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					Capacity Building Program to Enhance Public Officials’
  Capacity to Design and Implement PPP Projects in
 Infrastructure, Both at Regional and Country Level
                          -
                 OECS and Barbados




                 Draft Inception Report

                     5 January 2012




                    Desktop Study
                       April 2009
  Capacity Building Program to Enhance Public Officials’ Capacity to
Design and Implement PPP Projects in Infrastructure, both at regional
               and country level – OECS and Barbados


               Reference No: BizClim (10 ACP RPR 15)
                                                                                          Fo rm a tted: Sp an ish (D om in ican Rep u b lic)




                    Project No. WP1.10.1-2.008


                                OECS and Barbados



                                     Prepared By

                                Mr. John W. Lee
                            Team Leader, Key Expert 1




                              Submitted by
 Menns SPRL (Belgium) in consortium with PricewaterhouseCoopers Tax and
                    Advisory Services Ltd. (Jamaica)




   This document has been produced with the financial assistance of the European Union.
      The views expressed herein can in no way be taken to reflect the official opinion
                of the European Union nor of those of the ACP Secretariat.
REPORT COVER PAGE


Project Title:   Capacity Building Program to Enhance Public Officials’ Capacity to Design
                 and Implement PPP Projects in Infrastructure, both at Regional and
                 Country Level – OECS and Barbados
Project No.      (10 ACP RPR 15) Project No. WP1.10.1-2.008

Country:         OECS and Barbados

                 Contracting Authority   Project Partner        Contractor
Name:            BizClim - Programme     European Investment    Menns SPRL in
                 Management Unit         Bank                   consortium with PwC Tax
                                                                and Advisory Services
                                                                Ltd.
Address:         205 Rue Belliard        98 Blvd. Konrad        Blvd. Lambermont 88
                 1040 Brussels           Adenauer               1030 Brussels
                 Belgium                 L-2950                 Belgium
                                         Luxembourg
Tel. number:     +32 (0)2 669 98 25      Tel: +352 4379 86717   +32 (0)2 303 6291
Fax number:      +32 (0)2 669 97 86      Fax:+352 4379 64897    +32 (0)2 791 9176
Email            Dominique@ACPBusi       m.arevalo@eib.org      klmenns@mennssprl.com
address:         nessClimate.org

Contact          Ms. Dominique           Ms. Monica AREVALO     Ms. KL Menns
persons:         BOURGAULT

Date of report:                     5 January 2012. Version: Draft 0.1

Authors of report:                  Mr. John W. Lee

Date of contract signature:         18 October 2011

Start of performance period:        25 November 2011

Project completion:                 Scheduled for 30 June 2012




The content of this report is the sole responsibility of the author(s). Menns SPRL
in consortium with PwC Tax and Advisory Services Ltd. can in no way be taken to
reflect the views of the European Investment Bank, the OECS, the Government
of Barbados, the European Union, or the BizClim Programme.
                                  TABLE OF CONTENTS
EXECUTIVE SUMMARY................................................................................. 5

REPORT OBJECTIVE AND STRUCTURE ........................................................... 9

I.    INTRODUCTION ................................................................................ 10
      1.     Project Framework and Objectives ............................................... 10
      2.     Assumptions & Risks .................................................................. 11

II.   METHODOLOGY & ACTIVITIES ............................................................ 14
      1.     Inception Phase ......................................................................... 14
      2.     Implementation Phase – Activities ................................................ 16
      3.     Phase Out Stage ........................................................................ 18

III. ACTIVITY PLAN ................................................................................. 19
      3.1. Summary of Key Proposed Activities............................................. 19
      3.2. Proposed Work Plan ................................................................... 19

ANNEXES ................................................................................................ 24

ANNEX 1. WORKSHOP PROGRAMME .......................................................... 24

RAME ..................................................................................................... 26

ANNEX 2. TENTATIVE BUDGET BREAKDOWN .............................................. 27

ANNEX 3. OUTLINE OF DESKWORK ANALYSIS (DRAFT)................................ 29
      1.     Executive Summary ................................................................... 29
      2.     Introduction .............................................................................. 29
      3.     Macroeconomic Situation: Funding Capacity and Availability ............ 29
      3.2 Strategic Plan/Vision (expected to refer to high level plans of
          Government) ............................................................................. 30
      3.3 Preliminary Assessment of Investment Climate as regards PPPs +
          Preliminary Identification of Bottlenecks ....................................... 30
      4.     History of PPP within OECS and Current and Planned Initiatives ....... 30
      5.     PPPs in Context - Traditional Procurement vs. PPP Procurement ....... 30
      6.     Legal and Regulatory Framework ................................................. 30
      7.     Analysis of PPP Accounting Treatment (On vs. Off Balance Sheet) .... 31
      8.     Lessons Learned on past infrastructure development projects .......... 31

WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                                ii
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Executive Summary .................................................................................... 4
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Report Objective and Structure .................................................................... 8
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I.    Introduction ....................................................................................... 9
      1.     Project Framework and Objectives ................................................. 9
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      2.     Assumptions & Risks .................................................................. 10
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II.   METHODLOGY & ACTIVITIES .............................................................. 13
      1.     Inception Phase ......................................................................... 13
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      2.     Implementation Phase – Activities ................................................ 15
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      3.     Phase Out Stage ........................................................................ 17
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III. ACTIVITY PLAN ................................................................................. 18
      3.1. Summary of Key Proposed Activities............................................. 18
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      3.2. Proposed Work Plan ................................................................... 18
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AnnexES ................................................................................................. 23
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annex 1. workshop Programme ................................................................. 23
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annex 2. TENTATIVE BUDGET BREAKDOWN ............................................... 26
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annex 3. OUTLINE OF DESKWORK ANALYSIS (DRAFT) ................................. 28
      1.     Executive Summary ................................................................... 28
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      2.     Introduction .............................................................................. 28
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      3.     Macroeconomic Situation: Funding Capacity and Availability ............ 28
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      3.2 Strategic Plan/Vision (expected to refer to high level plans of
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          Government) ............................................................................. 29
      3.3 Preliminary Assessment of Investment Climate as regards PPPs +
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          Preliminary Identification of Bottlenecks ....................................... 29
      4.     History of PPP within OECS and Current and Planned Initiatives ....... 29
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      5.     PPPs in Context - Traditional Procurement vs. PPP Procurement ....... 29
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      6.     Legal and Regulatory Framework ................................................. 29
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      7.     Analysis of PPP Accounting Treatment (On vs. Off Balance Sheet) .... 30
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      8.     Lessons Learned on past infrastructure development projects .......... 30
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WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                                iii
Abbreviations and References


ACP                Africa, Caribbean and Pacific

APR                Activity Performance Report

                   ACP Business Climate Facility (an ACP-EU joint initiative financed
Bizclim
                   under the 10th European Development Fund).

