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:
- Expertise in economic appraisal, preferably in the same sector/ infrastructure or service type.
Financial:
- Expertise in financial analysis in the field of user-paid or government-paid PPPs, preferably in the same sector/infrastructure or service type and also knowledge of financing similar PPP projects (when the government needs to develop a bankable structure);
- Expertise in contract risk structuring and payment mechanisms, preferably in the same sector/infrastructure or service type.
Legal:
- Expertise in public law/ administrative framework; and
- Experience in drafting PPP contracts. Although the drafting of the PPP contract will not occur until a later phase (see chapter 5), knowledge of PPP contracts will be necessary to enable a proper assessment of the existing legal framework. For a PPP covering existing operations, the legal due diligence will need to look at existing contracts, legal actions, loan contracts, and so on.
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