Economic and legal consultancy services for PPP ventures
Public-Private Partnership (PPP) is usually defined as a joint implementation of an undertaking based on a division of responsibilities and risks between a public entity and a private partner. The concept comprises a number of different models of joint ventures undertaken by public and private parties on a different legal basis. Their common denominator is the provision of public benefit services by private entities as contracted between public and private parties.
Poland’s Public-Private Partnership Act in force since 2005, due to the very broad scope and cost of the requisite analyses has virtually remained unapplied in practice. In 2008, legislative solutions aimed at simplifying the Act were initiated and its amended version was adopted on 21 November, 2008.
The amended Act provides that parties to the agreement can create flexible partnerships as provided by the general legal provisions in force in Poland and guided by the best and model practices without specific statutory obligations.
Range of consultancy services
We offer our services to local governments and businesses which consider starting municipal ventures based on the PPP formula. We help them to develop, evaluate, and implement projects based on cooperation with a private investor while ensuring the following:
- Integration of public grants, private funds, loans and financing from EU financial institutions
- Tailoring the objectives of each partnership to the specific characteristics of a particular project, ensuring benefits accruing from PPP while exploiting the strengths and weaknesses of each kind of structure
- Achieving cross-compliance of effective legal structures of PPP projects
- Consideration of risk management aspects and their financial impacts on the project
- Matching private sector involvement with the objectives and needs of the project and society based on a detailed cost-benefit analysis
- Evaluation of costs and capacity for effective implementation and management as key factors in choosing the most appropriate PPP structure
- Establishment of transparent rules on private-sector partner selection and the use of funding.
Stages of PPP projects
Our services cover all the stages of the process associated with the preparation and implementation of a PPP agreement.
Stage I. Project rationale
- Structuring the organisational side of project preparation
- Cost-benefit analysis
- Determination of the socio-economic impact factors of the project
- Preliminary analysis of funding sources
- Preliminary analysis of legal aspects
- Defining the basic principles of the project
Stage II. Project review and preparation
- Evaluation of the project’s attractiveness in terms of PPP
- Preliminary analysis of the project’s cash flows
- Choice of a specific PPP model
- Comparison of the effectiveness of the traditional and PPP project approach using selected analytical tools
Stage III. Project feasibility study
- Development of 3–4 alternative options in abridged versions
- Assessment of the feasibility of the alternative options
- Market studies of potential demand for SPV products/services
- Feasibility study of the selected target option
- PPP agreement risk analysis
Stage IV. The PPP agreement
- Establishment of a formal partnership structure
- Implementation of the public procurement/concession procedure in accordance with the PPP Act or the Construction Work Act
- Preparation of the draft PPP agreement
- Legal consultancy at all stages of preparation, negotiation, and signing of the agreement, preparation of the requisite legal documents
Stage V. Contract completion
- Determination of financial flows in the PPP transaction
- Establishment of a SPV/SPE (special purpose vehicle/entity)
- Selection of PPP contract management model for the term of the agreement
- Development of a project monitoring and evaluation system for the public partner
The scope of the proposed consultancy services is always matched to the characteristics of a given PPP project. Our Clients may choose between the consultancy and expert services covering all the PPP stages or only the selected ones.
Our experts and consultants, who specialise in economic, organisational, financial, and legal aspects of the PPP process, provide comprehensive services in the area of PPP.