WORKSHOP: UNDERTAKING PPP PROJECTS WITH THE SUPPORT OF ST. PETERSBURG PPP UNIT

Background: Demand for public infrastructure in general and municipal infrastructure in Russia is increasing rapidly as the country experiences increasing urbanization and sustained high rates of economic growth. A significant investment gap exists between municipal infrastructure demand and its supply. There is a risk that the lack of infrastructure in general and municipal infrastructure in particular, will be a key bottleneck to further investment and economic growth.

Furthermore, municipal government in Russia faces the challenges that it cannot rely entirely on federal government grants or traditional financing mechanisms such as the issuance of bond instruments to finance their infrastructure needs.

This is where a well-designed PPP program can play an important role in the delivery of critical municipal infrastructure and services. PPPs can be a very effective way of meeting the investment needs with long term service delivery ensured by means of well-designed PPP contracts. Achieving this requires careful consideration and design of a municipal PPP program.

Objective: The objective of the workshop is to increase the knowledge and skills of public sector officers of the City Government of Saint Petersburg in applying PPP frameworks with the line ministries and undertaking PPP transactions. The audience can benefit on how to design and implement the most appropriate structure for the infrastructure needs of the City taking into consideration the overall sector strategy, risks and constraints involving a PPP project. The goal of the Seminar is for the City of Saint Petersburg to become a world competitive center with one of the best infrastructure services in Europe. This workshop is organized as part of the advisory services provided by the World Bank to the government of City of St. Petersburg in setting up of PPP unit within the City government.

Audience: Public sector representatives of the City Government of Saint Petersburg.

Agenda

Workshop: Undertaking PPP Projects with the support of the St. Petersburg PPP Unit

May 22-24th, 2008

Thursday, May 22, 2008
Introduction
9:30am-10:00am /

Opening Remarks

Chair: Vickram Cuttaree, The World Bank
Co-Chair: Raymond Bourdeaux, The World Bank
Session 1: Overview of PPPs
10:00am-11:15am / Objective of the session is to provide the background for public private partnerships used as a tool to mobilize private capital and management to enhance provision of services to the public. This session will draw on international examples to see how these policies translated in PPPs.
-What is a PPP?
-Who are the principal stakeholders and what their objectives are?
-Benefits and risks of PPP projects.
Speaker: Raymond Bourdeaux, The World Bank
11:15am-11:30am / Coffee break
11:30am-1:00pm / Overview of PPPs continued
-Key success factors based on international experience
-Sector perspective on PPPs investment and structure
Speaker: Vickram Cuttaree, The World Bank
1:00pm- 2:00pm / Lunch
Session 2: PPP Policy Framework and Project Cycle
2:00pm-6:00pm (Session 2&3)
Coffee break will be provided in the interim
Session 3: Project Inception / This session will cover the different stages of transaction (preparation, designing and implementation) as well as the role of various stakeholders in bringing a project together and making it successful.
-Framework in Russia/St. Petersburg and implication for PPP projects
-PPP Project Cycle
-Timeline & milestones
-Stakeholders both public side and private side: Where do they fit in?
Where to start? This session discusses the first and most crucial stage of the project processing cycle. Appropriate ground work ensures better outcomes.
-Importance of project screening and needs analysis
-Aligning project along sectoral strategy
-Criteria and constraints in identification of PPP projects
-What are advisors used for and how to manage them throughout the process
Speaker: William Dachs & Jyoti Bisbey, The World Bank
6:00pm-7:00pm / Dinner
Session 4: Undertaking power project in South Korea, a case study
7:00pm-8:30pm / This session will discuss a real case in South Korea through a PPP project cycle. The audience will be able to relate the issues and lessons drawn in parallel to the projects in the city context.
Speaker: Raymond Bourdeaux, The World Bank
Friday, May 23, 2008
Session 5: Feasibility Stage
9:00am-1:00pm
Coffee break will be provided in the interim / This session will detail the feasibility stage as part of the preparation of PPP projects. The focus will be on the critical aspects to ensure best possible service delivery provision to the public at the optimum cost for the City.
-What a good feasibility study should cover
-Value-for-money (VfM), risk transfer and affordability
-Use and limitation of Public Sector Comparator
-The case of demand/commercial risk
-Financial analysis and model
-Important technical, legal and regulatory aspects
Speaker: Vickram Cuttaree, The World Bank
1:00pm- 2:00pm / Lunch
Session 6: Procurement stage
2:00pm-3:30pm / This session will cover the procurement of PPP projects, focusing more specifically on the selection of proposals/bidders.
-Principles of bidding structures
-Prequalification
-Qualification
-Stakeholders management
Speakers: Iain Menzies, The World Bank
3:30pm-3:45pm / Coffee break
Session 7: Financing issues
3:45pm-6:00pm / This session will cover important issues related to project financing to be taken care of before and during the procurement of PPP projects.
-How are PPP projects financed?
-What are the main constraints of project financing?
-How a project’s financing is structured over time?
-What are the main difference between typical construction financing and PPP financing?
-What are the main typical financial risks involved for investors in PPP projects and how are these typically managed?
-How can investors and lenders expectation be usefully managed throughout a PPP procurement process?
Speaker: Raymond Bourdeaux, The World Bank
6:00pm-7:00pm / Dinner
Session 8: PPPs in Health Sector, a case study
7:00pm-8:30pm / This session will discuss a real health sector case study based in South Africa. How PPPs were used to rehabilitate and upgrade hospital facilities? Case informs about the timeline of the process, outputs, obligations and lessons learned from the deal.
Speaker: Iain Menzies, The World Bank
Saturday, May 24, 2008
Session 9: From Selection to Financial Close
9:00am-1:00pm
Coffee break will be provided in the interim / This session will cover the period between the preferred bidder selection and financial close. What could go wrong?
-Negotiations
-Due diligence
Speakers: Iain Menzies, The World Bank
1:00pm- 2:00pm / Lunch
Session 10: Contract Management and Regulation
2:00pm-4:00pm
Coffee break will be provided in the interim / This session will cover the period following financial close, including construction and operations. Contract management and regulation are essential elements; and have a direct impact on the quality of services provided by the private partner during project implementation.
-Contract Management and Regulation of PPP contracts
Speaker: William Dachs, The World Bank
4:00pm-4:30pm / Summary and concluding remarks (World Bank)
4:30pm / Next Steps

1