Transaction advisor

A person appointed in writing by a contracting authority who have the appropriate skill and experience to assist and advice the contracting authority of matters relating to private public partnership.

These include preparation, assessing and conclusion of a project and the financial prose. The public-private partnership act requires the transaction adviser to guide the government from the public-private partnership procurement process to its financial course. This is so because many agreements ought to be reached and a paper feasibility carried out to give comfort to both the investor and the government.

Implementing public-private partnership (PPP) successfully requires capacity and specialized expertise. Contracting authority must have the capacity to identify, assess, structure, procure and manage public-private partnership projects. This requires specialized skills and experience covering especially the financial, legal and technical issues important in the PPP projects.

In many countries, government bodies don’t have such high level specialized skills in house. These experts are relatively expensive and are not always needed all the time by the government bodies. It is quite normal for government to appoint a specialized transaction
advisor when they want PPP projects.

In Kenya, contracting authorities should also make use of experienced tax advisors. During the initial years, contracting authorities can tend to make more use of consulting advisers PPP expertise in Kenya is still developing. However, over time, contracting authorities will be able to make much more use of local advisers as their experience grows.

It is useful for the PPP unit and the contracting authority to examine the technical expertise requirement of potential budgets at the outset before undertaking the next step. In some cases, it might be within the capabilities of the contracting authority to conduct the
necessary studies; but in most cases it’s not.

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