© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
Public Private
Partnership
Office
Bangladesh PPP Program
PPP Lifecycle Process Flow
March 2012
Consultation Document
© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
PPP project process flow
Public Private
Partnership
Office
•
The following diagrams are the elaboration of the overall PPP
project development and approval process outlined in the
Policy and Strategy for Public Private Partnership (PPP), 2010
•
Detail is added to make clear the work steps required to meet
certain milestones identified in the Policy and Strategy, the
details of which are consistent with international experience
with PPP project development
•
The process was developed
Th
d
l
d with
ith supportt off the
th Asian
A i
Development Bank technical assistance team. Content is
subject to revision after consultation with relevant government
agencies
Public Private
Partnership
Office
Abbreviations used
ADP
BIFF
© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
CCEA
FYP
IPA
LM
MOF
Annual Development
p
Programme
Bangladesh Infrastructure
Finance Fund
Cabinet Committee on
Economic Affairs
Five-year Plan
I
In-principle
i i l A
Approvall
Sector line ministry
Ministry of Finance
PDF
PPP
PPPO
QTEC
RFP
RFQ
TAF
VGF
Project
j
development
p
fund
Public-private Partnership
Public-private Partnership
Office
Quality and Technical
Evaluation Committee
Request for Proposal
Request for Qualifications
Technical Assistance Fund
Viability Gap Financing
Overview of PPP Institutions in the
context of the PPP Project Lifecycle
Public Private
Partnership
Office
Ministry of Finance
PPP Project Pipeline
PPP
Line
Office Ministry
Non-Plan Budget
(Operating Expenditures)
Bangladesh Infrastructure Finance Fund
Annual
Development Plan
De
evelopment Skills
+ Management
Construction
Capital
Project
Development
Facility
Viability
Gap
Fund
(PPP TAF)
(if required)
Take-out
Financing
Refinancing
Securitization
Development
Capital
Project Development Lifecycle
Early Stage Project
Development
Tendering &
Contracting
Assessment,
Assessment
Budgeting
Project Financial Info
= Institutions
= Budgets
Financial
Close
Process
Financiall
Close
© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
(Capital Budget)
Construction
Operations
Consultation, Confirmation, Approval of
VGF/Subsidy/Guarantee Exposure
Monitoring and Evaluating
Fiscal Performance
MOF PPP Unit
= Funding
Portfolio
o t o o Growth
Go t /
Optimization
Projections of GOB
investment, subsidy
requirements,
liabilities arising
Reporting, Planning Inputs from PPP projects
Public Private
Partnership
Office
Project Identification / Screening
Revise
Ref: Project
Screening
Manual
Line Ministry
Project
Identification
Pre-feasibility
Assessment,,
Specification
Preliminary Project
Resource
Allocation
Line Ministry
y
Proposal for PPP
Line Ministry Prroject
Iden
ntification
n + Pre-De
evelopment
© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
Ref:
ADP, FYP
PPPO
Pre-feasibility
Assessment
PPP Business
C
Case
PPPO Evaluation
Committee Review
Go / No-Go
for Development
(CCEA IPA)
PPP Office
O
Qualification + Screening
(Planning Commission +
Line / Resource Ministries)
PC underr
FYP + ADP
F
P
National
N
ti
l
Infrastructure
Plans
Go
No-Go
Revise
Ref: Project
Screening Manual
Cancel
Go to Project
Development
(Resources, scope of
studies, inputs, budget)
Project
Development
Technical specs, land
acquisition, approvals, etc.
Advisor
Services
Contracts
Bid
d Docume
ent
Preparatio
P
on
Legal, financial
technical, etc.
Ref: Project
Development Manual
Ref: PPPTAF
Principles
Project
Development Fund
Application
PDF Fund Mgr
Review
PDF Project
Funding
Agreement
PPPO PDF
Committee
Approval
Bid Design
Draft Contracts
Gov’t Support Pkg
RFP Design
RFQ Specs
Evaluation Criteria
Bid Package
Financial Viability
Assessment
PPPU Financial
Sanctioning
(for approval)
Ref:
Bid Process Manual
In-principle
VGF Funding
Commitment
Revenue Model
Recommendation
(tariffs, subsidy, VGF?)
Ref: VGF
Principles
VGF
Recommendation
MOF PPPU Fina
ancial
Viabilitty Assess
sment
© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
Project
Development Plan
PPPO
O
P
PDF
Proce
essing
PPPO S
Support to
o
Line Ministries for
Prroject Dev
velopment
Project Development Process
Public Private
Partnership
Office
Public Private
Partnership
Office
Bidding Process
Bid Package
Project
Briefing
Sanctioning
(Line Ministry)
Ref:
Bid Process Manual
RFQ
(if req’d)
Evaluation
© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
(QTEC)
Pre-bid
Conference
Invitation
to Bid
RFP
Revisions
RFP
Evaluation
(if req’d)
ReR
sanctioning
(if req’d)
Clarification
LM / QTEC
Approval
Bid Award
Public Private
Partnership
Office
Project Financing and Closure
PPPO Le
eadership
p and Coo
ordination
n
© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
Ref: Bid Process
Manual
Bid Award
Negotiate
Contracts
Terms of contracts impact financing
Finalize Gov’t
Support
Gov’t Support
proposal
Lender
d
demands
d
Initial Contracts
/ Support Pkg
Final Terms of
Lending /
Finance Docs
LPAD approval
of Contracts
Financing Process
Other Debt
Financing
BIFF
Application
Other Debt DD
BIFF Fund
Mgr Eval / DD
Other Debt
Terms of
Financing
Inter-creditor
Agreement
CCEA
Approval
Financial Close
Credit
Committee
Approval
BIFF Terms of
Financing
MOF BIFF
P
Process
Credit
Committee
Consultation
Ref: BIFF
Principles
Public Private
Partnership
Office
Implementation
Government
Requirements
Performance
Mobilization,
Construction
Independent
Engineer Review
Monitoring for
Compliance
Commissioning
Compliance
Certificate
Acceptance
Operations
Handover at
Transfer Date
Invoicing
Payments
Reporting
(i l T
(incl.
Tariff
iff Adj
Adjustments)
t
t )
Payment
Performance
Review
Inspection,
Acceptance
Disputes Process
Conces
ssionaire P
Performance
Concessionaire
Requirements
Gov
vernment Performa
ance Monitoring
Satisfaction of
Conditions
Precedent
(Line Ministries su
upported by PPPO)
P
© 2012, Public-prrivate Partnership Offic
ce, Government of Bangladesh
Financial Close