Type of Organization

n. Investment Bank

Top benefits of PPP

1. Transfer of financial and operating risk from a public to a private entity;

2. Up-front benefit paid to leaser;

3. Deployment of up-front benefit to other capital projects

PPP Concern 1

1. Misuse of up-front benefit;

2. Hijacking of up-front benefit by subsequent political regimes

PPP Concern Mitigation 1

Public statements and commitments to authorizing bodies about the intended use of the up-front proceeds.

PPP Concern 2

Placing the up-front proceeds in an irrevocable trust, to be governed in accordance with the trust agreement for the purposes enumerated by the trust.

PPP Concern Mitigation 2

PPP Concern 3

PPP Concern Mitigation 3

PPP Concern 4

PPP Concern Mitigation 4

PPP Concern 5

PPP Concern Mitigation 5

Factors to consider by decision-makers

1. That the user of the facility receives the same if not better service from the facility being leased or sold;

2. That the new operator is capable from both a financial and
operating standpoint to provide the service to the user;

3. That the leaser or seller uses the proceeds in an appropriate
Manner; i.e., a capital-for-capital exchange.

Contract structures/techniques to protect public interests

Duplicating the concession agreements from the [project] and [project] deals.

Other perspectives