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PPP TOOLKIT for Improving PPP
Decision-Making Processes

Sector: Ports  |  Module 3: Tools and Resources

Readiness Filters

Readiness Check 2: Project Feasibility

Click here for further instructions on how to do a Readiness Check and how to use the Readiness Filters.


The purpose of Readiness Check 2 is to assess whether the proposed PPP project is sufficiently complete and justified to be ready for submission for In-Principle Clearance. The Readiness Check does not replace the requirement to obtain In-Principle Clearance – it supports preparation to apply for clearance.

This Readiness Check will assess:

  • Has the full documentation required for in-principle clearance been completed?
  • Is project expected to be commercially viable and has a realistic financing plan been developed?
  • Are the necessary clearances and approvals in place, being sought or are they likely to be awarded/
  • Is a risk management strategy in place?
  • Is the draft project concession agreement (PPP contract) at an acceptable level of development?
  • Have a realistic procurement plan and timetable been prepared and is market interest sufficient for a competitive procurement process to succeed?
  • Are sufficient resources available for the next phases of the project?

Readiness Check 2 does not include an assessment of the need for the project or the choice of PPP mode. While these are included in the documentation to be provided for in-principle clearance, they should have been assessed at the time of Readiness Check 1: Internal Quality Review prior to proceeding to the Feasibility Study itself. The exception to this is that the project is expected to demonstrate VFM relative to the alternative of public sector procurement.

In-principle clearance

The clearance process and the institutions that support this will vary between states and at the local municipality level, as well as by sector and size of project. An institutional arrangement is in place at Central level and some States (for example Assam, Orissa) have similar approaches. However, other States have different arrangements and in some States and especially at the municipal level the procedures may not yet be developed. Project Officers should check the requirements that apply in their jurisdiction.

For projects at the Centre, the Ministry of Finance has issued Guidelines on Formulation, Appraisal and Approval of Public Private Partnership Projects3. It has also issued Guidelines for Financial Support to PPPs in Infrastructure regulating the provision of VGF for PPP projects4. The Ministry of Finance has sponsored the preparation of model Request for Qualification (RfQ) documents and model Request for Proposal (RfP) documents, specifically for PPP projects5.

For Centre-level projects, an application for clearance is submitted to the PPP Cell in DEA which passes it on for in-principle clearance by PPPAC, the Standing Finance Committee, Expenditure Finance Committee, or Administrative Ministry as required (the competent Authority for appraisal and clearance depends on the level of project cost). For state-level projects, the committee or agency empowered to make in-principle clearance will depend on the particular institutional set-up of the state. In some cases the PPP Cell may be empowered to give in-principle clearance without application to a competent authority. For example, at the Centre-level the PPP Cell as secretariat to the PPPAC can give in-principle clearance for proposals submitted on the basis of Model Concession Agreements (issued for National Highway Projects6 and for Major Ports7).

According to the Guidelines on Formulation, Appraisal and Approval of Public Private Partnership Projects, any line ministry which proposes the development of a PPP project will have to undertake the preparation of feasibility studies, project agreements and other preparatory documents and submit them in the form of an application for in-principle clearance of the SFC/ EFC/ PPPAC. The Sponsoring Authority ensures that the project is of a minimum standard quality and is in line with the broader objective, through undertaking the technical and economical feasibility studies.


3 This document can be publicly accessed at the web site (https://www.pppinindia.gov.in/reports-policy-documents.php)
4 This document can be publicly accessed at the web site (https://www.pppinindia.gov.in/reports-policy-documents.php)
5 These documents can be publicly accessed at the web site  (http://infrastructure.gov.in)
6 This document can be accessed at http://www.nhai.org/concessionagreement.htm
7 This document can be accessed at http://www.shipping.gov.in/writereaddata/linkimages/mca%2021%2001%2008__final_919521645.pdf


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