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Appraising PPP Projects

414.3 The Output of the Social Impact Assessment

The social impact assessment should identify the impacts of the project in the community and classify them in terms of significance. It also provides recommendations for actions that can avoid, minimize, or compensate the adverse social impacts of the project.

The process of conducting the assessment also promotes consultations that play an important role in creating legitimacy of the project among the communities in which it directly engages.

The assessment indicates mitigation actions, some of which can be implemented in the Appraisal Phase itself, resulting in changes in the technical requirements, project design, or other aspects of the project. In other cases, it can recommend actions to be taken by the private sector, in which case a cost estimate should be produced to be considered as an input in the financial model.

Finally, the social impact assessment indicates the total adverse social consequences that cannot be mitigated, and presents them as a relevant consideration in the green light decision to procure the project.

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