How to do PPP

Restaura proposes the following steps before obtaining the Integrated Build Heritage Revitalisation Plan (IBHRP). The list is interactive and elegantly guides you through the process. To see the particular step, please click on the button designated by a + sign next to the step.
Steps in implementing Integrated Built Heritage Revitalisation Plan (IBHRP)
1 The first step to be completed in heritage revitalisation strategies based on PPP is to prepare the IBHRP.
2 After the completion of the IBHRP, it is necessary to reach the consensus of the public. Once it is agreed upon, the City Council passes the document.
3 Once the IBHRP is passed by the City Council, it is necessary to define the list of heritage revitalisation projects/activities which are gathered in the Action plan.
4 After the analysis of different delivery options, the priority project for PPP in heritage revitalisation is selected.
5 It is necessary to justify the use of the PPP option for the heritage revitalisation project by analysing its affordability, risk allocation, bankability and value for money analysis.
6 In order to prepare and get the approval of the project proposal, it is required to set up the team and governance structure who will develop the project plan and timetable with help of the advisers. They also commission further studies related to the project, prepare the PPP arrangement, and decide on the selection of the procurement method. Then, the bidding committee is formed who defines the bidding criteria. A draft PPP contract is usually prepared at this stage.
7 As to start the bidding process, it is necessary to publish the procurement notice together with the prequalification questionnaire. Then, the number of bidders is shortlisted and invited to tender. As to provide bidders with detailed information on all aspects of the project, interaction between the public procurement authority and the bidders. Then the evaluation of tenders is done and finally the preferred bidder selected.
8 As to conclude the contract with the preferred bidder, it is necessary to check if some final amendments to the contract are needed. Then financial agreements are settled and the contract is closed.
9 In order to ensure proper implementation process of the PPP project, the contract management team is established with the aim to perform day-to- day contract management activities and their regular monitoring. They also deal with possible changes of the contract as well as disputes, if they occur. The termination of the contract is the final phase of the implementation process and its issues should be clearly addressed.
10 Two types of monitoring are expected: regular monitoring of the implementation of the PPP project and ex-post evaluation which presents lessons learned and serves to improve future decisions about PPP projects.

LEGISLATION

Legislation Documents Area
Croatia: Law on Public-Private Partnership (OG 78/12, 152/14, 114/18)  (0)
PPP Institution in Croatia: Ministry of economy entrepreneurship and crafts  (0)

INSTITUTIONS

Legislation Documents Area
Croatia: Law on Public-Private Partnership (OG 78/12, 152/14, 114/18)  (0)
PPP Institution in Croatia: Ministry of economy entrepreneurship and crafts  (0)

TENDERS

Currently there are no tenders in the system


Currently there are no tenders in the system

FINANCING

Here are the most widely used models for Financing Cultural Heritage in practice by the use of the PPP Approach. These models provide a guide of how to approach the revitalisation from the perspective of financing. Appropriate financing model is to be decided usually during or just before the negotiating phase.


Financing Description
Finance only a private entity, such as a financial services company, a pension fund or a bank, funds the construction of the public infrastructure directly or through mechanisms such as a long-term lease or a bond issue. The public partner bears all risks and costs of the construction and operation of the facility.
Design-Bid-Build the public partner defines the requirements for the project, ensures its financing and design. The procurement procedure is used to select a private bidder, responsible for the construction. The public partner is the owner of a newly constructed facility and provides its service and maintenance.
Design-Build-Maintain the private partner designs, builds, and maintains the infrastructure in accordance to the specifications and requirements of the public partner. The price is usually pre-agreed and fixed, so the risk and cost of quality assurance and maintenance of the constructed facility is on the private partner. The public entity owns and operates the assets.
Operate-Maintain the public entity signs a contract with the private partner to provide or maintain a service through the public facility. The ownership of the asset remains with the public entity. Sometimes this model is referred to as an outsourcing contract.
Operation Licence the public entity grants a license to the private entity to provide public service, usually with limited duration. This model is frequently used in IT projects.
Design-Build-Operate the private partner designs and builds a public property according to the requirements and specifications of the public partner and at a fixed price. The public entity bears financing and costs. Once the construction is completed, the private partner takes the property in a long-term lease to provide service.
Build-Operate-Transfer the private partner builds and finances the construction of the public facility and uses it to provide service under control of the public entity. The private partner uses the facility under the long-term lease/concession and upon the expiration of the lease, the facility is transferred back to the public partner.
Design-Build-Finance-Operate the private partner designs, builds, and finances a new public facility under a long-term lease. During the lease period, the private partner operates the facility and upon expiration, the facility is transferred to the public partner.
Build-Own-Operate-Transfer the private partner designs, builds, finances, and operates the public facility, while retaining its ownership under the franchise given by the public entity. The private partner charges fees to the public entity and/or end users for the provided services. At the end of the franchise period, the ownership of the facility is transferred back to the public partner without compensation to the private partner.
Lease-Develop-Operate the private partner leases the public facility, develops and improves it technologically and functionally, as well as operates it. The public partner retains ownership of the facility and receives payments according to the lease agreement. This model is usually used in development of airport facilities.
Build-Lease-Operate-Transfer the private partner builds and leases a facility, while its ownership remains with the public partner. The private partner provides services and upon expiration of the agreement, the ownership of the facility is returned to the public partner.
Buy-Own-Operate-Transfer the private partner buys public facility, uses it for a certain period of time and provides the service. Upon expiration of the agreement, the facility is transferred to the public partner without charge.
Design-Build-Finance-Own-Operate-Transfer the private partner designs, develops, builds, and finances the implementation of a public project. The private partner provides the services and uses the facility, which is his property, for a certain period of time. By expiration of that period, the ownership is transferred to the public partner without compensation.
Build-Own-Operate the private partner builds and manages the public property in their ownership without obligation to transfer the assets to the public partner. The public partner regulates and controls services provided by the private partner.
Buy-Build-Operate the private partner buys the public facility under the contract that the assets are to be upgraded and operated for a specified period of time. The private partner also provides services to the public partner and/or end users. By expiration of the term, the private partner retains ownership over the public asset.