Mais conteúdo relacionado Semelhante a Alister Coutts, Predavac, Edinburg Napier Univesity (20) Mais de NALED Serbia (20) Alister Coutts, Predavac, Edinburg Napier Univesity1. Dr Alister W Coutts
DQS, BA(Hons), MBA(Dist), MSc, PhD, FRICS, FCIOB, FCMI
currently
Lecturer in Project Finance & Appraisal
Edinburgh Napier University
Senior Partner
Dr Alister W Coutts & Partners LLP
Construction & Management Consultants
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
2. The Conceptual Framework (1)
Public Private Partnerships
provide
Access to Private Sector Finance
A Mechanism for Project Control
A Chance to major on Life Cycle rather than Capital Costs
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
3. The Conceptual Framework (2)
Public Private Partnerships
Are about the delivery of Services to the public,
by a private sector organisation
with severe penalties for performance failure!
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
4. Public Private Partnerships in Action
A View from Inside the Public Sector
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
5. Where? - The Highlands of Scotland (1)
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
6. Where? - The Highlands of Scotland (2)
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
7. The Highland Council – Key Facts
United Kingdom Land Area - 245,000 sq. km.
Scotland’s Land Area - 80,000 sq. km.
Highland Council Land Area - 26,500 sq. km.
United Kingdom Population - 60,000,000
Scotland’s Population - 5,200,000
Population of the Highlands - 210,000
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
8. Why Use PPPs? – The Reasons:
Acknowledged need to modernise their facilities;
Insufficient Central Government Finance available;
It left capital available for other infrastructure projects;
Financial support available from Central Government;
Allowed investment in major infrastructure
developments;
Council had Project Management expertise ‘in-house’;
Council wished to promote Sustainability and to
emphasise the importance of the Life Cycle approach.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
9. PPP - A Tried and Tested Approach
Regarded as Bad Regarded as Good
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
10. PPP Projects in the Highlands of Scotland
Description Capital Value
Scottish Office - Skye Bridge ∈ 41 million
Scottish Office - Inverness Airport Terminal ∈ 16 million
Scottish Office - Highland Water & Sewage ∈ 80 million
NHS Highland - Easter Ross Primary Care Centre ∈ 16 million
NHS Highland - Craig Phadrig Psychiatric Unit ∈ 27 million
Highland Council - IT ∈ 22 million
Highland Council – PPP 1 Schools ∈ 28 million
Highland Council – PPP 2 Schools ∈150 million
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
11. Public Private Partnerships
Use of Private Sector Finance for Small Rural Projects
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
12. Criteria for Project Success (1)
Secure the Commitment of Sponsors / Users;
Establish the Affordability Criteria;
Establish the Value for Money Criteria;
Continually Check that Scheme is Bankability;
Check Acceptability of Key Terms / Conditions;
Check the Realism of the Risk Allocation.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
13. Criteria for Project Success (2)
Prepare a Realistic ‘non-political’ Programme;
Appoint & Develop the Internal Project Team;
Appoint Compatible External Advisors;
Manage Stakeholder Expectations;
Manage Political comment & Press coverage;
Continually Market the Project.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
14. The Show Stoppers
Lack of Open Political Leadership & Commitment;
Absence of Appropriate Legal Framework;
Non-dependable Project Revenue Stream;
Lack of Openness, Transparency & Integrity;
Unrealistic Budgets, Expectations & Programme;
A Lack of Interest (Consortia / Contractors / Funders);
An Inability to Secure Domestic or International Funds;
Political, Public & Press Hostility to the concept.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
15. Establish Political Oversight
T h e P o litic a l P r o c e s s
T h e H ig h la n d C o u n c il
[8 0 m e m b e rs ]
E d u c a tio n C o m m itte e
[4 0 m e m b e rs ]
