Transcript 슬라이드 1 - kzppp.kz

Process of PPP Project
Implementation in Korea
Hojun Lee
[email protected]
Public and Private Infrastructure
Investment Management Center
July, 2012
PIMAC
Project Initiation
 Both the government and a private company can initiate a PPP
project
 Solicited Projects

A solicited project is that the competent authority identifies a
project for private investment and announces a RFP

Competent authorities develop a potential project after considering
related plans and demands for the facility. They then weight the
procurement options in order to determine whether the PPP
procurement is more efficient than the conventional procurement
 Unsolicited Projects

For an unsolicited project, a private company (project proponent)
submits a project proposal, and then the competent authority
examines and evaluates the contents and value for money of the
private proposal, and designates it as a PPP project
2
Part-01
Procurement Steps of a Solicited
Project
Procurement Steps of a Solicited Project
Solicited Project
Competent Authority
Selection of PPP Project
Competent Authority
Review by PIMAC
VFM Test
Competent Authority
Designation as the PPP Project
Announcement of RFPs
Competent Authority
Submission of Project Proposals
Private Sector →
Competent Authority
Evaluation and Selection of
Preferred Bidder
Competent Authority
Negotiation and Contract Award
(Designation of Concessionaire)
Competent Authority →
Preferred Bidder
Application for Approval of
Detailed Implementation Plan
Concessionaire →
Competent Authority
Construction and Operation
Concessionaire
4
Procurement Steps of a Solicited Project
Step 1
Designation of PPI Project
 Small Project – Self designate the project
Competent
Authority
PIMAC
 Large Project – Conduct a feasibility study and report
result to PIMAC in addition to VfM test
result and basic design documents.
 Review feasibility study & VfM test results and
basic design documents for large project
5
Procurement Steps of a Solicited Project
Step 1
Designation of PPI Project
 Prior to designating a PPI Project, the competent authority
must conduct a feasibility analysis(FS) through a specialized
research organization.
 However, for the project with total project cost of KRW 50
billion or more and requiring KRW 30 billion or more as
government subsidy, the competent authority shall apply in
advance to the MOSF for a preliminary feasibility study(PFS) of
the project concerned. The PFS shall be carried out by PIMAC.
 For projects with total project cost of KRW 200 billion or more,
the competent authority shall submit feasibility study result,
VfM tests result, and basic design documents, and shall make a
request for review to PIMAC.
6
Procurement Steps of a Solicited Project
Step 2
Competent
Authority
Request for Proposals (RFP)
Competent Authority
 Negotiate in advance to avoid environmental issue if necessary.
 Formulate and announce the request for proposal for PPI.
• The Request for Proposals include the project plan and
implementation terms and conditions, such as the project outline,
total project cost, operational profit, construction and operation
plans, and government supports
7
Procurement Steps of a Solicited Project
Step 3
Submission of Project Proposals
Private
Sector
Private Sector → Competent Authority
 Prepare proposal and submit it to the competent authority
8
Procurement Steps of a Solicited Project
Step 3
Submission of Project Proposals
 Any party intending to implement a PPI project shall prepare a
project proposal in accordance with the laws and regulations
concerning PPI projects, and the notified contents of the request
for proposal and submit it to the competent authority.
 Key elements to be included in the project proposal (Article 12 of
the Enforcement Decree of the Act on PPI):








