Public-Private Partnerships for Infrastructure

E.R. Yescombe has over 30 years’ experience in various forms of structured finance, including project finance, leasing, export credits, real estate and asset finance. A former banker and head of project finance in London for a major international bank, he is now an independent consultant on project finance and public-private partnerships (PPPs), advising investors on financing for power, infrastructure and PPP projects, as well as public-sector entities on PPP policy issues, project procurement and contracting. Edward Farquharson is currently an adviser at European PPP Expertise Centre (EPEC) at the European Investment Bank (EIB) with a background in the public and private sectors in financing and developing PPP projects and policies world-wide. Before joining the EIB, he was the Executive Director of the Private Infrastructure Development Group (PIDG) prior to which he led the international work at Partnerships UK and UK’s PPP national unit at HM Treasury, following a 20-year career advising on and financing projects around the world at a UK investment bank and a development finance institution. He worked on his first PPP project in 1985.

"As noted in this splendid book, the "devil is in the detail" in order to achieve successful PPPs. Well, this book has that detail. Excellent, practical guidance for all those interested in designing and implementing PPPs, from two authors who’ve worked closely with policymakers, investors, financiers, operators and civil society." --Laurence Carter, Senior Director for Infrastructure, Public-Private Partnerships, and Guarantees, World Bank "A generation of PPP experts have been bought up on this important book, the rework by Yescombe and Farquharson will ensure that it is fit for the next generation as well. Highly recommended." --Christopher Heathcote, CEO, Global Infrastructure Hub (gihub.org)"Public-Private Partnerships (PPPs) are increasingly being utilised as a global method of procurement – yet their successful implementation relies on sufficient knowledge and delivery capacity in both the public and the private sector. Yescombe and Farquharson’s new, expanded and fully comprehensive volume covering all aspects of the PPP process from initial procurement, valuation and financing will be a crucial tool providing not only education to those newly engaged in PPPs but also as a ‘go-to’ reference source to current practitioners in respect both of policy and finance issues. This clear and well written guide incorporates both the authors’ full understanding of the basic concepts as well as exhibiting their practical knowledge of delivery issues. Certainly a book I will be recommending to others as well as dipping into myself from time to time. Well done on making a key contribution to long term investment in infrastructure, delivering value for money, whole of life costed and quality controlled assets!" --Julia Prescot, Commissioner, UK National Infrastructure Commission; Chief Strategy Officer, Meridiam Infrastructure"Yescombe’s book has been the essential text book for my students and the go-to user manual for my practitioner advisees for the past decade. This new edition expands the scope even further by including both the private and public perspectives, while maintaining its rich breadth of financial structures and analyses." --Akash Deep, Kennedy School of Government, Harvard University"Public-Private Partnerships are now an indispensable tool in the modern public finance practitioner's toolkit.　Public-Private Partnerships for Infrastructure is the definitive treatment of the financial, legal, and governance details of this essential subject." --Justin Marlowe, Evans School of Public Policy and Governance, University of Washington"Public-Private Partnerships for Infrastructure by Yescombe and his co-author Farquharson is a sophisticated and comprehensive treatment of public-private partnerships and their financing. Yescombe’s Principles of Project Finance has long been the best available text on project finance, and this new volume will occupy a similar position in the literature on public-private partnerships." --Robert Sheppard, Darla Moore School of Business, University of South Carolina"The new book provides a rich and deep explanation of PPP issues. It covers the important topics of PPP policy, legal and institutional frameworks, project preparation, procurement, risk allocation and financing, and contains various special features which distinguish it from other publications on the subject….With this book, readers will feel like they have a veteran PPP expert close at hand." --Global Infrastructure Hub

• Part I: Introduction1. Overview2. What Are Public-Private Partnerships?3. Cash Flow and Investment AnalysisPart II: The Public-Sector Perspective4. Policy, Legal and Institutional Frameworks5. The Project Cycle6. Public-Sector Project Management7. Assessing Needs, Project Definition and Selection8. The PPP Decision—Value for Money9. The PPP Decision—Affordability, Budgeting and Reporting10. PPP ProcurementPart III: PPP Risk Analysis and Allocation11. Risk Analysis—Theory and Methodologies12. Risk Allocation—Construction Phase13. Risk Allocation—Operation Phase14. The Rôle of InsurancePart IV: The PPP Contract15. Service-Fee Payment Mechanism16. Changes in Circumstances17. Termination18. Public-Sector Support for PPP Contracts19. Public-Sector Contract ManagementPart V: The Private-Sector Perspective20. Sponsors and Other Investors21. Project Finance and PPPs22. Project-Finance Debt—Sources and Procedures23. Financial Structuring24. Macroeconomic Risks and Hedging25. Lenders’ Cash-Flow Controls, Security and Enforcement26. Debt Refinancing and Equity SalePart VI: Alternative Models – Summing Up27. Alternative Models28. PPPs—For and Against