4.2 PPP contract and financial close

The finalisation of the PPP arrangements, leading to commercial and subsequently financial close, involves a series of steps summarised in Chart 8. The activities involved in these steps, although concerned in some respects with broad issues, more often deal with highly detailed matters and fine-tuning. Close interaction between the public contracting authority, the private partner and financiers is essential. Stage 4.2 in particular requires thorough organisation and management for it to proceed efficiently. It should be planned carefully, generally making use of experienced advisers. Many PPP projects have experienced difficulties, which can last for years, due to lack of adequate planning or expert advice.