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Private Sector Investment in Infrastructure: Project Finance, PPP Projects and PPP Frameworks 3rd New edition [Hardback]

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  • Formāts: Hardback, 570 pages
  • Izdošanas datums: 28-Oct-2015
  • Izdevniecība: Kluwer Law International
  • ISBN-10: 9041162739
  • ISBN-13: 9789041162731
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Private Sector Investment in Infrastructure: Project Finance, PPP Projects and PPP Frameworks 3rd New editionPalielināt
  • Formāts: Hardback, 570 pages
  • Izdošanas datums: 28-Oct-2015
  • Izdevniecība: Kluwer Law International
  • ISBN-10: 9041162739
  • ISBN-13: 9789041162731
Citas grāmatas par šo tēmu:
Permanent link: https://www.kriso.lv/db/9789041162731.html
Keywords:

Investment in infrastructure is critical to economic growth, quality of life, poverty reduction, access to education, good quality healthcare, and achieving many of the goals of a robust and dynamic economy. However, infrastructure is difficult for the public sector to get right.

This remarkably insightful and enormously useful book, now in its third edition, shows how the private sector (through public–private partnerships – PPP) can provide more efficient procurement through cheaper, faster, and better quality; refocus infrastructure services on consumer satisfaction and life cycle maintenance; place the financial burden of providing infrastructure on consumers rather than taxpayers; and provide new sources of investment, in particular through limited recourse debt (i.e., project financing). Taking the particular challenges associated with PPP fully into account. this book provides a practical guide to PPP in all the following ways and more:

  • - how governments can enable and encourage PPP;
  • - how PPP financing works;
  • - what PPP contractual structures look like; and
  • - most importantly, how PPP risk allocation works in practice.

Specific discussion of each infrastructure sector is provided.

Lawyers and business people, civil engineers, economic development officials and specialists, banking and insurance professionals, and academics will all find the ground well covered in this book, as well as new ground broken.



In this book, author Jeffrey Delmon presents readers with the third edition of his comprehensive examination of the major differences and commonalities between public investment in infrastructure and private sector investment in infrastructure. The author covers all aspects of public private partnerships (PPPs) and their financing, the basics of project finance on a grand scale, PPPs and bureau of transportation (BOT) projects, bankability on private sector infrastructure investment, and many other related subjects over the book’s twenty-four chapters. The author is with the World Bank. Annotation ©2016 Ringgold, Inc., Portland, OR (protoview.com)
Preface xxv
List of Figures xxix
List of Tables xxxi
List of Boxes xxxiii
Acknowledgments xxxvii
Part I Introduction 1(152)
Chapter 1 Introduction to PPP and Finance
3(14)
1.1 What Is PPP?
4(8)
1.1.1 PPP Programmes
4(5)