CARICOM            Caribbean Community

CDB                Caribbean Development Bank

EC                 European Commission

EDF                European Development Fund

EIB                European Investment Bank

EPA                Economic Partnership Agreement

EU                 European Union

IFC                International Finance Corporation

IMF                International Monetary Fund

OECS               Organisation of Eastern Caribbean States

PMU                Programme Management Unit

PFI                Private Finance Initiative

PPP                Public-Private Partnership

ToR                Terms of Reference

UN                 United Nations

WB                 World Bank




WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                                iv
                                 EXECUTIVE SUMMARY

The European Investment Bank (EIB) has been an active development finance
partner in the Africa, Caribbean and Pacific (ACP) countries and in the Overseas
Countries and Territories (OCTs) since 1963 and 1968 respectively. Currently,
the EIB operates in the region under the ACP-EC Partnership Agreement and the
Overseas Association Decision, and concentrates its efforts on fostering private
sector-led initiatives that promote economic growth and have a positive impact
on the wider community and region. It also supports public sector projects,
typically in infrastructure, that are critical for private sector development and the
creation of a competitive business environment.

Acknowledging that private sector financing, design, construction and operation
of infrastructure projects has emerged in recent decades as one of the most
important models that many governments are using to close the infrastructure
gaps in their countries, the EIB has decided to launch this program in Barbados
and the Organisation of Eastern Caribbean States (OECS)1 in order to enhance
public officials’ capacity to design and implement public-private partnership (PPP)
projects in the infrastructure sector, both at regional and country level.

The overall objective of the project is to promote reforms in macroeconomic
policy, as well as improvements in legislation, the institutional setup and related
financial measures to foster growth of and in the private sector in the various
OECS member states and Barbados, through more favourable business and
investment conditions, as well as help governments bridge any existing
infrastructure gaps through the involvement of the private sector. This will be
achieved by empowering key stakeholders in undertaking business environment
reforms and creating more favourable business and investment conditions.

The project will assist key stakeholders within the various OECS member states
and Barbados by:

    1. Increasing the knowledge of public officials to evaluate the advantages and
       disadvantages of using PPPs as compared to traditional procurement
       methods for any specific project;

    2. Assisting key stakeholders to identify the best PPP structure that suits the
       specificities of the any given project;

    3. Undertaking a comprehensive analysis of the reforms in macroeconomic
       policy, legislation, institutional setup or others that would be required to
       remove bottlenecks and to create an enabling environment for the use of
       PPP structures in their respective countries.




1
 OECS consists of nine members. OECS Membership: Antigua and Barbuda, Dominica, Grenada, Montserrat,
Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines; Associate membership: Anguilla and
British Virgin Islands.
WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                                5
Results

The main outputs of this study will include:

    1. An assessment report on the business environment of PPPs (per country
       and regionally), which covers also the macroeconomic situation and,
       institutional setup and which analysis analyses existing PPPs:
            a. A framework for comparing PPPs vs. traditional procurement for any
                given project and selecting the best PPP structure if appropriate.
            b. A review of the macroeconomic situation of Barbados and the OECS.
               In particular, analysis of the ability of governments/public
               institutions to borrow and IMF restrictions if any, An and analysis of
               the accounting treatment of PPP transactions in each country.
            c. A review of the history of PPP implementation in Barbados and the
               OECS as well as past, current and planned initiatives to foster the
               use of PPPs for infrastructure projects, in these countries in
               particular and in the Caribbean region as a whole.

    2. An assessment of the investment climate (related to infrastructure PPPs),
       the identification of bottlenecks and corresponding measures that would
       be required to address them.

    3. Organisation of a meeting to facilitate the contribution of key stakeholders
       to the project.

    4. A study on PPP potential in Barbados and the OECS, including an analysis
       and identification of the best suited PPP structures for each infrastructure
       sector. In particular, analysis of the risk and financial considerations for
       the different stakeholders.

    5. Comparative analysis of PPP vs. traditional procurement methods and the
       advantages and disadvantages per sector.

    6. Preparation of a roadmap for the successful implementation of PPP
       infrastructure projects in Barbados and the OECS. This roadmap should
       specify the required policy & regulatory reforms as well as the
       methodology to choose priority infrastructure projects and undertake the
       necessary project preparatory work.

    7. Preparation of a first preliminary list of candidate PPP infrastructure
       projects for each country and sector concerned (transport, energy, water,
       waste, hospitals, schools, others).

    8. Preparation of a professional publication summarising the key findings of
       the research.

Project Status

           The beneficiary of this project, the European Investment Bank (EIB),
            and the experts participated in a kick-off/ co-ordination meeting on 25
            November 2011.        The beneficiary gave directions as to their
WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                                6
            expectations from the project and the participants discussed and
            agreed on a revised timeframe for completion of the project.
            Importantly, a new project schedule has been set giving rise to
            changes in the date of submission of project reports and activity plans
            and the submission of work product. A schedule summarising the
            deadlines for submission and work product is presented herein.

           The experts have submitted two questionnaires, ultimately intended for
            Barbados and OECS member state Governments, to the EIB for
            comment. These are
               (i) Need assessment/ Economic Mapping Survey;
               (ii) Legal Inventory questionnaire.

           The questionnaires have been approved by the EIB and have been
            disseminated to the stakeholders in the 10 beneficiary countries.

           Contact has been made with representatives within the various OECS
            member states and Barbados informing them about the activities
            planned for the project as well as to advise them of the data gathering
            exercise. This exercise will utilise on-sight interviews and
            questionnaires that will be delivered to the identified stakeholders. It is
            anticipated that the interviews will be completed by 31 January 2012.

           Each expert will deliver workshop modules, the content of which is to
            be approved by the EIB.

Country Visits will take place from January to March 2012. The team members
will visit the beneficiary countries to identify stakeholder groups, conduct the
fieldwork, analyse the data/information presented and draft a report.


A new project completion deadline has been set at July 12, 2012.




WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                                7
                          Summary of Key Proposed Activities

                      Date                                       Major Milestone
                25 November 2011           Kick-off Meeting - EIB
                    Week of 5               Submission of Draft Questionnaires to EIB
                 December 2011                 Needs Assessment Questionnaire;
                                               Economic Mapping Survey
                                               Legal Inventory Questionnaire
                   23 December              Submission of INCEPTION REPORT and annexed
                  2011/4 January              outline/table of contents of deskwork analysis:
                       2012
                  6 February 2012            EIB to Review the First Sample of the Country-by-
                                              Country Analysis
                 28 February 2012           Submission of Draft Deskwork Analysis
                  15 March 2012             Submission of MID-TERM PROGRESS REPORT and
                                              annexed outline/ table of contents of Final Study:
                                            1st ACTIVITY PERFORMANCE REPORT
                   30 March 2012            Submission of DESK WORK ANALYSIS (FINAL) as
                                              revised further to feedback from EIB.
                                            Draft preparatory materials for the stakeholders’
                                              meeting to be Submitted to EIB, including list of
                                              attendees, presentations and workshop agenda
                  23/24 April 2012         2 Days STAKEHOLDERS MEETING IN BARBADOS
                    6 June 2012            DEBRIEFING MEETING IN BRUSSELS OR
                                           LUXEMBOURG to discuss the results of the study and
                                           receive final endorsement by stakeholders
                      June 2012             FINAL STUDY
                                            Publication of the Study
                    30 June 2012            FINAL REPORT
                                            2ND ACTIVITY PERFORMANCE REPORT




WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                                8
                   REPORT OBJECTIVE AND STRUCTURE

This Inception Report is being submitted by Menns SPRL, in consortium with
PricewaterhouseCoopers Tax and Advisory Services Limited (hereinafter referred
to as “the consortium”) as part of the deliverables for the project entitled
“Capacity building program to enhance public officials’ capacity to design and
implement PPP projects in infrastructure, both at regional and country level” with
specific emphasis on the various OECS member states and Barbados. The
infrastructure needs, funding capacity and regulatory framework varies in scope
across these countries. This Inception Report includes the following:

       The proposed methodology
       Update from the coordination meeting with the EIB
       Activity plan
       Draft work plan schedule

The three main sections of the Inception Report are as follows:

Section one - This section describes the purpose and scope of the project and
discusses any risks and limitations to complete same.

