Frequently Asked Questions

• Canals or dams; 
• Education facilities; 
• Health facilities; 
• Housing; 
• Industrial estates, 
• lnformation technology; 
• Land reclamation; 
• Mining 
• Power generation facilities; 
• Roads (provincial highways, district roads, bridges or bypasses); 
• Sewerage or drainage; 
• Solid waste management; 
• Sports or recreational infrastructure, public gardens or parks; 
• Trade fairs, conventions, exhibitions or cultural centers; 
• Urban transport including mass transit or bus terminals; 
• Water supply or sanitation, treatment or distribution; and 
• Wholesale markets, warehouses, slaughter houses or cold storages'
• Live Stock & Dairy Development;
• Food Processing, Testing, Certification & other food related projects;
• Tourism and Resort Development;
• Forestry, Wildlife & Fisheries;
• Public Buildings and Offices; and
• Urban Services

• Project Identification 
• Request for PDF (Project Development Facility)  
• Review by PPP Cell and approval by PPP Steering Committee 
• Hiring of Transaction Advisor (TA) for feasibility development  
• Review of Feasibility Study by PPP Cell + RMU and approval by PPP Steering Committee 
• Market Sounding by TA/PPP Nodes 
• Pre-Qualification of parties by TA/PPP Nodes 
• Bid floatation/evaluation by TA/PPP Nodes 
• Review of bid evaluation by PPP Cell + RMU 
• Approval of contract award by PPP Steering Committee 
• Contract negotiation and signing by PPP Nodes 
• Monitoring and supervision of projects by PPP Nodes 

• Build-and-Transfer (BT)
• Build-Lease-and-Transfer (BLT)
• Build-Operate-and-Transfer (BOT)
• Build-Own-and-Operate (BOO)
• Build-Own-Operate-Transfer (BOOT)
• Build-Transfer-and-Operate (BTO)
• Contract-Add-and-Operate (CAO)
• Develop-Operate-and-Transfer (DOT)
• Rehabilitate-Operate-and-Transfer (ROT)
• Rehabilitate-Own-and-Operate (ROO)
• Management Contract (MC)
• Service Contract (SC)
• Joint Venture (JV)

PPP project proposals are generally classified as solicited or unsolicited. Solicited project proposal is identified and conceptulized by the goverment agency relating to development activities following within the sector or geographical area. Such a project proposal shall consist of, amongst other things, an analysis of feasibility and sustainability of the project including detailed business case and financial model justifying project's financial and economic viability over the expected duration of the analysis, analysis of the need for Goverment support, the affordability of the project, documents including a draft PPP agreement. 

A project proposal submitted by a person to a Goverment Agency for a project not included in the priority list together with a written confirmation that is economically viable, shall be considered as an unsolicited proposal. An unsolicited proposal shall be accompanied by a feasibility study, environmental impact statement, and a draft PPP agreement, need for Goverment support and determination of the public private partnership modalities.

Solicited Project Proposal Aapproval Process

1. GA submits Project Proposal (“PP”) to the PPP Cell
2. PPP Cell forwards requests for Govt. Support (“GSR”) to RMU. Within 15 days RMU makes recommendations through PPP Cell for Committee to approve, reject or reconsider GSR. 
3. PPP Cell submits PP to the Committee within 30 days of receipt (may make recommendation/observations to GA before submission).
4. Committee approves/ rejects the PP (including GSR) within 30 days of receipt; or returns PP to GA for amendment.
5. Government Agency within 30 days of submission examine information and other particulars for selection of prequalified persons.
6. Within 15 days of prequalification process, Government Agency issues bid documents. Thereafter, within 15 days of receipt of bids Government Agency evaluates bids .
7. Government Agency announces result of the bidding process and issues notice for execution of PPP agreement to the selected private party within 10 days of the bid evaluation or approval of the Committee (if applicable).

1. Within 10 days of receipt of proposal GA requests submission of details (legal, technical, managerial and financial capability of person) - to be submitted within 15 days of request.
2. Within 15 days GA (with its recommendations) submits proposal to PPP Cell.
3. PPP Cell seeks RMU input before submitting to Steering Committee.
4. Steering Committee decision is communicated to person by the GA within 7 days of receipt.

• Background Information: Background to the sector; sector policies, priorities and main issues; and evidence that the proposed PPP project is a priority for the sector.
• Rationale: Problems the PPP project intends to solve, such as physical deficiencies, inefficiencies, financial and regulatory issues, etc.
• Project Description: Description of the location and main components of the PPP project, preliminary technical information on its capacity/sizing, etc.
• Cost Estimate and Financing Plan: Preliminary estimate of investment cost and tentative sources of financing.
• Project Development Schedule: The proposed project development activities and their tentative timeframe, starting with the appointment of consultants and ending with the selection of the private party and financial closure. This should also indicate all important decision-making milestones.
• Preliminary Financial Analysis: If possible, cash flow of the estimated investment costs, operation and maintenance expenses, and revenues over the period of the PPP agreement, and a preliminary estimate of the financial internal rate of return.
• Preliminary Economic Analysis: At least a qualitative description of the economic benefits of the PPP project. If some quantification is possible, a preliminary estimate of the economic internal rate of return.
• Environmental and social screening: Preliminary assessment of the likely impact of the project on the environment and population in its area of influence.
• Private Sector Involvement: Scope for private sector involvement ("What is the private sector supposed to do?").
• Legal Aspects: Provisions under the relevant laws and regulations that grant authority to the Government Agency for developing and implementing the project in the PPP mode.
• Proposed PPP Implementation Structure: The Government Agency’s view about the most suitable PPP modality, along with the proposed duration of the PPP agreement. This should also describe plans by the Government Agency to undertake any improvements before the PPP project is undertaken, and indicate whether the PPP project is a part of a portfolio of such projects to be undertaken by the Government Agency.
• Cost Recovery: How the private party is proposed to recover project costs (user charges, government payments, etc.).
• Risk Management: Preliminary risk identification and allocation (which party shall carry the construction risk, which party the revenue risk, etc.). The information should also bring out any environmental or social risks that can affect the project.
• Regulatory Aspects: The existing regulatory mechanism, as applicable, in case tariffs are to be structured in the PPP option. In the absence of such regulatory mechanism, an indication of the proposed for regulation by contract.
• Political Commitment: Evidence that the political authorities support project implementation on a PPP basis;
• Contribution to Project Development: Resources in terms of counterpart staff and facilities, which the Government Agency is willing to contribute to the preparation and transaction execution of the PPP project.
• Contribution to Project Implementation: Resources in terms of land and other support, which the Government Agency is willing to contribute to the implementation of the PPP project.
• Terms of Reference: Draft terms of reference for the consulting services for project preparation and transaction execution, including a detailed cost estimate. 
• Capacity Building: Details of the capacity building support proposed as part of the project preparation and transaction execution.
• PDF Funding Requested: Total estimated budget for the consulting services and the amount requested from the PDF. The budget should be broken down into project preparation, transaction execution, and capacity building. The amount requested from the PDF should exclude any expenses incurred by the Government Agency on its own staff and facilities. A recommendation should be provided whether or not the PDF funding, including the capacity building component, should be recovered from the private party selected through the competitive tendering process. 
• Draft Advertisement: Draft procurement notice for the consulting services for project preparation and transaction execution.