Risk Sharing in Various PPP Arrangements - for the provision of - - PowerPoint PPT Presentation

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Aug 23, 2023 337 likes •420 views

Risk Sharing in Various PPP Arrangements - for the provision of water and wastewater services Content Introduction what does PPP offer? Risk register of the water industry Generic PPP models and risk sharing Conclusion 2

SLIDE 1

Risk Sharing in Various PPP Arrangements

for the provision of water

and wastewater services

SLIDE 2

Thames Water, RWE Group 08/03/2005

Content

Introduction – what does PPP offer? Risk register of the water industry Generic PPP models and risk sharing Conclusion

SLIDE 3

Thames Water, RWE Group 08/03/2005

How can PPP Help?

Capital
Management and

Technical expertise

Risk Sharing

風險

BOP (Best Operating Practice)

SLIDE 4

Thames Water, RWE Group 08/03/2005

Risks Facing the Water Industry

Political D&C O&M Compliance Market Tariff Financial Legal and Regulatory Transaction

RISKS

SLIDE 5

Thames Water, RWE Group 08/03/2005

Defining PPP

TheFreeDictionary.com has defined PPP as “…a

variation of privatization in which elements of a service previously run solely by the public sector are provided through a partnership between the government and one or more private sector companies…”

Category B to F in Tomkins Continuum

A – Fully Private B – Private with Part State Ownership C – Joint Private/ Public Ventures D – Private Regulated E – Public Infrastructure/ Private Operating F – Contracted Out G – Public with ‘Managed Competition’ H – Public without Competition

Increasing Public Control Public Private Partnerships

Tomkins (1987) Achieving economy, efficiency and effectiveness in the public sector.

SLIDE 6

Thames Water, RWE Group 08/03/2005

The Simplified PPP Model for Water and Wastewater Services Provision

Type I : Public Ow nership, Finance & Sales Operations Public Sector Private Sector Customers Annual Fee Finances Water tariff / tax Type I I : Private Ow nership, Finance; Public Sales Operations Public Sector Private Sector Customers Annual Fees Finances Water tariff / tax Type I V: Joint Ow nership, Finance & Sales Operations Type I I I : Public Ow nership, Private Finance, Sales Operations Public Sector Private Sector Customers Concession Fees Finances Water tariff Public Sector (I nfrastructure) Private Sector (Capital) Customers Finances Water tariff Direction of Cash Flow Asset Owner Provision of Service Legend

SLIDE 7

Thames Water, RWE Group 08/03/2005

Conclusion

PPP is a means to deliver new projects and fund

necessary capital work

PPP also helps to assign risks to the partner most

capable of managing them

Risks and Opportunities are both side of the same

coin