Section two - This section sets out the proposed methodology and overall
approach. It incorporates a project status report following decisions made at the
co-ordination meeting, the draft workshop programme and tentative budget
breakdown which are annexed to this report.

Section three - This section presents the activity plan and includes a draft work
plan schedule, which includes a timeline indicating the key deliverables and
milestones.

The annexes include:

        1. Draft Workshop ProgrammeDraft Work Plan
                                                                                                          Fo rm a tted: Bu llets an d Nu mb erin g




        2. Tentative Budget Breakdown
                                                                                                          Fo rm a tted: Bu llets an d Nu mb erin g




        2.3. Outline of deskwork Analysis (Draft)Draft Workshop Programme
                                                                                                          Fo rm a tted: Bu llets an d Nu mb erin g




WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                                9
                                    I. INTRODUCTION

1.    Project Framework and Objectives

The overall objective of the project is to promote reforms in macroeconomic
policy, improve legislation, the institutional setup and financial measures relating
to the enabling environment of the private sector in the various OECS member
states and Barbados, through more favourable business and investment
conditions, as well as help governments bridge any existing infrastructure gaps
through the involvement of the private sector. The main specific purpose of the
project is to empower the Governments of Barbados and the OECSkey
stakeholders to undertake business environment reforms and create more
favourable business and investment conditions as regards PPPs by:.

The specific aim of the project is to contribute to the empowerment of the
Governments of Barbados and the OECS by:

      Increasing the knowledge of public officials to enable them to evaluate, for
       any specific project, the advantages and disadvantages of using PPPs as
       compared to traditional procurement methods;

      Assisting stakeholders to identify the best PPP structure to suit the specific
       project;

      Reviewing current reforms in macroeconomic policy, legislation,
       institutional setup or others that would be required to remove bottlenecks
       and to create an enabling environment for the use of PPP structures in
       their respective countries.

This project is being funded by the European Union through the ACP Business
Climate Facility (BizClim). Potential beneficiaries for theBizClim’s ACP Business
Climate Facility (BizClim) assistance are all 79 Africa, Caribbean and Pacific (ACP)
States, ACP Regional Economic Communities, ACP governments, representatives
of the private sector in ACP countries, representatives of EU-ACP business fore,
in addition to the ACP Group, the European Commission and the European
Investment Bank (EIB). For this specific project, the “beneficiary” is the
European Investment Bank. The EIB has been an active development finance
partner in the ACP countries and in the Overseas Countries and Territories
(OCTs) since 1963 and 1968 respectively.

The General secretariat of the ACP Group is the contracting authority of the
Programme. The Secretary General of the ACP Group is the Regional Authorising
Officer.
In support of the work on the study, four experts have been appointed to the
project and will work together to execute the project activities. The four experts
are:

Team Leader: Mr. John W. Lee is a Director in PwC Tax and Advisory Services
Limited with over thirty years’ experience in accounting, PPP/PSP and
Infrastructure Finance Advisory Practice. He leads the PwC team of professional
advisors engaged in advising clients on access to the international capital
WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                               10
market, project finance, securitisation, PPP’s and PFI’s. John has played a critical
role in Jamaica’s first PPP tolled highway project where his role ranged from
conceptualising the source of funding for the sponsor’s contribution to designing
and issuing instruments. John has also developed deal structures and
concessionaire agreements with the Government of Jamaica and the private
sector; led the negotiation process on behalf of the Government of Jamaica for
PPP projects; developed the PPP framework to encourage development of
retirement and health tourism in Jamaica, as well as Jamaica’s largest hospitality
project                                                             HarmonyCove.

Key Expert in Infrastructure Development: Mr. John G. Carr is a senior
Director in the Infrastructure Finance and Public Private Advisory Unit, Corporate
Finance at PricewaterhouseCoopers, UK. He has over 35 years’ experience in
infrastructure and financial advisory to the public sector -- leading private sector
infrastructure players, funders and multilateral funding institutions. John holds a
PhD in Mathematics from London University and is one of the leading
international advisors on the development and financing of infrastructure
projects through PPP / Private Finance Initiative (PFI). He has been involved in
some of the pioneering and ground-breaking work done in the field of PPPs / PFIs
and has advised governments across Western Europe, Central and East Europe
and Asia/India to design PPP / PFI policy, strategy and structures, institutional
and regulatory frameworks.

Key Expert in Legal Frameworks for PPP: Mr. Pascal Dooh-Bill is an
independent legal consultant and has been working for the World Bank Group for
the last fifteen years, prior to that working as a consultant for various bilateral
donor agencies and development banks, mainly in the area of strengthening of
private and government-owned enterprises, and regulatory and administrative
reforms. Mr. Dooh-Bill has over twenty years of experience dealing with the
private sector and has advised both governments and the private sector on
issues     related   to    PPP     projects  for   infrastructure   development.

Event and Research Coordinator (Non-key Expert): Ms. KL Menns is a
legal advisor in trade regulation and is the managing consultant of Menns SPRL.
KL Menns has over ten years combined experience in legal academia, practice
and government advising. KL Menns will coordinate all research-based work for
this project and will act upon the instruction of the experts and the EIB to see to
it that the experts are ably assisted in the execution of the body of work
necessary to secure the ultimate project deliverable -- which is the study on the
potential for utilising PPPs in the OECS and Barbados.

2.    Assumptions & Risks

For this project the experts will be analyzing the current situation within the
various OECS member states and Barbados with a view to preparing a road map
which will be used as the basis for the development of PPPs in these countries.

The major risk identified for this project is the timely collection of data necessary
to conduct the research. This is as a result of reliance being placed on the
respective ministries and government departments within the OECS and
Barbados to provide the information during the course of the assignment. Failure
to gather the relevant data will have a major impact on the timing allocated for
WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                                                               11
the completion of the work on the project. Furthermore, if the key findings of
the project relating to the necessary reforms in macro-economic and other
policies are not taken into consideration by the respective governments then this
will affect the success of the project.

In addition to the risk identified above, other risks include a lack of
communication or consultation within the various ministries or stakeholders
resulting in lack of consensus as well as delays in the collation of the relevant
information due to limited human and financial resources.

In order to mitigate the risks identified, the experts will ensure that the
appropriate mechanisms are established throughout the project lifecycle.

