The critical analysis of a project can be achieved through the development of a detailed Feasibility Study. The Feasibility Study is a necessary procedure that enables the critical assessment of a project and the preparation of a robust implementation plan. A PPP Feasibility Study goes beyond a traditional public services delivery Feasibility Study (which focusses on the assessment of public policy, and economic and technical feasibility studies conducted by the Government Entity) by including a detailed procurement options analysis in order to identify the most appropriate Method of Procurement that provides the greatest Value for Money savings. The PPP Feasibility Study comprises of, at a minimum, a needs assessment, procurement options analysis, scoping, Due Diligence, risk assessment, qualitative and quantitative Value for Money analysis, procurement method selection, and the project strategy.
SNo. | Criteria | Description/Review Criteria | Evaluation ✓ Adequate | Partially | Not Covered |
1. | Need for Project | Does the Feasibility Study justify the need for the project in terms of satisfying an essential public requirement? |
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2. | Understanding of Government objectives | Is there a clear understanding of the Government Entity's objective for this specific project? |
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3. | Stakeholders identified | Have the key Stakeholders relevant to this particular project been identified? |
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4. | Output specification | Have the relevant elements of the output specification been appropriately detailed, such that they can be explained in Tender documents to interested Bidders and address the need for the project in a proper and efficient way? |
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5. | Aware of Project aspects | If a Government Entity proceeds with the project, is it aware of all the required technical specifications, environmental and social conditions, legal and financial aspects related to the project - which are aligned with the output specifications - approvals required? |
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6. | Land requirement | If any land needs to be acquired - and, if so, how it could proceed with the enabling works. |
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7. | Scope to pair with similar projects | If there are any similar projects that other government agencies are carrying out that this project could potentially be bundled with in order to achieve efficiencies? |
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8. | Benchmarking exercise on similar projects | Has a benchmarking exercise been conducted in order to determine projects of a similar nature that can be utilised as guideposts for this project? |
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9. | Delivery options | Have the relevant project-specific delivery options been identified? |
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10. | Market sounding | Has a market sounding exercise been conducted with the relevant Market Players, either by invitation after conducting the benchmarking exercise or following the placement of an advertisement? |
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11. | Refinement of delivery options | Has there been a refinement and narrowing down of delivery options following the market sounding stage? |
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12. | Detailed risk assessment | Has a detailed risk assessment been conducted, including the identification, allocation, and quantification of risk, along with the outlining of mitigation strategies for the retained risks? |
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13. | VfM assessment | Has the PPP Project Team conducted a detailed qualitative VfM assessment in order to outline the benefits of procuring the project as a PPP? |
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14. | Costing and financing assumptions | Has the PPP Project Team considered, carefully, in the financial Due Diligence following extensive benchmarking and consultations with key Stakeholders, the costing and financing assumptions they will utilise? |
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15. | Scenario and sensitivity analyses | Has the PPP Project Team conducted sufficient scenario and sensitivity analyses on the model in order to see how the results vary? |
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16. | Understanding of the Project Value for Money | Is there a clear understanding of the final value-for-money for the project were it to be procured as a PPP? |
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17. | Single delivery option | Is there a single delivery option that is recommended by the PPP Project Team to procure the project as a PPP? |
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18. | Option analysis refinement process outlined | Has the "refinement" process of the options analysis been outlined clearly, stating how, starting with the listing of options, and through every subsequent stage, the final option was arrived at? |
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19. | Delivery option outlined | Is the delivery option clearly outlined, with particular emphasis on the contractual structure and cash flow mechanism - "who pays whom", effectively? |
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20. | All funding sources identified | Have all funding sources related to public resources been identified and justified in the maximisation of VfM, as well as the uses of funds? |
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21. | Uses of funds | Are the uses of funds aligned with the description of project costs based on the Due Diligence study conducted before? |
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22. | Outline of delivery option implementation strategy | Has the implementation strategy for the delivery option been outlined appropriately, including the setting of policy and procurement framework (by identifying relevant authorities, the resourcing plan, required approvals, and the project-relevant stakeholder management comprising who will be responsible for communication, reporting protocols, etc.? |
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23. | Procurement Deliverables Roadmap | Is there a clear idea of a "roadmap" for procurement Deliverables, with the stages listed out along with their outlined duration and target dates for achievement/delivery? |
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