Where local authorities have a degree of separation from other relevant government bodies, it is essential that they are involved as early as possible. In some jurisdictions, local authorities can impose taxes on particular projects or can delay projects procured by the national or state government by not issuing, withholding or revoking relevant permits required for construction works. It is important that these stakeholders are involved pre-financial close to make sure any additional requirements are adequately addressed.
For example, in India land management is under the jurisdiction of individual states and a dedicated authority for land acquisition, over which the relevant Procuring Authority often has no control. The National Highways Authority of India has experienced major delays on some highways PPPs as a result of delayed land acquisition. As a result, the Procuring Authority typically enters into state support agreements with the relevant states upfront to facilitate efficient land acquisition. Stakeholder engagement with respect to other government stakeholders is detailed in Section 3.3 (Stakeholder management).