When the decision to implement the project through a PPP is finalized, the project has to be structured to finalise the terms and conditions of a formal arrangement to be entered into between the public entity and the private partner. The project structuring stage in the development process should answer the following questions:
1. What are all the risks associated with the project?
2. How can the risks be best mitigated?
3. Which of the parties can best manage handle the risk and at what cost?
4. How best can the risks be allocated among the parties?
5. What should be the contractual framework for implementation of the project?
6. What are the indicative roles and responsibilities of the parties to the PPP arrangement?
7. What are the key issues and concerns for project implementation?
Project structuring is the most important of all stages of the project development process through PPP framework because it is at this stage that the contours of the project, roles, and responsibilities of the parties, consideration, project scope, functions, payment terms, other conditions, etc. are finalized.