Fuentes de recogida de información

The UKAS guideline was the document most talked about by the respondents as the main reference for UKAS operation, including the procurement process. The guideline was published in 2009 to elucidate the UKAS principles and the concept of PPP. In the absence of specific statutory regulations, UKAS guideline is one of the main references for UKAS day- to-day operation. It states that it is not a detailed document, yet it is to be referred to by any interested parties participating in the programme.

The guideline starts with an enlightening brief of the PPP programme as a continuation of the PFI programme, acknowledging that the previous PFI programme is a subset model of the current PPP programme. Any PFI programme by UKAS shall be known as PPP. The guideline then explains the UKAS conceptual framework of PPP. In general, UKAS PPP involves a shift of responsibilities from the public to the private sector to finance, manage, construct and maintain the public sector’s asset for an extensive period of time. In return for the services delivered by the private sector, the public sector/user is responsible for paying for the service over the concession period. Notably, the guideline indicates that PPP is part of the public procurement model.

Furthermore, the guideline confirms four characteristics of the PPP proposal to be considered by UKAS. These are:

i. Beneficial to socio-economic conditions;

ii. Value for money and cost saving for the government; iii. Fast and efficient delivery;

iv. Enhancement of accountability, efficiency and effectiveness.

Pointing out value for money as the UKAS PPP main driver, the guideline describes it as the optimal combination of whole life cost and quality to meet the users’ requirements (Public-

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Private Partnership Unit, 2009). The guideline lists the UKAS approaches to achieving value for money:

i. Optimum risk transfer between public sector and private partner; ii. Comprehensive concession contract, including life cycle of asset; iii. Innovation of bidders through specifying output specifications; iv. Competitive prices for projects;

v. Performance-based payments;

vi. Maximisation of private sector expertise and skills.

The guideline then puts forward a section for proposal development for interested parties. A proposal should include:

i. Proposal justifications;

ii. Commercial plans which includes business and financial; iii. Proof of financial strength and capability;

iv. Suggested payment mechanism; v. Risk management plan.

In detailing these requirements of the proposal, there is a disclaimer warning interested parties to refer to specific tender documents for additional information. Proposals are to be submitted to relevant ministries or agencies. The guideline then itemises the general criteria for proposal assessment:

i. Clear output specification;

ii. Minimum of 20 years’ economic life of proposed infrastructure; iii. Fresh innovative technology

iv. Financially solid; minimum 10 per cent paid up capital from the project value fixed for Special Purpose Vehicle.

Other than these general criteria, there is a lack of detail or explanation for interested parties to participate in the programme. The guideline then describes the structure of UKAS PPP and anticipates the roles for all parties. It presents a flow chart of the process flow for UKAS projects, as illustrated in Figure 5.10. The guideline does not provide further explanation for the flow chart as it is assumed that it is self-explanatory.

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Figure 5.10– Process Flow in UKAS Guideline

Source: UKAS (2009)

The guideline does not specify whether the flow chart is meant for government-initiated or unsolicited proposals. It starts with submission of the PPP proposal from ministries or agencies to be brought to the cabinet to obtain approval in principle for the proposed project to proceed under the PPP programme. In the event of any proposal failing to obtain cabinet approval for PPP implementation, the submitting ministry or agency may continue with other government procurements, subject to approval from the relevant authority. Meanwhile, successful applications shall continue through the procurement process. There is a lack of detail in the flow chart explaining how UKAS decides on the suitable procurement process to be adopted. It only shows that, subsequent to approval of the principle by cabinet, ministries may proceed to prepare bidding documents and an invitation to bid. Through the procurement process, ministries and agencies are required to shortlist three names to be submitted to

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UKAS. Subsequently, the guideline mentions an evaluation process to choose the best company, conducted by a committee. Nonetheless, there is an absence of detail of the committee in the flow chart or the guideline itself. Although endorsements are made by the committee, the decision still needs to be brought to a cabinet meeting for the final decision. Once the private partner has been selected, the process moves to the negotiation of terms and conditions with the private partner. As with the previous steps, the finalisation of the agreed terms and conditions will be decided by cabinet before any concessions can be signed. The flow chart ends with the stage of project implementation. After the flow chart, the guideline provides the contact details in the event of any enquiries from the reader.