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Involvement of private sector advisers 1 Project development –Needs analysis –Options appraisal –Feasibility study
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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)