1.1.2 Common Labels for PPP Transactions
9(1)
1.1.3 Categorising PPP
10(2)
1.2 PPP Can Be Costly and Slow, Why Bother?
12(2)
1.3 PPP and Financing
14(3)
Chapter 2 Introduction to Project Finance
17(36)
2.1 Off-Balance Sheet
18(1)
2.2 Limited Recourse and Sponsor Support
18(2)
2.3 Taking Security
20(2)
2.4 Financial Ratios
22(4)
2.4.1 Debt-Equity (D/E) Ratio
23(1)
2.4.2 Loan Life Cover Ratio
23(1)
2.4.3 Debt Service Cover Ratio
23(1)
2.4.4 Rate of Return
24(2)
2.5 Certainty of Revenue Stream
26(1)
2.6 Public Sector Support
26(2)
2.7 The Project Process
28(7)
2.7.1 The Construction Stage
29(1)
2.7.2 The Operation Stage
30(3)
2.7.3 Drawdown Schedule
33(1)
2.7.4 Repayment and Pre-payment
34(1)
2.7.5 Refinancing
34(1)
2.7.6 Repayment Schedule
35(1)
2.8 Terms of Financing
35(13)
2.8.1 Equity Contributions
35(1)
2.8.2 Debt Contributions
36(3)
2.8.2.1 The Relative Benefits of Different Lenders
36(1)
2.8.2.2 Syndication
37(1)
2.8.2.3 Shari'a Financing
37(1)
2.8.2.4 Bank Guarantee
38(1)
2.8.2.5 Bond Financing
38(1)
2.8.3 Mezzanine/Subordinated Contributions
39(2)
2.8.3.1 Nature of Subordination
39(1)
2.8.3.2 Mezzanine Financiers
40(1)
2.8.3.3 Form of Mezzanine Finance
40(1)
2.8.3.4 Reasons for Mezzanine Finance
40(1)
2.8.4 Conditions Precedent
41(1)
2.8.4.1 Commercial and Legal Arrangements
41(1)
2.8.4.2 Financial Ratios and Covenants
42(1)
2.8.4.3 Security Package
42(1)
2.8.5 Hedging and Futures Contracts
42(1)
2.8.6 Shareholder Support
43(1)
2.8.7 Step-In
43(2)
2.8.7.1 Cure Rights
44(1)
2.8.7.2 Step-In Rights
44(1)
2.8.7.3 Novation
44(1)
2.8.8 Warranties, Undertakings and Representations
45(1)
2.8.9 Use of Insurance
46(1)
2.8.10 Inter-creditor Issues and Security Trustee
46(1)
2.8.11 Lenders' Technical Adviser
47(1)
2.8.12 Termination Compensation
47(1)
2.9 Other Risk Issues Relevant to Financing
48(5)
2.9.1 Completion
48(1)
2.9.2 Force Majeure and Change in Law
49(1)
2.9.3 Political Risk
49(1)
2.9.4 Environmental Risk
49(1)
2.9.5 Currency Exchange Risk
50(1)
2.9.6 Interest Rate Risk
50(1)
2.9.7 Social Risk
51(2)
Chapter 3 Introduction to PPP through BOT Projects
53(24)
3.1 Why BOT?
54(3)
3.2 BOT Project Agreements
57(5)
3.2.1 Financing Agreement
58(1)
3.2.2 Shareholders' Agreement
59(1)
3.2.3 Concession Agreement
59(1)
3.2.4 Offtake Purchase Agreement
59(1)
3.2.5 Input Supply Agreement
60(1)
3.2.6 Construction Contract
60(1)
3.2.7 Operation and Maintenance Agreement
61(1)
3.2.8 Direct Agreements
61(1)
3.3 Parties Involved in a BOT Project
62(10)
3.3.1 Lenders
62(1)
3.3.2 Contracting Agency and Host Government
62(4)
3.3.2.1 Host Government Interests
63(1)
3.3.2.2 Host Government Involvement
64(1)
3.3.2.2.1 Invitation to Tender
64(1)
3.3.2.2.2 Risk Sharing
64(1)
3.3.2.2.3 Attracting Investment
64(1)
3.3.2.2.4 Political Marketing
65(1)
3.3.2.2.5 Setting of Government Policy
65(1)
3.3.2.2.6 Provision of Information Basic to the Feasibility of the Project
65(1)
3.3.2.2.7 Documentation
65(1)
3.3.2.2.8 Assistance with Finance
65(1)
3.3.2.2.9 Guarantees
65(1)
3.3.3 Multilateral, Bilateral and Export Credit Agencies
66(2)
3.3.3.1 Multilateral Agencies and Bilateral Agencies
66(1)
3.3.3.2 Export Credit Agencies
67(1)
3.3.4 Project Company
68(1)
