A guidebook on public-private partnership in infrastructure

K. GOVERNMENT APPROVAL 
A government approval would normally be required at the end of the project 
development phase. Activities related to procurement in the next phase can follow 
this approval. 
For government approval, an interim business case
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for the project may be 
prepared by the project team/transaction advisor based on the outcome of the 
feasibility study. In some countries, there are specific information requirements for 
government approval at this stage. 
The interim business case proposal for approval could be expected to contain 
information on, among others, justifications for pursuing the project and selection of 
the PPP model, key details about the project, expected costs, financial and 
economic viability, financing plan, proposed risk allocation, responsibilities of, and 
liabilities (fiscal or otherwise) on government, justifications for government support (if 
proposed), and implementation plan and arrangements.
30.
The understanding of the public sector about what constitutes a business case for a project is different from 
that of the private sector. For a private sector company, a business case in simple terms would mean if the 
project is commercially viable, legally tenable and administratively implementable, and is within its technical, 
managerial and financial capacity.

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A Guidebook on Public-Private Partnership in Infrastructure
 
 
The interim business case should also provide assessment of all financial and 
budgetary, institutional, legal, regulatory, physical and other socio-economic factors 
that constrain and/or enable the project. When possible, the business case should 
also establish the value for money for the project according to the selected PPP 
model. 
The interim base case is finalized after the preparation and finalization of 
tender documents in the next phase.