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

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

Activities in a strategic planning exercise

Identifying projects to meet service needs

The difference between assessed needs and the existing and planned delivery capacity can be used to assess the medium- or long-term strategic infrastructure requirement. Taking these results at the aggregate and user-group levels provides a basis for the identification of project interventions.

A project intervention is a planned activity that is designed to meet a service need. It is important to remember that to deliver the required service, infrastructure projects may use existing assets, create new assets, or may require no assets at all. These different service delivery options would be assessed in greater detail for individual projects at the pre-feasibility and feasibility study stages.

Once projects have been identified they need to be prioritised so that they can be sequenced in the strategic plan. Projects should be prioritised on a cost-benefit basis following a preliminary assessment of costs and benefits expected from each project.

The assessment of project benefits should take account of impacts beyond those directly relating to the project itself and those who use its services. For example, in network infrastructure there can be spillover effects from a single project that create benefits for the network as a whole. These effects feed back into the benefit-cost ratio for the project to give it a higher priority. Indirect impacts also include impacts on the wider economy.

A more detailed assessment of each project would take place at the pre-feasibility analysis and PPP suitability analysis stages. The purpose of these studies is to be sure the project meets the Sponsoring Agency’s objectives, to determine the best delivery option, and to decide whether the project is suited to being a PPP. These steps are covered in the following sections of the toolkit.


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