This advanced course provides a highly specialized and comprehensive analysis of negotiating, structuring, and managing **Public-Private Partnership (PPP) Contracts**. PPPs are long-term agreements between a government entity and a private company for the provision of public assets or services (e.g., infrastructure, IT systems). The complexity lies in the equitable allocation of risk, finance, and long-term performance obligations. Participants will master financial modeling, contract lifecycle management, risk allocation techniques, and dispute resolution specific to these multi-decade, high-value public service agreements.
Negotiating and Managing PPP Contracts
Supply Chain Management and Procurement
October 25, 2025
Introduction
Objectives
Upon completion of this course, participants will be able to:
- Understand the different types of PPP models (e.g., BOT, BOOT, DBFO) and when to apply each.
- Master the financial modeling and evaluation techniques (e.g., Value for Money) for justifying a PPP approach.
- Apply advanced risk allocation principles between the public and private partners in the contract.
- Lead and structure the complex, multi-stage negotiation process for major PPP projects.
- Draft and manage core PPP contract clauses, including termination, change management, and performance monitoring.
- Understand the procurement process for PPPs (e.g., two-stage tender, dialogue procedure).
- Establish effective governance and performance monitoring regimes over the PPP contract lifecycle (20+ years).
- Manage dispute resolution and complex contract variations to ensure long-term public service continuity.
Target Audience
- Senior Government Officials and Policy Makers involved in Infrastructure
- Private Sector PPP Bid Directors and Project Managers
- Procurement and Contract Specialists handling large-scale infrastructure tenders
- Financial Analysts and Consultants specializing in PPP financial modeling
- Legal Counsel and Attorneys focused on Public Contract Law
- Senior Managers responsible for project finance and risk management
Methodology
- Intensive case study analysis of a major PPP project (success and failure) focusing on risk allocation.
- Quantitative group activity: performing a simplified Value for Money (VfM) assessment using a Public Sector Comparator (PSC).
- Role-playing a complex negotiation session focused on allocating demand risk or construction delay risk.
- Individual exercise: drafting a performance monitoring clause and related penalty structure for a specific PPP service.
- Expert led discussion on the role of political change and public opinion in managing PPPs.
Personal Impact
- Highly specialized expertise in the complex negotiation and finance of PPP contracts.
- Ability to conduct rigorous financial and risk-based justification (VfM) for public investment.
- Enhanced career prospects in high-level government or private infrastructure finance.
- Mastery of advanced contract management and long-term governance skills.
- Confidence in managing high-value, multi-decade agreements with significant public impact.
Organizational Impact
- Equitable and optimal transfer of project risk from the public to the private sector.
- Successful delivery of major public infrastructure or services through private sector expertise.
- Improved transparency and accountability in the provision of public services.
- Minimized lifecycle costs and superior financial management (VfM achievement).
- Reduced litigation and dispute costs through clear contractual mechanisms.
Course Outline
Unit 1: PPP Fundamentals and Financial Modeling
PPP Structures and Rationale- Defining PPPs: the spectrum of risk transfer from service contracts to concession agreements
- Reasons for choosing PPPs (e.g., risk transfer, financing access, efficiency)
- Overview of different PPP models: BOT (Build-Operate-Transfer), DBFO (Design-Build-Finance-Operate)
- Mastering the **Value for Money (VfM)** assessment and Public Sector Comparator (PSC) models
- The role of lifecycle costing and long-term financial viability in PPP contracts
Unit 2: Risk Allocation and Contract Negotiation
Risk Allocation Principles- The core principle: allocating risk to the party best able to manage it (e.g., demand risk, construction risk)
- Analyzing and mitigating political risk, legal risk, and force majeure events in the contract
- The specialized role of negotiation in a two-stage PPP tender and dialogue process
- Strategies for handling the multi-party, multi-issue nature of PPP negotiations (finance, legal, technical)
Unit 3: Contractual Clauses and Lifecycle Management
Key Contract Clauses- Drafting and analyzing clauses for performance monitoring, payment mechanisms, and penalties/rewards
- Managing the complex mechanism of change management and contract variations over decades
- Defining termination events (public default, private default) and their financial consequences
- Structuring the compensation and hand-back/transfer mechanism at contract end
Unit 4: Public Governance and Oversight
Performance Monitoring- Establishing a rigorous, objective monitoring framework for long-term service delivery (KPIs)
- Techniques for effective contract governance and managing the long-term relationship between partners
- Designing a structured, multi-tier dispute resolution process for complex, high-value conflicts
- The role of expert determination, mediation, and arbitration in PPP disputes
Unit 5: Practical Applications and Case Studies
Sector Applications- Review of PPPs in specific sectors (e.g., roads, hospitals, water, IT systems)
- Learning from international best practice and lessons learned from past PPP failures
- Ensuring transparency and public accountability throughout the PPP project lifecycle
- Managing ethical risks related to lobbying and conflicts of interest
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