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Public-Private Partnerships
Principles of Policy and Finance
- 1st Edition - March 20, 2007
- Author: E. R. Yescombe
- Language: English
- Paperback ISBN:9 7 8 - 1 - 4 9 3 3 - 0 3 2 3 - 6
- Hardback ISBN:9 7 8 - 0 - 7 5 0 6 - 8 0 5 4 - 7
- eBook ISBN:9 7 8 - 0 - 0 8 - 0 4 8 9 5 7 - 5
Over the last decade or so, private-sector financing through public-private partnerships (PPPs) has become increasingly popular around the world as a way of procuring and… Read more
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Request a sales quoteOver the last decade or so, private-sector financing through public-private partnerships (PPPs) has become increasingly popular around the world as a way of procuring and maintaining public-sector infrastructure, in sectors such as transportation (roads, bridges, tunnels, railways, ports, airports), social infrastructure (hospitals, schools, prisons, social housing) public utilities (water supply, waste water treatment, waste disposal), government offices and other accommodation, and other specialised services (communications networks or defence equipment). This book, based on the author's practical experience on the public- and private-sector sides of the table, reviews the key policy issues which arise for the public sector in considering whether to adopt the PPP procurement route, and the specific application of this policy approach in PPP contracts, comparing international practices in this respect. It offers a systematic and integrated approach to financing PPPs within this public-policy framework, and explains the project-finance techniques used for this purpose. The book deals with both the Concession and PFI models of PPP, and provides a structured introduction for those who are new to the subject, whether in the academic, public-sector, investment, finance or contracting fields, as well as an aide memoire for those developing PPP policies or negotiating PPPs. The author focuses on practical concepts, issues and techniques, and does not assume any prior knowledge of PPP policy issues or financing techniques. The book describes and explains:* The different types of PPPs and how these have developed* Why PPPs are attractive to governments* General policy issues for the public sector in developing a PPP programme* PPP procurement procedures and bid evaluation* The use of project-finance techniques for PPPs* Sources of funding* Typical PPP contracts and sub-contracts, and their relationship with the project’s financial structure * Risk assessment from the points of view of the public sector, investors, lenders and other project parties* Structuring the investment and debt financing* The key issues in negotiating a project-finance debt facility. In addition the book includes an extensive glossary, as well as cross-referencing.
*Reviews the PPP policy framework and development from an international perspective*Covers public- and private-sector financial analysis, structuring and investment in PPPs*No prior knowledge of project financing required
PPP and project financing specialists and consultants, public sector officials developing PPPs, private sector investors in PPP projects, MBA students studying project finance, other professionals involved in PPPs: construction and maintenance contractors, lawyers, accountants, engineers, transport economists.
IntroductionChapter 1 What are Public-Private Partnerships? IntroductionPublic Infrastructure and the Private SectorPublic-Private Partnerships Development and StructuresPPPs and Public Infrastructure Types of PPPChapter 2 PPPs—For and Against IntroductionNew Public Management Privatisation and PPPsBudgetary BenefitAdditionality Financing Cost and Risk Transfer Risk Transfer and Value for MoneyEconomies of ScaleWhole-Life Costing and MaintenancePrivate-Sector SkillsPublic-Sector Reform ComplexityFlexibilityPPPs and Politics Chapter 3 PPPs Worldwide IntroductionDeveloping PPP ProgrammesLegal FrameworkUnited Kingdom United StatesAustraliaFranceKoreaSpainSouth AfricaChapter 4 Cash Flow and Investment AnalysisIntroductionNet Present Value / Discounted Cash FlowInternal Rate of ReturnProblems with DCF and IRR CalculationsUses in PPPsChapter 5 The Public-Sector Investment Decision IntroductionEconomic JustificationValue for Money and the Public-Sector Comparator AffordabilityBalance-Sheet TreatmentChapter 6 Public-Sector Procurement and Contract ManagementIntroductionProject ManagementProcurement ProceduresOther Procurement IssuesDue DiligenceContract ManagementExternal AdvisersChapter 7 The Private-Sector Investor’s PerspectiveIntroductionThe Investment PoolThe Investment DecisionBidding and Project DevelopmentJoint-Venture IssuesThe Project CompanyExternal AdvisersChapter 8 Project Finance and PPPsIntroductionDevelopment of Project FinanceFeatures of Project FinanceThe Project-Finance MarketWhy Use Project Finance for PPPs?Chapter 9 Private-Sector Financing—Sources and ProceduresIntroductionThe Rôle of the Financial AdviserCommercial BanksBond IssuesLoans versus BondsMezzanine DebtChapter 10 Financial StructuringIntroductionThe Financial ModelModel Inputs and OutputsFinancing CostsDebt ProfileCover RatiosRelationship between Cover Ratio, Leverage and Equity ReturnAccounting and Taxation IssuesRecourse to the SponsorsChapter 11 Financial HedgingIntroductionInterest-Rate RiskInflation IssuesChapter 12 Lenders’ Cash-flow Controls, Security and EnforcementIntroductionControl of Cash FlowSecurityThe Rôle of InsuranceEvents of DefaultIntercreditor issuesChapter 13 Service-Fee MechanismIntroductionContract ScopePayment StructureUsage-based PaymentsAvailability-based PaymentsMixed Usage and Availability PaymentsThird-Party and Secondary RevenuesChapter 14 Risk Evaluation & TransferIntroductionPrinciples of Risk TransferThe Risk MatrixPolitical RisksSite RisksConstruction RisksCompletion RisksOperation-phase RisksChapter 15 Changes in Circumstances and TerminationIntroductionCompensation EventsRelief EventsStep-In and SubstitutionEarly Termination: Default by the Project Company Optional Termination or Default by the Public AuthorityEarly Termination: Force MajeureEarly Termination: CorruptionTermination and SubcontractorsTax Implications of a Termination-Sum Payment Final Maturity, Residual-Value Risk and Hand-BackChapter 16 Funding Competition, Debt Refinancing and Equity SaleIntroductionFunding CompetitionEquity CompetitionDebt RefinancingEquity SaleChapter 17 Alternative ModelsIntroductionPublic-Sector ProcurementPost-Construction Take-OutPublic-Sector Debt FundingJoint-Venture PPPsNot-for-Profit StructuresBibliographyGlossary and Abbreviations
- No. of pages: 368
- Language: English
- Edition: 1
- Published: March 20, 2007
- Imprint: Butterworth-Heinemann
- Paperback ISBN: 9781493303236
- Hardback ISBN: 9780750680547
- eBook ISBN: 9780080489575
EY
E. R. Yescombe
E.R. Yescombe has over 30 years’ experience in various forms of structured finance, including project finance, leasing, export credits, real estate and asset finance. A former banker and head of project finance in London for a major international bank, he is now an independent consultant on project finance and public-private partnerships (PPPs), advising investors on financing for power, infrastructure and PPP projects, as well as public-sector entities on PPP policy issues, project procurement and contracting.
Affiliations and expertise
YCL Consulting Ltd., London, UKRead Public-Private Partnerships on ScienceDirect