Managing private sector advisers Training event on PPP programming and process management 27 May...

Managing private sector advisers

Training event on PPP programming and process management 27 May 2008

Twinning Project CZ/2005/IB/FI/04

Mikko AJ RamstedtSenior Project Adviser

Financial Partnerships Unit

Introduction

• Involvement of private sector advisers• Type and role of advisers• How to benefit from their expertise? • Management of private sector advisers

Involvement of private sector advisers 1

• Project development

– Needs analysis– Options appraisal– Feasibility study

Involvement of private sector advisers 2

• Procurement

– Documentation– Market engagement– Negotiation

Type and role of advisers 1

• Technical– Specification, risk assessment, costing, deliverability

assessment, payment mechanism calibration, negotiation, bid / bidder evaluation, FM

• Financial– Financial modelling, funding solutions, tax,

accounting, bidder / bid evaluation• Legal

– Statutory powers, procurement strategy, contract development, negotiation, bid / bidder evaluation, specialist advice (property, tax, environmental law, IP, etc)

Type and role of advisers 2

• Project Management– Lead advisor, quality assurance

• Specialist – Insurance– Education– Sustainability– etc

How to benefit from their expertise?

• Critical success factors:

– Experience: ask questions and check experience / references

– Availability: specify the people you want– Affordability / VfM: be clear of value added

and cost– Management: only use advisers where they

add value

Management of private sector advisers 1

• Indentify what expertise is needed and when

• Create a strong client presence & manage negotiations

• Clear advice and agree lines in advance of meetings

• Share information

Management of private sector advisers 2

• Drive progress & retain control• Clearly define approvals / sign off

processes• Agree outcomes and review performance

Management of private sector advisers 3

• Risks involved in the use of private sector advisers– Project ownership– Knowledge transfer– Accountability

Summary • Complement (don’t duplicate) resources• Develop clear advisory briefs• Build in flexibility• Test bidders knowledge, understanding

and commitment• Check references• Build a relationship and ensure knowledge

transfer• Pay for results

Summary

“If you structure and conclude a deal well,value for money should be improved. If youappoint the right team of advisers, theyshould achieve this for you and effectivelybe self financing.”

(TTTNote3)

Mikko AJ Ramstedt

mikko.ramstedt@scotland.gsi.gov.uk

0131 244 4940

Questions?