Need analysis is about the proper identification of the outputs and objective of the project which is critical to achieving the desired public service outcome. The need for a new service can stem from a number of reasons, viz. new Government policies, regulatory compliance, increased demand for services, replenishing of asset capacity, increasing or providing an alternative range of services, business improvements and efficiencies, sustaining service delivery, or enhancing service capacity.
An overall need assessment should be carried out, taking into account the types of services users will need, total user demand for those services, and all sources of existing and planned delivery of services.
The existing infrastructure should be assessed for its ability to deliver the currently needed services and the service requirement expected for the future. An assessment should be made of:
• The service capacity of existing assets.
• The service standard provided by existing assets. Service standards are typically measured by performance indicators relevant to the sector.
The condition of existing assets, including how well maintained they are, their age and likely longevity.
The public entity would need to question itself on whether there is a need for the proposed development, whether the capacity of existing assets is adequate to provide the quality service delivery to people, what is the life of the existing asset and whether it is time to replace it or augment capacity, etc. It is only after sufficient scrutiny of the existing assets that it will be possible to establish the need for any project/ service delivery.
For example, service needs such as safe drinking water, sewage disposal, and provision of subways can originate from any of the above-mentioned reasons and thus can be identified as a service delivery need.
| Example of a Service Delivery Need - Constraints and Outcome Where there is a 'service need' to improve the service delivery of electricity in a city, the possible constraints may be: • low capital budgets with the Government • urgency with which the solution is required to reap results • making it affordable for users The outcomes would broadly be: • increasing the hours of power supply • maintaining minimum voltage to a service level |
| PROJECT | Vadodara-Halol Toll Road The project involved the four-laning of an existing 32 km two-lane State highway between Vadodara city and Halol town in Gujarat. Although the project was completed ahead of schedule and with savings on the estimated cost, the projected traffic did not materialize resulting in insufficient revenue realization. The experience from this project demonstrates the importance of robust due diligence prior to project procurement. The viability of the project was significantly affected when the volume of traffic, due to the withdrawal of incentives for the setting up of industries in Halol town, declined, resulting in a 50 per cent reduction in traffic projections. The lapse with respect to understanding the legal environment in which the project had to operate and the resultant policy risk put undue pressure on the viability of the project operations. Source:http://toolkit.pppinindia.com/highways/module3-rocs-vhtr1.php?links=vhtr1 |