PROPUESTA DE UN PLAN DE MEJORA AL HOTEL MANSIÓN SANTA

Table 17: Relation between recommendations and lenders‘ criteria Recommendations in

decision area

Related lenders’ criteria Relationship

Phase 1: Project identification

Political 1. Political environment Aligning project decisions with the election cycle, minimizing political influence and the consideration of changes in law from an early stage lead to a more favourable political environment for lenders. 2. Public opinion With the recommendations ensuring the political

support, the public is also more likely to support it compared to a very controversial project.

Economic & financial 1. Political environment If the contract form demonstrates added value, the political support is more likely to increase.

2. Public opinion Considering new level of funding, like local taxes, can influence the public opinion on the project.

11. Financial structure Planning to retain the traffic volume risk, as well as considering the share of public financing and the level of public funding, has an influence on the financial structure of the project.

Technical 1. Political environment Ensuring that the project is the most suitable solution for current & future needs increase the likelihood of a favourable political opinion.

2. Public opinion Ensuring that the project is the most suitable solution for current & future needs increase the likelihood of a favourable public opinion.

5. Project definition Scoping the project with regards to the costs and considering an implementation in different project phases affect the project definition.

Social 1. Political environment By identifying the main groups of stakeholders, their interest and their impact, as well as with discussing viable alternatives, the likelihood of political support is expected to increase.

2. Public opinion By identifying the main groups of stakeholders, their interest and their impact, with discussing viable alternatives, and with public consultations, the likelihood of public support is expected to increase. 11. Financial structure Discussing viable alternatives early on can affect the

financial structure of the project.

15. Concession agreement The chosen alternative influences the most suitable concession agreement.

Phase 2: Appraising and preparing the project-contract

Political 1. Political environment All the recommendations are expected to have a positive influence on the political environment of the project.

2. Public opinion Increased political support, and the appointment of a project champion, is expected to also increase the level of public support for the project.

Economic & financial 11. Financial structure Most of the recommendations, provided in this decision areas, clearly affect the financial structure of the project.

15. Concession agreement Penalties and the payment mechanism are ultimately agreed upon in the concession agreement.

17. Support agreement/ guarantee

Ensuring guarantees from regional or federal level if funding comes from local level

Technical 5. Project definition The considerations about the rolling stock, the operation, the balance of contracted works, complex

Recommendations in decision area

Related lenders’ criteria Relationship

structures etc. are clearly affecting the project definition.

6. Feasibility studies Dealing with the technical risks (especially noise and vibration) as early as possible helps to mitigate or avoid them instead of simply shifting them to the private parties means also conducting the necessary feasibility studies. Also, the recommendation to assess chokepoints is clearly related to the project characteristic. Further, the recommendation regarding the utilities also make feasibility studies indispensable.

8. Site acquisition and access Reducing the risks of delays by starting the land acquisition process on time but consider room for flexibility to give the private parties the freedom to develop more suitable solution.

17. Support agreement/ guarantee

Ensuring the points mentioned above is expected to help to agree upon the support agreements.

Social 1. Political environment Considering the implications on local businesses, who are expected to have a high political influence, can lead to a more favourable political environment. 2. Public opinion Including the public into discussions about different

options and alternatives is expected to increase the public support of the project and therefore influence the public opinion.

Legal 3. Procurement process Sticking to standard procurement procedures

(competitive dialogue) and not reinventing the wheel, as well as, adding complexity to the contractual structure (additional contracts) only for a very good reason affects the procurement process.

11. Financial structure Adding complexity to the contractual structure (additional contracts) only for a very good reason affects the financial structure.

16. Concession period Matching the concession duration with the duration of possible financing schemes to increase the attractiveness to lenders affects the concession period.

Environmental 9. License, permits, and authorizations

Not using additional licenses/permits/regulations to squeeze in some extra scope and considering which permits can be already granted upfront affects this project characteristic.

14. Environmental and other legal/ regulatory issues

Not using additional licenses/permits/regulations to squeeze in some extra scope and considering which permits can be already granted upfront affects this project characteristic.

