PPP conference

1
PPP conference

• Andrew Briggs
• Lovells LLP
• February 2009

2
Summary

• Legal aspects of working PPP projects abroad
• London Underground PPP
• Sea to Sky Vancouver to Whistler Highway
• Stadia Wembley, Singapore and Manchester
• Main themes
• Key lessons for emerging markets
• Drivers for successful procurement

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PPP involves looking at things in a new way
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The Thatcher effect....
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Development of PPP

• Thatcher - an appropriate place to start
• PPP efficient procurement not only deferred
  payment
• The Gorilla find the problem to fit the solution
• Henry Ford
• Kellogg brothers
• Fleming
• Archimedes
• Thomas Smith
• Henry Ford (again)

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Understand what, not why...

• Take mathematics...
• 471
• x13
• 6,123
• x11
• 67,353
• x7
• 471,471
• Coincidence?
• Try it for any three digit number......

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The London Underground
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A complex network
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The London Underground PPP

• A new solution for an old problem
• High profile, politically sensitive and complex
• High value
• The background
• The Governments choices
• The PPP structure

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The cost of this work?
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Lessons and drivers

• Preparation
• market sounding
• shadow running
• Political issues
• clear political lines
• political champion
• Novel solutions
• Periodic Review
• Extraordinary Review
• Metronet situation
• lessons from failure

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The Sea to Sky Highway
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Sea to Sky Improvement Project, Canada

• Links communities from Vancouver to Whistler
• tourism
• commuters
• 100km of highway originally constructed in 1950s
• One of top 5 road trips
• Project to increase roads safety, reliability
  and capacity

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Sea to Sky Improvement Project, Canada

• Number of challenges
• Deadline for 2010 Winter Olympics
• Winter construction limits
• Aboriginal people
• Protestor action
• Concession terms generally and procurement
  process
• advert to preferred bidder 9 months
• preferred bidder to close 3 months
• pragmatic, not idealistic
• international precedent
• And finally a word on Bon Jovi

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The National Stadium Wembley
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The stadium itself...

• The Wembley arch is 133m high
• The London Eye could roll under it
• A Channel Tunnel train could run through it
• Astronomers employed
• 250,000 litres of water can drain in one hour
• Over 2,500 toilets more than in any other
  stadium (or building) in the world
• At nearly 11,000 per seat, the most expensive

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The Project

• 9 years from start to finish
• Construction completed March 2007
• Complicated public sector picture
• Political instability and interference
• Project Cost 757 million (multi-sourced)
• A world class stadium, but
• 4 years delayed
• significant overrun on estimation of work,
  subcontractors and steel
• political failure at the time
• Lessons?

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Stadia generally

• Experience from UK and around the world
• need a clear purpose
• need an anchor tenant or other legacy purpose
• community involvement critical
• Manchester
• Sydney
• Barcelona
• Athens
• Process and cost
• Success the Singapore Sports Hub

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Singapore Sports Hub
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• Andrew Briggs
• Tel [phone]
• Fax [phone]
• E-mail andrew.briggs_at_lovells.com
• February 2009