5.3 Project Preparation & Proposal

1. The Minister/Chairman will represent the concerned Federal Entity in the proposing joint projects relating to such entity.

2. Proposals, ideas and initiatives shall be submitted under a formal request to The Ministry, which shall after studying such request, submit the same to the Financial and Economic Committee to decide thereon.

3. Upon receipt of the said request, the Technical Bureau shall review it and audit the documents attached thereto, and shall cooperate, coordinate and provide technical support for the applicant to complete the deficiencies, if any, in order to develop a preliminary assessment of the project. It is not necessary at this phase for the Federal Entity to submit a detailed and comprehensive study. However, it is required to cooperate with the Technical Bureau for briefing the project's elements and inputs, completing its documents and preparing a preliminary study for a summarized and focused initial evaluation of the project's feasibility in order to:

A. Analyze needs, project objectives and anticipated results, public service expected to be provided, the project site and availability thereof, timetable for the awarding process, and anticipated completion period (basis and standards of the anticipated period calculation shall be stated), main technical and financial challenges that may hinder the completion, and results of any conducted studies related to the proposed project with the concerned Federal Entity or any other entity.

B. Determine the sector's needs in both of services and/or infrastructure.

C. Ensure the project's conformity with the policies and strategies of the concerned sector.

D. Assess the cost, study the social and environmental impact and include the benefits of the project's green growth and climate change.

E. Determine the technical and operational dimensions of the project's idea through the initial analysis to the following:

The project's engineering and technical aspects.

The possibility of managing the project's operational aspects.

F. Determine the financial and economic dimensions of the project's idea through the initial analysis of the following:

The anticipated revenue and financing costs, calculation of returns on capital and Internal Rate of Return.

The project's total cost (capital + Operational Costs + maintenance costs) on the basis of standards applicable in the concerned project, including value for money, quality/cost and analysis of comparative cost if the project is implemented by the government.

Determine the cash flow and potential economic benefits from the project.

Scope of the private sector's interest in the project.

Risk matrix (probability of occurrence, impact on the project and mechanisms of management).

4. When the studies and documents are completed, The Ministry shall submit the request to the Financial and Economic Committee for the late to provide its preliminary comments within 60 days.

5. Upon receipt of Finance and Economic Committee comments, the Technical Bureau in coordination with the concerned Federal Entity shall take the necessary corrective actions and complete documents to re-submit the request to the Financial and Economic Committee through M the Ministry.

6. Based on the preliminary studies, documents and inputs formed by the Financial and Economic Committee about the proposed project, a deliberation and discussion shall be conducted as for the project's viability to be implemented by virtue of a partnership contract, the private sector's interest in such project and whether the same conforms to the government's priorities.

7. Based on the discussion result, the Financial and Economic Committee shall issue a resolution either to reject or approve the project and proceed with the feasibility study.

8. If the project is approved, it shall be added to the joint projects program announced by The Ministry from time to time on the website or through periodic publications issued by The Ministry. These projects include:

• Projects to be added to the joint projects program.

• Projects on which initial approval resolutions were issued by the Financial and Economic Committee.

• Projects approved by the Cabinet.

• Projects for which the procedures to select the private partner had begun.

• Projects on which the PPP contracts were signed.

• Projects began to be implemented and its phase(s) completed.