PUBLICPRIVATE PARTNERSHIP PPP FRAMEWORK AND GUIDELINES Syed M

PUBLIC–PRIVATE PARTNERSHIP (PPP) FRAMEWORK AND GUIDELINES Syed M. Ali Zaidi, P. Eng. PM(Stanford), Ph. D. Director, Strategic Partnerships Alberta Infrastructure. Government of Alberta Canada World Bank Group’s Public-Private Partnerships (PPP) CCSA Webinar – November 10, 2015

OVERVIEW q The overall discussion will be in Canadian context but the focus will be on Alberta's PPP Framework and Guidelines. q PPP Framework Objectives q PPP Framework Components q Concluding Comments 2

COMPONENTS OF PPP Full / Partial Private Financing Design Build Obligation Maintenance / Operations Obligations Assets Rehabilitation Obligations Performance Based Payment Mechanism 3

PPP FRAMEWORK OBJECTIVES Is Intended to set the principles around which PPPs are conducted. To ensure decisions on using PPPs are made based on Vf. M over the life cycle of the projects. To use consistent procurement and documentation approach but also allows for variances for different types of infrastructure. To ensure approval process is understood and followed for PPPs. 4

PPP FRAMEWORK COMPONENTS Capital Projects Planning Public–Private Partnerships Principles PPP Project Assessment Process PPP Procurement Process 5

CAPITAL PROJECTS PLANNING & PPP FRAMEWORKS CAPITAL PLANNING FRAMEWORK PPP FRAMEWORK Project Selection Identify Potential Projects Project's Assessment as PPP Project Approval Projects Identified as High Priorities Business Case Approval for PPP Project Procurement Project Planning Design & Tendering PPP Procurement : RFQ, RFP Process Project Implementation Project Operations Infrastructure Management PPP Operations and Management Implementation Capital Plan is the current approved capital expenditure plan that documents projects approved to commence in the five years. 6

PPP PRINCIPLES • Reason for PPPs • PPP Project Assessment • PPP Review and Approval • PPP Project Execution • Determination of Value for Money • Accounting and Budgeting for PPP Projects • Third Party Revenues • Roles and Responsibilities • Fairness 7

Scope well defined. Min. $100 million cost. Greenfield project. Potential of integrating design, construction & maintenance / operations. Performance requirement can be defined. No legal / legislative barriers. Preliminary analysis that provides evidence that PPP will provide Vf. M: Project description. Business and operational impacts. Preliminary risk assessment. Preliminary Vf. M Assessment. Preliminary project schedule and team. BUSINESS CASE Whether a PPP would add value to the project: OPPORTUNITY PAPER INITIAL ASSESSMENT PPP PROJECT ASSESSMENT PROCESS It is an in-depth analysis: Project team and reporting structure. Final business needs and project description. Strategic alignment. Business and operational impacts. Project risk assessments. Final Vf. M analysis. Implementation strategy. Review and approval of project procurement. Depending on factors such as results of the initial Assessment, project timing, size, asset class, scope and the details of the proposed project, an Opportunity Paper may not be required and the Project may go directly to Business Case stage. 8

ROLES AND RESPONSIBILITIES CABINET APPROVES PROJECT OVERSIGHT COMMITTEE TREASURY BOARD OVERSEES THE PROJECT PROCESS SUPPORT PROJECT REVIEW COMMITTEE EXECUTIVE SUPPORT PROJECT TEAM Project Director + Member from PM team, Legal, Finance & Client Departments + Advisors / Consultants PLAN, DEVELOP, PROCUREMENT AND MANAGE PROJECT * Typical Alberta PPP Project Organizational Structure 9

PPP PROCUREMENT KEY CONSIDERATIONS Fair Open Transparent PPP PROCUREMENT PRINCIPLES Process Integrity Confidentiality Schedule Certainty v v v v Consistent and Clear approach Policy and Legal Alignment Compliance with 'Trade Agreements' Evaluation Process and Guidelines Communication Protocols Conflict of Interests / Relationship Review Disclosure Guidance v v v Confidentiality Undertaking Managing FOIP Act Confidential Information in Electronic Data Room Record Managements: Electronic Mail, Personal Records, Documents v v v Identify Key Tasks and Milestones Align Processes and Approvals accordingly PPP PROCUREMENT GUIDELINES 10

PPP PROCUREMENT PROCESS RFQ STAGE 12 -16 Weeks RFP STAGE 32 -40 Weeks CLOSING 2 -8 Weeks Ø Announce Project. q Issue RFP. v Execute Project Agreement. Ø Hire Consultants / Advisors. q Open RFP Electronic Data Room. v Financial Close. Ø Hire Fairness Auditor. q Provide Site Access. Ø Prepare Draft Agreement Documents / Schedules. q Receive and Evaluate Staged Technical Submissions. Ø Hold Information Meetings. q Arrange Technical Meetings with Proponents. Ø Open RFQ Electronic Data Room. q Receive Comments on Draft Agreement Documents. Ø Issue RFQ and Receive Submissions. q Issue Final Agreement version. Ø Evaluate Submissions. q Receive and Evaluate Financial Submission. Ø Shortlist 3 Proponents. q Select Preferred Proponent. 11

CONCLUDING COMMENT: Government must have robust PPP Framework and Guidelines to assist public sector with assessing potential PPP projects and delivering them in accordance with established practices and protocols. THANK YOU 12