2.2.1  Carry out further studies

Even though the core technical, financial and economic studies will have been carried out during the feasibility phase, there may be a need for further, updated and more focused studies during the procurement phase:  Guidance 27

•  Preparing the business case and appraising the project may have brought to light aspects where more detailed work is needed.

•  The studies during the feasibility phase will have been geared most of all to helping the Authority or other public bodies take a "yes/no" decision and select from among major project alternatives, not necessarily to refine the PPP design in preparation for contract drafting.

•  As the PPP design advances, decisions about risk allocation may require additional studies. For example, in some projects (e.g. involving tunnels) it may be useful for the Authority to carry out an initial study of ground conditions and make these available to bidders.

•  The Authority should assess the opportunity of using EU Cohesion or Structural Funds for meeting part of the project's financing requirement (see Annex 3).

The Authority and its team of advisers should take great care to ensure a clear delineation of the extent to which the private sector can rely on the results of information given by the Authority. Unintentional warranties given by the public sector can undermine risk transfer. Legal advice should always be sought on potential legal responsibility or liability arising out of the provision of information by the public sector to the private sector. As a general principle, the private sector should be required to do its own due diligence investigations rather than rely on information provided to it.