Contents of the project proposal (including the basic plan);
Details of the total project cost and financing plan;
Grounds for estimated periods of concession, ownership, and profit-making
operation of the completed facilities (limited to revertible facilities);
Management and operation plan for the facilities;
Contents of and grounds for expenditure plans and revenue estimations
including user fee, etc;
Contents of and grounds for implementing supplementary projects, if any;
Contents of and grounds for subsidy request, if any;
Contents of and grounds for modifying the request for proposal
9
Procurement Steps of a Solicited Project
Step 4
Evaluation/Selection of Preferred Bidder
Competent
Authority
Competent Authority
 Set the criteria for PQ
 Examine and evaluate the project proposal by project evaluation team
 Designate two or more potential concessionaires
10
Procurement Steps of a Solicited Project
Step 5
Negotiation & Contract Award
(Designation of Concessionaire)
Prior Deliberation by the Committee
Competent
Authority
Competent Authority (PIMAC)
↔ Potential Concessionaire
MOSF
 Designate a concessionaire by finalizing all negotiations of
a concession agreement
11
Procurement Steps of a Solicited Project
Step 5
Negotiation & Contract Award
(Designation of Concessionaire)
 To verify total project cost, evaluation on the appropriateness of unit
price and value engineering (VE) by specialized organizations (such as
the Public Procurement Service, KHC)
 The competent authority shall consult with PIMAC when concluding the
concession agreement on projects with a total project cost of KRW 200
billion or more or that require deliberation by the Committee.
 For concession agreements that include an agreement of government
support, the competent authority must refer to the opinion of the MOSF
in advance.
 When negotiations fail to be finalized within the specified time period,
necessary countermeasures shall be taken such as initiating
negotiations with the next preferred potential concessionaire,
reannouncing the request for proposal, nullifying the designation as a
PPI project, etc.
12
Procurement Steps of a Solicited Project
Step 6
Approval of Detailed Engineering and
Design Plan for Implementation(DEDPI)
Concessionaire → Competent Authority
Concessionaire
 Apply for the approval of the DEDPI.
Competent
Authority
 Notify the concessionaire its decision on the approval
of the DEDPI
13
Procurement Steps of a Solicited Project
Step 7
Construction and Operation
Concessionaire
Concessionaire
 Construction completion, submit a construction completion
report and obtain confirmation from competent authority.
14
Part-02
Procurement Steps of a
Unsolicited Project
Procurement Steps of an Unsolicited Project
Unsolicited Project
Submission of Project Proposal
Private Sector →
Competent Authority
VFM Test
PIMAC
Notification of Project
Implementation
Competent Authority →
Proponent
Announcement of RFPs
Competent Authority
Submission of Project Proposals
Private Sector →
Competent Authority
Evaluation and Selection of
Preferred Bidder
Competent Authority
Negotiation and Contract Award
(Designation of Concessionaire)
Competent Authority →
Preferred Bidder
Application for Approval of
Detailed Implementation Plan
Concessionaire →
Competent Authority
Construction and Operation
Concessionaire
16
Procurement Steps of an Unsolicited Project
Step 1
Project Preparation & Submission of Proposal
Private
Sector
Private Sector →
Competent Authority
 Submit a project proposal to the competent authority.
17
Procurement Steps of an Unsolicited Project
Consultation for Review of the Contents
of Project Proposal
Step 2
Competent Authority → PIMAC
PIMAC
VfM Review of the Project Proposal
Submission of Opinion regarding the Proposal
No
MOSF
Notification not to
implement the proposal
Yes
Prior Deliberation by the Committee
Competent
Authority
 Make a request to PIMAC for review.
PIMAC
 Review the proposal
 Conduct VfM test
 Submit an opinion to MOSF
Competent
Authority
 Present a review report to MOSF and request prior
deliberation by the committee
18
Procurement Steps of an Unsolicited Project
Step 3
Notification of alternate proposals
Competent
Authority
Competent Authority
 Announce the content of project proposal for alternate
proposals in addition to the bonus points rate awarded
to the initial proposer.
19
Procurement Steps of an Unsolicited Project
Step 3
Notification of alternate proposals
 When pursuing an unsolicited project as a PPI project pursuant to
the Act on PPI, the competent authority shall announce the
outlined content of the project proposal concerned in the official
gazette and at least three daily newspapers in addition to posting
on PIMAC homepage bulletin to allow for the third parties other
than the initial proposer to submit alternate proposals with respect
to the project concerned.
 In the event the content of the project proposal is announced, it
shall be recognized as the formulation of a request for proposal as
stipulated in Article 10 Paragraph 1 of the Act on PPI.
 Bonus points rate (within ten percent (10%) of the total assessment
points) awarded to the initial proposer upon review of the VfM of
the project proposal.
20
Procurement Steps of an Unsolicited Project
Other Proposals Tendered
Step 4
Evaluation of other Proposals
/ Selection of Preferred Bidder
Designation of the Preferred Bidder
as Potential Concessionaire
Competent
Authority
No Third Party Proposals
Competent Authority
Designation of the Proponent
as Potential Concessionaire
 Review and evaluate proposals to determine the potential
concessionaire.
21
Procurement Steps of an Unsolicited Project
Step 5
Negotiation & Contract Award
(Designation of Concessionaire)
Competent Authority (PIMAC)
↔ Potential Concessionaire
Prior Deliberation by the Committee
MOSF
Step 6
Approval of Detailed Engineering
and Design Plan for Implementation
Concessionaire → Competent Authority
Step 7
Construction and Operation
Concessionaire
 In Step 5, Step 6 and Step 7, the same procedure shall apply as for
solicited projects.
22
Evaluation of Project Proposals
 The competent authority is to evaluate the project proposals in a
fair manner in order to designate a proper potential
Concessionaire who has the capability to implement the relevant
project.

