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

Introduction

Welcome to Module 2 of the online PPP toolkit. The aim of this toolkit is to help improve decision making for PPPs and, ultimately, to improve the quality of infrastructure PPPs that are implemented in India.

Module 2 is a step-by-step guide to the PPP process. It is written specifically to help PPP practitioners make the decisions needed to plan, develop, and carry out successful PPPs.

Module 2 is divided into 4 phases to match the major activities in the PPP process:

The process is illustrated in the diagram below.

The PPP process

Phase 1 takes place before projects are allowed to enter to the development pipeline. The purpose of Phase 1 is to ensure a quality pipeline of PPPs. This is a very important Phase.

Projects that are in Phase 2 or Phase 3 are in the ‘PPP development pipeline’. This means they are under detailed study, development and (if they are good enough) procurement as a PPP.

Projects that are successfully developed through to award of a contract to a private bidder then enter the operations Phase, covered in Phase 4. In most cases Phase 4 is the longest Phase in the life of a PPP. This Phase is focused on monitoring the terms of the contract to ensure that the infrastructure services are delivered to the agreed standard. For a PPP to be successful the Sponsoring Authority must remain engaged with the project throughout its operating life.

The toolkit includes a series of Readiness Checks at key points in the PPP process. At each of these checks the project must prove that it is ready to continue to further development as a PPP. If a project is not ready it must either be improved or it should exit the process altogether to make way for a higher quality project.

For this reason, a project is called a ‘potential PPP’ until it has been given final approval by the relevant Authority in Phase 3.

 

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