How to make the Business Cases for PPP investments?

The project proposal should be justified by a detailed analysis of needs and arguments for the suitability of the PPP approach. This is frequently called the Business Case. It is essential that the Business Case is well argued and receives the formal approval of senior governmental / political authorities before a PPP project be put out to the formal tender.

This analysis is likely to be a detailed exercise which takes some months of careful preparation and will frequently require input from external experts. It should address the following:

  • the need for and nature of the proposed investment

  • options for investment and why the PPP route is proposed

  • the risks and implications of the project as a PPP

  • estimates of annual cost and considerations of affordability

  • timing and preparedness for PPP procurement

As part of the Business Case, the income to the public partner from the project is an issue to be carefully addressed.

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