There are three possible outcomes of the project analysis in this phase: move on to the next stage (the project appears to be economically sound and is a suitable PPP candidate); it is not suitable to be a PPP; or since some relevant information is missing, or there is a need to clarify some constraints or dependencies, further analysis should be undertaken.

The key outputs from the process are:

It is good practice to complete a report containing at least the following sections before entering the full appraisal process and, specifically, before committing staff and/or hiring advisors.

1. Executive summary and recommendations;

2. Project description: Outline of technical solution;

3. Needs/benefits of the project and suitability of the solution proposed;

4. PPP suitability: Justification for the use of a PPP process;

The procurement and selection of advisors may be done as a group, that is, selecting a consortium of firms under a single advisory contract to cover all the areas of work, or under separate procurement and contracts.

The importance of advisors in PPPs has been emphasized by Jangun and Marques (2006): [34]

“As governments transition from their role of monopoly provider of infrastructure services to setting the framework for private provision of infrastructure services, independent “third party” advisory assistance is essential to making these public-private partnerships successful.”

The capabilities necessary for an appraisal process can be divided into five main groups.

Technical:

• In charge of the project’s design, with expertise in the type of infrastructure that is the subject of the contract;
• Expertise in the technical aspects of the services involved.

Environmental:

• In charge of environmental impacts; should provide relevant expertise/ experience in environmental analysis.

Economic:

As explained, if a project is identified as the appropriate solution to a need and the results of the PPP suitability test are positive, before moving ahead within the project cycle, a “project team” should be defined, which will carry out the next phases: the Appraisal and potentially the Structuring (see section 2.13.3).

During the Screening Phase, but not only then, successful PPP projects often make a specific effort to communicate the results of the various steps of the PPP process, as well as the decisions made during the phase, to the general public and to those specific groups with a particular interest in the project.

This communication strategy is commonly considered to be very important in order to promote engagement and soften eventual opposition to the project.

It is common to think of stakeholders as an external audience. The external audience is composed of all the stakeholders interested in the project, outside the internal scope of the government and of bidders in the procurement process. This audience includes banks, investment funds, government and multilateral funders, public service users, society in general, and the press.

The interaction between stakeholders, or the parties involved, has an important role in the project cycle. The main goal is not just to communicate about PPPs. Communication with stakeholders is an essential element of all projects, whether through a PPP or traditional procurement process.