3.9.1.1  Base Case Model (BCM)

The PPP Project Team is advised to develop a Base Case Model as the first step in the development of a PSC model, which will include estimates of the key capital, operating, and lifecycle costs of the public sector undertaking the key requirements of the Project using a traditional procurement method. The BCM does not include the quantification of the risk which would be transferred to the Preferred Bidder under the PPP and, therefore, it is not appropriate to compare the cost of the BCM against the cost of the PPP. The model should include all kinds of cash inflows and outflows including but not limited to:

  Capital costs: cost of constructing the relevant facilities as detailed in the project scope, procuring raw material and associated project-specific equipment, land, etc.;

  Operating costs: includes cost of operating facilities, labour costs, cost of maintaining facilities, and administrative/SPV running costs; and,

  Indirect costs.