Criteria for Examining Suitability of Project for PFI Method
The criteria are divided into two groups: criteria whose fulfillment constitutes a precondition, and quality criteria to be examined only after the project has fulfilled those identified as preconditions.
Preconditions· Is it possible to transfer the principal project risks to the private sector.· Does the project include a significant operational and maintenance component.·Is it possible to create an effective payment mechanism for the measurement of the project’s principal goal.
Quality Criteria· Is flexibility in project planning possible.· The degree of possible alternative use of the project’s assets.· Does the project have a significant degree of logistical and technological complexity.· Is the public sector lacking in experience for execution of this type of project / does the public sector have cumulative experience of failure in the execution of similar projects in the past.· Possibility of creating identical interests between public and private sectors.· Does the project have clear physical limitations and limitations of responsibility.· Is the size of the project appropriate to PPP/PFI implementation.· Creation of alternative operation by the public sector.