E d u c a tio n P P P S u b -C o m m itte e
[8 m e m b e r s ]
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
16. Establish Managerial Control
T h e M a n a g e m e n t D e c is io n M a k in g P r o c e s s
P P P P ro je c t B o a rd
C h ie f E x e c u t iv e
D ir e c t o r o f F in a n c e ; D ir e c t o r o f C o r p o r a t e S e r v ic e s
D ir e c t o r o f E d u c a t io n , C u lt u r e & S p o r t ; D ir e c t o r o f P r o p e r t y & A r c h it e c t u r a l S e r v ic e s
E d u c a tio n P P P P r o je c t T e a m
D ir e c t o r o f P r o p e r t y & A r c h it e c t u r a l S e r v ic e s
H e a d o f S u p p o r t S e r v ic e s ; P P P P r o j e c t O f f ic e r
H e a d o f C o n t r a c t s ; P r in c ip a l S o lic it o r ; P r in c ip a l C a p it a l A c c o u n t a n t
T u rn e r & T o w n s e n d P ro je c t M a n a g e m e n t
D e lo it t e & T o u c h e
S h e p h e rd & W e d d e rb u rn W S
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
17. The Council’s PPP Strategy was:
Start small – minimise the risk to the Council;
Aim big – devise a ‘long term’ PPP programme;
Identify suitable potential PPP projects;
Identify lead politicians – with courage & convictions;
Identify, appoint and train PPP Project Team;
Appoint appropriate external advisers;
Allocate sufficient funds to undertake the initiative!
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
18. We tried to ensure success by (1):
Only selecting ‘appropriate’ Projects;
Getting Political support for Process & Projects;
Appointing only ‘Experienced’ Advisers;
Use of Effective Project Management arrangements;
Use of Realistic Procurement Programmes;
Use of ‘High Quality’ Procurement Documentation;
Targeting ‘known’ Consortia to pre-qualify;
Stressing the need to Consult with Communities.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
19. We tried to ensure success by (2):
Ensuring the Outline Business Case (OBC) was realistic;
Placing the OJEU notice to suit market conditions;
Carefully selecting ‘appropriate’ Bidders;
Preparing a detailed Invitation to Tender (ITN) package;
Relating the Bids received to both the ITN and the OBC;
Avoiding the need for Best & Final Offers (BaFO);
Negotiating the key Project Agreement clauses with
Bidders and Funders at an early stage in the programme;
Updating the Business Case on a regular basis.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
20. Contractors / Consortia wished to know:
The Strategic Vision - the view of the Politicians!!
The Operational Context - is it important to the Council?
The Council – do they have PPP experience?
The Contractual Position – what is the period on offer?
The Design Concept – what quality / flexibility is required?
The Advisers – which firms have been appointed?
The Negotiating Team – have they experience & authority?
The Affordability Position – can the Council afford it?
The Procurement Programme – is it Practical or Political?
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
21. Council wished to ensure Economic Sustainability
Highland Council Objectives:
– Maintain fragile local economies;
– Ensure ‘local’ firms can participate in PPP initiatives;
– Avoid any internal redundancies / loss of capacity;
– Provide Training & Development opportunities.
A PPP initiative can deliver these Objectives if:
– Funders are prepared to work with local consortia;
– The project size allows local contractors be participate;
– Economic sustainability is fully recognised.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
23. Operational PPP Projects (1)
8 year IT Contract with Fujitsu (ICL);
€ 81 million for a Managed Service;
Provision & Maintenance of 3,500 PCs;
3 year rolling refresh of all IT equipment;
Provision of all software & hardware;
Responsible for all Training & Development;
Transfer of 50 staff to Fujitsu;
First IT scheme using private finance.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
24. Operational PPP Projects (2)
25 year Contract with a Consortium
consisting of the M J Gleeson Group plc & The
Royal Bank of Scotland Group plc *
€ 128 million contract;
Project consists of 4 Schools in remote rural
locations - details given later in the
Presentation;
Model scheme completed in record time!