For the use of the competent authority in the evaluation process, PIMAC
prepares the “Standard Method of Project Evaluation.”
 After the PQ test, a 2-step evaluation composed of the evaluation
of engineering factors and the evaluation of price factor follows.



PQ evaluations need to be actively utilized to reduce proposal preparation
costs and to achieve efficient evaluation.
Those applicants who pass the PQ test are eligible for the 2-step engineering
and price evaluation.
In order to encourage a diverse composition of the proponent consortiums,
the PQ test and the evaluation of engineering and price may proceed
simultaneously.
23
Evaluation Procedure (1)
 Phase 1 : Deliberation and Evaluation of PQ

Applicants are evaluated on their ability to carry out the project such as
construction, financing, and operating skills that are required for a specific
project. Those who fail to pass the PQ are disqualified.
 Phase 2: Deliberation and evaluation on engineering and pricing
factors.

The engineering factors focus on the contents of the plan, the design, the
construction plan, and the operating plan. Evaluation is to be made on
whether those factors satisfy the performance requirements presented in the
request for proposal.
 It needs to be evaluated whether the proposed construction cost and operation cost are
proper amounts to carry out the plans for design, construction, and operation as stated in
the project proposal.

The price factor is to be unified as one factor, i.e. the present value of total
government payment during the operation period.
24
Evaluation Procedure (2)
 The potential Concessionaires are to be designated according
to the sequential order of the total evaluation points, with the
combined engineering and pricing point, which each applicant
has earned.
 After the completion of the evaluation, the competent authority
is to notify each proponent of the rank of the proponent’s
proposal and the points (points for each evaluated item such
as design, operation, and construction need to be respectively
stated)
25
Average Time Span
Unit: Month
Solicited
Stage
Process
1
Unsolicited
Roads
Railways
Roads
Railways
Initiation/Selection of PPP project
-
-
-
-
2
Preliminary Feasibility Study (Solicited)
-
-
-
-
3
Feasibility Study,
VFM test,
Basic Design
(Solicited)
12.82
30.14
3.72
7.93
-
-
3.59
3.33
VFM test,
Review of Proposals (Unsolicited)
4
Designation as PPP project
(Solicited)
5
Announcement of RFPs
6
Evaluation and Selection of Preferred
Bidder
7
Negotiation
18.37
17.00
17.12
14.00
8
Detailed Implementation Plan
18.05
14.00
11.25
4.00
54.18
76.14
35.68
29.26
Total
26
4.94
15.00
9
Construction
48.81
58.50
47.64
60.00
10
Operation
-
-
-
-
27