Phase 3: Structuring and drafting the tender & contract

Political 1. Political environment Implementing measures to improve the political support are expected to positively influence the political environment.

2. Public opinion Some of the measures (for example the appointment of a project champion) and the strong political support are also expected to positively influence the public opinion.

3. Procurement process Starting into the tender phase with sufficient political support positively affects lenders’ perception of the procurement procedure.

Economic & financial 11. Financial structure Most of the recommendations are about financial issues and therefore linked to the financial structure of the project.

Recommendations in decision area

Related lenders’ criteria Relationship

12. Financial flexibility While deciding upon financial details, the financial of the project is affected.

15. Concession agreement Most of the recommendations are about financial issues and set out in the concession agreement with the SPV.

Technical 3. Procurement process Making the technical requirements for the selection stage of the tender as strict as legally possible affects the procurement process and the potential bidders. 5. Project definition Developing an advanced reference design, output

specifications and not incentivizing innovation to much is affecting the project definition.

6. Feasibility studies The advanced references design allows more detailed feasibility studies.

7. Capacity of the technology Not excessively incentivizing the use of innovative technology is supposed to have a positive effect on the capacity of the technology since innovation is usually associated with risk.

8. Site acquisition and access The clearer the requirements are set out and the more advanced the reference design is, the earlier the site acquisition process can start and the risk for delays can be reduced.

9. License, permits, and authorizations

The clearer the requirements are set out and the more advanced the reference design is, the earlier the licenses, permits and authorizations can be arranged. 10. EPC contractor’s

credibility

Making the technical requirements for the selection stage of the tender as strict as legally possible might limit the number of capable contractors.

14. Environmental and other legal/ regulatory issues

The clearer the requirements are set out and the more advanced the reference design is, the earlier the Environmental and other legal/ regulatory issues can be considered.

15. Concession agreement Details like the conditional priority at junctions, are affecting the concession agreement.

Legal 3. Procurement process Use of standardisation and not deviating from industry norms has a positive effect on the procurement process.

4. Intervention right Use of standardisation and not deviating from industry norms also ensures that favourable intervention rights are in place.

14. Environmental and other legal/ regulatory issues

Checking the compliance regarding the social and environmental impact of the project with the Equator Principles early to meet the needs of EPFI institutions is expected to have a positive impact on Environmental and other legal/ regulatory issues. 15. Concession agreement Most of the recommendations regarding this cession

area ultimately affect issues which are set out in the concession agreement

16. Concession period Only defining the duration of the concession with a fixed end date, meaning deducting the duration of delays in the construction phase from the maintenance (and operation) period, for a good reason affects the nature of the concession period. 17. Support agreement/

guarantee

The recommendations affect the possibility of establishing the necessary agreements.

18. Termination provisions Use of standardisation and not deviating from industry norms ensures that termination provisions are in place.

Recommendations in decision area

Related lenders’ criteria Relationship

21. Direct agreement The recommendations affect the possibility of establishing the necessary agreements.

22. Catastrophic risk Establishing an additional Force Majeure event, ‘Disruption of Financial Markets prior to Financial Close’ can provide comfort to all that, should such disruption occur, the project can be formally delayed or terminated.

23. Arbitration Putting high emphasis on dispute avoidance and select appropriate dispute resolution methods (using an independent certifier or a dispute resolution board), positively influences the arbitration resolution.

Phase 4: Tender & Award

Political 1. Political environment Keeping on providing evidence of political support and Separating negotiation in the dialogue phase from political interests increase the stability of the political environment.

2. Public opinion Ensuring that political supports is high is also expected to be beneficial for the public opinion

Economic & financial Technical

Legal

3. Procurement process As explained in chapter 4.2.5, are the issues affect during the tender phase only affected due to the negotiation of some aspects. However, those aspects, and their relation to the criteria, is already covered with the previous phases.

4. Intervention right

7. Capacity of the technology 8. Site acquisition and access 9. License, permits, and authorizations 11. Financial structure 12. Financial flexibility 15. Concession agreement 16. Concession period 17. Support agreement/ guarantee 18. Termination provisions 21. Direct agreement 22. Catastrophic risk 23. Arbitration Source: P. Hoss