1 / 23

ERES 2011 INDUSTRY Seminar " Public Private Partnership – Magic bullet or danger "

ERES 2011 INDUSTRY Seminar " Public Private Partnership – Magic bullet or danger ". 21 October 2011. Bernhard Mueller Associate Professor University of Vienna, School of Law Partner and Head of the Public Law Desk of DORDA BRUGGER JORDIS Rechtsanwälte GmbH. 5.

oakley
Download Presentation

ERES 2011 INDUSTRY Seminar " Public Private Partnership – Magic bullet or danger "

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. ERES 2011 INDUSTRY Seminar"Public Private Partnership– Magic bulletordanger" 21 October 2011 Bernhard Mueller Associate Professor University of Vienna, School of LawPartner and Head of the Public Law Desk of DORDA BRUGGER JORDIS Rechtsanwälte GmbH

  2. 5 IntroductionDefinition and Characteristics of PPP PFI: Private Finance Initiative BOT: Build Operate Transfer DBFO: Design Build Finance and Operate BOOT: Build Own Operate Transfer PFI BOT, DBFO, BOOT, etc Public Private Joint Ventures Concessions Leasing Divestiture and Privatisation Contracting out full risk transfer to private sector Limited risk transfer to private sector Basic forms of PPP

  3. 5 Overview • Introduction • Definition and Characteristics of PPP • Main Drivers of PPP • Parties of PPP Projects • Structures of PPP Projects • Practical Examples

  4. 5 IntroductionDefinition and Characteristics of PPP • The following elements characterize PPPs: • Long duration of the relationship (up to 30 years; life cycle models); • Relationship involving intensivecooperation between public partner and private partner on different aspects of a the project; • Alternative methods of financing the project (project financing; forfeiting with waiver of defences); • The important role of the economic operator (private partner), who participates at different stages in the project (design, construction, operation, financing); • Public partner concentrates primarily on defining the objectives to be attained in terms of public interest, quality of services provided and pricing policy; • Risk-sharingbetween public and private partner (i.e. transfer of certain risks from public sector to private partner);

  5. 5 IntroductionMain Drivers and scope of PPP • “Value for money” and “risk transfer” as main Drivers of PPP • Scope of PPP projects • Rail infrastructure • Road infrastructure • Prisons • Hospitals • Waste management • Waste water treatment

  6. Technolgical risks Risks Global risks Elementary risks Technicalrisks Economical risks Force majeur Completion risks Planning risks Market risks Geological risks Financial risks Operation and Managment risks

  7. Private Partner Planning Completion Technological Operation and management Financial Market Force majeur Public Sector Planning (permits, authorizations) Geological Inflation Force majeur Contractual aspectsAllocation of risks

  8. 5 Introductionparties of PPP projects • Public sector • Statutory bodies under public law (e.g. State, Austrian provinces, communities and outsourced entities controlled by them); • Tasks of public sector • Definition of scope of services • Determination of priorities • Determination of goals and results • Regular quality acceptance • Partial financing of the project (in particular by giving guaranties to reduce financing costs [interest rates])

  9. 5 Introductionparties of PPP projects • Private sector • Constructor • Operator • Concessionaire • Banks • Tasks of private sector • Design, construction, operation etc. • Financing function • Supply of “value for money” to the public sector

  10. 5 How does PPP work? Public Sector

  11. 5 Contractual ModelContract with Project Company Public Sector 100% ownership Project company

  12. 5 Contractual Model Financing Contract Public Sector Consortiumofbanks 100% ownership financing Project company securities

  13. 5 Contractual ModelConstruction contract / Works Concession Public Sector Consortiumofbanks 100% ownership financing Project company securities Public tender Buildingcompany construction Sub contractor

  14. 5 Contractual ModelOperation Contract / Services Concession Public Sector Consortiumofbanks 100% ownership financing Project company securities Public tender Public tender Buildingcompany Operating company construction Operation for 30 years Sub contractor

  15. 5 Institutional Model Public Sector Consortiumofbanks Public tender Project company financing Public Sector Building company operating company shareholder securities Buildingcompany Operating company construction Operation for 30 years Sub contractor

  16. 5 Success Factors for Life Cycle Management Models • Construction + operation = 1 team • Construction + operation = 1 price • The team wins the tender / the award • Same interests • Optimized total cost of ownership • Sustainability is rewarded • All partners are connected for a long period Construction: planning and realization Operation: operation, service, repairing, replacement capital investments, energy costs.

  17. PPP-projectsexamples I • PPP-Ostregion (Austria) • project volume: € 944.18 m • Financing model: Project Finance: For planning, construction and operation financing by the Concessionaire through equity, subordinated debt (bank guarantee to safeguard capitalization of Concessionaire until start of operation) and mezzanine and senior facilities, senior bond • Operational period 30 years • Awarding authority ASFINAG • Description of project • planning, construction, financing (Concessionaire); refinancing out of the revenues of the project (“shadow toll”)

  18. PPP-projectsexamples II • Heavy Vehicles Toll System (Austria) • project volume: € 1,200 m • Financing model: Project Finance: For planning, construction and operation financing by the Concessionaire through equity, subordinated debt and mezzanine and senior facilities • Operational period 10 years (call option of ASFINAG) • Awarding authority ASFINAG • Description of project • planning, construction, financing, operation; refinancing out of annual fees

  19. PPP-projectsexamples III • Psychosomatic Rehabilitation Hospital Eggenburg (Austria) • Project volume: € 15 m • Financing model: Project Finance • Operational period 30 years • Awarding authority Province of Lower Austria • Description of project • planning, construction and financing of special hospital; • Technical operation of prison (e.g. wastewater disposal, technical maintenance etc)

  20. PPP-projectsexamples IV • Prison München-Stadelheim (Germany) • Project volume: € 54 m • Financing model: Forfaiting with waiver of defences • Operational period 20 years • Awarding authority The Free State of Bavaria • Description of project • planning, construction and financing of new building of a women's and juvenile detention facility of prison München-Stadelheim; • Technical operation of prison (e.g. wastewater disposal, technical maintenance etc)

  21. Financing Models • Forfaiting with waiver of defences:

  22. PPP-projectsexamples V • Schools in Eppelheim (Germany) • Project volume: € 62.5m • Financing model: Forfaiting with waiver of defences • Operational period: 25 years • Awarding authority The City of Eppelheim • Description of project Renovation, construction and operation of five schools and two sports halls

  23. Kontakt PrivDoz Dr Bernhard Müller T: +43 1 533 47 95-57F: +43 1533 47 95-5057E: bernhard.mueller@dbj.at DORDA BRUGGER JORDIS Rechtsanwälte GmbHDr-Karl-Lueger-Ring 101010 Wienwww.dbj.at Austrian Law Firm of the Year 2010,Chambers Europe Awards for Excellence Diese Unterlage wurde sorgfältig ausgearbeitet, kann jedoch individuelle Beratung im Einzelfall nicht ersetzen.

More Related