By PPIAF, Infrastructure Consortium for Africa
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Additional info for Attracting Investors to African Public-Private Partnerships: A Project Preparation Guide
After the project selection phase, this work becomes much more intense. The allocation of activities and the steps they involve can usefully be described in terms of the different disciplines involved at this stage. Legal Assessment This step seeks to assess the issues that are internal to the public authority. In particular, it seeks to assure that there are no legal impediments to the public authority entering into the various project agreements and that the procurement process envisaged is legal (to ensure that proper procedures are followed and to minimize the risk of challenge that may derail the process).
For availability-based PPPs, where the public authority, not the user, makes the payments over the period of the long-term contract, assessment of affordability is one of the most important aspects in considering deliverability of the project. These long-term payment obligations may present challenges for government (as well as investors), which in turn affect both the scope and level of services in the project design (with implications for value for money). Options may need to be examined that combine direct fees from members of the public with government service payments or that contribute existing government assets to the project.
1 An Example of Output Specifications for an Accommodation Public-Private Partnership Characteristic SMART Specific Refurbish or replace all dwellings on the estate to comply with the government’s “Decent Homes” standard Refurbish dwellings to a good standard Measurable Ensure that all dwellings are structurally sound, with adequate ventilation, lighting, and thermal comfort Ensure that dwellings are fit for habitation Achievable Maintain internal temperature at X degrees when outside temperature is between Y and Z degrees Ensure that internal temperature is always maintained at X degrees Realistic Ensure that faults with temperature control system are rectified within 8 hours during business hours and 16 hours outside business hours Ensure that faults with the temperature control system are repaired within 2 hours Timely Maintain a log of faults and report every month Provide an annual report on performance Source: Authors.