Lawlines Vol 10 Issue 1 - eOASIS - Rajah & Tann LLP

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Vol 10 Issue 1 June 2008 • Rajah & Tann LLP’s Bi-Annual Journal on articles of current interest, features, and legal developmentsIN THIS ISSUE:A Round-Up Of LatestDevelopments In TheFirst Half Of 2008Rajah & Tann LLP Hosts9 th Lunchtime SeminarSeriesTax, Private Wealth &Trusts PracticeCourt Of Appeal DeliversJudgment On The LTA-Komoco Motors DisputeInsider Trading And TheVexed QuestionOf General AvailabilityCourts And Arbitration -A Question Of Balance?Recent Developments InSingapore LawDisclosure OfConfidential InformationBy ProfessionalIn The Pursuit Of ItsLegitimate InterestsPublic PrivatePartnership Projects– The ProcessPublic Private Partnership Projects – The ProcessIn recent years, Public Private Partnership Projects (‘PPP’) have been introduced in Singapore as amethod for the delivery of infrastructure.Whilst the PPP style of project delivery is still relatively new in Singapore, it has been utilisedover a number of years in Australia and elsewhere. In this article, we summarise the processesinvolved in bidding for these kinds of projects. This article particularly considers in generalterms the implementation for PPP transactions from the public sector perspective based onrecent experience in Australia, and draws comparisons to the processes now being adopted inSingapore.PPP Style ProjectsThe term ‘Public Private Partnership’ was developed in the United Kingdom. Forms of projectdelivery involving the private sector have been used extensively there and in Australia since theearly 1990s in a range of civil infrastructure projects such as road and water treatment plants, andmore recently in social infrastructure projects such as courts, prisons, schools and hospitals. Thismodel is extensively used and is now regarded as a common method of project delivery for majorgovernment projects.In Singapore, the Government has indicated that it will only apply the PPP model to large valueprojects (ie projects with a value in excess of S$50 million) in sectors where there have beensuccessful PPP examples in other countries, for example Australia or the UK. The categories ofOpen Source In ITContracts60 /77
Vol 10 Issue 1 June 2008 • Rajah & Tann LLP’s Bi-Annual Journal on articles of current interest, features, and legal developmentsIN THIS ISSUE:A Round-Up Of LatestDevelopments In TheFirst Half Of 2008Rajah & Tann LLP Hosts9 th Lunchtime SeminarSeriesTax, Private Wealth &Trusts PracticeCourt Of Appeal DeliversJudgment On The LTA-Komoco Motors DisputeInsider Trading And TheVexed QuestionOf General AvailabilityCourts And Arbitration -A Question Of Balance?Recent Developments InSingapore LawDisclosure OfConfidential InformationBy ProfessionalIn The Pursuit Of ItsLegitimate InterestsPublic PrivatePartnership Projects– The Processprojects expressly referred to by the Singapore Ministry of Finance in its Public Private PartnershipsHandbook are sports facilities, incineration plants, water and sewerage treatment works, majorIT infrastructure projects, education facilities including student accommodation, hospitals andpolyclinics, expressways and government office buildings.The term ‘Public Private Partnership’ describes the contract pattern for project delivery orprocurement methodology used by the project sponsor. The project sponsor under the PPP modelis usually the Government or other public sector entity. Under the PPP model, the project sponsorengages a private sector entity to design, construct, operate and maintain an infrastructure asset.The operations period is usually over a long term, often between 25 to 30 years. In most PPPstyle projects, the site for the project is selected by the Government and payment for the servicesprovided by the private sector is based on availability charges which are usually benchmarkedagainst market indices.The facility constructed utilising this model usually reverts to government ownership at no cost atthe end of the concession term. In most instances, the private sector entity is a special purposevehicle incorporated for the particular delivery of the project. In turn, sub-contractors carry outmost of the services on behalf of the special purpose vehicle, under design and construct contractsand operation and maintenance agreements. In projects known as ‘social’ infrastructure, forexample educational services, the state or government entity often retains certain operationsfunctions within the facilities for the concession period.The term ‘Public Private Partnership’ has been described by the Ministry of Finance in Singaporeas a ‘long term partnership between the public and private sector to deliver services’. In SingaporeOpen Source In ITContracts61 /77
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