Suggestions for the PPP model is included in the following, however they have not been fully explained in this report, but were uncovered during the interviews and from other recent research studies.
• Having a legal framework for private finance (don't assume it already exists)
• Understanding all the issues, consequences, pitfalls, and important aspects of PPP model. (May have to prepare a feasibility study on PPP for your local practices)
• Understand private finance and legal/banking/financial requirements and consequences. (may need to hire financial professionals)
• Having approval at high governmental levels - Ministry of Finance
• Having a benchmark comparison - some form of Public Sector Comparator (PSC)
• Developing a business case for projects
• Thorough understanding of risks and risk optimization. (May have to prepare a research study on risks and categorized according to all main models)
• Understanding different payment mechanisms & which ones provide better value
• Assigning a client PPP team that is continuously involved in all aspects of PPP projects
• Determine project size for PPP - typically general guideline has been greater than €80 million
• Developing performance specifications as a continuous process
• Accepting Alternative Technical Concepts (ATC) - numerous in PPP projects
• Early contractor involvement by minimizing design prior to tender < 25-30% (huge hurdle)
• Make long-term private finance contract that is flexible
• Short Listing to 3 potential candidates