OBJECTIVE

In this part of the P3 business case, the project sponsor should:

• Engage in confidential discussions with P3 sponsors, constructors, operators, and financiers on the viability of the project as a P3, the optimal delivery model and key business, risk and financial terms necessary to attract market interest to the project;

• Clearly articulate how any themes or findings from the market soundings impact the viability of the P3 delivery models identified in Step 3 above.

Figure 6: Summary of market sounding objectives

1	Obtain an understanding of the marketability of the project Through discussions related to private sector interest in the various service components and delivery elements.
2	Highlight potential market constraints Such as, for example, constraints surrounding specialized design capabilities, financing and facilities management elements
3	Identify specific concerns with respect to risk allocation To determine key concerns from market participants with respect to the project and with respect to private sector appetite for assuming particular risks associated wit the project.
4	Begin to prepare the market for the project By extending the period over which the market can decide whether or not it is interested in the project. This will also help to ensure competitive tension during the transaction process.
5	Estimate or confirm assumptions to be used in the quantitative assessment These may include financing assumptions and changes to the risk matrix