3.3.5 Construction Contractor
69(1)
3.3.6 Operator
70(1)
3.3.7 Offtake Purchaser
71(1)
3.3.8 Input Supplier
72(1)
3.3.9 Interfaces
72(1)
3.4 Stages of Development and Negotiation of a BOT Project
72(5)
Chapter 4 Bankability
77(28)
4.1 Project Viability
78(8)
4.1.1 Economic/Political Viability
79(2)
4.1.2 Legal Viability
81(1)
4.1.2.1 Stability
81(1)
4.1.2.2 Availability of Justice
81(1)
4.1.2.3 Enforceability
81(1)
4.1.2.4 Security
81(1)
4.1.2.5 Implied Terms
82(1)
4.1.2.6 Stability of the Tax Regime
82(1)
4.1.3 Financial Viability
82(3)
4.1.3.1 Debt-to-Equity Ratio
83(1)
4.1.3.2 Debt Service Cover Ratio
84(1)
4.1.3.3 Loan Life Cover Ratio
84(1)
4.1.3.4 Rate of Return
85(1)
4.1.4 Technical Viability
85(1)
4.2 Site Issues
86(7)
4.2.1 Political Issues
87(2)
4.2.1.1 Host Country Guarantees
87(1)
4.2.1.2 Host Country Policy
87(1)
4.2.1.3 Change in Political Atmosphere
87(1)
4.2.1.4 Nationalisation and Expropriation
88(1)
4.2.1.5 Change in Law
88(1)
4.2.2 Administrative Issues
89(2)
4.2.2.1 Licences, Permits and Authorisations
89(1)
4.2.2.2 Regulation
90(1)
4.2.2.3 Administrative Policy
91(1)
4.2.3 Currency Issues
91(1)
4.2.4 Market Issues
91(2)
4.2.4.1 Local Market for Offtake
91(1)
4.2.4.2 Local Market for Input
92(1)
4.2.4.3 Infrastructure Issues
92(1)
4.2.4.4 Legal Issues
92(1)
4.2.5 Force Majeure
93(1)
4.3 Source Country Issues
93(1)
4.4 Project Structure Issues
93(3)
4.4.1 Shareholders
94(1)
4.4.2 Financing Structure
94(1)
4.4.3 Third-Party Risk Allocation
95(1)
4.4.3.1 Insurance
95(1)
4.4.3.2 Environmental and Other Legal/Regulatory Issues
96(1)
4.5 Contractual Issues
96(9)
4.5.1 Concession Agreement
96(3)
4.5.1.1 Terms
97(1)
4.5.1.2 Duration
97(1)
4.5.1.3 Termination
97(1)
4.5.1.4 Contracting Agency
98(1)
4.5.1.5 Exclusivity
98(1)
4.5.1.6 Change in Law/Regulations
98(1)
4.5.1.7 Licences and Permits
98(1)
4.5.1.8 Assignment and Security
98(1)
4.5.2 Construction Contract
99(1)
4.5.2.1 Turnkey Contract
99(1)
4.5.2.2 Performance Risk
99(1)
4.5.2.3 Liability Limitations
99(1)
4.5.2.4 Payment
100(1)
4.5.2.5 Completion Risk
100(1)
4.5.2.6 Warranties
100(1)
4.5.2.7 Site Risk
100(1)
4.5.3 Operation and Maintenance Agreement
100(2)
4.5.3.1 Performance Risk
101(1)
4.5.3.2 Operating Costs
101(1)
4.5.3.3 Replacement of Operator
101(1)
4.5.3.4 Major Maintenance
102(1)
4.5.4 Offtake Purchase Agreement
102(1)
4.5.4.1 Offtake Price
102(1)
4.5.4.2 Currency Risk
102(1)
4.5.4.3 Termination
103(1)
4.5.5 Input Supply Agreement
103(4)
4.5.5.1 Failure to Deliver
103(1)
4.5.5.2 Failure to Take
104(1)
4.5.5.3 Duration
104(1)
4.5.5.4 Supplier Infrastructure
104(1)
4.5.5.5 Transportation
104(1)
Chapter 5 Allocation of Risk
105(36)
5.1 Assessment and Allocation of Risk
107(6)
5.1.1 Assessment of Risk
107(2)
5.1.2 Allocation of Risk
109(4)
5.2 Development Risk
113(1)
5.3 Completion Risk
114(3)
5.3.1 Construction
114(2)
5.3.2 Commissioning
116(1)
5.3.3 Time for Completion
116(1)
5.4 Cost Increase Risk
117(6)
5.4.1 Exchange Rate Risk
117(1)
5.4.2 Interest Rate and Refinancing Risk
118(1)
5.4.3 Inflation
119(1)
5.4.4 Taxes
119(1)
5.4.5 Input Price Increase
120(1)
5.4.6 Construction Cost Increase
120(1)
5.4.7 Operation Cost Increase
121(1)
