The early involvement of all stakeholders in the PPP process helps develop an enabling environment. The stakeholders provide valuable information on the points of concern, the performance expectations, and potential risks. This input is also critical to assess whether key business assumptions of the proposed PPP (in particular tariffs/fees) are realistic and enforceable. Avoiding consultation invites the risk of later opposition, which slows or derails the process. Ongoing consultation with stakeholders is important at every stage.
Consultation with potential bidders and partners is also critical to ensure that the proposed PPP design meets their requirements. Otherwise, there is a risk that the PPP design includes an unrealistic combination of (politically) desirable features (high-level service, low prices, no redundancies, no subsidies, and short concession periods) that will make the project unattractive to bidders or unsustainable. Collecting informal feedback from the market during the preparation stage is therefore critical. More formal consultations can take place during project implementation as described in section 7.1.