UNECE National PPP readiness self-assessment english€¦ · Assessment PPP Readiness Assessment PUBLIC GOVERNANCE POLICY CAPACITY-BUILDING LEGAL FRAMEWORK PROJECT MANAGEMENT No response

Country Datedd/mm/yyyy

Complex Portfolio DirectorAssessorName: Position:

0.000 © UNECE 2011Version 1.9

Score

Area #1 0

Area #2 0

Area #3 0

Area #4 0

Area #5 0

Area #6 0

Area #7 0

Area #8 0

Assessment Incomplete

Poor

Fair

Moderate

Good

Very Good

8

0

8

National ScoreVery Good Good Moderate Fair Poor

SUSTAINABLE DEVELOPMENT

FINANCE

No response

No response

No response

SUMMARY: PPP READINESS ASSESSMENT

RemarksArea of PPP Readiness

insert here

insert here

No response

No response

No response

Assessment Incomplete

No response

WHOLE-OF-LIFE PROJECT DELIVERY

insert here

Assessment

PPP Readiness Assessment

PUBLIC GOVERNANCE

POLICY

CAPACITY-BUILDING

LEGAL FRAMEWORK

PROJECT MANAGEMENT

No response

Area #1

Area #2

Area #3

Area #4

Area #5

Area #6

Area #7

Area #8 Very Good

Good

Moderate

Fair

Poor

National Score

How to complete this assessment:

1

1

1

1

Poor

Fair

Moderate

Good

Does your government have an established PPP policy framework, and internal PPP capability / PPPUnit?

Although the principles as outlined in this document are directed towards the development of PPP capabilities and marketsat the national level, these same principles are equally applicable at the municipal / local government level, at the state levelwithin federal systems, and at the inter-regional / pan-national level between multiple national governments or internationalbodies.

PPPs refer to a wide range of project delivery strategies, in which the public sector engages the private sector to assist in theprovision of core public assets and service - including the funding, construction, renovation, operation, management and/ormaintenance of these assets and services.

The assessment consists of eight specific areas, each representing a distinct area of risk in delivering public infrastructureprojects using PPP (note: the term 'public infrastructure' includes both civil and social public assets and services).

2. Please read the UN Guidebook for Good Governance in PPP for an overview of PPP delivery strategies.

3. Please answer the following questions now , which will help determine the type of questions that are presented:

Does your government currently deliver PPP projects?

4. For each of the 8 areas in this assessment, please complete the sections marked "Assessment".

there is little or no application of this capability

there is a generally inconsistent and/or poor application of this capability

there is a consistent and average application of this capability for standard activities

INSTRUCTIONS

This is an assessment tool for government strategic and policy units, to assess their readiness for developing pubic-privatepartnership (PPP) capabilities and markets. This assessment forms part of the UNECE PPP Toolkit being developed by theUNECE Team of Specialists on PPP, and which forms an integrated suite of documents to assist in PPP capabilitydevelopment. The main developers and contributors are listed at the end of this document.

1. This assessment is to be completed by the head of the government strategic and policy unit (or equivalent), assistedwhere appropriate by external experts. In order for this assessment to be effective, all sections must be completed.

This analysis will provide governments with a clear and confidential means of assessing whether they need to implement aPPP capability-development program, and the areas that such a program should focus upon.

Any country can implement PPP projects – the purpose of this tool is to help governments assess the likelihood of successfulPPP project delivery within their country, and in particular whether: • obtaining external private-sector finance will be likely and/or costly, • the participation of best-practice contractors will be likely, and • projects are likely to deliver their stated financial and public benefit outcomes.

Does your government (or revelvant government departments/agencies) use a standardised projectclassification system to assess and categorise different projects? (such as the ACAT or PCAT systems)

Does your government (or relevant government departments/agencies) certify its employees responsiblefor project delivery against recognised national or international project management standards?

5. For each group of questions in the 8 areas, you will be asked to assess your government's level of capability as either:

there is a consistent and average application of this capability for simple activities

yes no

1

111 Incomplete responseNo responsePoor Fair Moderate Good Very Good

0 1 2 3 4

AREA 1.1 Support for using PPP Poor Fair Moderate Good Very Good

1.1.1There is a strong level of political support and leadership to use PPPs in delivering public assets and services.

0

1.1.2There is a strong level of support within the sector / industry in favour of both the government's PPP policy, and the use of PPP project delivery strategies.

0

1.1.3The general public has both a capacity and willingness to pay for the use of public assets and services.

0

1.1.4 Previous PPP projects are perceived within the media/general public as:

(a) being planned in the public interest. 0

(b) being delivered on-schedule and within budget. 0

(c)delivering tangible public benefits, and not merely 'value for money' benefits for government.

0

1.1.5Proposed PPP projects are perceived within the media/general public as providing useful/critical public infrastructure assests and services.

0

1.1.6 There is a low level of reported opposition to PPPs within the media. 0

8 0 0 0 0 0 0

Average Score 0.0 FALSE No response

0

AREA 1.2 Government inclusiveness - equal participa tion, treatment, and decency Poor Fair Moderate Good Very Good

1.2.1Government policies, laws and regulations are applied and enforced in a consistent and fair manner.

0

1.2.2The PPP framework includes the undertaking of community-based and/or municipality-based social infrastructure projects using PPP.

0

1.2.3Communities, non-government organisations (NGOs), and other PPP project stakeholders have:

(a) clear and regulated access to government. 0

(b)direct involvement through clearly defined administrative processes in government PPP policy making.

0

1.2.4 Communities directly affected by PPP:

Area of PPP Readines #1:PUBLIC GOVERNANCE

Assessment

(a)are consistently informed of the potential impacts of PPP projects in a timely and practical manner.

