All PPP projects experience transitions between different phases of the project (i.e. from financial close to construction, from construction to operations, and from operations to handback). This is displayed in Figure 1. Each of these transitions represents a period of substantial change, typically involving turnover of staff within both the Procuring Authority and the Project Company, as well as new responsibilities and challenges.
Each transition typically includes a period of mobilisation which requires extra cooperation between the Project Company and Procuring Authority. For example, some joint training and inductions may be required at the start of operations and service commencement. In addition, there are often specific requirements that must be met during transition, and before a new phase can officially start. For example, conditions related to construction commencement or handback requirements, which are required to be met before the project is handed back to the government.
If handled inadequately, issues that arise during a transition period can continue to cause problems throughout the life of the project, leading to additional costs for the Procuring Authority or negatively affecting the level of service provided. This section 3.1 provides guidance on how to succesfully manage transition periods and minimise any negative impacts on the project.
The guidance is split into three distinct transition periods related to the development of the project itself, and a fourth related to external factors: