1. PUBLIC–PRIVATE PARTNERSHIP (PPP) FRAMEWORK AND GUIDELINES Syed M. Ali Zaidi, P.Eng. PM(Stanford), Ph.D. Director, Strategic Partnerships Alberta Infrastructure. Government of Alberta Canada World Bank Group’s Public-Private Partnerships (PPP) CCSA Webinar – November 10, 2015

2. OVERVIEW 2  The overall discussion will be in Canadian context but the focus will be on Alberta's PPP Framework and Guidelines.  PPP Framework Objectives  PPP Framework Components  Concluding Comments

3. COMPONENTS OF PPP 3 Full / Partial Private FinancingDesign Build Obligation Maintenance / Operations Obligations Assets Rehabilitation ObligationsPerformance Based Payment Mechanism

4. PPP FRAMEWORK OBJECTIVES 4 Is Intended to set the principles around which PPPs are conducted. To ensure decisions on using PPPs are made based on VfM over the life cycle of the projects. To use consistent procurement and documentation approach but also allows for variances for different types of infrastructure. To ensure approval process is understood and followed for PPPs.

5. PPP FRAMEWORK COMPONENTS 5 Capital Projects Planning Public–Private Partnerships Principles PPP Project Assessment Process PPP Procurement Process

6. CAPITAL PROJECTS PLANNING & PPP FRAMEWORKS 6 PPP Operations and Management Project Implementation PPP Procurement : RFQ, RFP Process Business Case Approval for PPP Project's Assessment as PPP Capital Plan is the current approved capital expenditure plan that documents projects approved to commence in the five years. CAPITAL PLANNING FRAMEWORKPPP FRAMEWORK Project Selection Project Approval Project Procurement Project Implementation Project Operations

7. PPP PRINCIPLES 7 Reason for PPPsPPP Project AssessmentPPP Review and ApprovalPPP Project ExecutionDetermination of Value for MoneyAccounting and Budgeting for PPP ProjectsThird Party RevenuesRoles and ResponsibilitiesFairness

8. PPP PROJECT ASSESSMENT PROCESS 8 INITIAL ASSESSMENT Whether a PPP would add value to the project: Scope well defined. Min. $100 million cost. Greenfield project. Potential of integrating design, construction & maintenance / operations. Performance requirement can be defined. No legal / legislative barriers. OPPORTUNITY PAPER Preliminary analysis that provides evidence that PPP will provide VfM: Project description. Business and operational impacts. Preliminary risk assessment. Preliminary VfM Assessment. Preliminary project schedule and team. BUSINESS CASE It is an in-depth analysis: Project team and reporting structure. Final business needs and project description. Strategic alignment. Business and operational impacts. Project risk assessments. Final VfM analysis. Implementation strategy. Review and approval of project procurement. Depending on factors such as results of the initial Assessment, project timing, size, asset class, scope and the details of the proposed project, an Opportunity Paper may not be required and the Project may go directly to Business Case stage.

9. ROLES AND RESPONSIBILITIES 9 CABINET APPROVES PROJECT PROJECT REVIEW COMMITTEE EXECUTIVE SUPPORT PROJECT TEAM Project Director + Member from PM team, Legal, Finance & Client Departments + Advisors / Consultants PLAN, DEVELOP, PROCUREMENT AND MANAGE PROJECT TREASURY BOARD PROCESS SUPPORT OVERSIGHT COMMITTEE OVERSEES THE PROJECT * Typical Alberta PPP Project Organizational Structure

10. PPP PROCUREMENT KEY CONSIDERATIONS 10 PPP PROCUREMENT PRINCIPLES PPP PROCUREMENT GUIDELINES  Consistent and Clear approach  Policy and Legal Alignment  Compliance with 'Trade Agreements'  Evaluation Process and Guidelines  Communication Protocols  Conflict of Interests / Relationship Review  Disclosure Guidance  Consistent and Clear approach  Policy and Legal Alignment  Compliance with 'Trade Agreements'  Evaluation Process and Guidelines  Communication Protocols  Conflict of Interests / Relationship Review  Disclosure Guidance  Confidentiality Undertaking  Managing FOIP Act  Confidential Information in Electronic Data Room  Record Managements: Electronic Mail, Personal Records, Documents  Confidentiality Undertaking  Managing FOIP Act  Confidential Information in Electronic Data Room  Record Managements: Electronic Mail, Personal Records, Documents  Identify Key Tasks and Milestones  Align Processes and Approvals accordingly  Identify Key Tasks and Milestones  Align Processes and Approvals accordingly

11. PPP PROCUREMENT PROCESS 11 RFQ STAGERFP STAGECLOSING 12-16 Weeks 32-40 Weeks2-8 Weeks  Announce Project.  Issue RFP.  Execute Project Agreement.  Hire Consultants / Advisors.  Open RFP Electronic Data Room.  Financial Close.  Hire Fairness Auditor.  Provide Site Access.  Prepare Draft Agreement Documents / Schedules.  Receive and Evaluate Staged Technical Submissions.  Hold Information Meetings.  Arrange Technical Meetings with Proponents.  Open RFQ Electronic Data Room.  Receive Comments on Draft Agreement Documents.  Issue RFQ and Receive Submissions.  Issue Final Agreement version.  Evaluate Submissions.  Receive and Evaluate Financial Submission.  Shortlist 3 Proponents.  Select Preferred Proponent.

12. 12 THANK YOU CONCLUDING COMMENT: Government must have robust PPP Framework and Guidelines to assist public sector with assessing potential PPP projects and delivering them in accordance with established practices and protocols.