It only makes sense to do a project as a PPP if the project itself is sound. Most governments therefore subject proposed PPP projects to the same technical and economic appraisal as any other major public investment project. There are typically two broad elements to this assessment. The first is developing, and assessing the feasibility of, the project concept. The second is appraising whether the project is a good public investment decision-typically based on some form of economic viability analysis.
This assessment may take place prior to ever considering a project as a PPP, as described in Section 3.1: Identifying PPP Projects. In other cases it may be undertaken as part of the PPP appraisal process. Either way, the project feasibility and economic viability analysis for a PPP should typically be no different to that for any other major public investment project. This section therefore describes such analysis very briefly as it may be applied to potential PPP projects, highlighting key issues that would typically be addressed, and providing a selection of sources that may usefully supplement other governments' existing guidance material.