HEALTH PRIVATE FINANCE INITIATIVES PUBLIC PRIVATE PARTNERSHIP

1
HEALTH PRIVATE FINANCE INITIATIVESPUBLIC PRIVATE
PARTNERSHIP

• Consultancy Support
• Ian Stewart Healthcare Projects Director

2
INTRODUCTION

• The PFI process / Consultancy Support
• Structure of Teams involved in PFI
• Atkins Experience
• Learning from PFI
• Quality Assessment Protocols
• Key Criteria for Success

3
THE STRUCTURE OF TEAMS INVOLVED IN PFI PROCESS

• Public Sector
• Project Director
• Project Team
• Technical Advisers
• Legal Advisers
• Financial Advisers
• Independent Certifiers
• Private Sector - Consortium
• Special Purpose Vehicle
• Design Construct Contractor
• Design Team
• Facilities Management Operator
• Debt providers
• Insurance Advisers
• Equipment Specialists
• Legal Advisers
• Finance Advisers
• Due diligence teams

4
THE PFI PROCUREMENT PROCESS

• Public Sector Bid Consortium
• Strategic Outline Case Public Sector -
• OJEU Technical Advisors Public Sector -
• Outline Business Case / PSC Public
  Sector/Advisers -
• OJEU - Procurement Public Sector -
• Preliminary Invitation to Negotiate Advisers/Publi
  c Sector Designers
• Bidders invited to respond to PITN Public
  Sector/Advisers Designers / Due Diligence
• Assessment of PITN responses Advisers/Public
  Sector -
• Shortlist invited to respond to FITN
  Advisers/Public Sector Designers / Due Diligence
• Assessment of FITN responses Advisers/Public
  Sector -
• Identification of Preferred Bidder Public
  Sector -
• Financial Close All Designers / Due Diligence
• Construction Advisors / Independent Certifiers
  Designers / Due Diligence
• Commissioning Advisors / Independent Certifiers
  Designers / Due Diligence

2 years
5
THE STRUCTURE OF TEAMS INVOLVED IN PFI PROCESS
6
CLIENT ADVISOR ROLE, TECHNICAL ADVISOR OBC

• Development Control Plan
• Operational Policies
• Functional Content
• Departmental Relationships
• Design Philosophy
• PSC Design development
• Risk Assessment

7
CLIENT ADVISOR ROLE, TECHNICAL ADVISOR PFI

• Interface with bidders
• Co-ordination of Approval Processes
• Review, comment and contribute to the drafting of
  the ITN documentation
• Preparation of the Health Safety Pre-Tender
  Plan
• Develop and agree bid evaluation criteria (based
  on AEDET and NEAT)

8
CLIENT ADVISOR ROLE, TECHNICAL ADVISOR PFI

• Clarify Bidders queries
• Attend Bidders presentations
• Seek clarification of any items arising from the
  Bidders submissions
• Review Bidders responses at the end of each
  stage and evaluate
• Assist during negotiations and participate in
  selection of preferred bidder.

9
DUE DILIGENCE

• Undertaking a review of the bidders proposals
  and comparing against the ITN documents
• Joint appointment between the SPV and funding
  institutions
• Undertaken by health planners, architects,
  engineers and cost advisors
• In the region of 0.1 of capital value of the
  project
• Highlighting where derogations identified by the
  bidder
• Protecting the funders investment

10
INDEPENDENT CERTIFIER (I. C.)

• Joint appointment of technical expertise awarded
  by procuring body and SPC
• Independent Certifier will provide a range of
  expertise including health planning,
  architecture, engineering and costs
• Role is to ensure that the facility delivered by
  the DB contractor meets the Employers
  Requirements
• The I. C. is responsible for certifying Hospital
  Availability Date (H.A.D.)
• It is a very responsible and a high risk role as
  all the payment mechanism kicks-in once H.A.D. is
  certified.

11
TECHNICAL ADVISORS
Glasgow ACADs- Technical Advisory Services
including Medical Planning, Architecture,
Building Services Engineering, Civil / Structural
Engineering and Cost Consultancy. Project Value
180m. Royal Edinburgh Hospital- Full
Technical Advisory services for 70m provision of
Mental Health facilities for East
Scotland. Dumfries and Galloway NHS Trust
Maternity and Day Surgery Unit- Medical Planning
and Technical Advisory service for 72m extension
to DGRI. South Manchester NHS Trust- Technical
Advisers for proposed Cardiac Care Unit at
Wythenshawe Hospital Hairmyres Hospital-
Medical Planner for replacement DGH
12
DUE DILIGENCE
Barts and Royal London 850M (
1200M) University Hospital Coventry
Warwickshire 300M ( 420M) Derby Royal
Infirmary 250M ( 1200M) Manchester Royal
Infirmary 450M ( 350M) Bishop Auckland
Hospital 60M ( 85M) Sedgefield Community
Hospital 20M ( 30M)
13
LEARNING FROM PFIFORM OF CONTRACT

• Early PFI deals delayed by bespoke contracts
• Standardisation of PFI Contracts. Revised and
  updated in July 2002 August 2003.
• Reduction in time and costs of negotiation
• Clarity of understanding of risks
• Consistency of approach in market
• Early PFI schemes were criticised
• Poor design quality
• Lowest cost solutions
• Inappropriate responses to urban context
• Lack of delight for users
• Since 2002 much greater emphasis on design
  quality
• Commission for Architecture and The Built
  Environment.
• Promotion of higher standards of design for
  public buildings
• Use of The Design Development Protocol for PFI
  Schemes August 2004

14
QUALITY ASSESSMENT PROTOCOLS Achieving
Excellence Design Evaluation Toolkit (AEDET
Evolution)

• AEDET Achieving Excellence Design Evaluation
  Toolkit
• A tool for evaluating the design of healthcare
  buildings from initial proposals through to
  post-project evaluation
• Assists clients in developing design
  specifications for their schemes
• Provides a methodology for evaluating and
  assessing the design of healthcare proposals
• Assists in approval role
• Basis for a national benchmarking system of
  design quality for healthcare buildings
• Assessment of
• Functionality
• Impact
• Building Standard

15
QUALITY ASSESSMENT PROTOCOLS Achieving
Excellence Design Evaluation Toolkit (AEDET
Evolution)

• Functionality
• Use
• Access
• Spaces
• Impact
• Character and Innovation
• Citizen satisfaction
• Internal environment
• Urban and social integration
• Build Standard
• Performance
• Efficiency
• Construction
• Assists in auditability of decision process

16
QUALITY ASSESSMENT PROTOCOLSNEAT (NEAT)

• NEAT NHS Estates Environmental Assessment
  Toolkit
• A self-assessment environmental review tool
  covering environmental and social issues
• Used for specifying, estimating and monitoring
  environmental performance
• Issues covered
• Management
• Energy
• Transport
• Water
• Materials
• Landuse and ecology
• Pollution
• Internal environment
• Social operational waste

17
Key Criteria for Success

• Avoidance of ambiguities in Employers
  Requirements with clarity of specification
  requirements
• Clear Communication Routes with single points of
  contact
• Realistic timetable
• Robustness of affordability before going to the
  market-place
• Application of the Design Development Protocol
• Appointed consultants and bidders must genuinely
  understand, and have significant experience of,
  the design and operation of healthcare projects.

18
(No Transcript)