PUBLIC-PRIVATE PARTNERSHIP
TECHNICAL ADVICE

Term Project Management has substantial knowledge and experience in the Public Private Partnership (PPP) process. We are well-placed to offer professional project management services across the total spectrum of the PPP process. To this end, TPM engages in a continuous process of additional training and increased interface with other role players within the PPP environment.

The total PPP process can be improved through the deployment of professional project managers throughout the project cycle. The type of role that could be played is detailed below within the structure of the project cycle.

Project Inception

Certain sectors of government, particularly at local level, require assistance in the identification and inception of projects. Project management processes can be employed in the identification, prioritisation and initiation of projects and TPM offers professional services in this process in sectors that require assistance. The services offered could include the provision of Project Officers. In sectors of government that have registered projects and appointed Project Officers, TPM is able to provide services such as Transaction Advisors (TA) on capital-based projects. In such circumstances, we would take a lead management and facilitation role supplemented by financial and legal advisors from leaders in these fields.

Feasibility Study

While TPM may look for assistance from strategic partners on specific disciplines such as financial and legal, we have the expertise to identify requirements for specialists and assemble and manage a multi-disciplinary advisory team. TPM would map out and guide the feasibility study from the initial phase through to Treasury Approval I (TA I).

Procurement

After TA I, TPM is able to take the process forward through TA II A and B and then through to TA III, continuing with the same transaction advisory structure as established in the feasibility phase. At this stage, the PPP process moves into the private sector for the procurement of a private party. Within private party structures we can offer technical advisory services to lenders, legal advisers, Special Purpose Vehicles (SPF) and PP subcontractors. Alternatively, we can offer a watching brief service for the PP relative to either the D&C subcontractor or Operations subcontractor, or both, including managing the interface between the two. We also believe that during the negotiation with the preferred bidder, a Project Manager, independent of both state and private party, can provide overarching project management skills to the process which could ultimately expedite attainment of TA III to the benefit of all parties.

Development Construction Phase

We would prefer that any brief for service provision at this stage would be a continuation of services, either to the state or private party, from the stages above. However, we are able offer services to the PP commencing only at financial close. Our services would be as described under Procurement. All private party structures require the services of an independent construction project manager during the construction phase to ensure that both D&C and Operations sub contractors are fulfilling their obligations during the design, construction and commissioning of the facility. We are also able to offer our services as an Independent Certifier. We believe firmly that the appointment of a South African Council for Construction and Project Management Professions (SACPCMP) registered Project Manager should be considered to drive the construction phase and to facilitate in matters such as variations, delay events, compensation events, etc.

Development Operations Phase

We have extensive operational phase expertise. We are capable of providing services as a Management Services contractor to the operational phase as well as the design and construction phase of PPP projects. We are able to offer services on behalf of state or private parties, subject to there being no conflicting previous involvement in the project.

Exit

A total comprehensive close-out report for the full project cycle is unlikely at the end of the project term unless there has been a proper discipline formed. At the conclusion of each phase of the project cycle a close out report is done and included in the project data storage system.