As part of the preparation of the proposed deal structure of Privatization Projects Work Teams shall prepare and substantiate the risk transfer of proposed Privatization projects and the associated payment mechanisms and include them within the Second and Third Files. The choice of appropriate payment mechanisms and the feasibility of Privatization projects will depend greatly on a mature quantified assessment of demand and the proper assessment of demand is of considerable concern to the Supervisory Committees and NCP.
Therefore, in order to allow the Supervisory Committees to assess the appropriateness and maturity of these proposed commercial positions in Privatization projects before the commencement of procurement, NCP will require that independent demand and revenue studies be conducted for Privatization projects that identify the anticipated usage and user and/or third party revenues.
The specific form and requirements of such demand studies will depend on the proposed sectors and guidance will be prepared by the individual Supervisory Committees.