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PUBLIC PRIVATE PARTNERSHIP SERIES
Conducting Value for Money (VfM) and Public Sector Cost Comparator (PSC)
and Risk Analysis Techniques for PPP Projects
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| Locations |
Dates |
Tuition |
Catalog # |
CEU's |
Language |
| Washington, D.C. |
May 10 -
21, 2010 |
US $4,750 |
1014-WA |
6.0 |
English |
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All Course Participants Receive a Laptop
Computer! |
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Benefits | Who Should Attend | Course Learning Objectives | Course Content |
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How You Will Benefit:
- Learn why Value for Money (VfM) and public
sector cost comparison analysis is so critical for PPP project
development
- Learn the overall strategic planning
requirements for identifying and screening PPP project opportunities
- Learn how to construct Public Sector Cost
(PSC) and Value for Money (VfM) models and how to calculate and analysis cost
input variables for PPP projects
- Learn how to forecast financing costs and
discount rates for both traditional (government) and private sector
financing
- Learn how to analyze, value and manage
retained public sector risks and contingent liabilities in long-term PPP
projects
- Develop your own Value for Money (VfM)
Analysis Action Plan to implement in your organization
- Use your new laptop computer for Internet
research, access to course materials during and after the course, case study
analysis, simulation exercises, and to create your VfMAction
Plan
- Network and build professional relationships
with your fellow participants and leading government and private sector
infrastructure financing specialists, attorney's, and business
professionals
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Technology and Training at IP3

At IP3, we believe there is a
tremendous opportunity to integrate information and communication technology
into education and training. In all of our Washington, D.C.-based courses, each
participant is provided a new mobile Intel® CoreDuo® or AMD Turion®
laptop computer (as part of the course fees) that will be integrated into the
learning process through the following:
- Course materials provided via dedicated
intranet site
- Internet research and communication tools
via broadband wireless (Wi-Fi) access in the classroom
- Case study and simulation activities
- All Action Plans will be completed and
submitted electronically
After the course is concluded,
access to course materials and discussion boards will be available for up to
two weeks to facilitate worldwide networking and follow up with
participants. |
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| Who Should Attend |
Government Officials from
National Line Ministries, State Infrastructure Agencies, or Municipal
Governments
Officials from PPP,
Privatization Units or Investment Agencies responsible for infrastructure
development
PPP Transaction Advisors,
Bankers or Project Developers involved with PPP project
development
Staff of Bilateral and
Multilateral International Development Organizations |
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Top
Course
Learning Objectives
A value for
money (VfM) analysis consists of a systematic comparison of total costs and
financing of delivering an infrastructure project by traditional government
means verses private sector means. For a government, there is no single more
important exercise than carrying out this transparent "cost
comparator".
Governments must understand early in a potential PPP
project development the potential costs and revenue streams so they can make an
informed, long-term decision as to whether the project is viable or not, and if
so, whether the government or the private sector should finance it.
IP3's course on Value for Money (VfM),
Public Sector Cost Comparison and Risk Analysis Techniques for PPP Project
Structuring is designed to assist government agencies, PPP Units,
transaction advisors, project developers, and bankers develop systematic value
for money analyses for a variety of infrastructure sectors. Through practical,
process-oriented sessions on how to conduct value for money analysis, case
studies of actual VfM analysis, site visits to government agencies analyzing
and structuring PPPs, and action planning, participants in this course will
learn how to design and manage VfM analysis to utilize in their own countries
and organizations.
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| Course Content |
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Module I:
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Strategic Planning for Effective
Value-for-Money Analysis
- Understanding the role of PSC & VFM analysis
within the PPP project life-cycle
- Identifying the key factors driving value for
money analysis: feasibility, affordability, sustainability, and best value
- Does a viable public sector option exist?
- Determining whether PSC & VfM is applicable or
not
- Case examples from the accommodation,
transportation, energy, water, health, education, and other infrastructure
sectors
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| Module
II: |
Estimating, Analyzing, and
Comparing Base Public Sector Cost (PSC) Elements
- Designing the Public Sector Cost Comparison
model
- Calculating the elements of base public costs:
construction, whole-life maintenance, rehabilitation, insurance and risk
premiums
- Understanding & estimating the different
revenue streams for different types of projects
- Estimating public sector financing costs &
selecting the appropriate public discount rate
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| Module
III: |
PPP Risk Analysis: Constructing
the Risk-Adjusted Public Sector Cost (RA-PSC) Comparator
- The PPP Risk Matrix: Identifying and understanding
all relevant project risks
- Project Risk estimation: using historic public
risk data vs. estimates for public sector risk adjustments
- Advanced statistical techniques for analyzing risk
scenarios: Understanding Monte Carlo Simulations
- Constructing PPP Reference Estimates: Analyzing
private sector risk management & costs for retained public sector
risks
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| Module
IV: |
Managing the Value for Money
Analysis Process
- Comparing Risk-Adjusted Public Sector Cost
estimates with PPP Bids: Value for Money
- Using VfM analysis to strengthen project
viability: identifying needs for PPP risk-sharing and credit enhancements
- Understanding & analyzing how traditional
government finance is different from private sector project finance
- Valuing public sector risk-sharing and contingent
liabilities in PPP projects
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| Module
V: |
Site Visits and Meetings |
| Module
VI: |
Action Planning
Prior to completing the course, IP3
requires participants to complete an Action Plan detailing how they will
apply their new knowledge and skills on-the-job. IP3 has developed a four-step
process to guide participants in developing their action plans. Our expert
faculty members conducts several action-planning sessions throughout the course
to assist each participant to develop his/her plan. On the last day of the
course, each participant will present his/her action plan to the group for peer
review and comments. |
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CEU Certification
Eligibility
Certified
Public-Private Partnership Specialist
Certified Utility Management
Specialist
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