A PPP is not a solution option to an infrastructure service problem but could be a viable project implementation or procurement mechanism for a preferred solution option. A project is expected to meet some service needs as well as to achieve some policy objectives of the government. A basic question is how far the proposed project can meet these requirements as a solution option.
A preliminary needs assessment by the implementing agency may be considered to show:
• The project is among the best options for meeting the service needs;
• The project can help achieve some of the relevant objectives of the government; and
• A PPP would be a viable project implementation/procurement option.
Details analyses and confirmation of these aspects will, however, have to be undertaken as a part of the feasibility study at a later stage.
It is also important at this stage to consider the government stake in the proposed project. Considering the public good nature of infrastructure projects, their strategic importance, effects on other sectors, public safety and security, and utilization of natural resources, the government has an important stake in all such projects. How a PPP project may satisfy these requirements needs to be carefully examined.