transcript
- Slide 1
- www.dbj.at ERES 2011 INDUSTRY Seminar " Public Private
Partnership Magic bullet or danger" 21 October 2011 Bernhard
Mueller Associate Professor University of Vienna, School of Law
Partner and Head of the Public Law Desk of DORDA BRUGGER JORDIS
Rechtsanwlte GmbH
- Slide 2
- DORDA BRUGGER JORDIS www.dbj.at Seite 1 Introduction Definition
and Characteristics of PPP Basic forms of PPP Limited risk transfer
to private sector full risk transfer to private sector Contracting
out Leasing Public Private Joint Ventures PFI BOT, DBFO, BOOT, etc
Concessions Divestiture and Privatisation PFI:Private Finance
Initiative BOT:Build Operate Transfer DBFO:Design Build Finance and
Operate BOOT:Build Own Operate Transfer
- Slide 3
- DORDA BRUGGER JORDIS www.dbj.at Seite 2 Overview Introduction
Definition and Characteristics of PPP Main Drivers of PPP Parties
of PPP Projects Structures of PPP Projects Practical Examples
- Slide 4
- DORDA BRUGGER JORDIS www.dbj.at Seite 3 Introduction Definition
and Characteristics of PPP The following elements characterize
PPPs: Long duration of the relationship (up to 30 years; life cycle
models); Relationship involving intensive cooperation between
public partner and private partner on different aspects of a the
project; Alternative methods of financing the project (project
financing; forfeiting with waiver of defences); The important role
of the economic operator (private partner), who participates at
different stages in the project (design, construction, operation,
financing); Public partner concentrates primarily on defining the
objectives to be attained in terms of public interest, quality of
services provided and pricing policy; Risk-sharing between public
and private partner (i.e. transfer of certain risks from public
sector to private partner);
- Slide 5
- DORDA BRUGGER JORDIS www.dbj.at Seite 4 Introduction Main
Drivers and scope of PPP Value for money and risk transfer as main
Drivers of PPP Scope of PPP projects Rail infrastructure Road
infrastructure Prisons Hospitals Waste management Waste water
treatment
- Slide 6
- DORDA BRUGGER JORDIS www.dbj.at Seite 5 Risks Technolgical
risks Elementary risks Technical risksEconomical risks Force majeur
Global risks Planning risks Completion risks Geological risks
Operation and Managment risks Financial risks Market risks
Political risks
- Slide 7
- DORDA BRUGGER JORDIS www.dbj.at Seite 6 Contractual aspects
Allocation of risks Private Partner Planning Completion
Technological Operation and management Financial Market Force
majeur Public Sector Planning (permits, authorizations) Geological
Inflation Force majeur
- Slide 8
- DORDA BRUGGER JORDIS www.dbj.at Seite 7 Introduction parties of
PPP projects Public sector Statutory bodies under public law (e.g.
State, Austrian provinces, communities and outsourced entities
controlled by them); Tasks of public sector Definition of scope of
services Determination of priorities Determination of goals and
results Regular quality acceptance Partial financing of the project
(in particular by giving guaranties to reduce financing costs
[interest rates])
- Slide 9
- DORDA BRUGGER JORDIS www.dbj.at Seite 8 Introduction parties of
PPP projects Private sector Constructor Operator Concessionaire
Banks Tasks of private sector Design, construction, operation etc.
Financing function Supply of value for money to the public
sector
- Slide 10
- DORDA BRUGGER JORDIS www.dbj.at Seite 9 How does PPP work?
