Description

Private Finance Initiatives in the UK, or Private Public Partnerships for the rest of the world, is a government service or facility which is funded and operated through a partnership of government and one or more private sector companies. The private parties provide infrastructure especially those with income streams. Ian covers organisational structures, principles and perceptions, issues to consider, risks, benefits and solutions. 

KEY TAKEAWAYS

• A Special Purpose Vehicle (SPV) is set up as a company, ring fenced just purely for that project. The authority is the instigator and contract holder, and the funding is provided in the same way a private project would be funded with shareholders. Management can be provided by the private or public side of the organisation. 
• You will have a project agreement between the trust or authority and the SPV, you will have a loan agreement with the funder, you will have an equity agreement with the sponsors or other equity providers, you will have the building contractor and parent company guarantee and you will have collateral agreements between the builder and the operator.
• With a PPP arrangement the private sector is the driving force because they require it up and running as quickly as possible as they carry all the risk. They also don’t have to be difficult or complicated agreements as popularly perceived.
• Factors for consideration are shortage of money, urgency, regulatory hurdles, environmental and social impacts, unambiguous documentation and the whole life cycle. 

BEST MOMENTS

‘That, in essence, is what it is. It is a fully integrated Special Purpose Vehicle to provide the solution.’ 

‘Typically I reckon there are circa 100 different documents associated with putting together a PPP project and getting it all documented correctly because of the various cross indemnities and cross relationships that there are within such an arrangement.’ 

‘It doesn’t have to be difficult or complex. There are a lot of very complex contracts around PPPs but they don’t have to be difficult or complex to undertake them.’

‘Doing a PPP below an asset value or capital value of £50 million is probably not worth it.’

VALUABLE RESOURCES

https://www.ianjrogers.com/

ABOUT THE HOST

Ian Rogers is an entrepreneur running businesses in the Real Estate, Construction and Facilities Management arena. Ian has over 40 years’ industry experience, as he was effectively born into construction with his father having his own building company and Ian spending time working on sites from the age of 11!. As a result Ian has seen the industry from a trades person perspective, as a chartered quantity surveyor working on large commercial projects, as a project manager and then working on structured project finance through PFI/PPP deals. This has given Ian a unique whole life approach to any project by considering the end game at the beginning.

CONTACT METHOD

https://www.ianjrogers.com/

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