Public Private Partnerships

 

PPP is a model for completing public projects by involving both the public and private sectors. The model is a kind of contracting out incorporating in the same agreement financing, design, establishment and operation of public functions. PPP projects are often of long duration (e.g. 30 years) and a substantial part of the investment and risk is shared by the public contracting entity and the private business.

 

The model is relatively new in Denmark, but has been employed internationally for a number of years. In England, Private Finance Initiatives (PFI) and Public Private Partnerships (PPP) have been used for the past 15-20 years.

 

LETT’s expertise is acquired i.e. through posting of employees in England and through involvement in a long line of the projects contracted out as PPP projects in Denmark.

 

By way of example, LETT acted as advisors to the winning consortium of the first municipal PPP project (a municipal school in Vildbjerg), a tendering consortium in the first two state PPP projects (the Danish National Archives and the Danish Registration Court in Hobro), and a tendering consortium in a PPP project on the construction and operation of one of Denmark’s largest municipal schools for 1,000 pupils (a municipal school in Rudkøbing).

 

Moreover, LETT has considerable experience in providing advice on financing issues, preparing documentation relating to loan and security as well as legal opinions in connection with PPP.

 

LETT provides advice on formulating and determining PPP strategies for public authorities, including preparing initial analyses and drafting of tender documents and PPP agreements, including determining the distribution of responsibilities, regulating risks, determining models of private financing.

 

LETT assists tenderers in PPP projects, including prequalification, identification of risks, contract drafting as well as negotiation. Our team also provides general sparring from a business aspect regarding the implications of a project and its handling in relation to the existing business.