5.4.8 Cost of Spare and Replacement Parts
121(1)
5.4.9 Decrease in Offtake Price
122(1)
5.4.10 Coverage of Cost Overrun Risk
122(1)
5.4.10.1 Contingency
122(1)
5.4.10.2 Sponsor Support
122(1)
5.4.10.3 Standby Credit Facility
123(1)
5.4.10.4 Risks Arising between Bid Submission and Financial Close
123(1)
5.5 Performance Risk
123(2)
5.5.1 Design and Construction
123(1)
5.5.2 Operation
124(1)
5.5.3 Input Supply
124(1)
5.5.4 Offtake Infrastructure
124(1)
5.6 Operation Risk
125(2)
5.6.1 Operating Standards
126(1)
5.6.2 Transfer of Know-How and Training
126(1)
5.6.3 Maintenance
126(1)
5.7 Market Risk
127(1)
5.7.1 Offtake (Output) Price
127(1)
5.7.2 Input Cost Risk
127(1)
5.8 Political Risk
128(7)
5.8.1 Authority and Enabling Legislation
128(1)
5.8.2 Change in Budget, Government or Political Atmosphere
129(1)
5.8.3 Expropriation
130(1)
5.8.4 Change of Law or Taxation
131(1)
5.8.4.1 Contracting Agency Risk
131(1)
5.8.4.2 Apportionment of Cost
131(1)
5.8.4.3 Apportionment of Risk
131(1)
5.8.5 Change in Technical Requirements
132(1)
5.8.6 Immunities
132(1)
5.8.7 Public Perception
132(1)
5.8.8 Political Risk Insurance
133(1)
5.8.9 Source Country Political Risks
134(1)
5.8.10 Choice of Law
134(1)
5.9 Environmental Risk
135(2)
5.9.1 Lender Specific Issues
135(1)
5.9.2 Assessing Environmental Impact
136(1)
5.9.3 Managing Environmental Risk
137(1)
5.10 Social Risk
137(2)
5.11 Credit Risk
139(2)
Chapter 6 Project Participant Interface Risk
141(12)
6.1 Project Interfaces
142(3)
6.1.1 Technology Interfaces
142(1)
6.1.2 Methodology Interfaces
142(3)
6.1.2.1 Commercial Diversity
142(1)
6.1.2.2 Cultural Diversity
143(2)
6.1.3 Management and Allocation of Interface Risk
145(1)
6.2 Contracting Agency Interfaces
145(3)
6.2.1 Interfaces with Construction Contractor
145(1)
6.2.2 Interfaces with Operator
146(1)
6.2.3 Interfaces with Offtake Purchaser
147(1)
6.2.4 Interfaces with Input Supplier
148(1)
6.3 Construction Contractor and Operator
148(3)
6.4 Operator and Offtake Purchaser
151(1)
6.5 Operator and Input Supplier
151(1)
6.6 Intra-project Company Interfaces
152(1)
Part II Up-Stream: PPP Frameworks 153(64)
Chapter 7 Legal Framework
155(10)
7.1 Setting and Implementing the PPP Legal Policy
155(3)
7.2 Key Legal Constraints
158(7)
7.2.1 Vires
158(1)
7.2.2 Government Obligations and Support
158(1)
7.2.3 Creation of Limited Liability Project Company
158(1)
7.2.4 Procurement
158(1)
7.2.5 Land Rights and Acquisition
159(1)
7.2.6 Setting and Collecting Tariffs
159(1)
7.2.7 Penalties, Sanctions and Bonuses
159(1)
7.2.8 Security Rights over Assets
160(1)
7.2.9 Dispute Resolution
160(1)
7.2.10 Sovereign Immunity
160(1)
7.2.11 Employment
161(1)
7.2.12 Tax
161(1)
7.2.13 Regulatory Frameworks
161(1)
7.2.14 Trusts, Agency and Other Legal Relationships
162(1)
7.2.15 Currency
162(3)
Chapter 8 Institutional Framework
165(12)
8.1 Coordination of PPP Programme
167(2)
8.2 Fiscal Support
169(1)
8.3 Project Selection
170(1)
8.4 Project Preparation
170(1)
8.5 Demonstration Projects
171(1)
8.6 Preparation of Good Practice Contracts and Bid Documents
172(1)
8.7 Value for Money
173(1)
8.8 Approval Process
174(3)
Chapter 9 Procuring and Implementing Transactions
177(14)
