Standardized Documents

4.7  Separate standardized documents for processing small projects are not common. Smaller PPPs are more frequently found in the solid waste, street lighting, small energy, water, storage, and multiple other sectors as seen in the earlier section on global trends. The general trend has been to use the documents developed for the first project as standard documents for subsequent projects.

4.8  Standardized documents seem to be prevalent in countries like India, in sectors where geographic and specific local factors influence contract structure to a lesser extent. India has a few examples of standardized contract documents for small projects. The Planning Commission of India is working on finalizing the standardized contractual document for grain silos. Ten grain silo complexes have recently been bid out by the Madhya Pradesh Warehousing and Logistics Corporation (MPWLC). Similarly, the Food Corporation of India (FCI) has created a standard contract based on which it is carrying out the procurement of grain silo complexes under the DBFOT model at 36 locations in several states across India. The PURA PPPs in India also have their own standard concession contract in three parts and the standard state support agreement, which are being replicated in all projects with some modifications. The PURA standard concession document has a distinctive feature given the low level of capacity in the contracting agency, the Gram Panchayat. The concession contract is divided into three parts with the first part dealing with the specific project features and the other parts being generic legal clauses and schedules. Part II of the Concession Agreement is negotiated by the Ministry of Rural Development (MoRD) given the low level of legal capacity of Gram Panchayats, while the Gram Panchayat is involved in discussions on specific project features, performance indicators and targets that are included in Part I of the Concession Agreement. The existence of the standard contract has enabled the government to invite bids in groups of several projects under Phases I and II of PURA.

4.9  South Africa has detailed guidelines for processing municipal projects. These guidelines, however, are uniform to all projects and do not discriminate between large and small projects, although municipal projects, except in metro areas, tend to be smaller in size. South Africa's municipal guidance has not reduced complexities associated with the approval process as these projects still need to comply with National Treasury Regulation 16.