A guidebook on public-private partnership in infrastructure

Project selection 
An important element in project planning is the selection of the best solution 
option to the problem. A thorough analysis of an existing problem with consideration 
of feasible alternatives for its solution should be explored with due participation of 
important stakeholders from within and outside the government. In this exercise, the 
participation of all relevant government agencies, important decision-makers and 
experts is necessary. A participatory project planning exercise has several merits 
including:
• There is no prejudgement about any solution option; 

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A Guidebook on Public-Private Partnership in Infrastructure 
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• It helps to understand the complexity and intricacies involved in a project; 
and 
• Acceptable solutions and innovative ideas may emerge from the process.
Another important advantage of participatory planning is that it provides a 
general endorsement of the selected option by the stakeholders. 
Engagement with the private sector 
The interest of the private sector may be assessed by organizing a 
conference open to the interested private parties. The main purpose of this 
engagement is to get preliminary feedback from the private sector on the feasibility 
of the proposed PPP project. Relevant basic information on the project is provided to 
the interested parties which may include the type of services to be procured and the 
demand for such services; types of PPP deals under consideration (BOT, BOO, 
etc.); likely tenure of the contract; obligations of the parties in broad terms; revenue 
sharing arrangement; financing, etc. 
Engagement with the interested private parties at this stage is a technical 
consultation and is not related to procurement. Both the government and interested 
investors are benefited through this type of engagement and consultation. 
Preliminary response from the private sector can greatly help in refining the project 
ideas and subsequently in developing a project structure. The implementing agency 
also benefits by having a better picture of the capacity and interest of the private 
sector in implementing the project.