PPP Trade

Brief of Program

What is PPP in Infrastructure Projects?

PPP is regulated by UNECE (United Nations Economic Commissions for Europe), Canadian Council of PPPs (CCPPP) and Top Trade Platforms (TTP) as an attractive alternative to obtain Non-refundable funds for humanitarian projects.

The UNECE presented PPP as Public Private Partnership.

CCPPP presented PPP as Private Sector Participation (PSP).

The PPP Trade Platform codes mean Private Placement Trade Programs.

Usually all PPP’s are for humanitarian projects development purposes and can cycle through private sectors. As all PPP’s have the private word, likewise the process of Trade and Platform is also private (non-solicited) means the solicitation is not allowed before the Due Diligence and Bank to Bank process have taken place. All information is exchanged bank to bank with full confidentiality after Pre-advice of the Client via MT-799 of the applicant’s bank.

Why Choose PPP?

Governments in most developing countries face the challenge to meet the growing demand for new and better infrastructure provisions and services. As available funding from the traditional sources and capacity in the public sector to implement many projects remain limited, governments do not have enough funds, so it become relevant to go into partnership with the private sector. It is an attractive alternative to obtain Non-refundable funds and improve the resource of infrastructural services.

The partners in a PPP, usually go through a legally binding contract or some other mechanism, agrees to share their facilities and responsibilities related to implementation and/or operation, management and development of the infrastructure projects. This collaboration or partnership is built on the expertise of each partner that meets clearly defined public needs through the appropriate allocation.

Why the PPP Process is Non-solicited (Confidential)

1- The PPP is processing via top 25/ top 10 Banks so all internal process of these banks are highly confidential, as per the internal policy of the Banks they can share the needful information to applicant bank via authenticated Swift after Pre-advice.

2- The program is managed and organized by top traders of the Banks and their platforms in appointed stock markets. None of the Banks would disclose the details of its world class personnel and confidential business policies.

3- The PPP technology is a highly profitable business and limited to its top trusted and non-governmental, non-military, non-political, non-criminal and non-war history under the control of socially oriented professional people who love peace.

4- The traders name and details are limited with its top employer banks and the said banks never shares its VIP to any other-officials . The said banks give only needful information to applicant bank with full banking responsibilities.

5- The disclosing of such information can cause for a dispute and the said Banks never want and never allow its client to be involved in any dispute. In case they feel any small disputable activities of any client or small banks arise,  they terminate all kind communication and relation with disclosers or disputable subjects.

Why PPPs are attractive to governments?

PPPs have become attractive to governments as an off-budget mechanism for infrastructure development as:

  • They can enhance the supply of much-needed infrastructure funding.
  • They may not require any immediate cash spending, only Bank instrument SBLC/BG will generate the required funds for the projects.
  • They provide relief from the burden of the costs of design and construction. The PPP service provider arranges funds and project management and the governments do not have to pay any amount.
  • They allow transfer of many project risks to the private sector.
  • They fulfill the promise of better project design, choice of technology, construction, operation and service delivery.

Why security is required from client?

1- As per the rules, regulations and Law of the ICC, International Banks and International Monitoring of Funds, the private placement firms cannot transfer more than specified sum of funds to other country without logical and legal guaranteed objects.

2- The PPP trade funds are specified for subjected projects, so there is need of security of the funds to control the risk of mismanagement of the funds and also the security is legal logical answers for all observations of compliance, risk controlee , IMF and trader bank.

3- The funds cannot generate in platform without SBLC/BG as asset.

4- Credit line for non-recourse loan is not possible without cash or SBLC/BG, to generate such funds for the project.

Criteria of Qualified PPP Service providers 

  1. No upfront fee or charges.
  2. They accept to confirm the project cost against pre-advice only, and after confirmation and full satisfaction of the SBLC/BG as required.
  3. They are able to meet you face to face with open address and legal registered license.
  4. Any government employee, criminal history and politics involved person(s) are not allowed to do Public Private Partnership (PPP)
  5. All those persons/firms who are involved in politics, army, any illegal business and criminal recorded firms/persons cannot be a service provider of PPP.
  6. The Qualified service provider are not dealing via internet.

Why PPP through ADP? 

  1. It is Private sector business, so governments cannot have a direct involvement in trade program.
  2. There is no trader or platform to deal direct with any government or its employee for PPP purpose.
  3. All traders, platforms and its trade banks conducts a Due Diligence on all applicants and rejects non-regulated and direct clients.
  4. The ADP have all relevant knowledge and experience in Private Public Partnership and Private Placement Process.
  5. The ADP is able to meet the criteria of qualified service provider.
  6. ADP can confirm the project cost against Pre-advice, RWA or Letter of Intake of the public or private client.

Client Risk Factors

  • ADP has structured funding to eliminate any risk for the Client.
  • The Client never uses cash to obtain non-interest and non-recourse loan for its projects.
  • The client issues pre-advice via MT-799 to ADP bank, and the ADP reserving the required funds and confirms the project cost in favor of its client via Swift from top trusted western banks guaranteed by the top bank(s)
  • Upon full satisfaction the client issues SBLC via MT-760
  • The client SBLC returns to its bank without any line after successful completion of the project.
  • So there is zero % risk in this funding program.