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Public – Private Partnership (PPP)

The need for investments in a certain service sector needs to be critically assessed by the public authority to identify where improvements are required and what project investments this will entail. A business plan needs to be prepared on behalf of the public authority, in which the project and procurement options are decided on. This includes assessments of:

Which option offers best value for money:

  • A reference project is developed, which is the PPP option against which the bids are evaluated

  • It is compared with a publicly-managed variant, called the Public-Sector Comparator, to see whether a PPP option or public option offers better value for money

    • The affordability of the project

    What outputs are needed from the project?

    Which risks are involved in the project and which party should bear them

    The time-line for the implementation

    Whether there is sufficient interest from private companies in the project

    Whether there are a sufficient number of private companies with the relevant skills to ensure real competition exists

    Service requirements and standards

    The payment mechanism that would be appropriate

    Proposals for the monitoring of the project