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Toolkit Background

Why was the toolkit developed?

The toolkit was developed under a United Nations Development Account Project entitled "Building capacity and facilitating private sector involvement for infrastructure development for less developed countries in the Asia-Pacific region" implemented by the Transport Division, ESCAP.

Facing budgetary constraints many developing countries are trying to bridge the gap in infrastructure requirements through Public-Private Partnerships (PPP) which can be a long term solution to mobilize private sector financing, technical expertise and innovation. However, PPPs are not suitable for all types of projects and many countries have encountered problems with implementing PPP projects effectively.

Potential PPP Projects are, however, not always easy to identify, particularly at an early stage. Common difficulties have included: proposing large numbers of “priority” projects with limited implementation follow through, and delivering the “good projects” via the traditional procurement approach, leaving the more difficult and less viable projects for PPP delivery. The toolkit should help governments in making the right PPP project selection, which will deliver Value-for-Money.

Outline of Assessment Process:

The project screening process is divided into two stages. The first of these stages is the Elimination Stage (initial screening) which is designed to assess and analyze projects at an early stage. If your project passes these criteria, you can then proceed to the Selection Stage, in which a more refined and detailed assessment of your project can be made, against multiple criteria such as private sector interest, government readiness and project PPP suitability.

Projects that pass the Selection Stage may merit further development as PPPs. These projects will require a more detailed pre-feasibility study and/or feasibility study to be undertaken, leading to transaction structuring, preparation of bidding documents and procurement.



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