Under this section of the feasibility study, the PPP base reference model , without calculating the risks costs, shall be developed. The base reference model represents the output specification cost incurred by the concerned Federal Entity, assuming that the private sector shall implement the project.
By comparing the public sector comparator with reference model for PPP, the concerned Federal Entity is able to evaluate whichever gives the best value for money, whether the service provision by the government? Or the private partner?
The reference model for PPP shall be obtained using the same output specifications, such as those that were used for the base public sector Comparator Model.
Since this model is a theoretical model in which the concerned Federal Entity assumes the private sector's role, it shall be known that it is impossible to get accurate costs by 100%.
The following steps shall be taken to develop the PPP base reference model :
• Identifying the structure and financing sources of the PPP project.
• Developing the basis for payment mechanism.
• Calculating and unifying all costs.
• Developing the Model assumptions.
• Defining the PPP base reference model.
• Describing the results of the PPP base reference model.