0

(b)have regulated input into the selection, planning, implementation, and ongoing performance assessment/performance impact of PPP projects.

0

(c)include directly affected communities thar are across regional and/or state and/or national borders.

0

(d)are provided with resettlement and rehabilitation where necessary, to such a level that these communities are no worse off following the PPP project.

0

8 0 0 0 0 0 0


0

AREA 1.3 Government accountability - transparency, efficiency, and contestability Poor Fair Moderate Good Very Good

1.3.1Government policies, laws and regulations are robust, clear, internally consistent, and publicly accessible.

0

1.3.2There is transparency in government business, and in machinery of government processes.

0

1.3.3Financial transparency, accountability, and non-discrimination in government business is defined, monitored, and enforced by clear laws and regulations.

0

1.3.4 The press is free, fair, and widely available, both formally and in practice. 0

1.3.5There are non-government organisations (NGOs) representing social interests, that are active within the community and the media.

0

5 0 0 0 0 0 0


0

AREA 1.4 Enforcement of public governance Poor Fair Moderate Good Very Good

1.4.1 There is a competent, independent and efficient judicial system.0

1.4.2The machinery of government includes formal, competent, independent, and empowered bodies or mechanisms to address the following issues:

(a) anti-corruption. 0

(b) government probity, compliance and performance. 0

(c) government financial transparency and accountability. 0

(d)the coordination of project management, asset management, and project performance across whole-of-government.

0

(e)the equal and proportional tratement of citizens by government (ie: a freely accessible Public Ombudsman).

0

6 0 0 0 0 0 0


0

Area of PPP Readines #1:PUBLIC GOVERNANCE

Assessment: No response4 0

Average Score: 0.0 0.0 4

AREA 1.1 Support for using PPP

AREA 1.2

AREA 1.3

AREA 1.4 Enforcement of public governance

Score Very Good Good Moderate Fair

Government accountability - transparency, efficiency, and contestability

Government inclusiveness - equal participation, treatment, and decency

AREA 1.1

AREA 1.2

AREA 1.3

AREA 1.4

Very Good

Good

Moderate

Fair

Poor

Score

1

111 Incompete responseNo responsePoor Fair Moderate Good Very Good

0 1 2 3 4

AREA 2.1 Clarity and consistency of PPP policy Poor Fair Moderate Good Very Good

2.1.1

There is a general or national PPP policy framework that defines the vision, strategic outcomes, internal processes, and boundaries for the government's use of PPP strategies to deliver public assets and services, and that reflects international best-practice as contextualised to fit with local circumstances.

0

2.1.2The overall PPP policy framework is enacted and enforced through laws, regulations, and/or mandatory government processes.

0

2.1.3Where appropriate, there are specific PPP policies, laws, regulations and/or mandatory processes for different sectors / states / municipalities / communities.

0

2.1.4PPP policy is internally consistent and has construct validity (ie: uses strategies and methodologies that reflect best practice).

0

2.1.5PPP policy is consistent with other laws, regulations and/or mandatory government processes.

0

2.1.6Government is committed to providing continuity in policy, laws, regulations, and mandatory government processes.

0

6 0 0 0 0 0 0


0

AREA 2.2 Contents of PPP policy Poor Fair Moderate Good Very Good

2.2.1 The PPP Policy clearly defines:

(a)the vision of the PPP policy - that is, the purpose of using PPP to deliver public assets and services, and how this is different to both privatisation and full government delivery.

0

(b) PPP types and strategies that are contextualised to local circumstances. 0

(c)the specific sectors and/or types of public assets and services for which each type of PPP strategy will be used to deliver projects.

0

(d) the roles, responsibilities and operational procedures of the PPP Unit. 0

2.2.2 PPP policy recognises that the public and private sector parties in a PPP project:

(a)are entering into a strategic alliance to jointly deliver public assets and/or services in a manner that reflects the principles of good faith.

0

(b)jointly share a moral responsibility to accept custodial responsibility for the delivey of the public asset and/or service on behalf of the public end-users.

0

AssessmentArea of PPP Readines #2:POLICY

2.2.3 PPP policy provides clear guidance on:

(a) PPP capacity-building. 0

(b) the legal framework for PPPs. 0

(c) whole-of-life PPP project delivery (including procurement). 0

(d) using PPP to deliver sustainable development. 0

(e) the project management of PPP projects. 0

(f) PPP finance. 0

12 0 0 0 0 0 0


0

AREA 2.3 Machinery of government Poor Fair Moderate Good Very Good

2.3.1 The PPP policy framework operates on a systemic, whole-of-government basis, and

(a) is coordinated through a centralised PPP Unit. 0

(b) is enacted at each level of government involved in the delivery of PPP projects. 0

(c) clearly regulates the use of PPP across the whole of government. 0

(d)integrates PPP projects with national, state, and municipal/community strategic planning processes

0

(e) integrates PPP project support requirements with government budget processes. 0

(f)is integrated with the government's project classification process, such that PPP project delivery strategy is selected based upon project type.

0

(g)is integrated with government's staff project management certification framework, such that PPP project team members are selected based upon their competence.

0

2.3.2The roles, responsibilities, and operational processes of the PPP Unit are clearly defined.

0

2.3.3The specific roles and responsibilities of both the public and private sectors in PPP are clealry defined on a project-specific basis.

0

2.3.4The machinery of government enables and supports the direct participation of affected communities/end-users in the development of PPP policy and the delivery of PPP projects.

0

10 0 0 0 0 0 0


0

AREA 2.4 Responsiveness of PPP policy framework Poor Fair Moderate Good Very Good

2.4.1PPP policies (and supporting regulations and laws) are regularly evaluated and updated in response to:

(a) lessons learned from previous/ongoing PPP projects. 0

(b) emergent business-sector and public-sector/community needs. 0

(c)developments in both international best-practice and sector-specific or local benchmark best-practice in PPP project delivery.

