For a PPP Project to be successful, the Government Entity should ensure that there is sufficient market interest and that a quorum of interested qualified Bidders and developers are in place. Given that, at this stage, the PPP Project Team is aware, broadly, of the nature of the project and has a working knowledge of the initial version of what outputs might be required, this is the appropriate time to gauge the interest of the private sector in such a project.
Importantly, even if the project were to provide real Value for Money, and satisfy important policy aims and agency objectives, the private sector might be unwilling to invest, either because companies do not have the sufficient economies of scale to realise value from the project, or because they fear the lack of proper financing options, amongst many other possible reasons. In order to undertake the exercise effectively, the PPP Project Team should perform it jointly with Government Entity representatives and any other key Stakeholders deemed to be particularly important.
For projects where there is an established sufficient interest and expertise, as determined by the benchmarking analysis, the PPP Project Team can focus on the Private Players deemed to be interested in projects of a similar nature, by virtue of having participated previously. It is important to emphasise to any interested participants that the process only constitutes the beginning of the project, and that the project might not proceed to procurement stage, and, if it does, they will not be advantaged. In projects where prior experience has been limited, as determined by the PPP Project Team, a prior information notice can be placed in the form of an advertisement in widely read newspapers locally and internationally - with the Project Team then reaching out to individual companies to "market" the project.
Participants should be provided with project information and a formal questionnaire to gauge details about the company that might be considered important. It is strongly advised to invite the relevant Players from the industry including developers, investors, and banks etc. The PPP Project Team should demonstrate that sufficient number of Market Players have been consulted, and should ensure that the outcome of the market sounding is detailed in the Feasibility Study.