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Risk and Legal and Contractual Issues in PPP/PFI Projects
18 November - 19 November 2002
Risk and Legal and Contractual Issues in PPP/PFI Projects

With the public sector prioritising the delivery of high quality public services one of the benefits of PFI is that it offers a chance for better value for money procurement. It can give better value for money than public sector investment, by assigning risk to those better placed to handle it and offering rewards accordingly. For example; operation, design and build and technological obsolescence risks can be transferred to the private sector in a project, with the benefits gained by this approach expected to outweigh any additional costs incurred. From the private sector viewpoint, PFI offers an opportunity to design projects in such a way as to maximise efficiency and minimise running costs, at the same time as incentivising them to deliver on agreed standards and targets.

The key part of a PFI deal apart from the transfer of risk is also the actual contract the parties negotiate

Key issues this conference will discuss

Review of standardisation across the main sectors (health, education, roads)

New standardised contacts

Monitoring PFI contracts in the public sector: experiences from Brent Council

Post September 11th and the impact on PPP contractual negotiations & Force Majeure

The legal structure of a PFI contract

Confirmed Speakers Tom McKevitt, PFI Project Manager, London Borough of Richmond Upon Thames

Rob Hann, Executive, 4P’s

Mark Johnson, Projects Partnerships

Sean O’Donnell, Head of Finance, Essex County Council

Mary McKeon, Department of Finance

John Kirwan, Director Special Finance, Depfa Bank

Paul Mountain, Partner, Head of Construction, Martineau Johnson

Michael Matheou, Partner, Lovells

Bart Meesters, Partner, Allen & Overy

Suresh Kamath, Deputy Director, Brent County Council

Phyllis Dunipace, Assistant Director, Lambeth County Council

Stephen Matthews, Partner, Eversheds

Conference agenda

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8:30

Registration and Coffee

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9:00

Introduction to the updated TTF Guidance

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9:00

Major Legislative risks in PFI projects

  • Comparing the legislative risks in the procurement and post procurement phases of PFI projects
  • Risks impacting on contract deliverables
  • Understanding risks in long-term PFI projects
  • Some risks from PFI case study material
  • The lender’s perspective
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    9:15

    Refinancing

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    10:00

    Funding competitions, bank support letters and termination issues

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    10:00

    The benefits of the risk assessment model to both project and control management in PFI

  • The main benefits of the risk assessment model for project and contract management in PFI projects
  • Has risk traditionally been fully taken into account in PFI projects?
  • Tips on applying the model to actual projects
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    11:00

    Morning Coffee

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    11:15

    Assignment, indemnities and insurance

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    11:15

    A financial model for PFI risk assessment

  • The financial implications of risk assessment in PFI projects
  • Demonstrating a model for PFI risk assessment
  • Ensuring the model is comprehensive, covering all eventualities
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    11:40

    Authority direct agreement

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    11:50

    Interest rate hedging

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    12:00

    Changes that benefit the private sector

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    12:00

    Reducing risks to PFI contracts

  • Some proven ways of reducing risks to PFI contracts
  • How this will impact on the bottom line
  • Making risk assessment and risk reduction an integral part of PFI project and contract management
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    12:10

    Discussion and questions – review of the session

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    12:30

    Close of Briefing

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    13:30

    Registration and Coffee

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    14:00

    Introduction to project Refinancing

  • An overview of debt and equity structures in PFI/PPP projects
  • A review of contractual refinancing provisions in the context of a signed concession
  • Analysis of the current OGC/PUK Guidance
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    15:15

    Afternoon Tea

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    15:30

    An Overview of Refinancing PPP/PFI Projects

  • Analysing the mechanics and effects of refinancing in the context of: -Equity -Loans -Bonds -Swaps -Securitisation -Monetisation
  • Some thought on the future structure of refinancing PFI/PPP projects
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    17:30

    Close of Briefing

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    8:30

    Registration and Coffee

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    9:00

    Chairman's Opening Remarks

    Chris Brown

    Chris Brown, Head PPP/PFI, Masons

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    9:30

    OGC STANDARD GUIDANCE OVERVIEW

    John Kirwin

    John Kirwin, Director, Head of PFI, Depfa Bank

  • The arguments – for and against the use of standardisation in PFI
  • Concerns from a lenders perspective – The contentious aspects, outlining the reasons and the suggested alternative
  • Case study – Project using the NHSE Standard Form Contract
  • Outlook
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    10:20

    STANDARDISATION FOR LOCAL GOVERNMENT PFI AND PPP

    Rob Hann

    Rob Hann, Executive, 4P's

  • The role of the 4ps
  • The need to standardise contracts
  • The advantages of following standardised templates
  • Procurement packs and standardisation for schools, housing, street lighting, leisure
  • Other forms of PPP and work in progress
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    11:00

    Morning Coffee

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    11:20

    PUBLIC SECTOR INTERVENTION

    Tom McKevitt

    Tom McKevitt, PFI Project Manager, London Borough of Richmond Upon Thames

  • Defining the rights of the public sector
  • Setting up agreements
  • Transferring risk
  • Identifying the need for public sector intervention
  • Working together
  • Setting standards
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    12:00

    CASE STUDY

    Suresh Kamath

    Suresh Kamath, Deputy Director of Environmental Services, Brent Council

  • Actions to take once the PFI contract is signed
  • What insights have been gained from some recent PFI projects for Brent County Council about contract management?
  • Thoughts on monitoring PFI contracts
  • Putting management procedures in place for long-term contract management
  • Enhancing partnerships in PFI projects between local governments and private sector companies, e.g. skills transfer
  • Contract completion – a problem?
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    12:40

