Before starting any work on project development, the implementing government agency ought to have clear understanding of the basic requirements that the PPP project in consideration must meet, the administrative processes involved, and the capacity in the government to develop and implement the project. Such an understanding is required to prepare detailed terms of reference for the work to be undertaken and a timeframe for its execution. Generally, the following need to be clearly understood:
• The legal and regulatory environment, and government policy on PPPs;
• The objectives that the proposed project has to achieve;
• The PPP process in the country, and administrative and approval processes and their requirements;
• Private sector requirements and capacity in the government to implement the project; and
• How to ensure good governance in project development and procurement.
• These are discussed in the following sections.