Recent literature indicates that only a minority of infrastructure projects is delivered as P3s (usually less than 20 per cent) and that P3s can generate significant benefits only if the right project is selected for a P3 procurement. Some of the characteristics that describe the "right project" include:
◆ measurable outputs for the project;
◆ the feasibility of cost-effective risk transfer to the private sector;
◆ project and policy certainty over a 20- or 30-year period (i.e., during the contract term);
◆ a deal size of at least $75 million to $100 million in order to attract private sector bidders; and
◆ a competitive market that should produce at least three bids.
Question 19-Please comment on the validity of the above project selection criteria. Are these or any other criteria used in practice to select projects for P3 treatment in your jurisdiction?
Question 20-Do the screening criteria help identify whether any of the project risks (schedule risk, construction cost, revenue risk) can be transferred cost-effectively to the private consortium?
Question 21-Are you aware of whether a P3 agency (or government department) has ever rejected a potential P3 project because it was not deemed suitable? If so, please explain the circumstances.