Schools now owned by Investment Fund *
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
25. Operational PPP Projects (3)
30 year Contract for the funding, design, construction
and operation of 11 Schools;
€ 225 million ‘Build Cost’;
€ 760 million contract value;
Single Bidder - but allowed to proceed by Treasury;
Financial Close achieved on 28 March 2006;
First school was handed over on 1 April 2007;
All schools are now fully Operational.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
26. Pipeline PPP Projects (1)
Outline Business Case completed for a 30 year contract
for the funding, design, construction and operation of:
65 Fire Stations with a € 120 million ‘Build Cost’;
€ 270 million contract;
Project involves provision of facilities in four Municipal
areas – Shetlands Isles, Orkney Isles, Western Isles and
the Highlands!
Business Case was lodged with the Scottish Government
for permission to proceed.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
27. Pipeline PPP Projects (2)
Completed a Business Case for a 20 year contract
for the Disposal of Household Waste;
€ 192 million contract;
Scheme was required to comply with legislation;
Proposed service will be very high cost due to the
distances between communities;
The solution also has a high capital cost;
This is a politically sensitive project;
Do you wish an EfW Plant in your back yard?
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
28. Pipeline PPP Projects (3)
Business Case accepted for a 15 year Contract for the
funding, design, construction and operation of 5 Care
Homes for the Elderly – € 51 million ‘Build Cost’;
Estimated € 145 million contract value;
6 Pre-qualified Bidders - with initiative being progressed
under the Competitive Dialogue protocol;
Aim was to reach Financial Close in December 2008 with
first Care Home to be available in August 2010;
Political decision taken to suspend the initiative!
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
29. Pipeline PPP Projects (4)
Business Case completed for the funding, design,
construction and operation of Office Accommodation with a
€ 12 million ‘Build Cost’;
Estimated € 39 million contract value;
4 Pre-qualified Bidders - with initiative being progressed
under the Competitive Dialogue protocol;
Financial Close was programmed for May 2008;
Offices were to be available in August 2010;
Political decision to suspend the initiative!
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
30. Education, Culture & Sport
Public Private Partnership 1 Initiative
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
31. The Council’s Principal Concern was:
Affordability
Not
Value For Money
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
32. The Council was ‘up-front’ on Affordability:
Affordability
4,500,000
4,000,000
Annual Cost
3,500,000
3,000,000
2,500,000
1
4
7
10
13
16
19
22
Years
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
33. Everyone Worked Together To Achieve Success
Education Committee Project Board
(Members) (Officers)
Project Director
Project Managers
Community Groups & External Advisers &
School Representatives Internal Specialists
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
34. Project Details (1)
2 Secondary Schools 2 Primary Schools
Drumnadrochit Spean Bridge
250 pupils + 24 Nursery 75 pupils + 24 Nursery
(4,280 m2) (940 m2)
Strontian Tomatin
250 Pupils + 24 Nursery 70 pupils + 24 Nursery
(4,680 m2) (880 m2)
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
35. Project Details (2)
Annual Unitary Charge – € 4.5 million
Capital Value of Projects – € 25 million
Assets revert to Council ownership at contract end
No surplus land to consider
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
36. Education, Culture & Sport PPP 1
Glenurquhart High School, Drumnadrochit - 250 pupils
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
37. Education, Culture & Sport PPP 1
PPP1 Primary School Interiors
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38. Education, Culture & Sport
Public Private Partnership 2 Initiative
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
39. Project Details (1)
4 Secondary Schools
Dingwall Academy Portree High School
1,100 pupils 700 pupils
Millburn Academy Kinlochleven High
1,100 pupils 110 pupils
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
40. Project Details (2)
6 Primary Schools
Cawdor Inshes
120 pupils 250 pupils
Culbokie Gaelic
80 pupils 150 pupils
Resolis Kinlochleven
100 pupils 70 pupils
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
41. Project Details (3)
Annual Unitary Charge - € 24 million
Capital Value of Projects - € 201 million
Assets revert to Council ownership at contract end
No surplus land to consider
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
42. Education, Culture & Sport PPP 2
Dingwall Academy - 1,100 pupils
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
43. Education, Culture & Sport PPP 2
PPP2 Primary School Interiors
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
44. Work with Communities – It is their Project !!
Stakeholder Management Award
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45. Establish a Pipeline
Sample Pipeline Projects
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46. Fire Services PPP Initiative
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
47. Fire Service Sites
Fire Station Locations
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
48. Highland & Islands Fire Service
The Problem - Obsolete Fire Stations
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
49. Highland & Islands Fire Service
The Solution - Single Bay - Achiltibue Fire Station
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
52. Waste Management Objectives
Prevent the generation of waste at source;
Use ‘local’ rather than ‘regional’ landfill sites;
Introduce Materials Recovery Facilities (MRF);
Provide an Energy from Waste (EfW) Plant.
