The transaction Advisor plays a pivotal role in awarding joint projects and managing to sign the PPP contract. It serves as a central point of accountability for the proper and timely completion of work by consultants. Furthermore, it plays the role of mediator between the Project Committee and private investors interested in the project.
The existence of an active consultant experienced in the area of the proposed project has many positive implications and effects, including:
• Benefitting from its local and international experience in all matters associated with the various phases of awarding joint projects in the concerned sector, identifying performance indicators and monitoring completion.
• Protecting the federal government from making costly mistakes that can be avoided
• Obtaining the services of the best local and international practices in this area.
• Strengthening the trust of local and international investors to participate in the proposed project
• Transferring experience and knowledge to the staff of Technical Bureau and the federal government.
• Serving as a central and pivotal point of accountability and be liable for completing the project professionally and timely.
One of the preliminary duties that may be assigned to the transaction Advisor is to study the possible forms of PPP to implement the joint project and to recommend the best form in the light of imposed restrictions and objectives envisaged by the Federal Entity from the project. The transaction Advisor may assist in designing the awarding process, identifying the required tasks and linking the same with a schedule. He may also assist the Project Committee in the selecting the consulting firms, recommend the firms having the necessary expertise, and identify things to be studied and thus develop the scope of work and assist in the evaluation of the proposals submitted by the consulting firms.
The core duties of the transaction Advisor are as follows:
• Attracting the attention of the private sector to the joint project and designing the same in such manner that enhances its eligibility for financing and successful implement. Such duties require skills relating to structure of financing transactions, preparation of financial models, studying and assessing risks, and conducting negotiations. The transaction Advisor shall be aware of the commercial logic and analysis of markets and ways of attracting private financing.
• Studying the impact of any changes in the project on the private sector's trust and interest, and also playing a leading role in the selection process of the private partner, negotiation and financial closure.
Contracting with the project's transaction Advisor may be divided into two separate phases, namely:
First stage: This stage is intended to complete the feasibility study in accordance with the PPP contracts at such level that enables the Financial and Economic Committee and the Cabinet of making the right decision to move forward with the joint project or not. If the project implementation is approved, the project's transaction Advisor shall proceed with the second phase.
Second stage: This stage is intended to prepare for the selecting the private partner and taking the relevant procedures, including preparing all the necessary documents and instruments. This division of stages allows the government to terminate the contract with the transaction Advisor upon completion the feasibility study if it is decided not to proceed with the partnership project.