Section 1: Project Details

This section focuses on the results reached in the studies carried out by the consultancy team during the project study and design phase. These studies discuss deeply the project technical, legal, environmental and social aspects. This section includes a comprehensive and clear list of all definitions used in the bidding requirements document, which shall match the definitions set out in the PPP contract draft.

  All Project Components and Elements

This paragraph includes a general brief and background on the project and all details relating to its elements, including the expected services, the characteristics of their market and the initial estimations of demand for them. Moreover, this paragraph includes information about the site, characteristics of the surrounding geographical area, the project land area, any existing facilities on this land, which will be used by the project company, and any other assets may be provided by the Federal Entity.

  Project Technical Framework

This paragraph outlines the project technical aspects, including the project scale, the technology expected to be approved and the technical features of any assets that Federal Entity may put at disposal of the partner/the project company such as facilities, plants and equipment. It includes also the technical characteristics of the project site such as the terrain shown in the topographic study as well as the soil nature and its underground components as set out in the geotechnical study. The technical and legal framework explains the assets that will be devolved to the Federal Entity after the PPP contract expiration and their technical condition in terms of productivity and effectiveness. These assets shall be in an acceptable technical condition, a matter that requires the project company to carry out a regular maintenance and replacement works. The technical condition of those assets shall be identified by determining their remaining life or working life and comparing it with the standards followed in the relevant field.

  The technical framework includes also requirements according environmental and social legislations and regulations as well as the procedures to be followed by the partner/project company to obtain the approval of the concerned entities. In this regard, this framework briefly explains the initial environmental inspection results and any information relating to the environmental impact assessment, if conducted, and identifies the requirements expected by the project company in respect of this subject.

  Project Legal Framework

This paragraph explains the regulatory and legislative framework of the joint project, where it refers to the relevant laws and regulations. It also highlights any licenses and permits to be obtained, and gives an overview on any existing contracts with third parties and the status of these contract after the contract awarding. The project legal framework includes any legal matters relating to the site, its ownership and the expected way to provide it, as well as the details of granting/acquisition procedures, including the expected timetable of their implementation.

  Project envisaged Services and their Specifications

The services envisaged form the project are the outcomes upon which the awarding is carried out under PPP. These services shall be identified by the Federal Entity in the project study and design phase in light of the need analysis. Therefore, they are supported by information presented in this paragraph of the bidding requirements documents. This paragraph identifies also the specifications of these services representing the corner stone of the PPP contract, as they constitute the basis of the service level agreements.

The service good quality positively affects all concerned parties to the PPP contract. On one hand, this matter benefits the Federal Entity, which in turn will remain responsible for service provision under the PPP contract towards the citizens who are seeking to obtain a service level meets their requirements. On the other hand, the project company depends on meeting the required service specifications in order to secure its entitlements and to avoid penalties resulting from the low service level. In addition, the lenders benefits also from the good quality of the provided service as they aspire to providing a good service generating sufficient returns to pay the debt service.

The required service specifications shall be based on applicable objective criteria in compliance with the best practices in similar projects. Internationally acceptable measurement units shall be used to measure these service specifications, e.g. specifications of International Organization for Standardization (ISO).