A guidebook on public-private partnership in infrastructure

Competencies of the Transaction Advisor
11
The specific expertise that the transaction advisor will need to have depends 
on the TOR. However, considering the general requirements of a typical PPP 
project, the transaction advisor may be required to have expertise in the following 
areas: 
(a) Project planning expertise 
• Project identification and structuring including incorporation of 
government’s objectives; 
• Economic and financial evaluation; 
11.
Some elements of this section are drawn from Ministry of Finance, Singapore, “Public Private Partnership 
Handbook”, Version 1 (October 2004), accessed from http://app.mof.gov.sg/data/ 
cmsresource/PPP/Public%20Private%20Partnership%20Handbook%20.pdf; and other sources. 

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A Guidebook on Public-Private Partnership in Infrastructure 
27 
 
• Assessment of social and environmental impacts and mitigation measures; 
• Assessing value for money of a PPP project; 
• Designing 
of 
resettlement 
and rehabilitation programmes; 
• Marketing of project. 
(b) Financial expertise 
• Development of a robust business case for the project; 
• Identification of risks and assessment of their likely impact on the project 
outcomes, and development of an optimum risk-allocation arrangement 
between parties; 
• Structuring payment mechanisms considering responsibilities, risks and 
rewards in respect of both parties; 
• Analysis of the tender proposals received from the bidders, including 
scrutinizing the financial proposals and their implications for the 
government and verification of cost analysis and financial models; and 
• Identification of and reviewing the contract clauses that have financial 
implications for the public sector. 
(c) Legal expertise 
• Preparation of the tender documents, PPP contract and applicable lease 
agreements; 
• Ascertaining the best possible method of procurement or bidding following 
the government procurement rules/laws; 
• Legal matters involving taxation, property right, building and planning 
regulations, environmental law, and legal provisions in any other relevant 
laws (such as bankruptcy law, competition law, etc.) that have implications 
and need to be considered in tender documents, and contract and lease 
agreements; 
• Contract negotiation; and 
• Legal aspects related to renegotiation of the contract and other 
agreements due to unforeseen circumstances. 
(d) Technical expertise 
• Defining technical and output/outcome specifications and standards for 
services to be procured; 
• Formulation of safety and security standards and their compliance by the 
concessionaire/private party under contract; 
• Technical evaluation of proposals and bids; 
• Assessment of the capacity of private sector bidders to deliver the project 
and subsequently operate and manage it; 
• Quality control during construction, assessment of technical risks and their 
mitigation measures, and contractor compliance; 
• Formulation of appropriate performance measures and development of 
monitoring systems to determine performance. 

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A Guidebook on Public-Private Partnership in Infrastructure
 
 
It may be mentioned here that for a PPP project, more emphasis needs to be 
placed on output/outcome and service standards rather than specifying technical 
parameters of inputs.