0

3 0 0 0 0 0 0


0

AREA 2.5 Business environment Poor Fair Moderate Good Very Good

2.5.1There is ease-of-doing-business within the country, particularly in the establishment of new businesses by non-nationals.

0

2.5.2There is an established track-record of the government honouring its contractual obligations in full, particularly in regards to the timely making of payments for procurements.

0

2.5.3There is an established track-record of the government exhibiting fiscal responsibility, in undertaking public works programs that are not significantly beyond the capacity of government to finance (both immediately and in the long-term).

0

2.5.4The public works procurement process is fair and transparent, and does not discriminate against foreign-owned corporations in favour of corporations owned by nationals.

0

2.5.5The taxation system is fair and transparent, and the level of taxation for non-nationals (whether as individuals or as corporates) is the same as that for nationals.

0

2.5.6 The PPP policy defines clear strategies for:

(a)

how competition, regulation and contractual terms can be used to prevent the private sector from using PPP to harm end-uses (through either creating/abusing market monopolies through price or quality, or using artificial manipulations to increase asset/service demand or revenue).

0

(b)how regulation and contractual terms can be used to prevent the public sector from using PPP policy to force uncommercial or unfair deals upon the market.

0

7 0 0 0 0 0 0


0

Area of PPP Readines #2:POLICY

AREA 2.1

AREA 2.2AREA 2.5

Very Good

Good

Moderate



AREA 2.1 Clarity and consistency of PPP policy

AREA 2.2 Contents of PPP policy

AREA 2.3 Machinery of government

AREA 2.4 Responsiveness of PPP policy framework

AREA 2.5 Business environment


AREA 2.2

AREA 2.3AREA 2.4

AREA 2.5

Very Good

Good

Moderate

Fair

Poor

Score

1


0 1 2 3 4

AREA 3.1 Political and infrastructure programme sup port Poor Fair Moderate Good Very Good

3.1.1 There is a co-ordinated government PPP capacity-building programme that:

(a) operates across whole-of-government.

(b)is designed to develop appropriate internal competencies and supporting processes within government to manage the whole-of-lifecycle delivery of PPP projects, in a manner that delivers whole-of-lifecycle value to all project stakeholders.

(c)is designed to increase the capability of local markets (specifically locally-based contractors) to tender for and successfully implement PPP projects, in a manner that delivers whole-of-lifecycle value to all project stakeholders.

3.1.2The PPP capacity-building programme is clearly aligned with the government's strategic priorities, and has strong political and bureaucratic support from within government:

(a)relevant senior leadership within government(both Ministerial and Executive) support the business strategy for pursuing this programme - that is, there is an articulated need for PPP.

(b)this programme is aligned with the government's current policy objectives and organisational strategy.

(c)key roles and responsibilities for delivering this program have been assigned and agreed upon, providing the program with appropriately competent individuals.

3.1.3The PPP Unit is effective and efficient, and integrated into machinery of government processes.

3.1.4There exists key enabling infrastructure (within both government and industry) to facilitate PPP capacity-building.

3.1.5There is access to appropriate professional certification frameworks and bodies, that are aligned with domestic secondary and tertiary institutional curriculums.

10 0 0 0 0 0


0

AREA 3.2 Current project delivery capabilities Poor Fair Moderate Good Very Good

3.2.1 Standardised PPP project delivery processes are:

(a)contextualised to fit with local circumstances (including the translation of concepts and key terminology).

(b)integrated into the business processes and legacy systems of relevant government agencies and departments.

AssessmentArea of PPP Readines #3:CAPACITY-BUILDING

3.2.2The staff of the PPP Unit, and staff of other relevant government agencies and departments involved in the delivery of PPP projects:

(a)are appropriately certified in project management and possess appropriate competences in asset management to implement PPP project delivery processes.

(b) are sufficiently resources to succesfully implement all PPP project delivery processes.

(c)at the project level, possess additional certified technical competences sufficient to manage projects against their contracted outputs.

3.2.3At the project level within government, there is a standardised and integrated system that correlates project classification agaist staff certification.

6 0 0 0 0 0


0

AREA 3.3 PPP capacity-building programme Poor Fair Moderate Good Very Good

3.3.1There is a project management plan for the planning and implementation of a PPP capacity-building programme, that:

(a) has been developed with the assistance of external expertise and best-practice.

(b) clearly identifies the business strategy and business case supporting the programme.

(c)will deliver outcomes (such as an expanded PPP policy framework) that are aligned with the expectations of government, industry and the general public.

(d)is based upon an emergent planning and delivery strategy that incorporates triple-loop learning.

(e)allocates sufficient resources and time to build core PPP competences within the government, including:

(i)the expansion of train-the-trainer capabilities within the PPP Unit to further develop and disseminate core PPP competences throughout government.

(ii)providing assistance to line agencies and local government / municipalities / communities in undertaking PPP projects.

(f) includes a sufficiently resourced staff competency-development program, that:

(i)is formally integrated with the public service's overall strategic human resources management system.

(ii) includes strategies to ensure there is a long-term retention of staff within government.

(iii)is aligned with the proposed 'pipeline' of PPP projects, and the capability demands this will place upon government.

(g)allocates sufficient resources and time to build core PPP competences within national markets and industries, recognising that private-sector expertise does not necessarily translate into public sector service delivery capabilities.

3.3.2An independent external review has been conducted to confirm the ongoing viability of the programme (such as a 'Gate 0' OGC Gateway review).

