The PPP preparation stage comprises the Pre-feasibility Study activities, which consist of:
1. Preparation of Outline Business Case (OBC), consisting of:
a. Legal and institutional study;
b. Technical study;
c. Economic and commercial study;
d. Environmental and social study;
e. Study of cooperation form and structure in infrastructure provision;
f. Risk management study;
g. Study of Government Support and/or Government Guarantee needs; and
h. Study of follow-up issues.
2. Preparation of Final Business Case (FBC) which consist of the data adjustment based on the current conditions and updates of the feasibility and readiness of the PPP referred to the Outline Business Case. FBC includes the fulfillment of all requirements of the Pre-feasibility Study including follow-up issues; approval of the PPP by stakeholders; and certainty on whether Government Support and/or Government Guarantee is required or not.
During the PPP Preparation Stage, the Government Contracting Agency (GCA) will perform Public Consultation and Market Sounding. The purpose of Public consultation:
• Reviewing the compliance of the social and environmental standards in accordance with the provisions of laws and regulations in the environmental sector;
• Obtain inputs regarding public needs related to the PPP; and
• Ensure the PPP readiness.
Meanwhile, the Market Sounding is intended to obtain inputs and response from the PPP markets (business entities/ agencies/ institutions/ national or international organizations).