Private – Public Partnership
Advantages
- PPP Advantages
- Proven to be a highly effective public procurement model for capital intensive infrastructure building, operating, and enhancing capacity
- PPPs allow the infusion of significant private capital with immediate results for the public sector and long-term ROI for the private sectors.
- With current PPP structuring the private sector assumes life-cycle cost risk
- PPPs allocate risks to the part most able to manage/ absorb particular risks
- PPPs can deliver budgetary certainty –funding and timeline committed by parties with no cost + options
- Contractually obligated to maintain the quality of service for the duration of the PPP
- Both private and public sectors and required to carry out life-cycle costing and long-term fiscal planning
- As the public sector pays only when the services are delivered, the transaction can be off the balance sheet.
Drive Opportunities to Realization
- Based on above observation, S4P can facilitate PPPs to drive opportunities to realization:
- S4P can identify PPP opportunities in Canada and in some international markets
- S4P can carry out initial feasibility analysis for interested parties for specific opportunities
- Feasibility to identify:
- Profiles of potential partners
- Scope of project
- Propose investment models for consideration
- Investment model recommendations (and their rationale)
- Projected ROI and timelines
- Associated risks to parties
- PPP management and governance structures
- Criteria for evaluation
- S4P can build a business case for a potential PPP project by:
- Identifying comparable projects
- Carryout mandate public consultation and assessment
- Outline risk management plan
- Conduct regulatory environmental, economic, and other publicly mandated reviews
- Conduct cost benefit analysis based on economic/fiscal models proposed
- Alternative options in financial and management structures
- Overall recommendations
Project Planning & Execution
- S4P can bring together world class and proven expertise in the planning, execution, and maintenance of the PPP project.
- S4P can assist in securing finance and JV partnerships