13 0 0 0 0 0


0

AREA 3.4 PPP programme scope Poor Fair Moderate Good Very Good

3.4.1The project management plan for the PPP capacity-building program defines the programme brief, including:

(a) the programme's background

(b)an outline of the programme's key drivers, showing how it will contribute to government policy outcomes

(c)the main assumptions and constraints upon which the programme is founded, and dependencies with other government programmes or strategies.

(d) the scope boundaries for the programme.

(e)a list of key projects in the programme’s portfolio, including key enabling projects critical to achieving programme outcomes.

(f)the programme schedule, including milestone events and sub-programme work-streams.

(g)a model of the intended programme outcomes and programme benefits, and a strategy for how these will be realised.

(h)a list of the key stakeholders and their role within the programme, and a communication strategy and plan to engage and align these stakeholders.

(i)the financial provision and resource estimates made for the programme and its components, including additional funding contingencies.

(j) the programme's organisational/governance structures.

(k)appropriate programme controls for performance reporting, risk management, and issues identification & escalation, that integrate across other government programmes, agencies, and departments.

(l)a list of the main programme risks identified, and a strategy for managing them and need for any contingency arrangements

12 0 0 0 0 0


0

Area of PPP Readines #3:CAPACITY-BUILDING



AREA 3.1

AREA 3.2AREA 3.4

Very Good

Good

Moderate

Fair

Poor

AREA 3.1 Political and infrastructure programme support

AREA 3.2 Current project delivery capabilities

AREA 3.3 PPP capacity-building programme

AREA 3.4 PPP programme scope


AREA 3.2

AREA 3.3

AREA 3.4Moderate

Fair

Poor

Score

1


0 1 2 3 4

AREA 4.1 Clear legal basis for PPP projects Poor Fair Moderate Good Very Good

4.1.1There are robust and publicly accessible laws and regulations (as well as supporting policies and/or guidance notes) for:

(a) corporations - including probity (ie: honesty in dealings), governance, and insolvency.

(b) public administration - including probity (ie: honesty in dealings), and audit.

(c) contracts.

(d) employment.

(e) taxation.

(f) intellectual property.

(g) private property.

(h) insurance.

(i) anti-corruption.

9 0 0 0 0 0


0

AREA 4.2 PPP-specific legal issues Poor Fair Moderate Good Very Good

4.2.1There are robust and publicly accessible laws, regulations and/or mandatory government processes (as well as supporting policies and/or guidance notes) for PPP.

4.2.2In circumstances where there are sector-specific or state/municipal/community-specific PPP laws and regulations, is it clear which laws prevail for specific PPP projects?

4.2.3The following PPP models and processes are recognised, commonly understood, and supported by the law and legal frameworks.

(a)Services agreements, including: outourcing, maintenance management, and operations management.

(b)Turnkey agreements, including: design-build, design-build-maintain, and project alliances.

AssessmentArea of PPP Readines #4:LEGAL FRAMEWORK

(c) Affermage or Lease agreements, including: affermage, lease, and build-lease-transfer.

(d)Concession agreements, including: franchises, build-operate-maintain-transfer, build-rehabilitate-operate-transfer, and build-own-operate-transfer.

(e)Privately-Financed Initiatives, including: build-own-operate, private finance initiatives, and partial divestiture.

4.2.4 The following PPP-specific issues are addressed within the wider legal framework:

(a)In acquiring necessary project assets such as land, there is fair compensation for the government expropriation of private property.

(b) Tender submissions are protected within the intellectual property legal framework.

(c)The wages and safety of employees is protected within the employment law framework.

(d)There are provisions for limited shareholder liability within the corporations law framework.

(e)The law permits the private sector party(s) in a PPP contract to enter into financing and construction agreements that are governed by foreign law.

(f)

The law permits the government client to enter into PPP contracts that are subject to international arbitration, and the government has ratified the following: the Washington Convention on the Settlement of Investment Disputes (ICSID) (1965); and the New York Convention on recognition and enforcement of foreign arbitral awards (1958).

(g)The government has ratified relevant international conventions on the protection of foreign investments.

(h) There exist few regulatory/legal restrictions on:

(i)the priavte-sector party(s) seeking reasonable compensation following early termination, termination in the public interest, or for losses incurre s a result of government acts.

(ii)the repatriation of project-derived revenues and profits to service project debt and provide returns to investors - particularly if the local project finance market is in its infancy.

16 0 0 0 0 0


0

AREA 4.3 Contractual models Poor Fair Moderate Good Very Good

4.3.1 There are standard contracts or clauses for PPP contracts that:

(a)are freely accessible, and generally accepted by government, the market, and the legal profession.

(b) provide the contracting parties with certainty in project delivery processes.

(c)are required by law or regulation to be applied (ether directly or as negotiated between the parties) to all contracts for PPP projects (irrespective of the name given to such contract), unless permitted otherwise by law or regulation.

4.3.2 These standard PPP contracts and/or clauses include:

(a)recognition that the pubic and private sector parties are in a strategic alliance to jointly deliver public assets and/or services in a manner reflecting the principles of good faith.

(b)clear issues escalation and alternative dispute resolution (ADR) / international arbitration processes, in addition to/in lieu of judicial resolution processes.

(c)change control processes, that are aligned with the anticipated levels of project complexity and scope emergence.

(d)open-book project accounting (for contracts using cost-plus payment models), and transparent project decision-making processes.

(e)appropriate project risk sharing between the parties, allocated on a commercial basis as to which party is able to most effectively and efficiently bear each risk.

(f)a performance-based reward model based upon the delivery of key performance indicators (KPIs).

4.3.3These standard PPP contracts and/or clauses also address these additional specific issues for concession-based PPPs or privately financed initiatives (PFIs):

(a)recognition that the contract duration should depend upo the length of time taken for the amortisation of the private investment and an appropriate return on the capital.