Critical Success Factors for Successful Project Execution

    Full cooperation and supply of information by the Ministries:
     Caribbean Governments are severely constrained (human and financial
     resources are limited). However, the compilation and delivery of a study
     which contains viable and feasible PPPs devised and tailored to the needs of
     the Member States require the cooperation and commitment of information
     from instrumental officials in various Ministries--this is critically needed.

    Economic usage of PPPs in small island states: The level of economic
     usage in the OECS Member States could be judged as too low for some types
     of PPP. The types of PPP projects can be restricted by the size of the
     economies. For example an economic concession for an airport in only one
     small island state would require heavy government subsidies, which could
     suggest, if it was to be procured as a PPP project, a PPP structure whereby
     the Government paid an availability fee for the provision of the airport, and
     not a concession where the concessionaire was remunerated by income
     generated by the airport. This must be recognized at the outset.

    The need for alliances with other countries: There will be a need for the
     OECS Member to seek out favourable strategic alliances among ALL OECS
     Member States in order for some projects to be successful. It may also be
     important to seek out PPP projects with Barbados as well. Further, the
     stakeholders must be open to expanding PPP alliances with other
     neighbouring governments to minimise the reliance on government subsidies
     to sustain any potential PPP.

    The need for a unified approach and reaching timely consensus: It is
     important therefore for all governments to sign off on collaborations at the
     same time or on a timely basis and to actually reach consensus. In small
     island countries where there is a small population to utilise certain PPPs a
     private investor must be able to benefit from cross-subsidisation. Wilting
     universal government commitment and consensus can cause potentially
     viable PPP initiatives to fail. This is a typical problem faced on most business
     fronts in the region and could hinder the success of a PPP project.

    Effect of low per capita income in small island developing countries
     on PPP utility: The disparity in per capita income in the OECS Member
     States and the willingness of the citizens to subject themselves to real
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     commercial rates/costs attributed to the use of a PPP service may also
     present a problem. Invariably where there is a PPP operator, commercial
     rates must be charged to make investments viable.

    Lack of political will: The political capital that incumbent governments will
     lose from passing on the commercial rate or the cost of heavily subsidising a
     PPP to the people can delay the implementation of PPP projects or hinder the
     success of the project.

    The Caribbean Valuation of Time and Its Impact on PPP: Time may not
     equal money for some Caribbean countries as the value of time is perceived
     to be extremely low. This perception coupled with the low per capita income
     can mean that citizens/ people will not avail themselves of PPP projects
     thereby contributing to the failure of the scheme.

    Wide and Inclusive Government Alliances to Foster Cross-
     Subsidisation: Certain projects may be perceived as a complete “no go”
     because of low per capita, low small population, low density and uneven
     population distribution. However the creation of wider networks and alliances
     allow for cross-subsidisation. Other projects fostered by wide and strong
     alliances could likely be largely useful and successful in the OECS and in the
     Eastern Caribbean as a whole.




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                       II. METHODOLOGY & ACTIVITIES

This project will be conducted in Three (3) Phases. These are an Inception Phase,
an Execution Phase and Conclusion as per the Organisation and Methodology and
the Work Plan herein. A progress report on the various activities follows.


1.    Inception Phase

a.          Project Start Up

Coordination meeting

           The beneficiary of this project, the European Investment Bank (EIB),
            BizClim and the experts participated in a kick-off/co-ordination meeting
            on 25 November 2011 at the EIB headquarters in Luxembourg. The
            participants included Dr. M'Hamed Cherif (Bizclim), Ms. Monica Arevalo,
            Mr. Diego Ferrer (EIB), Mr. John Lee and Mr Pascal Dooh-Bill (key
            experts from the consortium), Tomas Savickas and KL Menns (project
            managers). The beneficiary gave directions as to their expectations
            from the project and the participants discussed and agreed on a revised
            timeframe for completion of the project. A schedule summarising the
            deadlines is presented below.

           It was also agreed at the meeting that certain changes in the scheduled
            delivery of the work product be made. (These changes are detailed in
            the Activity Plan herein).

           It was agreed at the meeting that the print publication of the study can
            be reduced to 50 print copies and other copies can be made available
            on DVD/CD ROM.

           It was also agreed that a request be made to extend the deadline for
            completion of the project. This request was made of to Ms. Dominique
            Bourgault and it was subsequently agreed that deadline for completion
            of all project activities, including submission of the final study and final
            reports, is June 30, 2012.

Appointment of Non-Key Expert: Event Coordinator

           In accordance with Article 6.1.2 of the ToR an event
            coordinator/logistics and research non-key expert was appointed for
            the project. It was agreed with Ms. Dominique Bourgault that the role
            of event coordinator can be enlarged to include functions of research in
            an effort to enhance the data gathering for the project. The call for
            experts was published on DevelopmentAid.org taking into account the
            Organisation and Methodology, the enlarged functions under the job
            and the ToR of the project. Ms. KL Menns was appointed by the PMU
            Unit as event coordinator/logistics and research person on December 2,
            2011.
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Proposed Auditor

           It is hereby proposed that Mr. Michel Debue be appointed as external
                                                                                                                                                                  nd
                                                                                                          Co mment [MAC1 ]: Is it Michel or Mikael (as in the 2        line)?




            auditor for this project. Mr. Mikael Debue of CdP Partners is an
            experienced accountant who has conducted numerous audits for EU
            externally funded contracts. CdP Partners is a member of UHY, an
            international association of independent accounting and consulting
            firms, whose organising body is Urbach Hacker Young International
            Limited, a UK company.

Needs Assessment Questionnaires

           The experts have submitted two questionnaires, ultimately intended for
            Barbados and OECS member state Governments, to the EIB for
            comment. These are
                    Need assessment, Economic Mapping Survey
                    Legal Inventory questionnaire

            The EIB has started the process of commenting on the questionnaires
            and has suggested the following:

                      Option 1 - the two (2) questionnaires are presented
                       separately but both carry the same introductory text.
                     Option 2 – the two (2) questionnaires are presented as one
                       (1) joint questionnaire.

           The questionnaires have been vetted and approved by the EIB on
            January 4, 2012.

           Two-data gathering questionnaires (An Economic Survey and a Legal
            Inventory Questionnaire) were sent to the national authorising officers
            in each Member State on January 4, 2012. The national authorising
            officers have been solicited to act as country focal points for the
            purpose of distributing the questionnaires, collecting data and
            scheduling data gathering interviews and bilateral discussions which
            will take place between January 16 and February 6, 2012.

Notification of Member States/OECS and Barbados Secretariat on Project
Start

           Contact has been made with representatives within the various OECS
            member states and Barbados informing them about the activities
            planned for the project as well as to advise them of the data gathering
            exercise. Stakeholders contacted include national authorising officers in
            all beneficiary countries, the OECS Secretariat, the CARICOM
            Secretariat, the Caribbean Development Bank, the International
            Finance Coropoeration, the Inter-American Development Bank
            (Barbados) and representatives at Embassies and Missions in Brussels.

           The data gathering exercise will utilise on-sight interviews, and
            questionnaires that will be delivered to the identified stakeholders. It is
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            anticipated that the on-sight interviews will be completed by 31
            January/February 6, 2012. Contact has been established with
            stakeholders in relevant Ministries in the OECS and Barbados to
            schedule on-sight interviews.

