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Appraising PPP Projects

415 Assessing Legal Feasibility

The project team have to make a thorough analysis of the legal issues surrounding the project, across several dimensions. A detailed legal due diligence should be done to ensure that all foreseeable legal requirements, which have not or will not be dealt with in other appraisal exercises, are met for the development of the project.

The main objectives of the legal feasibility analysis are as follows.

  • To ensure that the project is legally doable;
  • To facilitate risk management, indicating the risks and obstacles that need to be addressed within the technical analyses, the financial model and/or the Value for Money analysis; and
  • To avoid, to the extent possible, major problems in the project’s development and implementation, specifying the requirements that need to be considered at subsequent stages of the PPP process.

 

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