABLE 6.1 Role of External Advisers......Page 61
TABLE 7.1. Checklist before Launching the Procurement Phase......Page 73