It is unlikely that all kinds of expertise, experience and human resources needed to develop and implement a PPP project will be available in-house. In most cases, a transaction advisor will be needed to assist the implementing agency in undertaking various tasks.
A transaction advisor should have the appropriate skills and experience to assist and advise the implementing agency on matters related to a PPP project development and its implementation including the preparation and conclusion of the concession/contract agreement. Usually, the transaction advisor means a group of professional consultants having expertise in technical, financial, and legal matters who work collectively as a team. They may be drawn from one or more firms.
Usually, the lead firm under contract with the implementing agency makes the services of the consultants available to the team as required.
The transaction advisor undertakes detailed works related to technical, financial and legal aspects of a PPP project as required by the implementing agency. It may be engaged to:
• Conduct a feasibility study that may satisfy the requirements of the implementing agency and approving authorities as well as potential financiers;
• Draft a contract document;
• Prepare necessary bidding documents and assist in bid evaluation;
• Assist the implementing agency in contract negotiation and completion; and
• Provide support to contract management.
The implementing agency prepares detailed terms of reference (TOR) for the transaction advisor which clearly mention the scope of work and services required, and deliverables and their timeframes. The TOR, among other things, may also include:
• Competencies and experience of the transaction advisor;
• Remuneration;
• Management of the advisor by the implementing agency;
• The process and rules of bidding and bid submission requirements;
• Background documents required to be submitted with bid submissions; and
• Bid evaluation, selection and approval procedure.
The TOR may or may not mention the budget for engaging the transaction advisor. There are, however, implications in both situations.
The prepared TOR as well as the selected transaction advisor after the bidding process may need to be endorsed by the implementing agency or by some other competent authority in accordance with the public procurement laws/rules of the country.