5.4  Feasibility Study Template

The feasibility study template determines the manner or method to assess the feasibility of the partnership project. The feasibility is fundamental in achieving value for money for the joint projects with the private sector. Therefore, it is essential to study the business status and ensure the same prior to taking any decision to use the partnership approach with the private sector.

The feasibility study template focuses on assessment of the value for money and the possibility of implementing the project, subject to:

1-  Public sector comparator (PSC).

2-  Public sector comparator modified to contain risk.

3-  Main reference model for partnership (to be compared with the Public Sector Comparator)

4-  Reference model for partnership modified to to contain risk.

The assessment of feasibility assists the Technical Bureau to complete four critical tasks as follow:

  Establish a measure for the internal service provision costs (Public Sector Comparator).

  Determine the extent of considering the partnership option to balance its potential benefits over costs.

  The public sector comparator assists the sponsor to evaluate which bid makes better value for money.

  The assessment of feasibility assists to find a systematic strategy for risk management to optimally distribute risks before negotiating with the private partner.

The feasibility study shall be prepared and assessed on a project basis. Each project has a different ability to provide value for money.

The process of developing the public sector comparator and reference model for public- private partnership is a huge task. The implementation of this process requires consideration of hiring experts in the event such experts are not available in the Technical Bureau or in the concerned Federal Entity.