This section is intended to provide an initial examination of value for money. This actual examination is defined as the RFP phase.
The initial examination of the value for money shall be conducted by comparing the public sector Comparator Model modified to contain risks with the PPP reference model modified to contain risks. The net present value resulting from both models shall be compared. The model that comes with less value shall be considered the one that gives greater value for money.
If both net present values are close to each other, other specific factors such as quality and performance shall be studied to select the best model for the project.
In general, the tests of ability to bear the financial burden and value for money shall be made at four critical phases during the project development and implementation, namely:
1. At the time of preparing the project's initial feasibility study when seeking to obtain the approvals on the project,
2. Before the implementation directly, during revising previous estimates to reflect the output specifications and transfer the proposed risks and costs in the date of signing the contract,
3. Upon receipt of bids to ensure that the preferred bid passes the both tests.
4. Before awarding the contract to ensure that there is no adverse effect on the value for money or the ability to bear the financial burden due to the amendments made during the negotiation and discussion phase of or the change in public financing.