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Examination of Suitability of PPP/PFI Project
 
General   Examination of Business Environment   Criteria for Examining Suitability   Proposal`s Examination
Update Date: August 22, 2005
 
  

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.