Developing a PPP project can be categorized into two stages.
• Stage one is from project identification until the selection of a private partner. This stage deals largely with all the transactions that are key to the selection of a private partner.
• Stage two is the actual project implementation by the private partner which involves construction, operation and maintenance of the project assets to deliver the required services as set out in the contract.
Given below is an indicative time schedule for PPP projects. The table below has been prepared on the basis of previous PPP experience.
| Key Stages\Years | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Identification, Feasibility & Structuring | ||||||
| Tendering & Contracting | ||||||
| Financial Closure | ||||||
| Construction & Commissioning | ||||||
The timelines shown in the table above are only indicative in nature. The timelines would vary significantly depending upon sector and the project details.
Project identification, feasibility studies, and structuring of the project, which are pre-tendering activities that are key to the preparation of bid documents, will require atleast a year to complete. This also depends on the project definition itself. Completion of certain feasibility studies such as the Environment Impact Assessment (EIA), the Social Impact Assessment (SIA), market studies, geo-technical studies, topographical studies, traffic studies, etc. will require close to a year. It is therefore useful to carry out these studies simultaneously.
Project structuring will involve multiple stakeholder consultations, identification of risks and their allocation among parties, and an indicative contractual framework for project execution. This will take about a couple of months.
Bid documentation includes multiple consultations with the stakeholders involved in the project prior to its finalization. The procedure adopted for the bid process is largely standardized to limit the time needed for the bidders to make their submissions. The entire bid process, if it is for a two stage process, requires atleast another one year to get completed. Usually, the time provided to achieve financial closure in the project is 180 days as per the MCA for development of National Highways under PPP framework.
Actual implementation (construction) of the project requires a reasonable amount of time, taking into account the land acquisition issues, approvals and clearances to be obtained and the scale of development which is envisaged. Usually, significant delays are observed during the construction and commissioning stages of the project which also contribute to an escalation in the project costs.