Quantitative Assessment involves estimation of the risk adjusted cost of delivering a project through the PPP mode as compared to the risk adjusted cost of delivering the same project through the traditional public procurement mode. The value analysis compares the estimated cost of procuring the project through traditional public procurement with the estimated cost of procuring it on a PPP basis.
The analysis is intended to contribute to an assessment of whether the PPP option presents value compared to a conventionally procured project. The quantitative assessment aims to:
1. Support the qualitative assessment of officials involved at the project level in determining value;
2. Enable projects to make appropriate use of private capital, to justify explicit additional costs against the benefits achieved as a result of transferring risk to the private sector; and
3. Enhance the data availability to Departments to support future procurements, and to be able to justify decisions taken in the context of Government policy.