Prior to requesting BCC approval to enter into contract negotiations with one or more proponents, the agency must, in conjunction with Treasury, develop a project-specific ‘terms and conditions for negotiations of private sector infrastructure projects’ agreement in the PSI-3 format (see Appendix 4).
The purpose of this is to inform the BCC of the nature of the commercial deal that the agency wishes to pursue with the private sector.
The terms and conditions submitted to the BCC must outline the scope of the project and areas for final negotiations, as well as any conditions that must be satisfied for Government to support the project.
In addition, the agency submission should provide the information needed to estimate any likely contingent liability of the project on the Consolidated Fund.