Public Sector
- Slide 11
- DORDA BRUGGER JORDIS www.dbj.at Seite 10 Contractual Model
Contract with Project Company Public Sector Project company 100%
ownership
- Slide 12
- DORDA BRUGGER JORDIS www.dbj.at Seite 11 Contractual Model
Financing Contract Public Sector Project company 100% ownership
Consortium of banks financing securities
- Slide 13
- DORDA BRUGGER JORDIS www.dbj.at Seite 12 Contractual Model
Construction contract / Works Concession Public Sector Project
company 100% ownership Consortium of banks financing securities
Building company Public tender Sub contractor construction
- Slide 14
- DORDA BRUGGER JORDIS www.dbj.at Seite 13 Contractual Model
Operation Contract / Services Concession Public Sector Project
company 100% ownership Consortium of banks financing securities
Building company Public tender Sub contractor construction
Operating company Public tender Operation for 30 years
- Slide 15
- DORDA BRUGGER JORDIS www.dbj.at Seite 14 Institutional Model
Public Sector Project company Consortium of banks financing
securities Building company Public tender Sub contractor
construction Operating company Operation for 30 years Public Sector
Building company operating company shareholder
- Slide 16
- DORDA BRUGGER JORDIS www.dbj.at Seite 15 Success Factors for
Life Cycle Management Models Construction + operation = 1 team
Construction + operation = 1 price The team wins the tender / the
award Same interests Optimized total cost of ownership
Sustainability is rewarded All partners are connected for a long
period Construction: planning and realization Operation: operation,
service, repairing, replacement capital investments, energy
costs.
- Slide 17
- DORDA BRUGGER JORDIS www.dbj.at Seite 16 PPP-projects examples
I PPP-Ostregion (Austria) project volume: 944.18 m Financing model:
Project Finance: For planning, construction and operation financing
by the Concessionaire through equity, subordinated debt (bank
guarantee to safeguard capitalization of Concessionaire until start
of operation) and mezzanine and senior facilities, senior bond
Operational period 30 years Awarding authority ASFINAG Description
of project planning, construction, financing (Concessionaire);
refinancing out of the revenues of the project (shadow toll)
- Slide 18
- DORDA BRUGGER JORDIS www.dbj.at Seite 17 PPP-projects examples
II Heavy Vehicles Toll System (Austria) project volume: 1,200 m
Financing model: Project Finance: For planning, construction and
operation financing by the Concessionaire through equity,
subordinated debt and mezzanine and senior facilities Operational
period 10 years (call option of ASFINAG) Awarding authority ASFINAG
Description of project planning, construction, financing,
operation; refinancing out of annual fees
- Slide 19
- DORDA BRUGGER JORDIS www.dbj.at Seite 18 PPP-projects examples
III Psychosomatic Rehabilitation Hospital Eggenburg (Austria)
Project volume: 15 m Financing model: Project Finance Operational
period 30 years Awarding authority Province of Lower Austria
Description of project planning, construction and financing of
special hospital; Technical operation of prison (e.g. wastewater
disposal, technical maintenance etc)
- Slide 20
- DORDA BRUGGER JORDIS www.dbj.at Seite 19 PPP-projects examples
IV Prison Mnchen-Stadelheim (Germany) Project volume: 54 m
Financing model: Forfaiting with waiver of defences Operational
period 20 years Awarding authority The Free State of Bavaria
Description of project planning, construction and financing of new
building of a women's and juvenile detention facility of prison
Mnchen-Stadelheim; Technical operation of prison (e.g. wastewater
disposal, technical maintenance etc)
- Slide 21
- DORDA BRUGGER JORDIS www.dbj.at Seite 20 Financing Models
Forfaiting with waiver of defences:
- Slide 22
- DORDA BRUGGER JORDIS www.dbj.at Seite 21 PPP-projects examples
V Schools in Eppelheim (Germany) Project volume: 62.5m Financing
model: Forfaiting with waiver of defences Operational period: 25
years Awarding authority The City of Eppelheim Description of
project Renovation, construction and operation of five schools and
two sports halls
- Slide 23
- DORDA BRUGGER JORDIS www.dbj.at Seite 22 Kontakt DORDA BRUGGER
JORDIS Rechtsanwlte GmbH Dr-Karl-Lueger-Ring 10 1010 Wien
www.dbj.at Austrian Law Firm of the Year 2010, Chambers Europe
Awards for Excellence Diese Unterlage wurde sorgfltig
ausgearbeitet, kann jedoch individuelle Beratung im Einzelfall
nicht ersetzen. Priv Doz Dr Bernhard Mller T: +43 1 533 47 95-57 F:
+43 1533 47 95-5057 E: bernhard.mueller@dbj.at