Issue for the host

government

1. To achieve
To reduse project
governeme efficiency
nt and
effectivene
Concept Of

To leverage To
private stimulate
sector To address
economic
the mgmt.
growth
of value of
PPP/PFI

Technical Social financing

feasibility feasibility
2.
Public Private
Managerial
PPP/PFI
capability
financing
Equity
EPF
Investor/
Economic Debt
feasibililty

Commercial
feasibility
 Financing
3.
Concession
User
charges Performance
Usage Payment
payment LAD and Performance
Availability Bond

Legislation
Contractual Risk under
structure consortium
structure

Risk on Risk under

procument agreement
process

Host
deduction
Policy economic Market
guidance developme
nt

Approving Capacity
/rejecting building
Providing
propose
technical
support
 Risks
Misspecification requirement risk

4. Statutory/planning risk
Construction/time schedule risk
Design risk

Demand risk
Operation risk
Legislative / regulatory risk
Changing the public need
Residual value risk

Financial risk

5. PPP/PFI

MACRO MICRO
 Government
policies and
Financiers regulation Labour
market
Site Internatio
location nal market
Authoriti and & relation
Material
manufactu Market
Design ring liquidity
Consultant
Supply
Construction chain
Fiscal
policies
End Users
Plant
equipment
supplier
and
operation