In-depth insights
Key considerations in a PPP Transition Process
This paper intends to outline the essential elements and characteristics that all involved parties (grantor, incumbent operator, and new operator) should bear in mind when seeking to ensure a successful PPP transition process that minimising potential risks.
This document explains transitions, handovers, and takeovers, and how they relate to each individual milestone. It also outlines the 5 pillars of a successful transition process (leadership, tasks, roles and responsibilities, access to information, legal alignment and collaborative environment) that precludes any of the expected downstream chaos and misalignments between parties.
After the transition dynamics are made clear, the leadership, roles and responsibilities must then be specified so that all the teams are set and ready to get to work (grantor, incumbent, and new operator). In this regard, certain activities will prove to be crucial in the PPP transition process. Ultimately, every operator should have its own dynamics, department procedures. Furthermore, provided both incumbent and new operators agree on a guiding transition framework, validated by the Grantor, a myriad of different activities could be undertaken.
Nevertheless, the vast majority of these would in all likeliness fall close to one of the following six clusters: assets, human resources, legal, commercial/contractual, IT and existing customer inventory.
Finally, this extensive document presents the most common risks in a transition process and possible mitigations: findings in assets, decrease in level of service, operational disruptions, and customer dissatisfaction.
