Karmjit Singh, Chairman of CILT Singapore discusses regional infrastructure at CILT International Convention 2017

1. International Convention 2017 Macao
Public Private Partnership (PPP)
For Transport & Logistics Infrastructure --
Challenges & Opportunities in Asia Pacific
Macao | 11-14 June 2017
by Karmjit Singh
www.ciltinternational.orgInternational Convention 2017, Macao, Smart Journey Belt & Road

2. International Convention 2017 Macao – Smart Journey Belt & Road
Agenda
• Introduction to PPPs
• PPPs in airports
• Why PPPs?
• PPPs
• Characteristics/ Pros & Cons/ Implementing PPPs/ Success
Factors/ Financial/ Models/ Case Studies
• Why PPPs fail
• Conclusions
• Singapore & the OBOR Policy
www.ciltinternational.org2

3. International Convention 2017 Macao – Smart Journey Belt & Road
INTRODUCTION
www.ciltinternational.org3
INFRASTRUCTURE NEEDS & LACK OF RESOURCES
LOWER
PRODUCTIVITY
REDUCED
MARKET
COMPETITIVENESS

4. THE PRINCIPAL
THE AGENT

6. International Convention 2017 Macao – Smart Journey Belt & Road
PUBLIC PRIVATE PARTNERSHIPS
www.ciltinternational.org6

7. International Convention 2017 Macao – Smart Journey Belt & Road
PUBLIC PRIVATE PARTNERSHIPS
www.ciltinternational.org7

8. International Convention 2017 Macao – Smart Journey Belt & Road
IMPLEMENTING PPPs IN TRANSPORTATION
www.ciltinternational.org8
•
•
•
•
•
•
•

9. International Convention 2017 Macao – Smart Journey Belt & Road
PPPs IN AIRPORTS
www.ciltinternational.org9

10. International Convention 2017 Macao – Smart Journey Belt & Road
PPPs IN AIRPORTS
www.ciltinternational.org10

11. International Convention 2017 Macao – Smart Journey Belt & Road
PPPs IN AIRPORTS
www.ciltinternational.org11
Source: World Bank Airport Economics in Latin America and the Caribbean

12. International Convention 2017 Macao – Smart Journey Belt & Road
PUBLIC SECTOR BODIES RESPONSIBLE FOR
SETTING UP PPPs
www.ciltinternational.org12

13. International Convention 2017 Macao – Smart Journey Belt & Road
PUBLIC OWNERSHIP AND GOVERNANCE IN
THE AIRPORT SECTOR
www.ciltinternational.org13
Strategic National Asset
Promotion of Economic
Development
Public Interest
PPP and
Privatizations
Market-oriented
management approaches
Improved
competitiveness
Greater autonomy from
political power
Addressed in a further
section.
Marketization
of Public
Airports

15. International Convention 2017 Macao – Smart Journey Belt & Road
WHY PPPs?
www.ciltinternational.org15

16. International Convention 2017 Macao – Smart Journey Belt & Road

17. International Convention 2017 Macao – Smart Journey Belt & Road
SOURCES OF CAPITAL
www.ciltinternational.org17

18. International Convention 2017 Macao – Smart Journey Belt & Road
WHICH PPP MODEL?
www.ciltinternational.org18

19. International Convention 2017 Macao – Smart Journey Belt & Road
PPPs MODELS
www.ciltinternational.org19

20. International Convention 2017 Macao – Smart Journey Belt & Road
PPPs MODELS
www.ciltinternational.org20
■
■
■

21. International Convention 2017 Macao – Smart Journey Belt & Road
PPPs MODELS
www.ciltinternational.org21
■
■
■

22. International Convention 2017 Macao – Smart Journey Belt & Road
PPPs MODELS
www.ciltinternational.org22
JFK
T4
■
■
■

23. International Convention 2017 Macao – Smart Journey Belt & Road
PPPs MODELS
www.ciltinternational.org23
JFK
T4
London
?
?
?
Argentina
?
?