9.1 Direct Negotiations and Unsolicited Proposals: or, Tendering Takes So Long and Is So Expensive...Why Bother?
177(3)
9.2 Inception/Pre-feasibility/Preliminary Viability Study/Outline Business Case
180(1)
9.3 Viability/Feasibility Study/Full Business Case
181(2)
9.4 Pre-qualification
183(1)
9.5 Bid
184(1)
9.6 Single Bids
185(1)
9.7 Preferred Bidder
185(1)
9.8 Management/Monitoring of Implementation
186(5)
9.8.1 The Project Team
187(1)
9.8.2 Operations Manual
187(1)
9.8.3 Monitoring Performance
188(1)
9.8.4 Refinancing
188(1)
9.8.5 Selling Down Equity
189(1)
9.8.6 Dispute Resolution and Renegotiations
189(1)
9.8.7 Expiry, Termination and Handover
190(1)
Chapter 10 Using Public Financial Support for PPP
191(12)
10.1 The Fundamentals of Public Support
192(2)
10.2 Purposes for Public Support
194(1)
10.3 Funded Instruments
195(4)
10.3.1 Grants/Capital Contributions
195(2)
10.3.2 Payments for Services Rendered
197(1)
10.3.3 Loans
198(1)
10.3.4 Equity
198(1)
10.4 Contingent Support
199(2)
10.4.1 Government Guarantees
199(1)
10.4.2 Contingent Debt/Equity
200(1)
10.4.3 Contingent Contributions
200(1)
10.4.4 Bilateral/Multilateral Guarantees
201(1)
10.5 Managing Government Liabilities
201(2)
10.5.1 Assessing Liabilities
201(1)
10.5.2 Monitoring/Accounting for Liabilities
202(1)
10.5.3 Paying for Liabilities Once They Crystallise
202(1)
Chapter 11 Mobilising Local Currency Financing
203(14)
11.1 Sources of Long-Term, Local Currency Funding
204(3)
11.2 Government Interventions That Can Facilitate Access to Long-Term Local Capital
207(1)
11.3 Using an Intermediary
208(4)
11.3.1 Functionality
209(1)
11.3.2 A Few Challenges
210(2)
11.4 Conclusion
212(1)
Annex to
Chapter 11
213(4)
Part III Down-Stream: PPP Transactions 217(230)
Chapter 12 Concession Agreement
219(18)
12.1 Risks
222(2)
12.1.1 Political Risk
222(1)
12.1.2 Completion Risk
223(1)
12.1.3 Operation Risk
223(1)
12.1.4 Permits and Licences
223(1)
12.1.5 Transfer and Re-tendering
224(1)
12.2 Interfaces
224(2)
12.2.1 Construction Contractor
224(1)
12.2.2 Operator
225(1)
12.2.3 Offtake Purchaser
226(1)
12.2.4 Input Supplier
226(1)
12.3 Payment and Guarantees
226(3)
12.3.1 Tolls and Tariffs
226(1)
12.3.2 Guarantees
226(1)
12.3.3 Non-competition/Exclusivity
227(1)
12.3.4 Foreign Currency Exchange and Transfer of Funds
227(1)
12.3.5 Taxation
227(1)
12.3.6 Compensation Events
228(1)
12.3.7 Compensation on Termination
228(1)
12.4 Completion and Operation
229(3)
12.4.1 Design, Construction and Technical Requirements
229(1)
12.4.2 Modification of Technical Requirements
229(1)
12.4.3 Time for Completion and the Project Programme
230(1)
12.4.4 Method of Operation
230(1)
12.4.5 Maintenance Manuals, Records and As-Built Drawings
231(1)
12.4.6 Update of Project Technology
231(1)
12.4.7 Training
231(1)
12.4.8 No Discriminatory Action by Government Entity
232(1)
12.5 Procedures and Mechanisms
232(5)
12.5.1 Approval, Appointment and Replacement
232(1)
12.5.2 Granting the Concession
233(1)
12.5.3 Concession Fees
233(1)
12.5.4 Independent Expert
233(1)
12.5.5 Restrictions on Transfer of Shares of the Project Company
233(1)
12.5.6 Step-In and Continuous Operation Provisions
234(1)
12.5.7 Transfer or Re-tender
234(3)
Chapter 13 Shareholders' Agreement
237(12)
13.1 Development Agreement
238(1)
13.2 Form of the Project Company
239(2)
13.2.1 Added Source of Equity Capital
239(1)
13.2.2 Special Project Expertise
239(1)
13.2.3 Shareholder Interest
239(1)
13.2.4 Diversity of Ownership
240(1)
13.2.5 Risk Management
240(1)
13.2.6 Off-Balance Sheet Treatment
240(1)
13.2.7 Availability of Funding
