Public-Private Partnerships (eBook)

Principles of Policy and Finance

E. R. Yescombe (Autor)

eBook Download: EPUB

2011 | 1. Auflage
368 Seiten
Elsevier Science (Verlag)
9780080489575 (ISBN)

Infos

Over the last decade or so, private-sector financing through public-private partnerships (PPPs) has become increasingly popular around the world as a way of procuring and maintaining public-sector infrastructure, in sectors such as transportation (roads, bridges, tunnels, railways, ports, airports), social infrastructure (hospitals, schools, prisons, social housing) public utilities (water supply, waste water treatment, waste disposal), government offices and other accommodation, and other specialised services (communications networks or defence equipment).
This book, based on the author's practical experience on the public- and private-sector sides of the table, reviews the key policy issues which arise for the public sector in considering whether to adopt the PPP procurement route, and the specific application of this policy approach in PPP contracts, comparing international practices in this respect. It offers a systematic and integrated approach to financing PPPs within this public-policy framework, and explains the project-finance techniques used for this purpose. The book deals with both the Concession and PFI models of PPP, and provides a structured introduction for those who are new to the subject, whether in the academic, public-sector, investment, finance or contracting fields, as well as an aide memoire for those developing PPP policies or negotiating PPPs.

The author focuses on practical concepts, issues and techniques, and does not assume any prior knowledge of PPP policy issues or financing techniques. The book describes and explains:
* The different types of PPPs and how these have developed
* Why PPPs are attractive to governments
* General policy issues for the public sector in developing a PPP programme
* PPP procurement procedures and bid evaluation
* The use of project-finance techniques for PPPs
* Sources of funding
* Typical PPP contracts and sub-contracts, and their relationship with the project's financial structure
* Risk assessment from the points of view of the public sector, investors, lenders and other project parties
* Structuring the investment and debt financing
* The key issues in negotiating a project-finance debt facility.
In addition the book includes an extensive glossary, as well as cross-referencing.

*Reviews the PPP policy framework and development from an international perspective
*Covers public- and private-sector financial analysis, structuring and investment in PPPs
*No prior knowledge of project financing required

Inhalt

Front Cover 1
Public–Private Partnerships: Principles of Policy and Finance 4
Copyright Page 5
Contents 6
List of Figures 12
List of Tables 14
Introduction 16
Chapter 1 What are Public–Private Partnerships? 20
§1.1 Introduction 20
§1.2 Public Infrastructure and the Private Sector 20
§1.3 Public–Private Partnerships 21
§1.4 Development and Structures 23
§1.5 PPPs and Public Infrastructure 30
§1.6 Types of PPP 32
Chapter 2 PPPs—For and Against 34
§2.1 Introduction 34
§2.2 New Public Management, Privatisation and PPPs 35
§2.3 Budgetary Benefit 36
§2.4 Additionality 36
§2.5 Financing Cost and Risk Transfer 37
§2.6 Risk Transfer and Value for Money 37
§2.7 Economies of Scale 39
§2.8 Whole-Life Costing and Maintenance 40
§2.9 Private-Sector Skills 40
§2.10 Public-Sector Reform 43
§2.11 Complexity 45
§2.12 Flexibility 45
§2.13 PPPs and Politics 46
Chapter 3 PPPs Worldwide 48
§3.1 Introduction 48
§3.2 Developing PPP Programmes 48
§3.3 Legal Framework 50
§3.4 United Kingdom 52
§3.5 United States 58
§3.6 Australia 60
§3.7 France 62
§3.8 Korea 63
§3.9 Spain 65
§3.10 South Africa 66
Chapter 4 Cash Flow and Investment Analysis 68
§4.1 Introduction 68
§4.2 Net Present Value/Discounted Cash Flow 68
§4.3 Internal Rate of Return 70
§4.4 Problems with DCF and IRR Calculations 71
§4.5 Uses in PPPs 75
Chapter 5 The Public-Sector Investment Decision 77
§5.1 Introduction 77
§5.2 Economic Justification 77
§5.3 Value for Money and the Public-Sector Comparator 81
§5.4 Affordability 86
§5.5 Balance-Sheet Treatment 87
Chapter 6 Public-Sector Procurement and Contract Management 93
§6.1 Introduction 93
§6.2 Project Management 94
§6.3 Procurement Procedures 96
§6.4 Other Procurement Issues 103
§6.5 Due Diligence 105
§6.6 Contract Management 107
§6.7 External Advisers 110
Chapter 7 The Private-Sector Investor's Perspective 115
§7.1 Introduction 115
§7.2 The Investment Pool 115
§7.3 The Investment Decision 120
§7.4 Bidding and Project Development 126
§7.5 Joint-Venture Issues 127
§7.6 The Project Company 127
§7.7 External Advisers 130
Chapter 8 Project Finance and PPPs 132
§8.1 Introduction 132
§8.2 Development of Project Finance 133
§8.3 Features of Project Finance 134
§8.4 The Project-Finance Market 135
§8.5 Why Use Project Finance for PPPs? 139
Chapter 9 Private-Sector Financing—Sources and Procedures 143
§9.1 Introduction 143
§9.2 The Rôle of the Financial Adviser 143
§9.3 Commercial Banks 145
§9.4 Bond Issues 154
§9.5 Bank Loans v. Bonds 159
§9.6 Mezzanine Debt 161
Chapter 10 Financial Structuring 162
§10.1 Introduction 162
§10.2 The Financial Model 162
§10.3 Model Inputs and Outputs 164
§10.4 Financing Costs 169
§10.5 Debt Profile 172
§10.6 Cover Ratios 178
§10.7 Relationship between Cover Ratio, Leverage and Equity Return 185
§10.8 Accounting and Taxation Issues 186
§10.9 Recourse to the Sponsors 188
Chapter 11 Financial Hedging 190
§11.1 Introduction 190
§11.2 Interest-Rate Risk 190
§11.3 Inflation Issues 206
Chapter 12 Lenders' Cash-Flow Controls, Security and Enforcement 221
§12.1 Introduction 221
§12.2 Control of Cash Flow 221
§12.3 Security 227
§12.4 The Rôle of Insurance 230
§12.5 Events of Default 237
§12.6 Intercreditor issues 238
Chapter 13 Service-Fee Mechanism 242
§13.1 Introduction 242
§13.2 Contract Scope 242
§13.3 Payment Structure 244
§13.4 Usage-Based Payments 248
§13.5 Availability-Based Payments 255
§13.6 Mixed Usage and Availability Payments 260
§13.7 Third-Party and Secondary Revenues 260
Chapter 14 Risk Evaluation and Transfer 261
§14.1 Introduction 261
§14.2 Principles of Risk Transfer 261
§14.3 The Risk Matrix 264
§14.4 Political Risks 266
§14.5 Site Risks 267
§14.6 Construction Risks 272
§14.7 Completion Risks 278
§14.8 Operation-Phase Risks 282
Chapter 15 Changes in Circumstances and Termination 289
§15.1 Introduction 289
§15.2 Compensation Events 290
§15.3 Relief Events 295
§15.4 Step-In and Substitution 296
§15.5 Early Termination: Default by the Project Company 298
§15.6 Optional Termination or Default by the Public Authority 304
§15.7 Early Termination: Force Majeure 306
§15.8 Early Termination: Corruption 307
§15.9 Termination and Subcontractors 308
§15.10 Tax Implications of a Termination-Sum Payment 308
§15.11 Final Maturity, Residual-Value Risk and Hand-Back 308
Chapter 16 Funding Competition, Debt Refinancing and Equity Sale 311
§16.1 Introduction 311
§16.2 Funding Competition 312
§16.3 Equity Competition 315
§16.4 Debt Refinancing 316
§16.5 Equity Sale 326
Chapter 17 Alternative Models 329
§17.1 Introduction 329
§17.2 Public-Sector Procurement 330
§17.3 Post-Construction Take-Out 331
§17.4 Public-Sector Debt Funding 332
§17.5 Joint-Venture PPPs 340
§17.6 Not-for-Profit Structures 340
Bibliography 346
Glossary and Abbreviations 353
A 353
B 354
C 355
D 356
E 358
F 359
G 359
H 360
I 360
J 361
K 361
L 361
M 361
N 362
O 363
P 363
Q 365
R 365
S 366
T 367
U 368
V 368
W 368

Produkt-Details

• Erscheint lt. Verlag: 1.4.2011
• Sprache: englisch
• Themenwelt: Sachbuch/Ratgeber
• Themenwelt: Recht / Steuern ► Steuern / Steuerrecht
• Themenwelt: Sozialwissenschaften ► Politik / Verwaltung ► Staat / Verwaltung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Wirtschaftspolitik
• ISBN-13: 9780080489575 / 9780080489575