(b)provision for the concessionaire to collect tariffs or fees from end-users for the use the public asset or services, or collect fixed or consumption-based payments from the government client

(c)in circumstances where the concessionaire defaults, the project financiers are able to 'step-in' or substitute a qualified new concessionaire in lieu of the government client re-tendering the project.

(d)in circumtanes where the government client has assumed the demnd risk for the project, that there is a government guarantee to pay the specified unitary charge over the contract term.

13 0 0 0 0 0


0

AREA 4.4 Contract Management Poor Fair Moderate Good Very Good

4.4.1 The government's contract administrators that are appointed to PPP projects:

(a)have sufficient authority and resources to adequately monitor, negotiate, and enforce the terms of contract.

(b)have appropriate technical. legal, commercial and project management competencies to contract manage that type of project, are independent, and are efficient.

(c)are provided with sufficient rights within the contract so as to freely access and assess the accounts of projects.

(d) have clear guidance on their manner and type of interaction with the PPP Unit.

4.4.2The decisions of contract administrators can be appealed by the contract parties through a prescribed and transparent administrative process.

5 0 0 0 0 0


0

Area of PPP Readines #4:LEGAL FRAMEWORK



AREA 4.1 Clear legal basis for PPP projects

AREA 4.2 PPP-specific legal issues

AREA 4.3 Contractual models

AREA 4.4 Contract Management

AREA 4.1

AREA 4.2

AREA 4.3

AREA 4.4

Very Good

Good

Moderate

Fair

Poor

Score

1

111 Incomplete response No responsePoor Fair Moderate Good Very Good

0 1 2 3 4

AREA 5.1 Project delivery policy Poor Fair Moderate Good Very Good

5.1.1 Government project delivery policy:

(a)uses a phased review process to manage project delivery throughout the entire project lifecycle (eg; the UK Office of Government Commerce Gateway Process ).

(b)is integrated with the government's project classification process and staff project management competency framework.

5.1.2Where appropriate, external expert advice, international best-practice, and market soundings are used to help develop and substantiate project documentation.

5.1.3At each phase of the project lifecycle, independent external reviews are conducted to confirm that proposed PPP projects satisfy the project delivery policy.

4 0 0 0 0 0


0

AREA 5.2 Project business justification ("Gate 1" OGC Gateway Process) Poor Fair Moderate Good Very Good

5.2.1Government project delivery policy requires all proposed PPP projects (including all unsolicited PPP proposals received by government) to develop the following, prior to being approved for procurement:

(a)a project brief, that outlines project scope and requirements specifications that are realistic, clear and unambiguous.

(b) a realistic and robust strategic business case, that:

(i) identifies and meets a clear business need within the client/government.

(ii)outlines the project's preferred delivery strategy, timeframe and cost, and confirms that the project satisfies any regulatory threshold requirements for the use of PPP.

(iii)confirms the strategic alignment of the project with government programmes and objectives including sustainability), and the government/stakeholder support for this project.

(iv)outlines how the project is affordable, achieveable, provides value for money (with acknowledged ±50-100% cost variance), and meets a strategic/business need.

(v)includes a pre-feasibility study based upon primary and secondary data, that assesses the proposed project against ar least two other viable options (in addition to a 'do-nothing' option), and indicates market interest / demand.

(vi)identifies the major project risks (both internal and external), and risk management processes.

AssessmentArea of PPP Readines #5:WHOLE-OF-LIFE PROJECT DELIVERY

(vii)identifies project outcomes, critical success factors, and performance management processes.

(viii)identifies and defines the roles and responsibilities of key internal/external project stakeholders.

(ix) confirms the competencies of the project team to deliver this project.

11 0 0 0 0 0


0

AREA 5.3 Quality at Entry ("Q1") Poor Fair Moderate Good Very Good

5.3.1

For all PPP projects meeting a prescribed threshold level of program cost and/or strategic importance (as determined by the government's project classification system), following an independent external review of the project against pre-procurement requirements, an official report of this review is presented to the relevant government Minister:

(a) that provides a standardised and clear assessment of:

(i)anticipated socio-economic benefits versus costs, with a clear articulation of the project's public interest/benefit - including all issues of public governance and sustainability that relate to communities/the general-public.

(ii)the 'risk of doing buisness' to both the government and public end-users, that each major project risk presents.

(iii)

the relevance and effectiveness of the proposed management/project delivery strategy, and how these are aligned with both the organisational experience /culture /processes of the government client, and the anticipated level of emergence / external change within the project.

(iv)the comparison and ranking of the proposed project as against at least two other viable options (in addition to a 'do nothing' option').

(b) and that enables the Minister/government to:

(i)establish a centralised and standardised means of comparing all proposed major PPP projects within government, and develop a 'strategic project set' of critical PPP projects that is aligned with government policy/strategic objectives.

(ii) approve proposed PPP projects on a go/no-go basis.

7 0 0 0 0 0


0

AREA 5.4 Project delivery strategy ("Gate 2" OGC Ga teway Process) Poor Fair Moderate Good Very Good

5.4.1Government project delivery policy requires all proposed PPP projects to demonstrate the following, prior to conducting a project tender:

(a)

the proposed project delivers value for all project stakeholders on a whole-of-life basis, as quantified by 'value for money' and calculated by a robust qualitative examination as to whether, in the context of the particular project, the drivers exist that will result in a better value for money outcome through use of the project's preferred delivery method as compared to other viable delivery strategies.

(b)confirm ongoing government/stakeholder project support, and the ongoing strategic alignment of the project with government programmes and objectives.

(c)project scope, delivery strategies, timelines, contracting approaches, outcomes, and funding models are:

(i) robust and realistic.

(ii) for the whole of the project lifecycle.

(iii)aligned with the project's strategic business case and identified public interest/benefits.

