PPP – Public-Private Partnership

 

As part of the preparation of the investment, analyses were carried out to determine the most effective and beneficial formula for the implementation of the project. In November 2019, Port of Gdynia Authority S.A., and the Ministry of Funds and Regional Policy (then the Ministry of Investment and Development) signed agreements on the provision of transactional consultancy for the project' with a consulting consortium selected through a tender. The transaction consultancy covers the technical, economic, financial and legal aspects of the project. The project consulting consortium consists of:

  • Ernst&Young sp. z o.o., Corporate Finance s.k.,

  • Domański Zakrzewski Palinka s.k.,

  • Databout sp. z o.o.

The first stage of the consultancy's work was to conduct an Investment Effectiveness Assessment. The Effectiveness Assessment was intended to provide answers to three key questions:

  • Is the PPP project feasible given the technical, organizational, legal, market, commercial and financial considerations?

  • What is the most efficient and beneficial project implementation formula for the public interest?

  • Is there adequate market interest (shipping, but also investor interest) in implementing the project?

The answer to the first and third questions proved to be yes. In contrast, the Efficiency Assessment identified PPP as the most favourable project delivery formula.

Public-Private Partnership is a model for the delivery of public tasks that often works well for the implementation of large and complex infrastructure projects (always including a management or maintenance component) that require high financial outlays. PPPs involve long-term cooperation between public entities and the private sector. PPP enables the use of the know-how of the private sector and makes it possible to adjust the structure of the project (division of tasks and risks) and to work out the details of the final scope and shape of the investment in a manner adequate to the needs of the public party and the possibilities that the private party is willing to offer. The financing of a PPP project is usually provided by the private partner.

Public-Private Partnership projects are quasi-regulatory in nature, so the public entity party to the PPP contract has certain control powers in terms of the implementation of the contract provisions, i.e. the project is implemented in an efficient manner throughout the contract period and the public objectives are achieved as intended.

The scope of work of a transaction advisor includes, in addition to analytical tasks, the development of a feasibility study, the preparation and conduct of a procedure for the selection of a private partner. PPP proceedings for large projects are usually conducted through a competitive dialogue procedure.