Bid Engineering for Public Private Partnership (PPP)
Bid engineering
PPP represents a form of cooperation between the public and private sectors, with a wide range of different models, regulated by the Contracts Code (Legislative Decree 50/2016) in Title I of Part IV. It is possible to use PPP in all those cases where the public sector intends to carry out a public work, or a work of public utility, the design, implementation, management and financing of which, in whole or in part, is entrusted to the private sector. Among the different types is the Energy Efficiency Contract (EPC) in which the economic operator's operating revenues are determined and paid according to the level of energy efficiency improvement or other contractually established performance criteria.
Enertech Solution can support, with its services, both private entities wishing to start cooperation with the public sector and vice versa public administrations wishing to carry out works through Public Private Partnership. Activities range from the identification of the most appropriate interventions to the technical-economic feasibility project, to the drafting of proposals to be submitted to contracting authorities and the subsequent production of documentation for participation in the public tender.
Private entities may enter into a PPP with a public administration by participating in a bidding process called in this manner, aimed, therefore, at awarding a concession that contemplates the use of resources wholly or partially borne by the successful bidders. Alternatively, private parties can submit in advance a proposal to carry out a public work or entrust a service through a feasibility project: this will be followed by a public bidding process in which the proposer can also participate and will have the right of first refusal even if it does not win the bidding process.
Enertech Solution assists its clients throughout the entire process of establishing a PPP, starting from the possible first stage of proposal submission, assisting it, in particular, in the drafting of the feasibility project, the business plan and the report on the characteristics of the service and management. At the next stage of public bidding, Enertech may assist the client in drafting the technical bid, with any additions to the previous one.
Interest in the Public Private Partnership.
The Department of Economic Policy Planning and Coordination (DIPE) has as one of its objectives to promote the spread of PPP and increase its attractiveness to intercept private resources to invest in public activities. Therefore, interest in PPPs is high, as this form of cooperation allows on the one hand the private sector to deploy its capabilities in public utility works while obtaining an economic return, while on the other hand the public sector benefits from the presence of private parties in optimizing the ratio of public expenditures to public service performance by transferring risks to the private sector.
Interest in the Public Private Partnership.
The Department of Economic Policy Planning and Coordination (DIPE) has as one of its objectives to promote the spread of PPP and increase its attractiveness to intercept private resources to invest in public activities. Interest in PPPs is, therefore, high since this form of cooperation allows the private sector to deploy its capabilities in public utility works, gaining an economic return while the public sector benefits from the presence of private parties in optimizing the ratio of public expenditures to public service performance by transferring risks to the private sector.
Participation of private enterprises
The private sector is placed in a position to provide specific managerial, commercial and innovative capabilities in the design, construction and operation of public utility works and infrastructure. The operation phase, which follows the construction phase of the work, enables the generation of the cash flows needed to repay the investment and generate profits.
Cost-effectiveness optimization
Cost optimization for the public sector concerns both the actual expense of carrying out the work and the expense associated with operating the work in accordance with the services to be provided to users. The presence of the private sector makes it possible to generate a virtuous circle between public spending and service delivery, with improved services provided for the same amount of public spending.
Risk allocation
PPPs involve the transfer to the private party of the risks over which the latter has direct control, namely construction risk, since the completion of the investment must take place according to the timeframe and characteristics established in the contract; availability risk, since the work must be fully usable throughout the contract period; and operational risk, related to the expected level of quality and quantity.
Learn about all bid engineering services
Bid engineering aims to develop project-bids for participation in tenders or proposals to private entities. Enertech Solution provides the experience of its team of engineers in technical/economic planning and drafting of projects with various purposes:
Learn about all bid engineering services
Bid engineering aims to develop project-bids for participation in tenders or proposals to private entities. Enertech Solution provides the experience of its team of engineers in technical/economic planning and drafting of projects with various purposes:
FAQ
public-private partnerships (PPPs)
What is PPP?
The Public Private Partnership (PPP) is a set of forms of collaboration between the public and private sectors, integrating their respective resources and expertise for the implementation of public works or utilities and the management of related services.
Different PPP models are envisaged, depending on the specific objectives; the financing, design, construction, and operation of the work are always the responsibility of the private sector while public agencies provide or do not provide fees in proportion to the capacity of the facility to self-generate income to remunerate the private sector.
How is a PPP implemented?
Private entities may enter into a PPP with a public administration by participating in a bidding process called in this manner, aimed, therefore, at awarding a concession that contemplates the use of resources wholly or partially borne by the successful bidders. Alternatively, they can submit in advance a proposal to carry out a public work or entrust a service through a feasibility project: this will be followed by a public bidding process in which the proposer can also participate and will have the right of first refusal even if it does not win the bidding process.
What is the relevant legislation for PPPs?
PPP is mainly regulated in Legislative Decree. April 18, 2016, no. 50, as amended, i.e., the Public Contracts Code, which implements, among other things, Directive 2014/23/EU of the European Parliament and of the Council of February 26, 2014. The Legislature has dedicated two specific parts within the Code to PPP: Part III Concession Contracts and Part IV Public-Private Partnerships and other contracting arrangements.