241(1)
13.2.8 Control over a Resource or Market Position
241(1)
13.3 Investment, Return, Costs and Cash Flow
241(3)
13.3.1 Shareholder Contributions
241(2)
13.3.1.1 Paid-in Equity
242(1)
13.3.1.2 Subordinated Debt
242(1)
13.3.1.3 Contributions in Kind
242(1)
13.3.2 New Equity Infusions
243(1)
13.3.3 Application of Cash Flow
243(1)
13.3.4 Costs
243(1)
13.3.5 Contribution Clause
244(1)
13.4 Shareholder Rights and Obligations
244(3)
13.4.1 Shareholder Undertakings
244(1)
13.4.2 Conflicts of Interest
244(1)
13.4.3 Confidentiality
245(1)
13.4.4 Transfer to Contracting Agency
246(1)
13.4.5 Transfer of Shares
246(1)
13.5 Management and Administration
247(2)
13.5.1 Management
247(1)
13.5.2 Dispute Resolution
247(2)
Chapter 14 Construction Contract
249(30)
14.1 Turnkey Construction Contracts
250(7)
14.1.1 Single Point Responsibility
251(3)
14.1.1.1 Design
251(1)
14.1.1.2 Coordination
252(1)
14.1.1.3 Completion
252(1)
14.1.1.4 Contractual Standard of Care
253(1)
14.1.1.5 Contractor's Claims
254(1)
14.1.2 Time for Completion
254(1)
14.1.3 Fixed Price
255(1)
14.1.4 Disadvantages
256(1)
14.1.4.1 Control of Design
256(1)
14.1.4.2 Risk Premium
257(1)
14.2 Risk Allocation
257(2)
14.2.1 Completion Risk
257(1)
14.2.1.1 Concept of Completion
257(1)
14.2.1.2 Time for Completion
258(1)
14.2.2 Performance Risk
258(1)
14.3 Interfaces between Construction Contractor and Other Project Participants
259(2)
14.3.1 Operator
259(1)
14.3.2 Offtake Purchaser
260(1)
14.3.3 Input Supplier
261(1)
14.4 Completion and Performance
261(5)
14.4.1 Scope of Works
261(1)
14.4.2 Design
262(1)
14.4.3 Quality Assurance
263(1)
14.4.4 Site Risk
263(1)
14.4.5 Completion and Takeover
264(1)
14.4.6 Tests on Completion
264(1)
14.4.7 Performance Tests
265(1)
14.4.8 Language
265(1)
14.5 Time
266(4)
14.5.1 Time for Completion and Project Programme
266(3)
14.5.2 Defects Liability Period
269(1)
14.5.3 Latent Defects
270(1)
14.5.4 Equipment Supplier Maintenance
270(1)
14.6 Price and Payment
270(4)
14.6.1 Contract Price
270(1)
14.6.2 Payment
271(2)
14.6.3 Bonds, Guarantees and Retention
273(1)
14.6.4 Limitation of Liability
274(1)
14.6.5 Joint and Several Liability
274(1)
14.7 Additional Considerations
274(5)
14.7.1 Independent Engineer
275(1)
14.7.2 Training and Operation Manuals.
275(1)
14.7.3 Transfer of Title and Risk
275(1)
14.7.4 Subcontracting
276(1)
14.7.5 Procurement Restrictions
276(1)
14.7.6 Splitting Turnkey Contracts
276(3)
Chapter 15 Operation and Maintenance Agreement
279(16)
15.1 Risk Allocation
281(2)
15.1.1 Performance Risk
281(1)
15.1.2 Increase of Cost Risk
282(1)
15.1.3 Operation Risk
282(1)
15.1.4 Political Risk
282(1)
15.2 Interfaces
283(3)
15.2.1 Construction Contractor
284(1)
15.2.2 Offtake Purchaser
285(1)
15.2.3 Input Supplier
285(1)
15.2.4 Contracting Agency
285(1)
15.3 Operator's Obligations
286(3)
15.3.1 Scope of Services
286(1)
15.3.2 Standards of Performance
287(1)
15.3.3 Remedy of Defects
287(1)
15.3.4 Emergency Situations
288(1)
15.3.5 Procurement Restrictions
288(1)
15.3.6 Spare Parts
288(1)
15.3.7 Asset Removal/Replacement
289(1)
15.4 Payment
289(3)
15.4.1 Cost of Operation and Payment
289(2)
15.4.2 Budgeting for Spare Parts, Major Maintenance and Asset Renewal
291(1)
15.4.3 Operator as Agent
291(1)
15.4.4 Liability
291(1)
15.4.5 Foreign Exchange and Convertibility
291(1)
15.5 Procedures for Performance and Compliance
292(3)
15.5.1 Transfer of Risk
292(1)
15.5.2 Independent Engineer
292(1)
15.5.3 Access to Books and Records
292(1)
15.5.4 Training of the Contracting Agency's Personnel
293(1)
15.5.5 Transfer
