The successful implementation of PPPs at the LGU level depends on the careful assessment of the factors to be considered in implementing PPP projects.
Pending the formulation of a PPP readiness assessment tool in the Philippines, LGUs may refer to the assessment tool developed by United Nations Economic and Social Commission for the Asia and Pacific (UNESCAP) which was originally created to evaluate a country's readiness to undertake PPP projects. Although the UNESCAP guide is originally developed for countries, it has features which could be adopted by local governments. The ideal espoused in the guide is for small informed groups comprised of stakeholders to sit together and answer a readiness assessment questionnaire. After answering the questionnaire, the groups shall then discuss the commonality and difference in their perceptions of the PPP environment. Ideally, the LGUs shall consider the results of the self-assessment in preparing PPP action plans.
The areas of focus in the UNESCAP guide that may be applicable to LGUs are: (i) business climate, (ii) financial environment, and (iii) legal and governance environment. Indicators that may be most relevant to LGUs are lifted from the guide and listed below (UNESCAP 2005).