www.pppinindia.gov.inPPP TOOLKIT
PPP TOOLKIT for Improving PPP
Decision-Making Processes

Sector: State Highway  |  Module 1: PPP Background

Overview of the PPP process

Identifying, developing and implementing a project as a PPP involves a series of steps and should be undertaken following a clear process. This toolkit organises the PPP process into a sequence of four phases:

  • Phase 1: Project identification and needs analysis – potential PPP projects are identified on the basis of an analysis of the need for infrastructure services, and the options for meeting the service are considered in terms of the need for and type of assets.
  • Phase 2: PPP decision, project appraisal and clearance – potential PPPs are evaluated for their suitability for development as PPPs. Those that are considered suitable are studied in detail and an application is made for In-principle Clearance to continue to procurement.
  • Phase 3: Final approval and procurement – the procurement process begins, application is made for Final Approval, negotiations take place with the preferred bidder and the project is taken to technical and financial close.
  • Phase 4: Implementation and monitoring – the project proceeds through its construction (when part of the project) and operation phases. The public partner monitors the PPP over the life of the contract.

This process is covered in Module 2: PPP Process Guide.

Since the PPP development process is a chain of related events, actions taken or missed at one stage have consequences for events and outcomes at later stages. The toolkit is designed to improve PPP management throughout the process.

Phase 2 and Phase 3 each include a clearance (Phase 2) or approval (Phase 3) by an external Authority. These are very important controls on the quality and appropriateness of the projects.

In addition to the external clearance and approval, the toolkit includes a series of internal readiness checks at critical stages of the process. These readiness checks are designed to assist the Project Officer and the Sponsoring Authority in ensuring that the necessary actions have been taken at each stage and that the project is ready to proceed to the next stage in the process.

Finally, the toolkit includes a set of tools to support the Project Officer with certain key steps in the process.


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