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PPP TOOLKIT for Improving PPP
Decision-Making Processes

Sector: State Highway  |  Module 2: Work through the PPP process

Activities in a strategic planning exercise

Assessment of existing and planned service capability

The existing infrastructure should be assessed for its ability to deliver the currently needed services and the service requirement expected for the future.

This assessment will tend to focus on existing assets or systems and the way they are currently managed. An assessment should be made of:

  • The service capacity of existing assets
  • The service standard provided by existing assets. Service standards are typically measured by performance indicators relevant to the sector.
  • The condition of existing assets, including how well maintained they are, their age and the number of years remaining in their useful lives

The service capacity and service standard should be measured at the point of the end-user. This means end users need to be identified and grouped according to the infrastructure that they use. ‘Infrastructure’ will often refer to a group of assets that together provide the service.

The assessment of asset condition would need to be carried out for all assets in the system. Best practice is to prepare an asset inventory that records the essential details of each component asset in the system. The inventory should include at least:

  • a description of the asset
  • date of installation
  • expected useful life
  • asset value

An assessment should also be made of existing plans for new infrastructure or planned infrastructure improvements. This should include a review of existing Technical Due Diligence Studies, including those that have already been approved and those still under preparation.


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