Modern Technologies As a Key to the Success of PPP Projects
Poznan, dn. 06.03.2014 r.
Inspirations / Forecasts
Modern technologies as a key to the success of PPP projects
What are the challenges of project management professionals in the Public-Private Partnership (PPP) formula? In addition to the new, formal solutions to improve work, more and more innovative technologyof the Virtual Data Room is required.
PPP projects, just like any other complex and long-term investment projects, are inextricably linked with a number of risks. Partners should co-work together to develop a model optimum for their experience, skillsand knowledge,with the appropriate division of tasks and risks. Each of the partners should take responsibility for areas of preparation and implementation of the project, which he is able to manage in a most efficient way. The public side is trying to minimize the risk by, among others, choosing a reliable partner, who will ensure the safety of the project’s documentation and will offer support in managing large amounts of information. In later stages of the project, there are challenges associated with ensuring the transparency of the process, guaranteeing a sufficient degree of control, efficient coordination of the work of the parties involved and ensuring adequate protection of nascent intellectual values.
Therefore, PPP projects involve a wide range of legal, technical, economic and financial advisors, and their leaders are increasingly using the services of companies that offer innovative technologies. Also the Miejskie Przedsiębiorstwo Energetyki Cieplnej Sp. z o.o from Olsztyn decided to use such solutions. Bearing in mind the need to ensure the highest security of documents which are shared with private partners at the stage of selecting an entity for further negotiations, the company decided to use the Virtual Data Room (VDR) application offered by Mergers Net, known as Datapoint brand.
- Thanks to the Datapoint VDR system, the file sharing process has become more efficient and easy. Documents were made available to interested parties 24 hours a day, 7 days a week , which definitely increased the comfort of work of all people involved in the analysis of information. - saysKonrad Nowak, Chairman of the Board, MPEC Sp. z o.o.
With a virtual repository, potential private partners gain the ability to access the project documentationtwenty-four hours. They can assess the cost-effectiveness of the project and formulate their expectations of the scope of the partnership on-line. At this stage, the authority (government) may also oblige the investor to share a confidential, internal documentation of the company. All this to be able to "x-ray" any potential partners, examine their financial situation and thus minimize the risk of signing a contract with an unreliable partner.
- A remote, secure access allows you to reduce the costs associated with a participation in proceedings, promotes efficiency and improves the comfort of work. The public side receives a full control over the scope of distributed information, and the ability to easily and affordably reach a larger group of investors, including foreign ones. VDR providesa possibility of such differentiation in terms ofdocuments access rights and its management that so called Due diligence is safe and comfortable for both sides. - claims Aleksandra Prusator from Mergers Net.
- The research done by the PPP Center show clearly that it is worthwhile to consider the involvement of external advisors to support the preparation and implementation of any projects in the PPP formula. The research shows that almost 1/4 of all proceedings in which external advisors were engaged, ended with the signing of an agreement, and 1/3 of the ads has been canceled. In proceedings in which external consultants were not involved - only 10% of the ads ended with the signing of a contract, and more than 60% of them were canceled –said Bartosz Mysiorski, Vice President of the PPP Center.
At the stage of investment, after the selection of the private partner, the VDR system is used to distribute relevant information to all parties involved. The longest phase requires a direct cooperation of all companies participating in the project (the public and the private partners, lawyers, auditors, engineers, builders, etc.). The participants of the project, while working in different companies, do not have common IT systems and must still be able to securely communicate with each other, manage sensitive information, etc. The VDR platform, thanks to dedicated functions, ensures effective co-operation of individuals (simultaneous access, documents centralized in one place, possibility of discussions, etc.), and provides a possibility of a smooth coordination of work by project managers. It is also an important tool in terms of exercising a formal control during furtherstages of the project, an up-to-date reporting to the public site (advanced, current reporting), and in the final phase of transaction, organizing an audit of the conduct and results of the project.
Datapointis Poland's first Virtual Data Room (VDR) service, which aims to ensure a secure and effective management of confidential documents. The system is used for secure storage and controlled file sharing and exchanging, with a focus on the co-operation between members of separate organizations. It allows any number of users to simultaneously access and manage documents, 24 hours a day, from any location in the world. The application is available in the form of a service provided for a specified period of time, and accessible using only the browser (it does not require any client-side IT implementations), along with the support in terms of the appropriate organization of the process. It is most often used in transactions of Mergers and Acquisitions, and all other projects, where there is a Due Diligence stage involved (privatization, bankruptcy, IPOs,PE/VC investments, bond issues, etc.). The service is provided by Mergers Net.
In September 2014 the company changed its name to FORDATA, more:
Miejskie Przedsiębiorstwo Energetyki Cielnej Sp. z o.o.in Olsztyn provides the residents of Olsztyn with a comfort of heating for the past 45 years. It is one of the leading heating companies in Poland. It combines many years of experience with the implementation of modern, innovative technologies. With their customers in mind, the company continues to raise the quality of services, and invests to increase the efficiency and safety of the heating system in the city. One of those investments, in addition to upgrading the urban network with the use of European funds, is the construction of a modern power plant, using fuel derived from municipal solid waste. The project involves the implementation of the construction and exploitation of the heat and power plant in PPP formula(more details
Centrum Partnerstwa Publiczno-PrywatnegoThe Public-Private Partnership Center is an independent civic institution that aims to meet important needs of the public through a significant acceleration of private investment in the part for which the country does not have money. The PPP Center Foundation was established by a notarial deed on July 10, 2008 in Warsaw. The founders of the PPP Center are: banks, law firms, consulting companies,enterprises, regional development agencies, foundations, associations, chambers and business associations - including more than 40 public and private entities. They are interested to break down the apathy that prevails in Poland, in terms of the preparation of private and public investments on the provision of public services. In addition to the founders, also other entities interested in public-private partnership in Polandco-operate with us. PPP Center collaborates with the Ministry of Finance, Economy, Regional Development and Infrastructure, as well as local government. The main objective of the PPP Center is to promote public-private partnership, and to encourage, mainly the public bodies, to consider the possibility of using this tool.
Contact for media:
Aleksandra Prusator, e-mail: tel: 506 044 056
Beata Milewicz, e-mail: tel: 508 051138
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