4.1 Small projects have not been specifically defined in countries in terms of value, technical complexity, or population served, or by other characteristics. However, institutional frameworks and processes in countries do help to define the thinking on what a small project is in several countries. For example, in India the approval process may vary based on the project sponsor; i.e., whether it is a national or subnational entity, what the project size is, or whether it is a special project under separate guidelines. South Africa has a distinct framework for municipal projects, many of which are likely to be smaller in size. In Indonesia, the government has a threshold of $100 million for projects to enter the zone of consideration for viability gap funding support from the Ministry of Finance;7 anything below this level is not considered feasible for VGF given the high transaction costs. However, the general approval process for all PPP projects remains the same and is not distinguished based on project value, sector, or other characteristics in Indonesia. These differences in institutional structure for different categories of projects could help define small projects to an extent; i.e., small projects are more likely to be subnational projects and in non-traditional sectors. In the UK, HM Treasury guidance suggests careful scrutiny over value for money for smaller projects with the suggested threshold being £20 million.
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7 Ministerial Decree No. 223/2012 (PMK 223/2012) on Viability Gap Fund, Government of Indonesia.