24. International Convention 2017 Macao – Smart Journey Belt & Road
PRIVATIZATION: FOR OR AGAINST?
www.ciltinternational.org24

25. International Convention 2017 Macao – Smart Journey Belt & Road
IMPLEMENTATION OF PPP
www.ciltinternational.org25

26. International Convention 2017 Macao – Smart Journey Belt & Road
IMPLEMENTATION OF PPP
www.ciltinternational.org26

27. International Convention 2017 Macao – Smart Journey Belt & Road
IMPLEMENTATION OF PPP
www.ciltinternational.org27

28. International Convention 2017 Macao – Smart Journey Belt & Road
IMPLEMENTATION OF PPP
www.ciltinternational.org28
(1) PSC – Public Sector Comparator: Risk-adjusted cost a project if traditionally procured. Despite it is not a deterministic decision making tool, It is a
useful indicator when evaluating proposals’ VFM delivery.

29. International Convention 2017 Macao – Smart Journey Belt & Road
IMPLEMENTATION OF PPP
www.ciltinternational.org29

30. International Convention 2017 Macao – Smart Journey Belt & Road
IMPLEMENTATION OF PPP
www.ciltinternational.org30
•
•

31. International Convention 2017 Macao – Smart Journey Belt & Road
IMPLEMENTATION OF PPP
www.ciltinternational.org31
•
•
•
•
•
•
•
•

32. International Convention 2017 Macao – Smart Journey Belt & Road
AIRPORT PPPs – TURKEY CASE STUDY
www.ciltinternational.org32

33. International Convention 2017 Macao – Smart Journey Belt & Road
TURKEY CASE STUDY: FINANCIAL PARTNERS
www.ciltinternational.org33

34. International Convention 2017 Macao – Smart Journey Belt & Road
AIRPORT PPPs – TURKEY CASE STUDY:
TAV RESULTS
www.ciltinternational.org34

35. International Convention 2017 Macao – Smart Journey Belt & Road
AIRPORT PPPs – INDIA CASE STUDY
www.ciltinternational.org35
•
•

36. International Convention 2017 Macao – Smart Journey Belt & Road
AIRPORT PPPs – INDIA CASE STUDY
www.ciltinternational.org36

37. International Convention 2017 Macao – Smart Journey Belt & Road
AIRPORT PPPs – INDIA CASE STUDY
www.ciltinternational.org37

39. International Convention 2017 Macao – Smart Journey Belt & Road
AIRPORT PPPs – INDONESIA CASE STUDY
www.ciltinternational.org39
•
•

40. International Convention 2017 Macao – Smart Journey Belt & Road
AIRPORT PPPs – CASE STUDY INDONESIA
www.ciltinternational.org40

41. International Convention 2017 Macao – Smart Journey Belt & Road
WHY PPPs FAIL?
www.ciltinternational.org41

42. International Convention 2017 Macao – Smart Journey Belt & Road
SUCCESS FACTORS FOR PPPs
• Well-defined project (including investment plan if
appropriate).
• Financial sustainability (including specific subsidy
arrangements if PPP is not viable on a stand-alone basis).
• Good availability of data.
• Openness about government objectives, which should be
reflected in the evaluation criteria.
• Positive marketing of the PPP.
• Appropriate number of bidders (preferably 3-6).

43. International Convention 2017 Macao – Smart Journey Belt & Road
CHANGI INTERNATIONAL AIRPORT
www.ciltinternational.org43

44. International Convention 2017 Macao – Smart Journey Belt & Road
DELHI INDIRA GANDHI INTERNATIONAL AIRPORT
www.ciltinternational.org44

45. International Convention 2017 Macao – Smart Journey Belt & Road
INCHEON INTERNATIONAL AIRPORT
www.ciltinternational.org45

46. International Convention 2017 Macao – Smart Journey Belt & Road
CONCLUSION: SINGAPORE
www.ciltinternational.org46

47. International Convention 2017 Macao – Smart Journey Belt & Road
CONCLUSION:
ONE BELT ONE ROAD (OBOR) POLICY
www.ciltinternational.org47

48. International Convention 2017 Macao – Smart Journey Belt & Road
CONCLUSION:
ONE BELT ONE ROAD (OBOR) POLICY
www.ciltinternational.org48

49. International Convention 2017 Macao – Smart Journey Belt & Road
CONCLUSION
www.ciltinternational.org49
•
•

50. International Convention 2017 Macao – Smart Journey Belt & Road
CONCLUSION
www.ciltinternational.org50

51. International Convention 2017 MacaoInternational Convention 2017 Macao – Smart Journey Belt & Road
Thank you
Karmjit Singh
T: +44 (0) 1536 740162
E: info@ciltinternational.org
www.ciltinternational.org51