1. Introduction
Among the various modes of implementation, PPPs are gaining traction, albeit with a need to comprehensively address the concerns of all the stakeholders involved. Based on the experiences of developing projects under the PPP framework, experts in the field have distilled the process that need to be adopted in identifying, structuring, selecting the private partner and the activities post-selection of the private partner to ensure successful project implementation.
| PPP Project Development Process enables: • Appreciation of the process involved in project development • Understanding the sequence of activities in project development • Understanding the roles and responsibilities of both the public entity and the private partner during the project development process • Familiarisation with the key issues and concerns that arise in the project development process |
The term project development process includes all the activities that come under the PPP framework, starting from the project identification stage to the post award contract management stage where the project is being developed and/or operated by the private partner over the agreement period.
The various stages in the PPP project development life cycle/ process are set out in the diagram below:
The project development process steps mentioned above can be witnessed in all projects as they have evolved from repeated experiences. Compliance with all the above mentioned steps of project development process would aid in effective project development and implementation. Sometimes depending on the prevailing circumstances/ context and/ or past experience of the public entity in developing similar projects; a few of the above mentioned steps in project development are relaxed or omitted. However, such omission is not advisable keeping in view the interest of the project.
Typically, project development concludes with the execution of the agreement between the public entity and the private partner. The actual construction of the project and its operations are referred to as project execution or the implementation stage. During the implementation stage, several issues pertaining to construction, operation and management of the project could arise. To address such issues, it is advisable to set in place an effective post award contract management framework.
The Department of Economic Affairs, Government of India, has documented several case studies on projects developed under a PPP framework that discuss the entire project development process adopted for respective projects. Case studies are available in the weblink: http://toolkit.pppinindia.com/pdf/case_studies.pdf