3.1.2 Engage a team of advisers

The importance of having in place a strong group of expert advisers cannot be overstated. The engagement of PPP advisers requires that sufficient resources are budgeted for that purpose early in the project cycle. The PPP project management team will require different types of advisers for different phases of the PPP project preparation process. Consultants would almost certainly have been used to prepare the various feasibility reports. They may have been hired separately and in a more ad-hoc manner. It is when the procurement phase begins that a comprehensive plan needs to be developed for how advisers will be used:

□ The core team of advisers for the procurement phase will usually consist of a financial adviser, a technical adviser, and a legal adviser (each of these composed of more than one individual). Other consultants will be required for specific inputs - e.g. separate consultants for environmental, social impact, regulatory risk and insurance matters. The exact nature of the broad advisory team will depend on the TEN-T project and the in-house resources available. (see Box 1 on PPP advice during procurement).

□ A public authority with considerable experience in PPP procurement can engage the advisers on separate mandates rather than a consortium mandate, with the project director, normally a public official, managing the entire process. It may be advisable, however, to hire a consortium of consultants, under one contract, led by one of them (often the financial advisor) <1>,<2>

□ Even if a single consortium of consultants is engaged, it is useful for the project director to be able to discuss issues with each member of the advisory group separately to ensure that any differences of opinion on difficult issues are brought out and solutions are identified<3>, <4>

Public authorities should pay careful attention to the incentives created by different ways of engaging advisers and remunerating them. For example, if the consultants hired to carry out the feasibility work are fairly certain that they will be kept on board to advise on the transaction, they may have a disincentive to disclose major problems with the project for fear that preparation will not continue. Alternatively if the transaction advisers are paid a success fee in full when the PPP contract is signed, they may have an incentive to deliver a project that is not yet bankable and that takes many months (or years) to reach financial close. It may therefore be useful at the outset of the process for the public authority to hire an initial high-level consultant to assist in the planning of all the technical assistance that will be needed during the process, prepare terms of reference, etc.