The Work Team shall base the cost and income analysis on actual and/or similar recent projects delivered under Privatization schemes either in the Kingdom or elsewhere. When no such data is available, the experience of technical experts shall be used to derive the requisite cost and income projections.
Estimates shall be provided as financial values. At this stage of project preparation there is generally no preliminary design, so detailed item-by-item costing may not be possible; however, notionally estimates shall nevertheless encompass all the elements of cost and income estimates required to achieve the project's purpose, with a goal of ± 10 percent accuracy. Metrics based on previous projects may be helpful, e.g., SAR per kilometer of a similar road, or costs per square meter of a similar facility.
The Work Team shall document the assumptions made and sources used to arrive at these costs and income, separately as an annex to the spreadsheet model. The assumptions should be clearly explained and the sources referenced appropriately through appropriate documents, links to data sources, etc. See Table 5 for an example of how the assumptions should be set out.