    Lunch

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    14:00

    CHANGES IN INSURANCE

    Steve Solly

    Steve Solly, Managing Director, Braddons

  • Changes in contractual requirements
  • Insurance as a risk management tool
  • Sector specific issues
  • How September 11th has effected the insurance market
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    14:40

    RISK TRANSFER

    Declan Gillespie

    Declan Gillespie, Head of FM, Gleeds

  • Mitigating Risk in a PFI projects - Solutions to achieve this
  • Using different approach to gain the best outcome
  • Using design as an assessment of the projects risk potential
  • Balancing value verses risk
  • Assessing all members of the consortiums risk assessments
  • Looking at the FM offering and assessing the risk

    Impact of transferring operational risks to the contractor

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    15:20

    Afternoon Tea

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    15:40

    BUILDING THE LEGAL FRAMEWORK

    Sean O’Donnell

    Sean O’Donnell, Head of Finance, Environmental Services Directorate, Essex County Council

  • Contents and structure of the contract
  • Commercial Terms
  • Commercial Schedules
  • Technical Schedules
  • Issues and Challenges
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    16:20

    CONTRACT BEST FIT

    Malcolm Austwick

    Malcolm Austwick, Partner, Beachcroft Wansbroughs

  • Standardised contracts
  • OGC Guidance
  • Factors for consideration
  • Identifying and satisfying project specific needs
  • Avoiding potential pitfalls
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    17:00

    Chairman’s Closing Remarks and Close of Day One

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    8:30

    Re-registration and Coffee

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    9:30

    Chairman's Opening Remarks

    Alan Aisbett

    Alan Aisbett, Partner, Pinsent Curtis

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    9:40

    PUBLIC PRIVATE PARTNERSHIPS FROM A DUTCH PERSPECTIVE

    Bart Meesters

    Bart Meesters, Partner, Allen & Overy, The Netherlands

  • Overview of past and current projects
  • Differences between the UK and the Netherlands
  • Allocation of risks
  • Implied terms
  • Direct agreements
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    10:20

    PPP – LEGAL DIMENSION

    Mary McKeon

    Mary McKeon, Head of Policy and Communications, Central PPP Unit, Department of Finance (Ireland)

  • Developments & opportunities in Ireland
  • Framework for PPPs in Ireland
  • Recent legislative initiatives
  • EU developments
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    11:00

    Morning Coffee

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    11:20

    FROM TRADITIONAL TO LONG TERM CONTRACTS

    Paul Mountain

    Paul Mountain, Partner, Martineau Johnson

  • Managing the relationship
  • Hands on v hands off monitoring
  • Dispute resolution procedure
  • Stages of contract management
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    12:00

    KEY CONTRACTUAL ISSUES

    Mark Johnson

    Mark Johnson, Managing Director, The Projects Partnership

  • Refinancing
  • Compensation for termination
  • Insurance
  • Disputes resolution
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    12:40

    Lunch

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    14:00

    CASE STUDY

    Phyllis Dunipace

    Phyllis Dunipace, Assistant Director, Community and Lifelong Learning, London Borough of Lambeth

  • Role of the council in providing the education service
  • Council’s objectives for accommodation and ICT
  • The preferred model and single point responsibility
  • Whole project approach and lender concerns
  • Key issues arising out of standardisation
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    14:40

    LEGAL STANDARDISATION OF SCHOOL PFI

    Steven Matthew

    Steven Matthew, Head of Projects Group, Partner, Eversheds

  • Does standardisation help?
  • What does standardisation not cover?
  • How should standardisation be dealt with in negotiations (should amendments be permitted or not)?
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    15:20

    Afternoon Tea

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    15:40

    LEGAL IMPLICATION OF STAFFING PFI PROJECTS

    Norman Rose

    Norman Rose, Director General, Business Service Association

  • Is it a viable option to move staff from the employ of the public to the private sector
  • Retention Employment Model
  • Providing a bespoke solution for each contract signed
  • Working with the unions to ensure all legal implications are discussed
  • TUPE Transfer
  • Hr Considerations - Pensions, Employment rights

    Long term issues for transfer of staff

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    16:20

    LEGAL ISSUES AFFECTING PPP FOR THE FUTURE

    Michael Matheou

    Michael Matheou, Partner, Lovells

  • Public procurement rules
  • Bids with financing or funding competitors
  • Monitoring rights
  • Termination issues
  • New standardised contracts
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    17:00

    Chairman's Closing Remarks and Close of Conference

    Workshops

    Contract standardisation in PFI projects

    Contract standardisation in PFI projects

    The Hatton, at etc. venues
    20 November 2002
    London, United Kingdom

    Contract standardisation in PFI projects

    Contract standardisation in PFI projects

    The Hatton, at etc. venues
    20 November 2002
    London, United Kingdom

    Legislative risk assessment in PFI projects

    Legislative risk assessment in PFI projects

    The Hatton, at etc. venues
    20 November 2002
    London, United Kingdom

    Legislative risk assessment in PFI projects

    Legislative risk assessment in PFI projects

    The Hatton, at etc. venues
    20 November 2002
    London, United Kingdom

    Refinancing PFI Projects

    Refinancing PFI Projects

    The Hatton, at etc. venues
    20 November 2002
    London, United Kingdom

    Refinancing PFI Projects

    Refinancing PFI Projects

    The Hatton, at etc. venues
    20 November 2002
    London, United Kingdom

    The Hatton, at etc. venues

    51/53 Hatton Garden
    London EC1N 8HN
    United Kingdom

    The Hatton, at etc. venues

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