Draft Work Plan

           A draft activity plan is appended (Annex 1 draft work plan). It is
            anticipated that this project will be completed by 30 June 2012. There
            is a strong likelihood that the Christmas/holiday break will impact the
            draft work plan and a delay of one, but no more than two weeks, is
            factored into the work plan. A one to two week delay will not impact
            the deadline of the project.

           The work plan incorporates an update of the original timetable
            submitted with the tender/bid. The updates are largely changes in
            dates and sequencing of the project activity and submission of work
            product and project reports. These changes were proposed and
            approved at the meeting with the EIB in Luxembourg.

Data Gathering, Assessment Report of Existing PPPs in Relevant Member
States

           Country Visits will take place from January to March 2012. One or more
            team members will visit each country to identify stakeholder groups,
            conduct the fieldwork, analyse the data/information presented and
            draft a report.

           Section 6.5 of the Terms of Reference for this contract stipulates that
            six (6) regional travels are foreseen to the Caribbean and to Europe to
            facilitate filed field visits. However, it is anticipated that the data
            gathering exercise will require more than six (6) trips within the
            Caribbean and one trip to Brussels to attend a de-briefing meeting.
            Approval is sought for additional trips not contemplated by the Terms
            of Reference so that each expert can conduct interviews and secure
            data to inform the deskwork analysis. See provisional budget for
            incidental expenditure.

Workshop Programme

Each expert will deliver workshop modules, the content of which is to be
approved by the EIB. A summary of the draft workshop programme is appended
(Annex 2 draft workshop programme)


2.    Implementation Phase – Activities

Workshop

           A 2-day Stakeholder Meeting will be held in Barbados on 23 and 24
            April 2012. Each expert will deliver workshop modules, the content of

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            which is to be approved by the EIB. A summary of the draft workshop
            programme is appended (Annex 2 draft workshop programme).

           It has been proposed by the EIB that, where the incidental expenditure
            budget allows, additional stakeholders should be invited to the
            workshop. These stakeholders will not be paid a daily subsistence
            allowance. However, the provisional budget for catering and the
            provision of workshop material factors in the additional cost accruing to
            the participation of an additional 20 stakeholders. See provisional
            budget for incidental expenditure.

Specific Activities

In implementing the Terms of Reference, the experts will carry out the following
specific activities:

    1. Familiarise stakeholders of the OECS and Barbados on the potential for
       using PPPs in the infrastructure sector, as well as identifying policies,
       regulatory or other reforms necessary to create favourable conditions for
       development of PPPs in the region.

    2. As part of the familiarisation process, a study will be undertaken and a
       deskwork analysis report will be prepared which includes:

            a.   analysis of the macroeconomic situation of the OECS and Barbados
            b.   government’s access to funding to meet recurring and capital needs
            c.   history of PPP implementations
            d.   current and planned initiatives at the project or investment level
            e.   procurement requirements for large infrastructure projects
            f.   assessment of the investment climate (related to infrastructure
                                                                                                          Fo rm a tted: Bu llets an d Nu mb erin g




                 PPPs), the identification of bottlenecks and corresponding measures
                 that would be required to address them

    3. The experts will facilitate stakeholder input to the drafting of the relevant
       presentation materials.

    4. The experts will organise, manage and deliver a two day stakeholder
       regional workshop. The workshop will be based on the results of the on-
       going mapping of national legislation, stakeholder consultation and the
       study.

    5. We will ensure that the workshop presentations/materials include:

                An overview of the project;
                An analysis of the macroeconomic/credit situation of each in scope
                 country;
                An analysis of the ability of each government/public institution to
                 borrow relative to outstanding debt levels;
                An analysis of laws and regulations;
                Analysis of the accounting treatment of PPP operations ;
                History of PPP implementation in Barbados and the OECS;
                International PPP best practices;
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               Advantages and disadvantages of PPPs as compared to traditional
                procurement;
               Summary of types PPP deal structures types and project suitability;
               Cost benefit analysis of using PPPs in a small economy;
               Guidance on the most appropriate reform proposals for PPP;
               The workshop is to feature presentations, case studies,
                brainstorming sessions, working groups and conclusions on the way
                forward in undertaking business environment reforms and creating
                more favourable business and investment conditions for the private
                sector as regards investing in infrastructure projects.

     6. Opportunities will be provided for participants to comment and make
        proposals. The resource experts will also facilitate sessions designed to
        collate recommendations, agree to action plans and structure a roadmap
        for implementation.

The experts will produce a summary of findings including a roadmap for policy,
institutional, regulatory and other required reforms.

Reporting


The next main reporting requirement is to submit the Final Inception Report and
thereafter a Draft Mid Term Progress Report and Activity Performance Report will
be submitted. Each report will incorporate comments from government officials,
private sector and other stakeholders as provided throughout the consultation
process and during the workshop. All reports will follow BizClim templates and
will include an executive summary. Further, the mid-term progress report and
final report shall consist of a narrative section and a financial section.


3.    Phase Out Stage

There will be a debriefing meeting with the EIB team, the relevant members of
the European Commission as well as the relevant ACP missions in Brussels. At
this meeting, the results of the study will be presented. Afterwards, the summary
of findings including the roadmap will be published and disseminated to the
workshop participants and the Ministries within the respective countries.




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Draft Inception Report                                                                               18
                                III.           ACTIVITY PLAN

In managing the project, the Consortium will adopt the European Commission’s
Project Cycle Management Guidelines and deliver a streamlined approach to
project management.


3.1. Summary of Key Proposed Activities

                      Date                                           Activity
                25 November 2011           Kick-off Meeting - EIB
3.2. Pr         Week of 5                   Submission of Draft Questionnaires to EIB
     op         December 2011                  Needs Assessment Questionnaire;
     os                                        Economic Mapping Survey
     ed                                        Legal Inventory Questionnaire
     W          23 December                 Submission of INCEPTION REPORT and annexed
     or         2011/4 January                outline/table of contents of deskwork analysis:
                2012
     k
                6 February 2012               EIB to Review the First Sample of the Country-by-
     Pla
                                               Country Analysis
     n
                28 February 2012              Submission of Draft Deskwork Analysis
                15 March 2012                 Submission of MID-TERM PROGRESS REPORT and
The                                            annexed outline/ table of contents of Final Study:
proposed                                      1st ACTIVITY PERFORMANCE REPORT
workplan
                30 March 2012                 Submission of DESK WORK ANALYSIS (FINAL) as
as agreed
                                               revised further to feedback from EIB.
with the
                                              Draft preparatory materials for the stakeholders’
beneficiar
                                               meeting to be Submitted to EIB, including list of
y      and
                                               attendees, presentations and workshop agenda
Bizclim is
set    out      23/24 April 2012           2 Days STAKEHOLDERS MEETING IN BARBADOS
below.
                6 June 2012                DEBRIEFING MEETING IN BRUSSELS OR
                                           LUXEMBOURG to discuss the results of the study and
                                           receive final endorsement by stakeholders
                June 2012                   FINAL STUDY
                                            Publication of the Study
                30 June 2012                FINAL REPORT
                                            2ND ACTIVITY PERFORMANCE REPORT




