The financial feasibility study usually factors in and makes assumptions of various financial risks that may crop up in any project. It also takes into account their impact on the PPP mode and has a significant impact on the risk sharing clauses that appear in the contracts. As the expectations from the project differ, different stakeholders would be interested in different aspects and outcomes of the financial feasibility assessment for any project.

Public Entity checks for:

• Is the project financially viable on a standalone basis?

• In case the project is financially viable on a standalone basis, whether development through a PPP framework would minimize user fee charged to users?

• How much of revenue which is collected/ made by the private partner could be shared with the public entity?

• Is there a need to provide project support?

• How much support needs to be extended?