Once the service requirements are defined, it becomes possible to consider alternative delivery options and their implications. Further consultation with the stakeholders from within and outside government can be helpful at this stage.
The delivery options identified may have varying technical, environmental, operational, financial, and ownership elements. Apart from considering new assets, where applicable, such options may also include increased utilization of existing facilities and solutions based on a broader umbrella project with direct involvement of other agencies. For example, rather than considering a stand-alone public transport project, a broader urban development project with a public transport component can be considered. Such an umbrella project can be structured to produce synergetic effect between the components, which increases the viability of individual components.
An initial assessment of the identified delivery options should include estimates of life cycle costs, major risks involved, resources that may be available, and constraints.
Life cycle cost estimates should take into account capital expenditure over the project's life cycle, cost of borrowing money, life cycle maintenance and refurbishment costs, and costs of associate infrastructure. Associate infrastructure includes facilities that are essential to meet the project needs - for example, an access road or utility lines that may need to be constructed.
The major risks involved in all options need to be identified. An initial assessment of their implications and how they are likely to be shared between the public and private sector may be indicated.
The implementing agency can make an estimate of the availability of any resources in the future that may have been already committed by the government or included in the agency's long-term funding programme.
The delivery options may have varying constraints in terms of legal and regulatory requirements, contractual obligations, environmental considerations, technical aspects, public interest, private sector's interest, land requirements and availability, and various social and political issues. All major constraints need to be identified and how they can be resolved should be assessed.