294(1)
Chapter 16 Offtake Purchase Agreement
295(18)
16.1 Risk Allocation
297(1)
16.1.1 Market Risk
298(1)
16.1.2 Operation Risk
298(1)
16.2 Interfaces
298(1)
16.2.1 Operator
299(1)
16.2.2 Construction Contractor
299(1)
16.3 Primary Obligations
299(3)
16.3.1 Scope of Services
300(1)
16.3.2 Quantity
300(1)
16.3.3 Technical and Performance Specifications
300(1)
16.3.4 Modifications to the Project
301(1)
16.3.5 Facilities Provided by Offtake Purchaser
301(1)
16.3.6 Ancillary Services
301(1)
16.3.7 Completion and Transition
302(1)
16.3.8 Transfer to Contracting Agency
302(1)
16.4 Price and Payment
302(7)
16.4.1 Capacity Charge
304(1)
16.4.2 Usage Charge
305(1)
16.4.3 Input Efficiency
305(1)
16.4.4 Input Supply
306(1)
16.4.5 Metering of Output
306(1)
16.4.6 Other Offtake
307(1)
16.4.7 Other Pricing Schemes
307(1)
16.4.8 Bonuses
308(1)
16.4.9 Guarantees
308(1)
16.4.10 Foreign Exchange Risk
308(1)
16.5 Mechanisms and Procedures
309(4)
16.5.1 Operation Regime
309(1)
16.5.2 Maintenance Regime
309(1)
16.5.3 Pricing Regime
310(3)
Chapter 17 Input Supply Agreement
313(14)
17.1 Risk Allocation
315(1)
17.1.1 Market Risk
315(1)
17.1.2 Operation Risk
316(1)
17.2 Interfaces
316(1)
17.2.1 Operator
316(1)
17.2.2 Construction Contractor
317(1)
17.3 Principal Obligations
317(5)
17.3.1 Quantity
317(1)
17.3.2 Procurement Restrictions
318(1)
17.3.3 Source of Input
319(1)
17.3.4 Shipment and Storage
320(1)
17.3.5 Quality
321(1)
17.3.6 Completion and Transition
321(1)
17.4 Payment
322(3)
17.4.1 Price
322(1)
17.4.2 Failure to Deliver
323(1)
17.4.3 Testing Quality
324(1)
17.4.4 Measuring Quantity
324(1)
17.4.5 Payment
324(1)
17.4.6 Guarantees
325(1)
17.5 Mechanisms and Procedures
325(2)
17.5.1 Independent Engineer
325(1)
17.5.2 Transfer to Contracting Agency
325(2)
Chapter 18 Issues Common to Project Documents
327(34)
18.1 The Site
327(3)
18.1.1 Possession of and Access to the Site
328(1)
18.1.2 Site Conditions
329(1)
18.2 The Works
330(3)
18.2.1 Procurement Restrictions
330(1)
18.2.2 Transfer of Title and Risk
330(1)
18.2.3 Completion
331(1)
18.2.4 Spare Parts
331(2)
18.3 Payment
333(2)
18.3.1 Price, Payment and Revenues
333(1)
18.3.2 Foreign Currency Exchange
334(1)
18.3.3 Guarantees
334(1)
18.4 Changes
335(2)
18.4.1 Assignment
335(1)
18.4.2 Change in Law
335(1)
18.4.3 Change in Pricing Mechanism
336(1)
18.4.4 Change in Requirements
336(1)
18.4.5 Dispute
336(1)
18.4.6 Lenders' Interests
337(1)
18.5 Political and Natural Events
337(10)
18.5.1 Licences and Permits
337(2)
18.5.2 Force Majeure
339(2)
18.5.3 Sovereign Immunity
341(1)
18.5.4 Types of Insurance
342(2)
18.5.5 Insurance Issues
344(3)
18.6 Termination and Step-In
347(3)
18.6.1 Termination
347(1)
18.6.2 Step-in and Continuous Operation Provisions
348(1)
18.6.3 Transfer to Contracting Agency
349(1)
18.7 Supervision and Disputes
350(3)
18.7.1 Contracting Agency/Lender Access and Inspection
350(1)
18.7.2 Independent Engineer
351(1)
18.7.3 Dispute Resolution
351(2)
18.8 Miscellaneous
353(5)
18.8.1 Definitions
353(1)
18.8.2 Conditions Precedent
353(1)
18.8.3 Duration
354(1)
18.8.4 Language
355(1)
18.8.5 Confidentiality
355(1)
18.8.6 Training
356(1)
18.8.7 Choice of Law
356(1)
18.8.8 Schedules
357(1)
18.9 Direct Agreements
358(3)
Chapter 19 Power
361(18)
19.1 Power Purchaser
362(1)
19.2 Associated Infrastructure
362(1)
19.3 Merchant Power
363(1)
19.4 Tolling Agreements
364(1)
19.5 Grid Requirements
364(1)
19.6 Special Characteristics
365(2)
19.6.1 Greenhouse Gas Emissions
365(1)
19.6.2 Black Start
366(1)
19.6.3 Reactive Power
366(1)
19.6.4 Frequency Responsive Generation