(d)confirm that project funding, and adequate internal organisational resources and capabilities, are available for the entire project lifecycle.

(e)confirm that major project risks (both internal and external) have been reviewed, and risk management processes enacted.

8 0 0 0 0 0


0

AREA 5.5 Project tender process Poor Fair Moderate Good Very Good

5.5.1 The government PPP tender process:

(a)uses a standardised, fair, and transparent procurement process, that is based upon clear and publicly available guidelines, and that:

(i) outlines in detail the process for the selection of the preferred bidder.

(ii)requires bid submisisons to be assessed solely accordng to the evaluation criteria as specified in the expression of interest / request for proposal document.

(iii)requires the government client to provide public notice of the award of contract, identifying the selected bidder and the essential terms of the project agreement.

(iv)requires the government client to notify rejected or disqualified bidders and explain the reasons thereof.

(v)only permits the government client to award a contract without undertaking a competitive tender in limited, exceptional, and pre-defined circumstances.

(b)requires the use of a staged selection process, so that only contractors with appropriate experience, competence, and culture are invited to develop full tender submissions.

(c)encourages the use of a competitive, interactive tender strategy that enables tender submissions to be progressively improved by tenderers throughout the selection process (and for ACAT / PCAT level I or II projects, mandates this as a requirement)

(d)requires contract negotiations to occur in parallel with tender evaluations, such that contractual negotiations are finalised prior to the awarding of the project tender.

(e)empowers the government client to terminate negotiations with a preferred bidder should it become apparent that the bid will not result in an agreement, and to commence negotiations with the second ranked candidate.

(f)requires suitably competent individuals to assess tender submissions, including the use of external experts where domain-specific expertise is required.

(g)provides a defined administrative process whereby bidders who claim to have suffered or that may suffer loss or injury as a result of the actions of the government client during the tender process, may seek a review of those actions.

12 0 0 0 0 0


0

AREA 5.6Quality at Entry ("Q2"), and Project investment dec ision ("Gate 3" OGC Gateway Process)

Poor Fair Moderate Good Very Good

5.6.1Government project delivery policy requires all proposed PPP projects to develop the following, prior to awarding a project tender:

(a) a full business case, that:

(i)updates the project's business case to include economic, financial, commercial, and project management factors, and confirms that this business case still delivers identified public interests/benefits whilst meeting the client's business need.

(ii)confirms ongoing government/stakeholder project support, and the ongoing strategic alignment of the project with government programmes and objectives.

(iii)proposes a delivery solution that complies with all client and project stakeholder requirements, and that will deliver the outcomes in the project's business case.

(iv)confirms that both the government and proposed project partner have the capabilities, resources, and finances to deliver the project implementation plans.

(v)confirms that the best project delivery strategy is being proposed, as compared to other options (including cost/benefit/risk/sensitivity analysis of final bids).

(vi)confirms that the procurement process was in compliance with all policies, laws and regulations.

(vii)confirms that the project delivers value to all project stakeholders on a whole-of-life basis, a quantified by 'value for money' and calculated by:

(vii)(A)

quantitative financial assessment (±10-25% cost variance): the net present cost of the the private sector delivering the proposed public asset or service is lower than the expected cost to government for delivering the same asset or service (referred to in privately-funded partnerships as the 'Public Sector Comparator') - and recognising that for highly complex programs (PCAT or ACAT levels I or II) this percentile certainty in costs will only be valid for the next phase of implementation (rather than whole-of-lifecycle).

(vii)(B)qualitative assessment: a clear identification of all non-financial factors and assumptions affecting the calculation of the Public Sector Comparator, including the valuation of risk and the costs of obtaining project finance.

(viii)confirms that major project risks (both internal and external) have been reviewed, and risk management processes enacted.

(b)comprehensive and realistic project implementation plans / contract management plans.

5.6.2

For all PPP projects meeting a prescribed threshold level of program cost and/or strategic importance (as determined by the government's project classification system), following an independent external review of the project against pre-contract award requirements, an official report of this review is presented to the relevant government Minister/parliament for approval, and that:

(a)the project cost model, including necessary contingency to make sure the budget is realistic

(b)how the project should be managed to ensure that this cost model will hold throughout the project's lifecycle.

15 0 0 0 0 0


0

AREA 5.7 Readiness for service ("Gate 4" OGC Gatewa y Process) Poor Fair Moderate Good Very Good

5.7.1Government project delivery policy requires all PPP projects to demonstrate the following, prior to project implemention:

(a)confirm the ongoing validity and relevance of the project's business case and implementation plans in response to external events.


(c)confirm the feasibility of delivering the project implementation plans as per the contract.

(d)confirm the roles and responsibilities of each project party during project implementation.

(e) confirm the alignment of each project party's project implementation processes.

(f) confirm the ongoing review and mitigation of project risks.

(g)confirm the establishment of all key enabling management processes and organisational controls / completion of early works projects necessary to enable project start-up and ensure client/government business continuity.

(h)confirm the ongoing capabilities, resources, and finances of the project parties to implement the project implementation plans.

8 0 0 0 0 0


0

AREA 5.8 Operations review and benefits realisation ("Gate 5" OGC Gateway Process) Poor Fair Moderate Good Very Good

5.8.1Government project delivery policy requires all PPP projects to demonstrate the following, throughout their implementation:

(a)confirm the ongoing validity and relevance of the project's business case and implementation plans in response to external events.


(c)assess delivered value (ouputs/outcomes/benefits) as against contracted requirements and emergent project stakeholder needs.

(d)confirm the ongoing capabilities, resources, and finances of the project parties to continue implementing the project implementation plans.

(e)confirm the ongoing effectiveness of the relational contract, and the strategic partnership between the project parties to deliver value for all project stakeholders.