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                                                                                                    DAYS WORKED BY EXPERTS
                                                                                        JOHN           JOHN   P.DOOH-      KL                                  DEADLINE FOR
                                                                                      LEE/TEAM      CARR/KEY BILL/KEY MENNS/EVENT                           SUBMISSION OF WORK
  INCEPTION:NEEDS ASSESSMENT AND DESKWORK ANALYSIS                                     LEADER        EXPERT 2 EXPERT 3 COORDINATOR                         PRODUCT/ACTIVITY DATE
                  Attend meeting with EIB in Luxembourg.
                                                                                           1                                                                          25-Nov-11
   Prepare and Disseminate Needs Assessment Questionnaire and Meet with
  Stakeholders to obtain input on methodological approach and data to inform
  preliminary assessment of business environment of PPP. Submission of Draft
                Questionnaires to EIB. Conduct data-gathering.                             4               6              4                  4

 Submission of INCEPTION REPORT and annexed outline/table of contents of
                          deskwork analysis.                                                                                                               23 December 2011/ 5 January
                                                                                           1                                                                         2011
CARRYOUT DESWORK ANALYSIS. Conduct an analysis of the macroeconomic
 environment situation and regulatory environment, reviewing the international
                        PPP experiences and practices.
   Review Government of Barbados and OECS policies/laws regarding PPP and
   Review multilateral agencies’ policies regarding Barbados and OECS PPPs in
   particular World Bank, Caribbean Development Bank, International Finance
Corporation, Inter-American Development Bank and other regional bodies such as
         Development Bank of Jamaica and Planning Institute of Jamaica.

 Review of Procurement policies/laws for PPP and Non-PPP projects in emerging
                                  economies.


   Develop matrix of desired PPP results and compare with traditional project
                    procurement for infrastructure project.

Analyse best practices for recording expenditures on PPP and whether to show as
                    “on balance sheet” or deferred financing.


                 Define all the various types of PPPs applicable.

 Compare applicability of different PPP models relative to different infrastructure
projects to ascertain whether the different methodology for PPP are applicable to
                            any one type of structure.                                    10              20              10



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  Draft Inception Report
        Prepare a cost benefit analysis of using PPPs in a small economy.

   Conduct a review of PPP projects in Barbados, OECS and other emerging
  countries in the Caribbean charting: Success and failures, Fates peculiar to
smaller economies, Cost of documentation, Bidding process, Economies of scale
                          due to small size of population.
Compile, Draft and Deliver Preliminary Assessment Report on the Business and
 Regulatory Environment of PPPs (which also covers macroeconomic situation,
                institutional setup and analysis of existing PPPs)
                             Publication of the Study                                                                                                                             Co mment [MAC2]: Ro w to be del eted as no t rel evant here.




   EIB to Review the First Sample of the Country-by-Country Analysis
                                                                                                                                                                     06-Feb-12
                   Submission of Draft Deskwork Analysis




         EXECUTION: UNDERTAKE STUDY AND WORKSHOP

 Prepare draft road map dealing with policy, institutional, regulatory and other
                              required reforms.

   Perform analysis to determine whether separate secretariats/institutions are
required in both regions to support potential or identified candidate PPP projects
or PFI schemes and Supply Preliminary Report on Potential PPP and PFI Schemes
                         for consideration by stakeholders
  Recommend procurement procedures taking into consideration the size of the
 economies and readiness of the existing PPPs following, Regulatory framework,
     Laws and regulations relevant for PPPs, Accounting and financing rules,
     Contractual terms of partnership, Granting and enforcement of security,
   Regulations affecting foreign direct investment, Regulations affecting special
purpose vehicles and joint ventures, Conflict resolution mechanisms, Bankruptcy
                                     procedures

   Submission of DESK WORK ANALYSIS (DraftFINAL) as revised further tofor
                          feedback from to EIB.
                                                                                                                                                                     28-Feb-12

 Submission of MID-TERM PROGRESS REPORT and annexed outline/ table of
    contents of Final Study and 1st ACTIVITY PERFORMANCE REPORT
                                                                                         10              20              12                                          15-Mar-12




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 Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in Infrastructure, both at regional and country level – OECS and Barbados
 Draft Inception Report
Submission of DESK WORK ANALYSIS (FINAL) as revised further to feedback
                            from EIB.
                                                                                                                                                                      30-Mar-12


Draft preparatory materials for the stakeholders’ meeting to be Submitted to EIB,
         including list of attendees, presentations and workshop agenda
                                                                                                                                                                      30-Mar-12
Event Coordinator and Menns SPRL management and logistics personnel to liaise
  with OECS Member State focal point and Barbados Government focal point to
finalise arrangements for 2-Day briefing meeting in Barbados (including drafting
   of promotional materials, notices to governments and invitations to meeting
 participants and press releases, venue booking and preparation, conference kits
   and banners etc.,catering arrangements, presentation equipment, finalizing
meeting attendants lists, dessemination of study publication and other handouts
                       authorized by EIB and stakeholders)
                                                                                                                                             6

Event Coordinator to make arrangements for travel of stakeholders from OECS to
   Barbados and to facilitate DSA and make arrangements for travel fare re-
                                imbursements.
                                                                                                                                             1


Vetting and Preparation of Workshop Presentations and Demonstrations for Print
                               and PowerPoint
                                                                                                                                             2

Key Experts and Stakeholders to finalise agenda and Prepare and Circulate Initial
         Assessment Reports for Consideration for the 2-Day Meeting.


              2 Days STAKEHOLDERS MEETING IN BARBADOS
                                                                                                                                                                  23, 24 April 2012
   Identify priority investment sectors based on meeting with stakeholders and
identify the best PPP model applicable to the project taking into consideration the
                      size of the economy and level of utilisation

 Visit Ministries that deal with Infrastructure or other government agencies that
        coordinate development to obtain listing of infrastructure projects


        Align projects with PPP model that is best suited for the projectm



  WP1.10.1-2.008
  Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in Infrastructure, both at regional and country level – OECS and Barbados
  Draft Inception Report
Circulate among key stakeholders, after written approval by European Investment
    Bank, the following: Assessment of investment climate, Preliminary list of
 Candidate PPPs, Study on potential for Infrastructure PPPs, Road map for policy
                             and regulatory reforms

 Collate views of major stakeholders for incorporation into studies and roadmap,
   collect feedback and organisation of conference calls with key stakeholders.


                      Compile and Submit Mid-Term Report                                                                                                                            Co mment [MAC3]: Ro w to be del eted.




Finalise study and roadmap and produce professional publication on the status of
                       infrastructure PPPs in the region.



