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Alternative Finance & Procurement (AFP) for IT Projects. An Introduction and Summary of Experiences in Other Jurisdictions. Contents. Introduction Rationale for Using P3 Procurement Models Experience of Other Jurisdictions Risk Transfer . Introduction. AFP (P3) in IT is not new
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Alternative Finance & Procurement (AFP) for IT Projects An Introduction and Summary of Experiences in Other Jurisdictions
Contents • Introduction • Rationale for Using P3 • Procurement Models • Experience of Other Jurisdictions • Risk Transfer Go to "Insert" tab in Ribbon to insert Header & Footer
Introduction • AFP (P3) in IT is not new • Has been done in US, UK and elsewhere • In Canada • BC has Alternative Service Delivery (ASD) • Alberta used P3 for SuperNet • But no true IT P3/AFP in Canada
Rationale for using AFP • Risk transferred to party best able to mitigate it • Government funding not available • Project will pay for itself
Procurement Models Private Design-Build-Finance-Maintain Design-Build-Maintain Operations Public Design-Build-Finance Design-Build Financing
Experience of Other Jurisdictions • UK is a pioneer • US states have used benefits-funded model • Elsewhere mostly used for broadband networks • Some traditional IT projects (e.g., South Africa, Philippines, etc.)
Experience of Other Jurisdictions – Risk Transfer Risk Transferability / Ability to Mitigate Difficult Easy • Endogenous / directly within vendor’s control • Exogenous / not directly within vendor’s control • Partially influenced by externalities • Resources, Experience, Costs and Requirements • Compliance • Technology Capability • Incomplete Information • Technology Currency • End-user /External Factors • Future Interoperability • Changing Requirements
