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PPP TOOLKIT for Improving PPP
Decision-Making Processes
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Sector: State Highway  |  Module 2: Work through the PPP process

Full feasibility study and PPP due diligence

Cost assessment

A detailed estimate of the capital and operating and maintenance costs (either both or one of these depending on the type of project) needs to be carried out.

The capital (Capex) cost assessment will be based on the components of the preliminary technical design. The Advisor would base the estimate on prevailing market costs, recent costs for similar work and materials, and their own estimates.

Detailed operating and maintenance (Opex) cost estimates would be based on a schedule of activities over the lifetime of the project assets. The type and timing of maintenance will vary depending on the type of project (eg, A water sector project would have different maintenance requirements to a roads project). Operating costs would include an estimate of labour requirements.

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