CONCLUSION:DEBRIEFING MEETING AD PUBLICATION OF STUDY

   DEBRIEFING MEETING IN BRUSSELS OR LUXEMBOURG to discuss the
      results of the study and receive final endorsement by stakeholders
                                                                                           1               1              1                  1                        06-Jun-12

                       PUBLICATION OF FINAL STUDY


                        Make final Amendments to Study
                                                                                           1               2              3                  1

      Disseminate Professional Publication (Study) according to direction of
                            Stakeholders and PMU
                                                                                           1                                                 1                        09-Jun-12
                                FINAL REPORT


                   2ND ACTIVITY PERFORMANCE REPORT
                                                                                           1               1                                                          30-Jun-12

                   TOTAL DAYS WORKED BY EXPERTS
                                                                                          30              50              30                16
                        EXTERNAL AUDIT COMPLETED                                                                                                                    July 12, 2012




  WP1.10.1-2.008
  Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in Infrastructure, both at regional and country level – OECS and Barbados
  Draft Inception Report
                                           ANNEXES

                     ANNEX 1. WORKSHOP PROGRAMME


                              DRAFT SUMMARY PROGRAMME
                                     Agreed Outline



        CAPACITY BUILDING PROGRAM TO ENHANCE PUBLIC OFFICIALS’
            CAPACITY TO DESIGN AND IMPLEMENT PPP PROJECTS IN
          INFRASTRUCTURE, BOTH AT REGIONAL AND COUNTRY LEVEL

                                      April 23 & 24, 2012


Workshop Objective: The Objective of the seminar is to provide attendees with:

      Macroeconomics situation in Barbados and the OECS
                                                                                                          Co mment [MAC4 ]: Although this is relevant as background, I don’t think it should be liested here. Please de lete.




                                                                                                          Fo rm a tted: Sp ace Befo re: 0 p t, After: 0 p t




      Understanding of Traditional Procurement vs. PPPs - when to use PPP
       vehicles to finance infrastructure projects
     Understanding of the types of PPPs and respective deal structures
     Cost Benefit Analysis of using PPPs to finance infrastructure developments
                                                                                                          Fo rm a tted: Bu llets an d Nu mb erin g




     International PPP Best Practices
     History of PPP implementation in the region
    Understanding of when to use PPP vehicles to finance infrastructure
    projects
    Cost Benefit Analysis of using PPPs to finance infrastructure
    developments
    Understanding of the Regulatory, Policy and Institutional framework for
       implementing PPP
     contracts
     Guidance on the Reform Proposals



                                     Monday 23 April 2012

                                               Day 1:


Time        Agenda Item
08H00-      Registration
08H30
09H00-      Opening Remarks (Officials)
09H30
            Welcome and Workshop Overview
            Moderators: Mr. John Carr/Mr. John Lee, PricewaterhouseCoopers,
            International PPP Expert/Team Leader
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Time        Agenda Item
09H30-      Survey Questionnaire (Awareness survey)
10H00
10H00-      Tea/Coffee/Comfort Break (media interviews)
10H30
10H30-      An Overview of the Developments within the Region
11H30
11H30-      An Economic overview of Barbados and the OECS
13H00              Macroeconomic conditions
                           o GDP
                           o Balance of Payment
                           o Trends in social issues (crime, unemployment, etc.)
                   National long term strategic plan
                   Vision
                   Analysis of the ability of each government/public institution to
                    borrow relative to outstanding debt levels
                   Regulatory Environment
13H00-      Lunch
14H00
14H00-      An overview of PPP
15H00               PPP in a nutshell
                    PPP Risks, Risk Transference and Allocation
15H00-      Traditional Procurement vs. PPP
15H45       Case Studies
            Types of PPPs and respective Deal structure
15H45-      Tea/Coffee/Comfort Break
16H00
16H00-      Case Studies (continued)
17H00       Types of PPPs and respective Deal structure
17H00-      Round-Up Session as a Plenary
17H30/
18H00       Review and Assessment of the Day and what is coming up tomorrow.


                                     Tuesday 24 April 2012

                                               Day 2:


Time        Agenda Item
08H30-      Plenary session: review of Day 1 and the day ahead
08H45       (including any programme revisions)
08H45-      PPPs, Barbados and the OECS Experience
09H30       Risk Mitigating Options available for Barbados and OECS
            Types of projects best suited for PPP structures
09H30-      Analysis of the accounting treatment of PPP operations
10H00       Cost benefit analysis of using PPPs in a small economy
10H00-      Tea/Coffee/Comfort Break
10H30
10H30-      Interactive Activity Session
11H00
11H00-      International PPP best practices
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Draft Inception Report                                   25
Time        Agenda Item
12H00       Guidance on the most appropriate reform proposals for PPP
12H00-      Implementation Proposals
13H00       (to be completed with participants)
13H00- Lunch
14H00
14H00- Implementation Roadmap
15H00            (with feedback on the Implementation Proposals)
15H00- Tea/Coffee/Comfort Break
15H15
15H15- Panel Discussion
16H15
16H15      Assessment and Feedback
16H45
16H45      Final Remarks from the Moderators
17H00
17H00      Closing Remarks (Officials):
17H30-
18H00
Closure of Workshop - Cocktail
19H00-     Cocktail – time and venue to be arranged
21H00

Notes
General    We suggest that the programme be reasonably flexible and that the
           times be adjusted according to participant engagement and response.
Speaker     The annotated workshop programme incorporates speaker
Guidelines    guidelines.
            We encourage speakers to develop the content of their respective
              module.
            All workshop documents, including presentations, must follow EIB
              templates and meet the required approvals prior to delivery (a
              timeline for deliverables will be distributed to each speaker and
              facilitator).
Speakers   A potential resources list is available separately. The programme will
           be updated as speakers and facilitators are confirmed.
Final      The Final Workshop Programme will be tailored to the audience and
Workshop   the speaker’s guidelines adjusted accordingly taking into consideration
Programme directions from the beneficiary and EIB
Media      The project team will incorporate visibility requirements.

RAME




WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                   26
                                                    ANNEX 2. TENTATIVE BUDGET BREAKDOWN
                                            PROVISION FOR INCIDENTAL EXPENDITURE                                                 Price EURO
 TRAVEL TO LUXEMBOURG
 INTERNATIONAL TRAVEL PER EXPERT                                                                             RETURN TRAVEL          PER DIEM        LOCAL TRAVEL
 MR. JOHN LEE (Travel from Jamaica to Luxembourg)                                 lump sum                                   1450             237                   80

 PROVISION FOR ON THE GROUND DATA GATHERING, RESEARCH AND BILATERAL MEETINGS
 INTERNATIONAL TRAVEL PER EXPERT                                                                             RETURN TRAVEL          PER DIEM        LOCAL TRAVEL
 MR. JOHN LEE (Travel from Jamaica to OECS/Barbados and within OECS)              lump sum                                    720             600                  250

 MR.JOHN CARR (Travel from UK to OECS/Barbados and within OECS)                   lump sum                                    980             400                  185
 MR.PASCAL DOOH-BILL (Travel from Washington DC to OECS/Barbados and within
 OECS)                                                                            lump sum                                    850             400                  185

 MS.KL MENNS (Travel from Belgium to OECS/Barbados) and within OECS               lump sum                                    980             400                  185

 Data Gathering/Telephone Interviews/ Calls                                       lump sum                                    200

