The public sector has turned to P3 (also known as PPP or PFI) to achieve a range of objectives, for example the simple transfer of commercial risk with a toll road, or the complex sharing of performance risks in a school P3. As an expert in the design, construction, finance, operation and maintenance of infrastructure, we are uniquely placed to advise the public sector or their private partners on strategies to achieve their respective objectives throughout the life of a P3 project.
In the early planning stages of a project, we advise on feasibility, delivery options, risk analysis, and value for money, utilizing core engineering and commercial knowledge gained from successful delivery and operation of a broad range of P3 projects.
P3 Procurement Advisory
Preparing for P3 procurement, especially in a new jurisdiction or industry sector, can be daunting. Our staff includes a blend of former public sector professionals who understand this process from personal experience and former P3 developers or financiers who understand the perspective of bidders. We advise on practical aspects of the legal or regulatory issues, as well as pre-developing a P3 project to improve feasibility, and modifying the planning approach to accommodate a P3 procurement.
During the procurement process, we offer our extensive experience which includes both technical and commercial advisor for the public sector and advisor to the private sector. In the latter, we have assisted in bid development, served as lenders’ technical advisor, and as independent certifier/ independent engineer. Our public sector technical and commercial advisory experience includes:
- Development of the project scope
- Development the payment mechanism
- Preparation of the output specification/ performance requirements
- Negotiating the deal and executing the P3 contract
- Monitoring construction and operation
As markets have matured, the secondary sale of equity in P3 projects has become more commonplace, with developers seeking to recycle scarce equity capital, and financial investors seeking stable index-linked assets. With our broad knowledge of the primary P3 market and the operation and management of infrastructure assets, WSP can provide Investor Advisory services to buyers or sellers seeking to maximize value with acceptable risk.
P3 Asset Management
Our technical and commercial expertise of P3 models allows us to offer, as part of our asset management services, the management or support of operational special purpose vehicles (SPVs) in a number of jurisdictions. Our hands-on experience of P3 projects means that we have developed a database of projects from which we are able to conduct market benchmarking. We have developed facilities management strategies and whole life cost models using our extensive knowledge of the concession and lenders agreements that govern P3's.