3.1 Identifying PPP Projects

The first step towards a successful PPP is identifying a potential PPP project. Since a PPP is first and foremost a public investment, most successful PPP projects originate from the broader public investment planning process, as described in Section 2.3.1: PPP Process. At some point in this process, priority public investment projects can be screened for their potential to achieve better value for money if implemented as a PPP-several governments have established tools and checklists to support this screening. The online toolkit for PPPs in India [#141] provides a good overview of PPP project screening process.

As shown in Figure 3.2: Identifying PPP Projects, the output of the project identification stage is typically a PPP concept, and an initial assessment (sometimes called a strategic, or outline business case) of the rationale for pursuing the project as a PPP. In many countries this must be formally approved before continuing to develop the PPP further.

Figure 3.2: Identifying PPP Projects