A guidebook on public-private partnership in infrastructure

Outline delivery options 
Once the service requirements are defined, it becomes possible to consider 
alternative delivery options and their implications. Further consultation with the 
stakeholders from within and outside government can be helpful at this stage. 
The delivery options identified may have varying technical, environmental, 
operational, financial, and ownership elements. Apart from considering new assets, 
where applicable, such options may also include increased utilization of existing 
facilities and solutions based on a broader umbrella project with direct involvement of 
other agencies. For example, rather than considering a stand-alone public transport 
project, a broader urban development project with a public transport component can 
be considered. Such an umbrella project can be structured to produce synergetic 
effect between the components, which increases the viability of individual 
components. 
An 
initial 
assessment 
of the identified delivery options should include 
estimates of life cycle costs, major risks involved, resources that may be available, 
and constraints.
Life cycle cost estimates should take into account capital expenditure over the 
project’s life cycle, cost of borrowing money, life cycle maintenance and 
refurbishment costs, and costs of associate infrastructure. Associate infrastructure 
includes facilities that are essential to meet the project needs – for example, an 
access road or utility lines that may need to be constructed.
The major risks involved in all options need to be identified. An initial 
assessment of their implications and how they are likely to be shared between the 
public and private sector may be indicated.
The implementing agency can make an estimate of the availability of any 
resources in the future that may have been already committed by the government or 
included in the agency’s long-term funding programme. 
The delivery options may have varying constraints in terms of legal
and regulatory requirements, contractual obligations, environmental considerations, 
technical aspects, public interest, private sector’s interest, land requirements and 
availability, and various social and political issues. All major constraints need to be 
identified and how they can be resolved should be assessed.