Public-Private Partnerships: Principles of Policy and Finance

by E. R. Yescombe

Overview

Over the last decade or so, private-sector financing through public-private partnerships (PPPs) has become increasingly popular around the world as a way of procuring and maintaining public-sector infrastructure, in sectors such as transportation (roads, bridges, tunnels, railways, ports, airports), social infrastructure (hospitals, schools, prisons, social housing) public utilities (water supply, waste water treatment, waste disposal), government offices and other accommodation, and other specialised services (communications networks or defence equipment). This book, based on the author's practical experience on the public- and private-sector sides of the table, reviews the key policy issues which arise for the public sector in considering whether to adopt the PPP procurement route, and the specific application of this policy approach in PPP contracts, comparing international practices in this respect. It offers a systematic and integrated approach to financing PPPs within this public-policy framework, and explains the project-finance techniques used for this purpose. The book deals with both the Concession and PFI models of PPP, and provides a structured introduction for those who are new to the subject, whether in the academic, public-sector, investment, finance or contracting fields, as well as an aide memoire for those developing PPP policies or negotiating PPPs. The author focuses on practical concepts, issues and techniques, and does not assume any prior knowledge of PPP policy issues or financing techniques. The book describes and explains:* The different types of PPPs and how these have developed* Why PPPs are attractive to governments* General policy issues for the public sector in developing a PPP programme* PPP procurement procedures and bid evaluation* The use of project-finance techniques for PPPs* Sources of funding* Typical PPP contracts and sub-contracts, and their relationship with the project's financial structure * Risk assessment from the points of view of the public sector, investors, lenders and other project parties* Structuring the investment and debt financing* The key issues in negotiating a project-finance debt facility. In addition the book includes an extensive glossary, as well as cross-referencing.*Reviews the PPP policy framework and development from an international perspective*Covers public- and private-sector financial analysis, structuring and investment in PPPs*No prior knowledge of project financing required

Product Details

ISBN-13:	9780080489575
Publisher:	Butterworth-Heinemann
Publication date:	04/01/2011
Sold by:	Barnes & Noble
Format:	eBook
Pages:	368
File size:	4 MB

About the Author

E.R. Yescombe has over 30 years' experience in various forms of structured finance, including project finance, leasing, export credits, real estate and asset finance. A former banker and head of project finance in London for a major international bank, he is now an independent consultant on project finance and public-private partnerships (PPPs), advising investors on financing for power, infrastructure and PPP projects, as well as public-sector entities on PPP policy issues, project procurement and contracting.
E.R. Yescombe has over 30 years’ experience in various forms of structured finance, including project finance, leasing, export credits, real estate and asset finance. A former banker and head of project finance in London for a major international bank, he is now an independent consultant on project finance and public-private partnerships (PPPs), advising investors on financing for power, infrastructure and PPP projects, as well as public-sector entities on PPP policy issues, project procurement and contracting.

Table of Contents

Introduction; What are Public-Private Partnerships?; PPPs—For and Against; PPPs Worldwide; Cash Flow and Investment Analysis; The Public-Sector Investment Decision; Public-Sector Procurement and Contract Management; The Private-Sector Investor's Perspective; Project Finance and PPPs; Private-Sector Financing—Sources and Procedures; Financial Structuring; Financial Hedging; Lenders' Cash-flow Controls, Security and Enforcement; Service-Fee Mechanism; Risk Evaluation & Transfer; Changes in Circumstances and Termination; Funding Competition, Debt Refinancing and Equity Sale; Alternative Models

What People are Saying About This

From the Publisher

A comprehensive, practical and authoritative guide to the use and financing of PPPs for public infrastructure development

Editorial Reviews

"This extremely useful book offers a systematic presentation of the recent trend where governments look increasingly to private sector for building and managing infrastructure facilities as well as for providing specialized services. The text covers a wide range of issues, from very general policy ones faced by authorities in considering whether to adopt the PPP route to much more technical ones, including financial analysis, procurement, financial and legal structuring. Written by an experienced practitioner, Mr. Yescombe’s work represents an invaluable and authoritative guide to all parties involved in PPPs- from investors, bankers, companies providing infrastructure and services to public sector authorities and the public at large as the main user of PPP facilities and/or services. The book is expected to be an excellent introduction for newcomers into the PPP business as well as a valuable reference source for all those that already have experience in the subject." —Mojmir Mrak, Professor of International Finance, Ljubljana Faculty of Economics, University of Ljubljana, Slovenia

From the Publisher