Evaluation Criteria

Yes

No

A. General

1.  All required sections of the Third File are provided, and the information provided is in sufficient detail to enable the Supervisory Committee to fully evaluate whether the project should proceed to the Privatization procurement phase. Any updates or revisions to the project concept are fully integrated across all Third File sections, and an affirmative statement on data accuracy and currency is included.

2.  It is clear which organization is implementing the project and who will ultimately be responsible for delivering the project on time and to budget.

B. Project Rationale and Assessment of Need

3.  The problem or opportunity to be addressed is clearly demonstrated and the way in which the project will help solve the problem or respond to the opportunity is explained and is plausible.

4.  The description of the scope of the project is sufficiently detailed for the Third File stage and there are no obvious omissions that could materially impact the achievement of the project purpose or materially affect the cost estimates.

5.  There is an urgent need, i.e., within the next 3 years, for the services of the project as evidenced of one or more of the following:

a)  existing demand for a facility close to the end of its economic life or technologically obsolescent;

b)  a severe capacity constraint in existing facilities resulting in suppressed demand;

c)  strongly growing demand, likely to outstrip the capacity of existing facilities in the near future;

d)  demand for new services not previously provided; or

e)  economic benefit from transfer of functions to private operation.

6.  The project will contribute to the achievement of relevant strategic goals and objectives as set out in Vision 2030 or the National Transformation Plan and is aligned with the sectoral Privatization plan as approved by the sectoral Supervisory Committee.

C.  Economic Case

7.  The proposed technical solution is appropriate to the problem identified, and the risk analysis and cost estimates appear realistic and complete, based upon available information.

8.  The postulated project benefits and identification of potential negative impacts is realistic in the context of this project.

9.  The financial model is complete and thoroughly documented, and supports the conclusion that the project is financially viable and sustainable.

D.  Affordability and Budget Impact

10. The budgetary analysis demonstrates that the project is affordable, or the availability of ancillary revenue sources to close the budget gap is demonstrable and secure.

11. All contingent liabilities have been identified, and included within the budgetary analysis, with appropriate and realistic mitigation strategies.

12. Benefits to users are likely to be achievable at an acceptable cost, for example, approximate capital costs per user or per unit of output are in line with comparable projects and/or international experience.

E.  Risk Assessment

13. The Risk Assessment has identified, correctly and completely, the major (material) risks associated with the project.

14. The proposed risk allocation is reasonable and reflective of market conditions; i.e., it will neither serve to restrict competition nor to expose the Kingdom to unacceptable risks.

F.  Value for Money

15. The Value for Money Analysis is complete, correctly calculated, in full compliance with NCP requirements, and supports the conclusion that the proposed Privatization project offers Value for Money.

G.  Market Assessment

16. The market assessment demonstrates that there is private sector interest, experience, and capacity to undertake the project, and is updated to reflect any changes to the project concept or approach that have been identified since submittal of the Second File.

H.  Additional Studies

17. The Third File has identified and includes all studies required to validate the project concept. The studies are provided as part of the Third File, and are accurate, complete, adequately address all applicable issues, and support the conclusion that Privatization is an appropriate model for the project.

I.  Project Plan

18. The Project Plan is complete, realistic, and in full compliance with NCP requirements.

J.  Summary and Recommendation

19. The recommendation to proceed to Privatization procurement is supported by the information and analyses included in the Third File, which are fully compliant with all NCP requirements.