Lessons Learned - PPP Model

From the information mentioned earlier, the significant lessons learned are as follows and are categorized according to the different actors involved. These are highlighted as:

Overall Ministry & Society

•  There may be legal issues preventing private finance and may need law changes or government approval

•  Need a good "Public Sector Comparator" (Benchmarking capability)

•  In PPP - consider series of PPP projects and not just one - costs of entering market is high

•  Selecting a good measurable, objective "Payment Mechanism" (Transparent)

•  Influence of project size - recommendation of over 80 million Euros

Road Authority

•  Risks from both a legal, financial and design & construction perspective

•  Adding as much as possible "Performance Specifications" & "Outcome-Based Criteria"

•  Enticing international competition & ability to find/network with reliable national partners

•  Consider the use of stipends to offset the large tendering costs

•  Monitoring & measuring acceptance during the "Delivery Phase" (construction portion)

•  Appropriate "Hand-Back Clause" (what is the condition of the asset when returned back to the authority)

•  If you have not outsourced maintenance activities via maintenance contracts, it will be difficult to include all the detailed aspects of maintenance into the PPP contract Private Sector Contractors & Others

•  Ability to get competitively priced private finance

•  Lack of understanding of DBFO delivery model