5 0 0 0 0 0


0

Area of PPP Readines #5:WHOLE-OF-LIFE PROJECT DELIVERY



AREA 5.1

AREA 5.2

AREA 5.3

AREA 5.4

AREA 5.5

AREA 5.6

AREA 5.7

AREA 5.8


Readiness for service ("Gate 4" OGC Gateway Process)

Quality at Entry ("Q1")

Operations review and benefits realisation ("Gate 5" OGC Gateway Process)

Project delivery policy

Project business justification ("Gate 1" OGC Gateway Process)

Project delivery strategy ("Gate 2" OGC Gateway Process)

Project tender process

Quality at Entry ("Q2"), and Project investment decision ("Gate 3" OGC Gateway Process)

AREA 5.1

AREA 5.2

AREA 5.3

AREA 5.4

AREA 5.5

AREA 5.6

AREA 5.7

AREA 5.8

Very Good

Good

Moderate

Fair

Poor

Score

1


0 1 2 3 4

AREA 6.1 Environmental policy, laws and regulations Poor Fair Moderate Good Very Good

6.1.1 Environmental policies, laws and regulations are:

(a)based upon ISO 14002: Enviromental Management System, as well as relevant international covenants and treaties.

(b) aligned with government whole-of-government strategic objective and policies.

(c)incorporated into government business processes, especially those related to the procurement and delivery of PPP projects.

(d)incorporated into the output specifications of PPP projects, and are actively enforced by contract administrators

6.1.2There is a strong level of understanding and support for national sustainability issues within:

(a) government.

(b) relevant industries and sectors.

(c) the media and the general public.

7 0 0 0 0 0


0

AREA 6.2 Delivering sustainability through projects Poor Fair Moderate Good Very Good

6.2.1 PPP projects incorporate sustainable practices into their delivery strategies, by:

(a)adopting a whole-of-lifecycle focus for the project's environmental impact and benefits realisation.

(b)the public and private sector parties recognising that they are in a strategic partnership that owes a shared duty of care to the general public.

(c) using a project planning process that:

(i) is systemic and cross-sector (for example, by deriving energy from waste).

(ii)is based upon a modular architecture design, to enable technology replacement and avoid technoogy obsolescence.

(iii) incorporates sustainable design standards.

Area of PPP Readines #6: AssessmentSUSTAINABLE DEVELOPMENT

(d) using a contractual instrument that:

(i)facilitates sufficient flexibility within the project's scope, design and implementation to respond to emergent changes, particularly in technology, national/international sustainability policy, national/global financial markets, and the environment.

(ii)incorporates triple-loop learning' - that is, constantly re-aligning delivered project outcomes with project objectives.

(e) closely monitoring and mapping technological readiness in relevant areas.

6.2.2PPP projects to deliver sustainability-specific infrastructure assets and services are included within the government's public works program.

9 0 0 0 0 0


0

AREA 6.3 Monitoring and enforcing project sustainab ility Poor Fair Moderate Good Very Good

6.3.1 The pro-forma PPP contracts include:

(a) clear project-specific output specifications that relate to sustainability.

(b)key performance indicators related to sustainablility, and against which the PPP project's performance measurement and contractor's payment are assessed.

6.3.2The government's appointed contract administrators possess sufficient resources and technical competences in sustainability to adequately assess and enforce the sustainability-related output specifiations of the contract.

3 0 0 0 0 0


0

Area of PPP Readines #6:SUSTAINABLE DEVELOPMENT



AREA 6.1 Environmental policy, laws and regulations

AREA 6.2 Delivering sustainability through projects

AREA 6.3 Monitoring and enforcing project sustainability

AREA 6.1

AREA 6.2AREA 6.3

Very Good

Good

Moderate

Fair

Poor

Score


1


0 1 2 3 4

AREA 7.1 Project Management infrastructure and proc esses Poor Fair Moderate Good Very Good

7.1.1There is a national or relevant regional professional project management association or equivalent (such as association of engineers).

7.1.2There is an operational and competent project management office/Unit within government (and within each relevant agency/department) that is integrated /aligned with the PPP Unit.

7.1.3Government employees responsible for implementing projects are professionally certified against national/international project management standards.

7.1.4The government employee project management certification program is integrated with a project categorisation system, for the purposes of selecting project teams.

7.1.5 The PPP Unit nominates senior responsible officers (SROs) for each PPP project.

7.1.6At the project level, the government (including relevant agencies and departments) has:

(a)a robust, secure, integrated, and ICT-based project, contract, and asset management system that reflects international best-practice, and which specifically includes documentation, configuration, and performance management systems.

(b)pro-forma documentation based upon best-practice for project management plans, feasibility studies, and business cases.

7.1.7The government's public procurement guidelines require tenderers to be assessed against their project management capabilties and processes, with the level of required project management capability aligned with the project's classification.

8 0 0 0 0 0


0

AREA 7.2 Project Management Poor Fair Moderate Good Very Good

7.2.1The PPP Unit as well as relevant agencies and departments) has strong internal competences and integrated processes for the following:

(a) Integration Management.

(b) Scope Management.

(c) Time Management.

(d) Cost Management.

Area of PPP Readines #7: AssessmentPROJECT MANAGEMENT

(e) Quality Management.

(f) Human Resources Management.

(g) Communications Management.

(h) Risk Management.

(i) Procurement Management.

(j) Asset Management.

