This phase shall start as of the cabinet approval on the PPP contract till completing the project construction, establishment, development, restoration and rehabilitation, preparation and/ or maintenance as set out in the PPP contract.
The Federal Entity shall appoint an independent certifier to assist it in monitoring the joint project implementation during this foundational phase. The independent certifier shall be appointed in coordination with the project company under the provisions contained in the PPP contract or any other contract signed later with the project company. The independent certifier shall monitor the project and submit reports in a fair, impartial and effective way. The independent certifier role shall be of pure technical nature. So, the Federal Entity shall follow up the other legal, financial and incidental matters.
The independent certifier duties shall include the following:
• Reviewing and monitoring works and ensuring that they are in conformity with the agreed upon plans and designs.
• Issuing monthly reports and completion certificates after carrying out the necessary tests.
• Identifying delays and defects that require actions by the government to apply the contract conditions.
• Identifying whether the work or service costs are within the reasonable limits and as agreed upon under the PPP contract or not.
• Reassuring the public sector about the project good progress.
• Assuming the mediator role in settling disputes arising between the project company, the Federal Entity and/ or any funder.
• Making sure that the project company complies with its contractual obligations in respect of this phase.
In addition to appointing the independent certifier, the mechanism of monitoring the project implementation by the Federal Entity during this phase shall be made through: Steering Committee and Project Management Office.
a. Steering Committee
The Federal Entity shall, immediately after approving the PPP contract by the cabinet, form a steering committee to be headed by one of the Federal Entity representatives and consists of representatives from the Technical Bureau and the Ministry. Steering Committee shall meet periodically to review the monitoring reports submitted by Project Management Office and to give necessary directions to it. Steering Committee shall submit periodic reports directly to the Federal entity Senior management and to the Financial and Economic Committee through the Ministry.
b. Project Management Office
The Federal Entity shall, immediately after approving the PPP contract by the Cabinet, appoint an office for managing the project as appropriate. If the required experiences are not available at the Federal Entity, it may hire experts from the private sector. The office shall consist of the required experts and consultants, where majority shall be technical consultants, in addition to a legal consultant and a financial consultant according to the project nature. It shall be noted that the consultants to be hired in this phase shall differ than those who have been contracted therewith in the preparation phase for selecting the private partner. Therefore, a sufficient budget shall be allocated to the Federal Entity to establish this office. A director/head shall be appointed for this office, whose powers shall be accurately identified.
Project Management Office shall be the contact point between the Steering Committee and the project company. Its duties shall be as follows:
• Receiving and evaluating reports relating to implementation and works progress, which are prepared by the project company as set out in the PPP contract.
• Receiving and evaluating reports and completion certificates issued by the independent certifier.
• Preparing periodic monitoring reports and submitting them to the Steering Committee. These reports explain how the project company complies with the schedule of executing the works set out in the contract, as well as suggestions relating to the emergency matters to be addressed.
The preparation phase shall end when issuing all completion certificates by the independent certifier and passing all initial tests and approving them by the Federal Entity and the project company. Accordingly, it shall be ensured that the project company has completed all its obligations under the contract for this phase. After that, the project shall move to the operation phase.