A key criteria of assessing the potential success of a public private partnership project is the determination of value for money: Does the project design allow for successful construction and service delivery that meets the needs of the end users at the lowest cost for capital, operations and maintenance over the duration of the agreement?
A number of factors need to be considered when assessing value for money:
• project design
• project construction
• project/service delivery
• management
• operating system
The post-implementation review permits the assessment of the project in terms of cost and service delivery effectiveness.
When evaluating value for money, the analysis will require:
• a cost/benefit analysis of the public private partnership arrangement
• an allocation of risks between partners
• project finance requirements resulting in a need for taxpayer support
• duration of taxpayer support required for project finance