A guidebook on public-private partnership in infrastructure

CONTENTS 
Chapter  
Page
 
Abbreviations 
vi
1. 
Public-Private Partnerships in Infrastructure: Revisiting the Basics 
1
A. The characteristics that make PPPs different 
1
B. Models of PPP 
4
C. Understanding the basic structure of a PPP arrangement 
10
2. 
Before Project Development: Understanding the Overall Process and 
the Basic Requirements
13
A. The legal and regulatory environment and government policy 
13
B. Main objectives that the project has to achieve 
15
C. The PPP process in the country 
16
D. Understanding the private sector’s requirements and capacity in the 
government to implement the project 
18
E. Good governance 
19
3. 
Project Development I: Undertaking the Preparatory Activities 
20
A. Project identification and preliminary internal stakeholder consultation
20
B. Scoping of the project
21
C. Identifying the major issues in project planning
23
D. Institutional due diligence 
23
E. Establishment of a project management structure 
24
F. Appointment of a transaction advisor 
25
G. Establishment of a mechanism for stakeholder consultation, market 
testing and information disclosure 
28
4. 
Project Development II: The Feasibility Study and Due Diligence 
29
A. Project planning and feasibility 
29
B. Risk analysis and management 
34
C. 
Financing 
40
D. Value for money 
46
E. Pricing policy and compensation to project company 
46
F. Government support 
48
G. Responsibilities of and liabilities on government 
51
H. Regulatory arrangements 
52
I. Service and output specifications 
52
J. Terms of contract 
54

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iv 
A Guidebook on Public-Private Partnership in Infrastructure
 
 
K. Government approval 
55
L. Dealing with unsolicited PPP project proposals 
56