Proceedings of the 14th Meeting of the
Transport and Communications Working Group
6
follow traditional public procurement routes. Legal provisions on PPPs have a significant
influence over the identification, assessment, and allocation of risks, as they can shape the
resilience and solidity of the risk management system (particularly as regards the enforceability
of a contract). Good risk identification and assessment rely on institutional structures enabling
specialized staff to perform these tasks.
Key messages from the literature review and good practices:
 Pressing ahead without an adequate strategic and institutional framework increases
risks;
 Adequate attention to the strategic framework allows a better understanding of trade-
offs, e.g. the release of current budget constraints vs. future fiscal unbalances;
 Identifying barriers in public sector capacity should be a priority.
2. Pre-tendering decision process:
The second phase of the conceptual framework covers the following aspects: screening for PPP
suitability; special arrangements for PPPs.
Analytical points:
A PPP suitability test is crucial to ascertain if the project is appropriate as a PPP, but also for risk
identification. The in-depth appraisal of the PPP project includes the assessment of legal and
technical requirements, the financial model, preliminary risk identification and risk assessment
(through tools such as a risk register and the ranking of risks) and the PPP contract’s preliminary
structure (including risk allocation).
Key messages from the literature review and good practices:
 Under a PPP procurement route, on a case-by-case basis, the assessment of some
particular risks may become especially critical (e.g. risk of toll fee acceptability).
Accordingly, the emphasis of the studies performed will reflect this (e.g. toll fee
acceptability studies through willingness-to-pay surveys, traffic studies, travel behavior
modeling);
 Feasibility studies and Value for Money (VfM) assessments are essential in the pre-
tender phase for the preparation of robust PPP tender procedures;
 Soft market testing can be an essential step to prepare a tender design and pre-identify
stakeholders likely to play a role in successive phases. Soft market testing can be carried
out for instance through formal or informal consultations and/or through an analysis
aimed at promoting the PPP’s bankability.