Potential interface issues with other projects should be considered during the project development and evaluation phase.
Failure to detect issues with adjacent and competing projects can lead to cost increases and time delays. The late identification of the clash between this project and another road expansion project has resulted in variations at the expense of the Procuring Authority. The PPP Center recognised the severity of this particular challenge in this project and other projects across the country. Therefore, in order to mitigate risks associated with adjacent and competing projects, the identification of projects which may have an interface with the project in question was introduced in the project development and evaluation phase. Projects with identified interface issues are not allowed to proceed to the next stage of evaluation until the interface issues are addressed, depending on the severity of their impact.
It is important to recognise that interface issues vary in complexity and impact on a project. Thus, it is difficult to give specific advice on how to handle interface challenges. Some interfaces are easy to remedy and are not significant enough to affect the decision on the project's evaluation, while others are. Therefore the 'Philippine's solution' is attractive, as it requires flagging interfaces during the development and evaluation process but leaves the decision to proceed without a remedy plan at the discretion of the project technical working group. This proactive method presents an example of good practice to be adopted during project inception and evaluation, as it facilitates awareness of any potential issues at an early stage.
Training of the Procuring Authority's contract management team by a national PPP unit can benefit the team by providing visibility of all challenges faced nationally in PPPs.
The PPP Center has been responsible for providing training to the Procuring Authority. As the PPP Center has visibility of all PPP challenges faced nationally, and is closely linked to the central government, it has the ability to act as a catalyst for knowledge sharing and training.
Land acquisition should be dealt with at an early stage (preferably before or during the bidding stage) as it carries significant risk of additional costs and delays.
Land acquisition carries significant risk of additional costs and delays. It is often a risk retained by the Procuring Authority.
The process of obtaining the necessary land requires careful stakeholder management and engagement planning. It can be a lengthy process, and it is recommended that land acquisition challenges are addressed at an early stage in the project to avoid delays and additional costs during construction.
Independent consultants may act as a mediator to prevent disputes as they offer an impartial evaluation of any issues, which can then be presented to the parties for agreement.
It was highlighted by the interviewees that independent consultants are helpful in reaching agreements between the parties involved. In this project, the consultant was commissioned by both parties, ensuring a non-biased and transparent opinion. In some respects, the independent consultant acts as a mediator in preventing disputes, as it offers an impartial evaluation of any issues, which can then be presented to the parties for agreement.