Docstoc

Procurement Steps of Solicited Project

Document Sample
Procurement Steps of Solicited Project Powered By Docstoc
					    Process of PPP Project
   Implementation in Korea


                     Hojun Lee
                     hojunlee@kdi.re.kr

                     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
          Procurement Steps of a Solicited
Part-01
          Project
Procurement Steps of a Solicited Project

                             Solicited Project

   Competent Authority      Selection of PPP Project


   Competent Authority             VFM Test
    Review by PIMAC

   Competent Authority   Designation as the PPP Project


                             Announcement of RFPs           Competent Authority

                                                             Private Sector →
                         Submission of Project Proposals
                                                            Competent Authority

                           Evaluation and Selection of
                                                            Competent Authority
                                Preferred Bidder

                         Negotiation and Contract Award    Competent Authority →
                         (Designation of Concessionaire)     Preferred Bidder

                           Application for Approval of       Concessionaire →
                          Detailed Implementation Plan      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              Large Project – Conduct a feasibility study and report
     Authority
                                           result to PIMAC in addition to VfM test
                                            result and basic design documents.




      PIMAC
                              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     Request for Proposals (RFP)                   Competent Authority




Competent        Negotiate in advance to avoid environmental issue if necessary.
Authority          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 → Competent Authority




  Private
                     Prepare proposal and submit it to the competent authority
  Sector




                                                                                            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




                                       Set the criteria for PQ
 Competent
 Authority        Examine and evaluate the project proposal by project evaluation team
                          Designate two or more potential concessionaires




                                                                                         10
  Procurement Steps of a Solicited Project


              Negotiation & Contract Award                  Competent Authority (PIMAC)
Step 5       (Designation of Concessionaire)                 ↔ Potential Concessionaire




            Prior Deliberation by the Committee                            MOSF




Competent             Designate a concessionaire by finalizing all negotiations of
Authority                              a concession agreement




                                                                                          11
   Procurement Steps of a Solicited Project

              Negotiation & Contract Award
Step 5       (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

         Approval of Detailed Engineering and
Step 6   Design Plan for Implementation(DEDPI)
                                                      Concessionaire → Competent Authority




 Concessionaire                      Apply for the approval of the DEDPI.




   Competent                Notify the concessionaire its decision on the approval
   Authority                                     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
          Procurement Steps of a
Part-02
          Unsolicited Project
Procurement Steps of an Unsolicited Project

             Unsolicited Project

         Submission of Project Proposal      Private Sector →
                                            Competent Authority

                    VFM Test                      PIMAC

              Notification of Project      Competent Authority →
                Implementation                 Proponent

             Announcement of RFPs           Competent Authority

                                             Private Sector →
         Submission of Project Proposals
                                            Competent Authority

           Evaluation and Selection of
                                            Competent Authority
                Preferred Bidder

         Negotiation and Contract Award    Competent Authority →
         (Designation of Concessionaire)     Preferred Bidder

           Application for Approval of       Concessionaire →
          Detailed Implementation Plan      Competent Authority

           Construction and Operation         Concessionaire

                                                                   16
   Procurement Steps of an Unsolicited Project



                                                                        Private Sector →
Step 1   Project Preparation & Submission of Proposal                  Competent Authority




         Private
         Sector          Submit a project proposal to the competent authority.




                                                                                             17
   Procurement Steps of an Unsolicited Project

                       Consultation for Review of the Contents                          Competent Authority → PIMAC
Step 2                           of Project Proposal


                                                                                                   PIMAC
                          VfM Review of the Project Proposal



                     Submission of Opinion regarding the Proposal                                  MOSF


                                                 No
                                                                      Notification not to
                                                                    implement the proposal
                           Yes


                          Prior Deliberation by the Committee



         Competent
         Authority                                   Make a request to PIMAC for review.

                                                               Review the proposal
          PIMAC                                                 Conduct VfM test
                                                            Submit an opinion to MOSF

         Competent                       Present a review report to MOSF and request prior
         Authority
                                                     deliberation by the committee

                                                                                                                      18
  Procurement Steps of an Unsolicited Project



Step 3      Notification of alternate proposals            Competent Authority




                     Announce the content of project proposal for alternate
    Competent
    Authority         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            No Third Party Proposals

              Evaluation of other Proposals                            Competent Authority
Step 4        / Selection of Preferred Bidder

            Designation of the Preferred Bidder    Designation of the Proponent
               as Potential Concessionaire         as Potential Concessionaire




         Competent             Review and evaluate proposals to determine the potential
         Authority
                                                    concessionaire.




                                                                                             21
   Procurement Steps of an Unsolicited Project


                    Negotiation & Contract Award              Competent Authority (PIMAC)
                   (Designation of Concessionaire)             ↔ Potential Concessionaire
 Step 5
                  Prior Deliberation by the Committee                  MOSF




 Step 6            Approval of Detailed Engineering
                                                        Concessionaire → Competent Authority
                  and Design Plan for Implementation




 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              Unsolicited
     Stage                 Process
                                                         Roads         Railways   Roads         Railways
       1       Initiation/Selection of PPP project         -                 -      -                 -
       2     Preliminary Feasibility Study (Solicited)     -                 -      -                 -

                        Feasibility Study,
                           VFM test,
                         Basic Design
       3                   (Solicited)                   12.82           30.14     3.72           7.93

                          VFM test,
               Review of Proposals (Unsolicited)

                   Designation as PPP project
       4                                                                            -                 -
                           (Solicited)
       5            Announcement of RFPs                  4.94           15.00
             Evaluation and Selection of Preferred                                 3.59           3.33
       6
                            Bidder
       7                   Negotiation                   18.37           17.00    17.12          14.00
       8          Detailed Implementation Plan           18.05           14.00    11.25           4.00
                         Total                           54.18           76.14    35.68          29.26
       9                  Construction                   48.81           58.50    47.64          60.00
      10                    Operation                      -                 -      -                 -
26
27

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:6
posted:9/30/2012
language:English
pages:27