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Public-Private Partnership (PPP)

OUR expertise, your success

With strong international expertise in developing and managing Public-Private Partnerships (PPP), HGM Consulting can guide you from initial assessment to project completion in sectors such as infrastructure, energy, mobility, water treatment, and transit. Our consultancy is the bridge between public and private interests, ensuring PPP projects are effective, transparent, and deliver public value.

Public-Private Partnership Framework

Public-Private Partnerships are collaborative agreements between government entities and private sector companies designed to finance, build, and operate projects that would traditionally be within the purview of the public sector, such as infrastructure projects, healthcare facilities, or educational programs.

The PPP process is generally detailed and complex, involving multiple stages to ensure both public and private interests are adequately addressed and the partnership delivers value to all parties, especially the public.

Business models governing PPPs are diverse. They all focus on clear policy, legal structure, risk management, institutional guidance and responsibilities, and value for money.

Delegating parts of the value chain to an Operator or a PPP Consortium without robust asset management and comprehensive lifecycle governance can be expensive and hazardous. A lack of asset owner knowledge and control often leads to costly oversights and contractual complications in the PPP process. We help clients adapt PPP strategies to local contexts and ensure success in the selection and realization of projects.  

Navigating PPP Complexities

We demystify PPPs, providing insights on leading regional and national PPP frameworks and project qualifications, identifying the most suitable projects and procurement strategies that align with long-term development goals.

Our expertise extends to various PPP models, including DBF, DBFM, DBFO, and DBFOM, ensuring the right fit for each project. We provide clarity to help clients decide if a PPP is the right approach for their specific projects.

Managing Stakeholder Engagement

With broad experience in both the public and private sectors, we excel in managing stakeholder expectations in complex cross-organizational projects.

We develop practical strategies to align institutions, asset owners, governors, and private sector parties, fostering understanding and cooperation. Engaging with our independent advisory throughout the PPP lifecycle not only assures success in your current project but also builds capacity for future ventures. 

Risk Assessment & Efficient Risk Transfer

PPPs inherently shift significant risk from public to private entities. We excel in identifying, assessing, and managing these risks to ensure a balanced approach for both sectors. Risk evaluation is crucial in PPPs, as different business perceptions and development objectives within the public and private sectors can create challenges and erode trust.

Effective risk management is essential for successful collaboration. It is not just about a stand alone exercise to identify and assess the risks, but about creating an institutionalized system capable to understand the risks and generate an effective management strategy.

HGM Consulting assisted a major transportation project, identifying key risks and implementing strategies for effective risk transfer, which led to expedited delivery and financial benefits. In another example, we supported a healthcare infrastructure PPP, optimizing risk allocation to enhance project viability and secure stakeholder confidence.

Our expertise ensures that both sectors achieve their goals while maintaining transparency and accountability throughout the project.

Public-Private Partnership Development Process

Stage 1
1.1 Project Identification and Screening
  • Needs Assessment
  • Preliminary Feasibility Study
  • Screening: alignment with public goals, value for money, investment attractiveness, etc.
1.2 Project Preparation
  • Detailed Feasibility Study
  • Risk Assessment
  • Development of Project Design
Stage 2
2.1 Project Structuring and Drafting of PPP Agreement
  • Financial Structuring
  • Legal Framework
  • Procurement Strategy
2.2 Procurement Process
  • Prequalification of Bidders
  • Issuance of Request for Proposals (RFP)
  • Evaluation of Proposals
Stage 3
3.1 Contract Award and Financial Close
  • Selection of the Best Proposal
  • Negotiations and Finalization of Contract
  • Financial Close, including private funding mobilization
3.2 Project Implementation
  • Construction Phase
  • Operational Phase
  • Stakeholder Reporting and Portfolio Improvement
Stage 4
4.1 Monitoring and Performance Assessment
  • Regular Monitoring
  • Performance Evaluation and Improvement
4.2 Handover
  • Transfer of Assets (model-based)
  • Post-Handover Evaluation, including impact assessment and lessons learned

Why Choose HGM Consulting

HGM Consulting's team members discussing Capital Investment and asset management opportunities

Robust Expertise

Robust Expertise

Our team comprises seasoned professionals with extensive experience across various industries and regions.
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Proven Methodologies

Proven Methodologies

We utilize the best practices and advanced tools and technologies to deliver exceptional results.
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Customized Solutions for HGM Consulting's Clients

Customized Solutions

Customized Solutions

We tailor our services to meet the unique needs and goals of our clients within a specific environment.
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At HGM Consulting, we value Collaborative Approach

Collaborative Approach

Collaborative Approach

We work closely with your team to ensure seamless integration and effective implementation.
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