 PROVISION FOR TWO-DAY WORKSHOP IN BARBADOS
 Conference Room, Venue, equipment, rooms for bilateral meetings and breakout
 sessions                                                                                                                    7400
 Conference Kit and workshop material (for up to 30 persons)                      20 x Per Person
                                                                                                                              600
 Workshop Catering(Daytime Catering) (for up to 30 persons)                       25x Per Person x Per Day                   1500
 Closing Day Cocktails (for up to 30 persons)                                     25 x Per Person                             750
 Visibility Material (including graphic design)                                   lump sum                                    280
 Conference Planning/Telephone Calls/Invitations/Notices/Publicity                lump sum                                    380
 Admin, Printing, Photocopying, Graphic design                                    lump sum                                    760

 TRAVEL FOR STAKEHOLDERS                                                                                     RETURN TRAVEL          PER DIEM
 Stakeholder Travel and DSA (up to 10 persons)                                    lump sum                                   1600            2220

 INTERNATIONAL TRAVEL PER EXPERT                                                                             RETURN TRAVEL          PER DIEM        LOCAL TRAVEL
 MR. JOHN LEE (Travel from Jamaica to OECS/Barbados)                              lump sum                                    450             444                  120

 MR.JOHN CARR (Travel from UK to OECS/Barbados)                                   lump sum                                    850             444                  120

 MR.PASCAL DOOH-BILL (Travel from Washington DC to OECS/Barbados)                 lump sum                                    600             444                  120
 MS.KL MENNS (Travel from Belgium to OECS/Barbados)                               lump sum                                    950             666                  240

 PROVISION FOR DE-BRIEFING MEETING IN BRUSSELS
 Cocktail/Catering (for up to 20 persons)                                              25 x Per Person                        500


WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                   27
 Visibility Material                                                                   lump sum                               120

 Printing, Photocopying, Graphic design                                                lump sum                               200


 INTERNATIONAL TRAVEL PER EXPERT                                                                             RETURN TRAVEL          PER DIEM        LOCAL TRAVEL
 MR. JOHN LEE (Travel from Jamaica to Belgium)                                         lump sum                              1400             464                  150

 MR.JOHN CARR (Travel from UK to Belgium)                                              lump sum                               200             232                  150

 MR.PASCAL DOOH-BILL (Travel from Washington DC to Belgium)                            lump sum                              1200             464                  150

 PRODUCTION, PUBLICATION , DISTRIBUTION OF STUDY
 Production of Study/Booklet (graphic design, printing) (20 copies)                    lump sum                              1600
 Production of Study/CD (graphic design, CD label, computer programming) (50 copies)   lump sum                               650
 Additional Copies for PMU (up to 10 copies)                                           lump sum                               400
 Additional copies for EIB (up to 20 copies)                                           lump sum                               600
 Admin. Support, graphic design, photocopy, distribution, postal delivery              lump sum                               980

 EXTERNAL AUDIT
 External Auditing                                                                     lump sum                              1500

 TOTAL INCIDENTAL EXPENDITURE                                                                               40,000




WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report                                   28
     ANNEX 3. OUTLINE OF DESKWORK ANALYSIS (DRAFT)

Outline of Deskwork Analysis

The Deskwork Analysis seeks to:

     a. Provide a Framework for Comparing PPPs vs. Traditional Procurement for
        Any Given Project to Help Governments Identify if PPPs are the most
        appropriate option and, if so, which type;

     b. Review Macroeconomic Situation and Ability of Governments to Borrow +
        Provide Analysis of PPP Accounting Treatment (off vs. on balance sheet);

     c. Review the History of PPP Implementation + Current and Planned Initiatives
        (both at the project and investment climate level);

     d. Provide an Initial Assessment of Investment Climate as regards PPPs +
        Preliminary Identification of Bottlenecks

The Proposed Outline for the Deskwork Analysis is as follows:

1.    Executive Summary

In this section, the intent is to provide a summary of key findings.

2.    Introduction

In this section, the intent is to provide background, description, scope and
purpose of the Project with respect to the OECS and Barbados.

      2.1      Background and Objectives of the Report
      2.2      Structure of the report
      2.2      Description and Scope of Project
      2.3      Overview of OECS and Barbados
      2.4      Overview of PPPs

3.    Macroeconomic Situation: Funding Capacity and Availability

In this section, the intent is to gain an understanding of the past and current
economic performance of each territory by performing and/or examining the
following:

        3.1    Comparative Analysis of the following for each territory:
                Population
                Real Gross Domestic Product (GDP)
                GDP per capita
                Government Total Debt/GDP
                Government Foreign Debt/GDP
                Balance of Payment
                Key Sector Performance
WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report
                Exchange rates/interest rates
                Inflation
                Social issues (unemployment, poverty, crime, etc
                Sovereign credit rating/investment-grade credit rating
      3.2      Strategic Plan/Vision (expected to refer to high level plans of
               Government)
      3.3      Preliminary Assessment of Investment Climate as regards PPPs +
               Preliminary Identification of Bottlenecks
                Investment Incentives (general)
                Foreign Direct Investments at the Project Level
                Incentives and/or Restrictions on Foreign Direct Investments

4.    History of PPP within OECS and Current and Planned Initiatives

In this section, the intent is to examine the performance and outcome of existing
large infrastructure projects and assess the current needs or planned initiatives for
PPP suitability.

      4.1      Top Infrastructure Projects
                Project Overview including structure
                Allocation of Risk
                Project Size
                Funding Sources
      4.2      Institutional Issues
                Infrastructure Policy
      4.3      Current and Planned Initiatives
                Development/Investment Plans
                Knowledge and Expertise of Government and Private Sector
                Private Participation and Project Implementation

5.    PPPs in Context - Traditional Procurement vs. PPP Procurement
                                                                                                          Formatted: French (France)




In this section, the intent is to explore Traditional Procurement as compared to
PPP, from a financial perspective for each territory.

      5.1       Characteristics
      5.2       Types of PPPs and benefits
      5.3       Payment Profile/Mechanism (who pays?)
                Funding sources
      5.4       Cost-Benefit Analyses
      5.5       Impact on National Budget
      5.6       Economic Growth -Traditional Procurement vs. PPP

6.    Legal and Regulatory Framework

In this section, the intent is to assess the current legal and regulatory framework
and their suitability/flexibility for PPP contracts and where applicable, on a
territory by territory basis, indicate areas that will need reform in order to allow
PPPs to work.

      6.1      Risk Allocation and Transfer
      6.2      Procurement guidelines, indicating whether or not these are effective
WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report
      6.3     Specialist/Advisory Unit for PPPs or infrastructure development                      (its
     existence, role and function)

7.    Analysis of PPP Accounting Treatment (On vs. Off Balance Sheet)

In this section, the intent is to identify/assess based on the type of PPP project,
risk allocation/transference whether the value of the asset should be recorded on
the Government’s Balance Sheet or not.
                   Risk (Private vs. Government)
                   Government Obligations

8.    Lessons Learned on past infrastructure development projects

In this section, to the extent that the information is available (and not already
covered in Section 4, the intent is to describe, on a territory by territory basis, the
experience of the governments and the outcomes of the projects.




WP1.10.1-2.008
Capacity Building Program to Enhance Public Officials’ Capacity to Design and Implement PPP Projects in
Infrastructure, both at regional and country level – OECS and Barbados
Draft Inception Report

				
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