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Industry Best Practices Flashcards

7 cards from real CP3P practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Industry Best Practices flashcards as text

  1. Which best describes the role of direct agreements between the authority and lenders?

    Answer: They give lenders step-in rights to cure defaults before the authority terminates

    Direct agreements give lenders notice and step-in rights to rescue a failing project, which improves bankability and service continuity.

  2. Why is it best practice to define compensation on termination in the PPP contract?

    Answer: It provides certainty to investors and lenders, supporting bankability and fair outcomes

    Clear termination compensation rules for different causes reduce uncertainty and financing costs.

  3. Integrating climate resilience and ESG considerations into PPP design is considered best practice because:

    Answer: Long-lived assets face climate and social risks that affect performance and value over decades

    Because PPPs last decades, embedding sustainability and resilience protects service delivery and long-term value.

  4. What does whole-life costing in a PPP encourage the private partner to do?

    Answer: Optimize design and construction to reduce total costs across operation and maintenance

    Bundling design, build, and long-term maintenance incentivizes choices that lower total lifecycle cost.

  5. In best-practice PPP procurement, what is the purpose of a competitive dialogue or interactive bidder meetings?

    Answer: To refine technical and commercial solutions with bidders while preserving fairness

    Structured dialogue helps clarify requirements and improve proposals, but confidentiality and equal treatment must be maintained.

  6. Which is a best-practice safeguard against excessive renegotiation of PPP contracts?

    Answer: Robust upfront preparation, clear contracts, and transparent rules for renegotiation

    Thorough preparation and clear renegotiation rules reduce opportunistic low bids followed by renegotiation demands.

  7. After financial close, what is the best-practice reason for conducting ex-post evaluations of PPP projects?

    Answer: To capture lessons learned and assess whether expected value for money was achieved

    Ex-post evaluations feed lessons back into the program and test whether projected benefits materialized.