How To Attract Bidders

1. Bremner Management Services Limited How To Attract Bidders Presented By Sandy Bremner 24th March 2005

2. TODAY’S PRESENTATION Sandy Bremner’s background and experience The PPP market The private sector’s perception Who are the bidders and what do they want? How to attract bidders

3. England, Northern Ireland and Wales Courts Defence Education Health PFI LIFT Housing Prisons Roads Waste Scotland Education Health Prisons Roads Waste COMPETING MARKETS IN THE UK Signed Projects (586) - £40,161 million Signed Projects (85) - £2,441 million

4. The Market SCOTTISH SCHOOLS PORTFOLIO Capital Value - £2,872 million

5. Comhairle nan Eilean Siar Schools Falkirk Schools PPP2 Scottish Borders Schools Inverclyde Schools Moray Schools (A) Aberdeen City Schools (A) East Dunbartonshire Schools (A) West Dunbartonshire Schools £48 m £70 m £50 m £80 m £50 m £80 m £100 m £100 m £578 m SCOTTISH SCHOOLS’ MARKET

6. PRIVATE SECTOR’S PERCEPTION • Confusion • Disappointment • False promises • Lack of urgency • Lack of confidence • Poor and inaccurate communication • Poor business practice

7. PROCUREMENT TIMINGS

8. PPP MARKET PARTICIPANTS • Project Sponsors • Construction companies • Facilities managers • Advisory consortia • Equity Funds • Funders • Advisors

9. THE PRIVATE SECTOR DRIVERS • Budgets bettered. • Certainty. • Planned financial returns achieved or bettered. • Quality repeat business. • Reputation enhanced. • Risks mitigated and managed.

10. TRANSFER ELIMINATE or AVOID REDUCE ACCEPT RISK MANAGEMENT

11. HOW TO ATTRACT BIDDERS • Commitment • Command • Communication • Confidence • Content • Culture

12. PROJECT STRUCTURE • Quality Components • Confidence • Location • Political Support • Right Mix • Focused Business Plan • Affordable • Process Driven

13. Realistic Do-able Deliverable Uncomplicated Few issues Don’t be excessive Be prepared Affordable Know the benchmark economics Funding Capital cost Facilities Management Life Cycle Management and administration Know the interrelationships Budget from top down Demographics to be satisfied PROJECT SCOPE

14. THE MIX • New build • 75 : 25 - New build / refurbish • 50 : 50 - New build / refurbish • 25 : 75 - New build / refurbish • Refurbish Attractive Unattractive

15. Dedicated team Well led Delegated authority Commercialism PFI experts Experience Experienced external advisers Procurement Operational Project knowledge Know what you want Be realistic Stretching to create “Best Value” Continually analyse the market AUTHORITY’S PROJECT TEAM

16. PROCUREMENT CONUNDRUM • Clearly describe the procurement process and its various stages. • Keep it simple. • Stick to the rules. • Use published guidance. • Categorically state the evaluation methodology. • Demonstrate that you know and can manage the process from all angles: • European • UK Government • Scottish Executive • Partnerships UK • Local Authority

17. OPTIMAL PROCUREMENT PERIODS

18. THE SOLUTION Don’t do this Do this Communicate

19. A VERITABLE TALE “Never in all history have we harnessed such formidable technology. Every scientific advancement known to man has been incorporated into its design. The operational controls are sound and foolproof.” …………….E.J. Smith (Captain of the Titanic)

20. Bremner Management Services Limited Contact Details Sandy Bremner T – 01383 861504 M – 07906 856035 E – sandy.bremner@bremner.uk.net

21. abcdefghij Financial Partnerships Unit Local Authority TrainingSeminar