hro bnr PPP
  1. We are WSP
  2. What We Do
  3. Services
  4. Public Private Partnerships (PPP)

Public Private Partnerships (PPP)

The application of PPP as a project delivery method has been expanding globally. WSP has been at the forefront of PPP planning, procurement advisory, asset management, and its evolution from pure privatization to more complex partnerships.

WSP is a leading PPP advisor globally, a position we have held for over 20 years. Our Advisory team has been at the forefront of PPP planning, procurement advisory, asset management and its evolution from pure privatization to more complex partnerships and has successfully advised over 400 PPP projects in 50 countries around the world.

Our team has extensive experience in supporting both public and private sectors in every PPP Transaction in most sectors. We have technical and commercial expertise with all PPP models which has allowed us to successfully act as sponsors technical advisor, independent certifier or engineer, lenders technical advisor (LTA) and project monitor.

Our experiences with public sector clients span across every stage including pre-feasibility, feasibility/business case and public sector comparator, to the transaction stage EOI, RFQ, RFP, shadow bids and full evaluation reporting, whilst supporting the legal and financial consultants at every step through to Financial Close.

In the private sector, we support our clients with various functions which include reference design reviews, technical proposal preparation, responses at RFQ and RFP stage, cost reviews and whole life cost value engineering. We also advise on practical aspects of the legal or regulatory issues, as well as pre-developing a PPP project to improve feasibility, and modifying the planning approach to accommodate a PPP procurement.

During the procurement process, we offer our extensive experience which includes both technical and commercial advisor for the public sector and advisor to the private sector.

Our public sector technical and commercial advisory experience includes:

  • Development of the project scope
  • Development the payment mechanism
  • Preparation of the output specification/ performance requirements
  • Negotiating the deal and executing the PPP contract
  • Monitoring construction and operation

WSP’s LTA team is known for of the successful involvement in projects for sponsors and banks. The team has been involved in more than 250 PPP and concession schemes in diverse sectors with infrastructure, water, energy, renewables, and social infrastructure.

WSP is uniquely placed to advise the public sector or their private partners on strategies to achieve their respective objectives throughout the life of a PPP project.

Figure 1_PPP

Feasibility

In the early planning stages of a project, we advise on feasibility, delivery options, risk analysis, and value for money, utilizing core engineering and commercial knowledge gained from successful delivery and operation of a broad range of PPP projects.

Assessing Project Feasibility and Economic Viability:

  • Developing and assessing the feasibility of the project concept
  • Appraising whether the project is a good public investment decision based on an economic viability analysis

Defining a project and checking feasibility:

  • Technical feasibility
  • Environmental and social sustainability

Creating and appraising options:

  • Research existing reports, and consult widely with practitioners and experts, to gather the set of data and information relevant to the objectives and scope of the project.
  • Analyse the data to understand significant dependencies, priorities, incentives and other drivers.
  • From the research, identify best practice solutions, including international examples if appropriate.
  • Consider the full range of issues likely to affect the objective.
  • Identify the full range of policy instruments or projects that may be used to meet the objectives

Stakeholder engagement to assess project viability

Evaluating climate change-related and natural disaster risks


Transaction

WSP acts as a technical and commercial advisor for public and private sector, as a lender’s technical advisor for private sector bidder. WSP does all the detailed technical and commercial work required to support the bidder up to financial close.


Execution

For the government entity, WSP acts as a client representative or as an independent certifier (project monitor).

For the project company, WSP can act as a technical advisor, as lender’s technical advisor, and as PMO/PMC.


PPP Asset Management

Our technical and commercial expertise of PPP models allows us to offer, as part of our asset management services, the management or support of operational special purpose vehicles (SPVs) in a number of jurisdictions. Our hands-on experience of PPP projects means that we have developed a database of projects from which we are able to conduct market benchmarking. We have developed facilities management strategies and whole life cost models using our extensive knowledge of the concession and lenders agreements that govern PPPs.

As markets have matured, the secondary sale of equity in PPP projects has become more commonplace, with developers seeking to recycle scarce equity capital, and financial investors seeking stable index-linked assets. With our broad knowledge of the primary PPP market and the operation and management of infrastructure assets, WSP can provide investor advisory services to buyers or sellers seeking to maximize value with acceptable risk.

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