Capital Investment is required
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
53. Public Private Partnerships
Use of Private Sector Finance for Large Urban Projects
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
54. Hong Kong MTR Corporation 1990
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
55. Hong Kong MTR Corporation
Hong Kong MTR Corporation is a public body;
Corporation operates on ‘prudent commercial principles’;
20 individual Development Sites above stations and depots;
Developments were phased over a 10 year period;
14 separate Development Agreements;
60% of railway funding came from PPP initiatives;
Hong Kong consortia & contractors with overseas funding.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
56. Hong Kong MTR Corporation
High Land Values - All land owned by Central Government
Development Agreements with 8 Private Sector Consortia
Short Duration Contracts - Only 3 to 5 year duration
Value of Contracts – approximately € 1,500 million
‘Upfront’ Funding of rail infrastructure by the Consortia
Design, Construction & Marketing of buildings by Consortia
Ongoing management of building remained with Corporation
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
58. Hang Lung Development Agreement
Hongway Gardens - 35 storeys - 412 flats & 2,594 m2
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
59. Hang Lung Development Agreement
Vicwood Plaza - 33 storeys - 36,848 m2
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
60. Kornhill Development Agreement
Kornhill Gardens – 42 x 20 to 31 storeys – 1,060 flats
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
61. Traditional and
Design & Build Projects
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
64. Property & Architectural Services Projects
Golspie Secondary School : Technical Block
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
65. Property & Architectural Services Projects
Grantown Grammar School : Leisure Centre
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
66. Property & Architectural Services Projects
Ullapool Secondary School
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
67. Highland & Islands Fire Service
Kirkwall Fire Station
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
68. Housing Services Projects
Hayton Road Social Housing, Aberdeen
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
69. Housing Services Projects
Rorie Hall Social Housing, Aberdeen
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
71. Advantages of Small Scale PPP Projects
Individual Project Programmes will be shorter;
Community benefits are much easier to realise;
Project Risks are easier to assess and manage;
Possible pool of local consortia and funders;
Opportunities for local consultants and contractors;
Facilitates local democratic control & management.
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
72. Disadvantages of Small Scale PPP Projects
Difficult to manage a national project pipeline;
Assumes that clients have PPP procurement skills;
Procurement costs may rise due to resource issues;
Danger of a ‘feeding frenzy’ once projects emerge;
Requires a change in procurement culture – can
‘Value for Money’ be the defining characteristic if
there is no possibility of delivering an initiative
other than by using a Public Private Partnership?
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
74. Successful PPP initiatives need
Public commitment from Senior Politicians;
Support for PPP initiatives from Senior Officers;
The creation of the appropriate Political, Legal &
Financial Structures;
The creation of a Production Line of Projects;
A Project Team consisting of your best people;
To be promoted to stimulate market interest!
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
75. A Final Thought
If The Highland Council can
use private sector finance to
provide municipal facilities
in a remote area on the
edge of Europe then so can
you!
You only need to try!
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
76. Contact Information
Dr Alister W Coutts & Partners LLP
Construction & Management Consultants
29 Lady Nairne Drive
PERTH
PH1 1RF
Scotland
Telephone: +44 (0)1738 565749 E-mail : enquiries@awcp.co.uk
www.awcp.co.uk
Please visit our web-site or contact us if you wish further information
© Dr Alister W Coutts & Partners LLP alister.coutts@awcp.co.uk
Notas do Editor Talk about initiatives in place to further expand sectors Talk about initiatives in place to further expand sectors Talk about initiatives in place to further expand sectors