Public Private Partnership
We offer advice on alternative ways of procurement and financing of public investments, based primarily on public-private partnerships.
What does PPP mean?
As part of a normal public investment financing model (particularly in the area of public infrastructure), the contracting authority invests in equipment or infrastructure and assumes full responsibility for its operation and maintenance throughout its life cycle. As a rule, therefore, it has to conclude several contracts with different suppliers, to organise several procurement procedures for this purpose and, above all, it is responsible for ensuring that what it procures optimally fits together (investment, operation, maintenance). When an investment is made in a public-private partnership, the private partner assumes to a significant extent the responsibility for ensuring that the equipment or infrastructure is fully operational throughout its life cycle. The contractor selected in a single procurement procedure is typically responsible for both the construction and subsequent operation of the maintenance and possibly the renewal of the equipment or infrastructure. It thus assumes the key responsibility for ensuring the availability of the required service in the agreed quality throughout the life cycle. The private partner has the highest motivation for achieving quality, as any deficiencies will have to be solved by himself during the operation phase
Public-private partnerships and financing
Public investment in the form of public-private partnerships typically includes the obligation of the private partner to procure the financing necessary for construction. The costs incurred are, of course, borne by the contracting authority, but typically only after completion of construction in the form of successive regular availability payments. This represents a major motivation for the most effective and fastest completion of construction, which is more effective than sanction incentives.
Where should we use the PPP?
Public-private partnerships can be used for most public infrastructure. In addition to highways and railways, great potential can be expected, for example, in the area of municipal infrastructure (eg waste management), sports facilities, accommodation facilities and social services.
What we offer?
We offer comprehensive consultancy including project management from the initial stages (development of the project, its assessment, including evaluation of several possible options), conducting market surveys / preliminary market consultations, creation of tender documentation and organisation of the tender. At the same time, we also offer comprehensive legal advice conforming to international standards.