366(1)
19.6.5 Load Shedding
366(1)
19.6.6 Peaking Power and Ramp Rate
367(1)
19.7 Other Offtake
367(1)
19.8 Nuclear Fuel
368(1)
19.9 Renewable Energy
368(2)
19.10 Wind Projects
370(1)
19.10.1 Commercial Specificities
370(1)
19.10.2 Environmental Specificities
370(1)
19.10.3 Environmental Impact
371(1)
19.11 Energy from Waste
371(3)
19.11.1 Quantity of Waste
372(1)
19.11.2 Calorific Value
372(1)
19.11.3 Electricity Generation
373(1)
19.11.4 Recycling
373(1)
19.11.5 Landfill and Storage
373(1)
19.11.6 Emissions Requirements
374(1)
19.12 Solar
374(2)
19.12.1 Competition and Cost
376(1)
19.13 Geothermal
376(3)
19.13.1 Cost of Geothermal Development
376(1)
19.13.2 Combining Procurement of Steam with Electricity
377(1)
19.13.3 Encouraging Expansion by Existing Licence Holders
378(1)
Chapter 20 Transportation
379(16)
20.1 Roads, Bridges and Tunnels
380(5)
20.1.1 Operating Costs
380(1)
20.1.2 Revenues/Traffic Forecasts
380(3)
20.1.3 Permitting, Existing Facilities and Ground Conditions
383(1)
20.1.4 Land, Environmental and Social Risks
384(1)
20.2 Railways
385(4)
20.2.1 Revenues
385(1)
20.2.2 Interface with Existing Facilities
386(1)
20.2.3 Land and the Environment
386(1)
20.2.4 Capital Cost and Subsidies
387(1)
20.2.5 Forecasts
387(1)
20.2.6 Extension or Refurbishment of Existing Railways
387(1)
20.2.7 Regulation and Safety
388(1)
20.2.8 Light Rail
388(1)
20.3 Airports
389(6)
20.3.1 Procurement
390(1)
20.3.2 Revenue
390(1)
20.3.3 Regulation
391(1)
20.3.4 Design and Long-Term Planning
392(1)
20.3.5 Land and Environment
393(1)
20.3.6 Traffic Forecasts
393(2)
Chapter 21 Telecommunications
395(10)
21.1 Telecommunications Projects
395(2)
21.1.1 Market Risk
396(1)
21.1.2 Technology
396(1)
21.1.3 Regulation
397(1)
21.2 Backbone Fibre-Optic Projects
397(8)
21.2.1 What is a Fibre Network?
398(1)
21.2.2 Property
399(1)
21.2.3 Construction Contracts
400(1)
21.2.4 Operation Issues
401(1)
21.2.5 Offtake Contracts
402(1)
21.2.6 Lenders' Security
403(2)
Chapter 22 Water and Sanitation
405(18)
22.1 PPP and the Water Sector
406(2)
22.2 Key Characteristics of PPP Water Projects
408(10)
22.2.1 Offtake Purchase Agreement
408(1)
22.2.2 Rights of Water Abstraction
409(1)
22.2.3 Raw Water
410(1)
22.2.4 Government Support
410(1)
22.2.5 Finance Risk
411(1)
22.2.6 Increasing Efficiency in the Water Sector
411(2)
22.2.7 Delivering Services to Low-Income Households
413(1)
22.2.8 Regulation
414(1)
22.2.9 Service Standards
415(1)
22.2.10 Billing and Collection
416(1)
22.2.11 Exclusivity
417(1)
22.2.12 Metering and Measurement
417(1)
22.2.13 Point of Delivery
418(1)
22.3 Delivering Services to Consumers
418(5)
22.3.1 Future Expansion
419(1)
22.3.2 Existing Assets
420(1)
22.3.3 Existing Business
420(1)
22.3.4 Tariff Levels and Payments
421(2)
Chapter 23 Sub-national/Small PPP
423(12)
23.1 Challenges
424(2)
23.1.1 Scale
424(1)
23.1.2 Lack of Capacity
425(1)
23.1.3 Credit Position
425(1)
23.1.4 Local Investment and Finance
425(1)
23.2 Opportunities
426(9)
23.2.1 Small PPP Processes
426(1)
23.2.2 Centralised Support
427(1)
23.2.3 Standard Documents and Processes
428(1)
23.2.4 Pooling of Advisory Mandate
429(1)
23.2.5 Pooling of Projects into One
430(1)
23.2.6 Credit Rating
431(1)
23.2.7 Credit Enhancement
431(1)
23.2.8 Finance
431(1)
23.2.9 Capacity and Experience
432(3)
Chapter 24 Commercial Facilities (and Tourism)
435(12)
24.1 Linkages to Public Assets and Support for Local Communities
436(3)
24.2 Competitive, Level Playing Field for Investors
439(1)
24.3 Transaction Costs
440(2)
24.4 The Tourism Sector
442(5)
Glossary 447(54)
Index 501