7.2.2

For complex projects, the PPP Unit (as well as relevant agencies and departments) also has strong internal competences and integrated processes for complex project management, as defined in the Competency Standards for Complex Project Managers (2nd ed) - Australian Commonwealth (c)

11 0 0 0 0 0


0

Area of PPP Readines #7:PROJECT MANAGEMENT



AREA 7.1 Project Management infrastructure and processes

AREA 7.2 Project Management


0.0 1.0 2.0 3.0 4.0 5.0

AREA 7.1

AREA 7.2

Very Good

Good

Moderate

Fair

Poor

Score

1


0 1 2 3 4

AREA 8.1 Enabling financial infrastructure Poor Fair Moderate Good Very Good

8.1.1 There is an effective and clear financial regulatory regime. 0

8.1.2The banking system is experienced in PPP and project finance, and/or has an established track record of international investment in local projects, debt markets, and equity markets.

0

8.1.3There is a developed bond market that is currently open for private-sector participation, or likely to (re)open within the next 1-2 years.

0

8.1.4 There are developed equity markets. 0

8.1.5 There are developed secondary equity markets. 0

8.1.6 International credit-rating agencies are able to offer ratings on individual businesses. 0

8.1.7The national currency is readily convertible into foreign currency, and is relatively stable against major currencies.

0

8.1.8Long-term interest rate hedges are available in the national currency, to allow for long-term project funding.

0

8 0 0 0 0 0 0


0

AREA 8.2 PPP project finance Poor Fair Moderate Good Very Good

8.2.1Government has the financial capacity to pay for PPP project-specific costs over the asset/service lifecycle, including start-up, ongoing, and re-financing costs.

0

8.2.2PPP project finance models are aligned with current market conditions, and are not primarily based upon secondary data and/or predicted market conditions.

0

8.2.3 Consideration of PPP project financing includes a project-specific assessment of:

(a) overall value for money. 0

(b) financial structuring0

(c) sources and types of project finance0

(d) cash-flow evaluation0

AssessmentArea of PPP Readines #8:FINANCE

(e) re-financing0

(f) financial risk evaluation, including: 0

(i) the impact of global/national market changes upon financial structuring. 0

(ii) the impact of interest rate movements upon project finance. 0

(iii) the inclusion of project contingencies based upon international benchmarks.0

8.2.4 Government PPP procurement policy requires either:

(a)that there is fully committed finance for the full cost of the project at the time of tender submission, or

0

(b)that following the assessment of tenders for project delivery but prior to the award of contract, the project financing is competitively and separately tendered for, or

0

(c)that there are regulatory and contractual mechanisms in place prior to the award of contract, to lock-in the long term commitment of project equity holders.

0

14 0 0 0 0 0 0


0

AREA 8.3 Privately-Financed Partnerships Poor Fair Moderate Good Very Good

8.3.1 In privately-financed PPP projects:

(a)demand forecasts within the business case are independently validated, and are not based solely upon secondary data.

0

(b)end-users have both the capacity and the willingness to pay for the initial and ongoing services charges.

0

(c)there is not unnecessary financial engineering and/or complexity in project financing structures.

0

(d)conessionaires have the capacity to create security interests on the project's assets and proceeds.

0

(e)

to enable value for money in private-sector financing, recognising that civil and social infrastructure projects have different levels of demand risk, the government provides the private-sector party(s) with guarantees to protect against highly unpredicatble, unreasonble, and/or unforeseen risks to the project's forecasted demand.

0

5 0 0 0 0 0 0


0

Area of PPP Readines #8:FINANCE AREA 8.1

Very Good

Good



AREA 8.1 Enabling financial infrastructure

AREA 8.2 PPP project finance

AREA 8.3 Privately-Financed Partnerships


AREA 8.1

AREA 8.2AREA 8.3

Very Good

Good

Moderate

Fair

Poor

Score

Development and Management

Dr David H. DombkinsProgram Manager, UN PPP Toolkit and UN PPP Centre of ExcellenceEditor-in-Chief, UNECE Team of Specialists on PPP

Geoffrey HamiltonChief, Cooperation and Partnerships Section, Economic Cooperation and Integration Division, UNECE

Peter Dombkins, Complex Program Group Lead document developer

Review and Contribution

Andrew Chew Partner, Baker & McKenzie

Andrew Cowley Executive Director, Macquarie Capital Funds

Mark Pedlingham Commercial Delivery Director, Office of Government Commerce, United Kindgom

Richard Armitage Partner, Simmons & Simmons

Richard Foster Executive Manager, Partnerships Victoria, Australia

The UNECE PPP Program would also like to thank the following individuals for their overall comments:

Alexi Zverev Senior Counsel, European Bank for Reconstruction and Development

Ferga Kane Director of Corporate Finance, Deloitte

Sumangal Narendra Director, Ministry of Road Transport and Highways, India

CONTRIBUTORS

This document has been developed on behalf of the UNECE Team of Specialists on PPP, in a joint collaborationbetween industry, governments, and the Economic Cooperation and Integration Division (ECID) of the UNECESecretariat. The contributors to version 1.9 of this document are as follows:

Acknowledgement is owed to the Transport and Tourism Section, Transport and Tourism Division, United NationsEonomic and Social Commission for Asia and the Pacific (UNESCAP), for their development of Public PrivatePartnership Readines - Self Assessment Form (version 1.0, 26 September 2007), which was used as source materialin this document.

UNECE PPP Readiness Assessment Tool

Version 1.9, 14th April 2011

Acknowldgement is also owed to the European Bank for Reconstruction and Development (EBRD), for theirundertaking of an 'Assessment of Concessions Laws (2007/08)' for European countries, which was also used assource materiel in this document.

The UNECE PPP Program team would like to thank the following individuals for their detailed comments a nd review:

This document has been developed using a strict validation process, the first step of which entailed receiving detailedcommentary from recognised leading public and private sector institutions in PPP delivery.

Documents

UNECE National PPP readiness self-assessment english€¦ · Assessment PPP Readiness Assessment PUBLIC GOVERNANCE POLICY CAPACITY-BUILDING LEGAL FRAMEWORK PROJECT MANAGEMENT No response