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Positive Trend for International PPP Projects


Currie & Brown has a reputation in the UK over recent years as one of the leading players in the PPP market. That reputation is now reaching global proportions as the firm fulfils the need for PPP expertise in diverse and growing markets around the world.

As PPP matures in Europe and further afield, there is still a lot to be learned from UK practice, particularly around the lack of quality assurance systems in many countries, which makes it difficult to establish whether the project is delivering value for money.

Whilst in each country governments are developing output specifications that are specific to their own particular needs, they benefit from the long track record of experience that Currie & Brown can offer.

In Mexico Currie & Brown has been appointed by the Government to deliver the country’s Healthcare Infrastructure Plan, launched recently by President Calderon’s new administration.

The appointment means that the firm will act on the Government’s behalf in tendering all the PPP projects that make up Mexico’s five year strategic plan. The work will include the development of all tender documents, management of the tender process, co-ordination of the evaluation of bids and assisting the government on financial close of contracts.

It is a major win for the firm and puts Currie & Brown at the forefront of one of the biggest international healthcare PPP projects, building on a strong track record of success in Mexico, having acted as Technical Adviser for the county’s first PPP hospital in 2004, as well as sole international procurement adviser for the second PPP hospital in 2006.

The first project to be delivered under the strategy, a new hospital in the State if Mexico, is valued at around $300 million. Work on another two hospitals is due to start in the next few months.

Such is the significance of the Mexican healthcare project that the International Development Bank described it as one of the most important initiatives in Latin America and has issued a warranty for all bidders on the project.

The success of Currie & Brown’s involvement has led to the firm now advising the Ministry of Public Works in Chile on the construction of two new hospitals, the Peruvian government on an initiative too develop its ports and discussions on a number of possible projects in Brazil.

Closer to home, Currie & Brown is in a unique position to consider the European applications of PPP as it has advised on many new projects in Greece and France, leveraging on its UK long experience. In most cases the firm’s involvement goes far beyond the traditional scope of the QS practice. The business has found itself variously as procurement advisor, bank auditor, coordinator of technical, legal and finance teams, as well as author of government tendering policy.

Governments are becoming more sophisticated and realise that they do not necessarily need individual technical, legal or financial advisers, however they do need people that can provide wide ranging procurement advice.

In the last two years, Currie & Brown has become a recognised player in the PPP market in France and is involved in some of the country’s biggest projects. The firm is Independent Technical Adviser in a group led by the French contractor Eiffage in a 250 million Euro project to build and maintain four new prisons over a period of 30 years. During the due diligence stage Currie & Brown analysed the liability and responsibility between all the parties involved as well as the risk distribution across the different contracts of the project and the capacity for the operator to manage them. Now in the implementation phase, Currie & Brown is monitoring the construction process.

Effiage is Europe’s sixth largest concessions group with 54,000 employees and a turnover of more that eight billion Euros. Currie & Brown is also working with Effiage on the largest hospital project in France, which is valued at three hundred and thirty million Euros. The project will create the Centre Hospitalier Sud Francilien to replace two hospitals that serve Corbeil-Essones and Evry, two cities south of Paris with a combined population of six hundred thousand. Currie & Brown acts as the Technical Adviser on the project, fulfilling a role similar to that of the prisons project.

In Spain, Currie & Brown is advising on the Madrid Calle 30 project, which will deliver an orbital motorway around the city and at €4 billion is one of the largest projects in Europe. The firm is currently acting as auditor of the funding banks.

In Greece, the government currently has a portfolio of over 200 projects and Currie & Brown is advising on strategic development. The most recent projects in development are the selection of a private partner to deliver fire stations across the country and a contract to deliver two prefectures.

Looking forward, it is obvious that the global credit crunch will have some impact on the strategic development of future PPP projects, however the likely outcome will be more investment in infrastructure as these are seen as secure projects in times of volatile markets.

It's possible that as real estate funds suffer from the credit crunch there will be a migration into the infrastructure market resulting in some deals closing higher than expected.

Ultimately, a shift to more investment into infrastructure developments can only result in better quality of life for many individuals as they are treated in modern hospitals and their children attend schools that are fit for purpose.


Note to Editors:

Currie & Brown is a consultant in international construction and related matters, including risk and property management. It has four operating service divisions: Project Management, Cost Management, Consulting and Business Consultancy.

The company employs over 1000 people worldwide: 500 in the UK (50/50 split Scotland and England) and a further 500 in more than 50 overseas territories.

It is one of the world’s top 10 consultancies whose clients include Marks & Spencer, Royal Bank of Scotland, BBC, BAA, BP, Land Securities Trillium, and Shell Exploration.

For further information please contact:

The business is headquartered in London with 13 regional offices across the UK. It also has offices throughout Europe, Middle East, Asia, Australia, the Americas and associated offices in Africa.

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