Public-Private Partnerships: Principles of Policy & Finance

(1st edition 2007)

Contents 

Introduction

Chapter 1     What are Public-Private Partnerships?

§1.1     Introduction
§1.2     Public Infrastructure and the Private Sector
§1.3     Public-Private Partnerships
§1.4     Development and Structures
§1.5     PPPs and Public Infrastructure
§1.6     Types of PPP

Chapter 2     PPPs—For and Against

§2.1     Introduction
§2.2     New Public Management, Privatisation and PPPs
§2.3     Budgetary Benefit
§2.4     Additionality
§2.5     Financing Cost and Risk Transfer
§2.6     Risk Transfer and Value for Money
§2.7     Economies of Scale
§2.8     Whole-Life Costing and Maintenance
§2.9     Private-Sector Skills
§2.10   Public-Sector Reform
§2.11   Complexity
§2.12   Flexibility
§2.13   PPPs and Politics

Chapter 3     PPPs Worldwide

§3.1     Introduction
§3.2     Developing PPP Programmes
§3.3     Legal Framework
§3.4     United Kingdom
§3.5     United States
§3.6     Australia
§3.7     France
§3.8     Korea
§3.9     Spain
§3.10   South Africa

Chapter 4     Cash Flow and Investment Analysis

§4.1     Introduction
§4.2     Net Present Value / Discounted Cash Flow
§4.3     Internal Rate of Return
§4.4     Problems with DCF and IRR Calculations
§4.5     Uses in PPPs

Chapter 5     The Public-Sector Investment Decision

§5.1     Introduction
§5.2     Economic Justification
§5.3     Value for Money and the Public-Sector Comparator
§5.4     Affordability
§5.5     Balance-Sheet Treatment

Chapter 6     Public-Sector Procurement and Contract Management

§6.1     Introduction
§6.2     Project Management
§6.3     Procurement Procedures
§6.4     Other Procurement Issues
§6.5     Due Diligence
§6.6     Contract Management
§6.7     External Advisers

Chapter 7     The Private-Sector Investor’s Perspective

§7.1     Introduction
§7.2     The Investment Pool
§7.3     The Investment Decision
§7.4     Bidding and Project Development
§7.5     Joint-Venture Issues
§7.6     The Project Company
§7.7     External Advisers

Chapter 8     Project Finance and PPPs

§8.1     Introduction
§8.2     Development of Project Finance
§8.3     Features of Project Finance
§8.4     The Project-Finance Market
§8.5     Why Use Project Finance for PPPs?

Chapter 9     Private-Sector Financing—Sources and Procedures

§9.1     Introduction
§9.2     The Rôle of the Financial Adviser
§9.3     Commercial Banks
§9.4     Bond Issues
§9.5     Loans versus Bonds
§9.6     Mezzanine Debt

Chapter 10     Financial Structuring

§10.1     Introduction
§10.2     The Financial Model
§10.3     Model Inputs and Outputs
§10.4     Financing Costs
§10.5     Debt Profile
§10.6     Cover Ratios
§10.7     Relationship between Cover Ratio, Leverage and Equity Return
§10.8     Accounting and Taxation Issues
§10.9     Recourse to the Sponsors

Chapter 11     Financial Hedging

§11.1     Introduction
§11.2     Interest-Rate Risk
§11.3     Inflation Issues

Chapter 12     Lenders’ Cash-flow Controls, Security and Enforcement

§12.1     Introduction
§12.2     Control of Cash Flow
§12.3     Security
§12.4     The Rôle of Insurance
§12.5     Events of Default
§12.6     Intercreditor issues

Chapter 13     Service-Fee Mechanism

§13.1     Introduction
§13.2     Contract Scope
§13.3     Payment Structure
§13.4     Usage-based Payments
§13.5     Availability-based Payments
§13.6     Mixed Usage and Availability Payments
§13.7     Third-Party and Secondary Revenues

Chapter 14     Risk Evaluation & Transfer

§14.1     Introduction
§14.2     Principles of Risk Transfer
§14.3     The Risk Matrix
§14.4     Political Risks
§14.5     Site Risks
§14.6     Construction Risks
§14.7     Completion Risks
§14.8     Operation-phase Risks

Chapter 15     Changes in Circumstances and Termination

§15.1     Introduction
§15.2     Compensation Events
§15.3     Relief Events
§15.4     Step-In and Substitution
§15.5     Early Termination: Default by the Project Company
§15.6     Optional Termination or Default by the Public Authority
§15.7     Early Termination: Force Majeure
§15.8     Early Termination: Corruption
§15.9     Termination and Subcontractors
§15.10   Tax Implications of a Termination-Sum Payment
§15.11   Final Maturity, Residual-Value Risk and Hand-Back

Chapter 16     Funding Competition, Debt Refinancing and Equity Sale

§16.1     Introduction
§16.2     Funding Competition
§16.3     Equity Competition
§16.4     Debt Refinancing
§16.5     Equity Sale

Chapter 17     Alternative Models

§17.1     Introduction
§17.2     Public-Sector Procurement
§17.3     Post-Construction Take-Out
§17.4     Public-Sector Debt Funding
§17.5     Joint-Venture PPPs
§17.6     Not-for-Profit Structures

Bibliography    (click here for the full Bibliography online)
Glossary and Abbreviations

 

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