A guidebook on public-private partnership in infrastructure

Realistic demand analysis 
Once the best solution option has been identified, the next stage is 
determining the parameters of the service that the project has to provide. In other 
words, its location, size, structure and capacity have to be determined. This requires 
a realistic assessment of the service demand in the future. For many projects, for 
example, transport sector projects, demand forecasting is often difficult and tricky but 
the success of the project greatly depends on it. Once the demand for the service is 
established, other technical parameters concerning size, capacity, etc can be 
determined through technical analyses, 
Social and environmental impacts and mitigation measures 
The likely social and environmental impacts of the project and their possible 
mitigation measures need to be assessed early on in the project planning phase. 
Many countries have special laws on environment, which stipulate the requirements 
for environmental impact studies. These requirements need to be carefully 
assessed. 
Large tracts of land may be required for many infrastructure projects. In such 
cases, resettlement and rehabilitation of the affected people and compensation for 
the acquired land/property may become major issues in project development and 
implementation. The problem may become of a serious nature in the absence of fair 

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A Guidebook on Public-Private Partnership in Infrastructure
 
 

policies, and necessary legal measures to deal with such complex social issues. 

These issues also have deep financial as well as political implications. Some 
governments have formulated clear policies on these matters. The social, legal, 
administrative and financial implications of these issues need to be carefully 
considered during the project planning stage.