Before launching the tender, the Authority needs to satisfy itself that it has addressed a series of key questions, many of which result from the work undertaken or overseen by the advisers. For example:
Are the requirements and scope of the PPP project clear and fixed?
Have all material environmental and planning approvals been identified and obtained?
Are there any unresolved issues regarding site and land acquisition?
Does the Authority have the powers to award the PPP contract and enter into a long-term contractual arrangement?
Has the value for money assessment of the proposed PPP investment been updated?
Is the scope of the PPP project affordable from the point of view of the Authority’s periodic payments required (authority-pay PPPs) or are tariff levels realistic and affordable for the users (user-pay PPPs)?
With authority-pay PPPs, have budgets and government or parliamentary approvals been obtained for all the Authority’s payment obligations?
Is there enough evidence of sufficient commercial interest from contractors, operators, lenders and investors to justify launching the tender?
Have project risks been identified and has a potential risk allocation been assessed?
Have plans to publicise the launch of the PPP project been agreed and finalised?
Has a project information memorandum been prepared?
Have the bidder qualification and bid evaluation criteria been developed?
Has the draft PPP contract been prepared, including the project specifications, service standards, payment mechanism and proposed risk allocation?
