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PPP Centre services
PPP Centre activities are built around this public procurement process and may be grouped in two distinctive categories:
Advisory role
System integration of PPP project procurement
This service is delivered on the basis of investment consulting contract. The Centre defines its service as system integration since all necessary competences required for qualified public procurement of a PPP project will be outsourced to professional services firms (engineering, economic and legal consultants) with the Centre acting as a customer on behalf of its public client. In doing so, certain project preparation risks may be taken by the Centre. Also, it may temporarily take some portion of project development costs.
System integration of a PPP project procurement process covers:
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Preparing and managing a competitive bid solicitation, performing proposal review, and negotiating a PPP contract;
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Ensuring evaluation of project proposals. Analysis and estimate of a project’s feasibility. Review of the appropriateness of the project structuring and its eligibility for further financing;
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Assisting in conducting commercial negotiations on issues related to origination of a project, its procurement process and raising finance;
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Preparing an agreement related to the terms of economic regulation of a project;
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Arranging a professional presentation of a potential project to investors;
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Engaging qualified companies to take part in a competitive procurement process;
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Providing recommendations on the required instruments of project finance;
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Assisting public administration in the course of project implementation in the context of possible changes in the terms of the contract, financing terms and regulation.
Designing PPP program and implementing its procurement
In addition to system integration of a PPP project, the Centre would cooperate with federal or regional authorities to launch industry- or region-wide programs of PPP projects. They may be, for example, schools, or waste management facilities, or any other projects that can be reasonably made on similar legal and economic basis. The Centre develops program documentation including a standard contract, a public approval procedure for application to the program, asset description and data room requirements, a bidding procedure, etc. Together with its public partner in program management it originates a pipeline of applications and organizes a competitive process to select a private program operator. The operator is to enter a standard contract with applicants and may apply for Vnesheconombank’s financing on a regular basis.
Facilitator role
Setting up Regional/Local PPP Units
Public authorities are responsible for PPP projects procurement. In this context, the most important partners of Vnesheconombank are regional and municipal authorities. Vnesheconombank’s PPP Centre would assist local authorities in setting up local PPP units.
The objectives of such a local PPP unit would include participating in strategic planning to ensure regional or urban development. Within the frameworks of devising a regional or municipal development strategy, a pipeline of strategic investment projects would be originated. The local PPP unit would analyse the respective project pipeline to identify projects that come within public responsibility. With respect to each project identified, the feasibility of project delivery either drawing on public financing or through a PPP scheme would be analyzed, with the project pipeline duly prioritized. For projects delivered on the PPP basis, the objectives and the volumes of required resources would be defined, an acceptable legal PPP model would be selected, the procedure of further project procurement, as well as methods of securing the public obligations under the project (regulation, project security arrangements, other public obligations) would be determined.
The subsequent activities of a local PPP unit would embrace tasks related to PPP project procurement. The local PPP unit would coordinate the activities of ministries and agencies to prepare a PPP project and fulfil public commitments taken under a PPP contract. The local PPP unit would participate in arranging the respective public budget needed to develop PPP project and to implement public commitments taken under PPP contracts.
Information Support
The Centre would exercise monitoring of factors determining the development of the market of PPP projects. The Centre would ensure disseminating information on projects at the stage of preparation or procurement. Apart from this, it would facilitate access to methodological recommendations; disseminate the best PPP projects procurement practice in Russia using various ways and means, inclusive, among other things, of the Internet.
Legislative Development Support
To ensure legal support for the developing PPP projects market, PPP Centre would summarize the experience of PPP projects delivery in Russia and globally, elaborate methodological recommendations for preparing and managing PPP projects procurement by public sector clients. Also, it would arrange coordination and experience exchange between public and municipal authorities on PPP application issues, ensure project evaluation and work out PPP-related draft laws and regulations, including those, among other things, applicable to regional and municipal projects.
PPP training support
PPP Centre has worked out principal requirements for training courses designed to provide specialist training for public staff in most important areas of PPP projects preparation and implementation. PPP Centre can assess the compliance of the existing training programs modules developed by universities with the PPP Centre requirements. It would support universities with continuous improvement of their training courses through regular transfer of the experience and expertise of Vnesheconombank and PPP Centre.
Networking PPP professional market participants
PPP projects procurement is ensured through the activities of PPP projects market professional participants, primarily, by consulting companies, who devise and accumulate intellectual capital related to developing PPP mechanisms in Russia. Vnesheconombank’s PPP Centre would coordinate its activities with the professional participants in PPP projects market through arranging regular meetings, organising clubs, as well as through participation in the activities of the relevant associations. Among PPP Centre’s major partners are legal companies, engineering consultants, auditing companies, strategy consultants in the area of strategic planning of sectoral and territorial development. Also, PPP Centre, on a regular basis, maintain interaction with the scientific community in the area of political economy of evolution and institutional theory.
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