Charting the Path to Success

Government-initiated PPPs are executed systematically in stages including (a) PPP planning (b) PPP preparation (c) PPP transaction and (d) PPP management of contract.

The GCA is responsible to begin the PPP process with the first stage of PPP planning. The PPP Planning stage primarily involves PS preparation and its supporting activities. The PS preparation involves various steps and activities. A systematic and sequential approach to preparing the PS results in a complete, well-prepared and uniform study in line with the Ministerial regulations 07/2023. The approach is captured in a roadmap below. The GCA is expected to organise its resources including time, funds, and data – by closely following the roadmap while preparing the PS.

At first, the GCA defines the objectives of the infrastructure provision i.e., it acquires information about the need for the proposed infrastructure provision. The GCA also supports the coordination of planning and development of PPP plans.

At step 2, the GCA sets up the team for the PS preparation. In setting up the team, the GCA appoints internal team or external consultant/s for PS preparation. The GCA also appoints an existing unit/organisation or establishes a new one within the ministry/institution/regional government/SoE as the PPP node. The GCA may allocate tasks to the PPP Node. These tasks may include policy formulation, synchronisation, coordination, supervision, evaluation of construction to build PPP projects and/or assisting the GCA in the PPP implementing stages. At this step, there is also an initial indication of GCA based on the type of infrastructure.

At step 3, the GCA prepares a budget plan in accordance with the provisions of laws and regulations to support the implementation of the PPP project. The preparation of the budget plan includes the budget required at each stage of PPP project including (a) PPP planning (b) PPP preparation (c) PPP transaction and (d) PPP management of contract. The GCA sources the budget plan from the state budget, the regional budget and/or other legitimate sources of income according to the provisions of laws and regulations.

At step 4, the GCA’s activity includes identification of the PPP project including identifying the needs to implement the infrastructure provision plan with business entities and examine its suitability.

Following the identification of the PPP project, at step 5, the GCA prepares the PS. The PS preparation begins with the GCA’s introduction to the project including the project background and explaining the methodology adopted for project preparation.

For the project background, the GCA provides details including overview of infrastructure in the sector, understanding of the project location, general condition of the infrastructure in the planning area (status of sector infrastructure – availability, proximity, and status of other sector infrastructure), potential constraints and challenges (difficulties, if any, for further development of sector infrastructure), project concept and type of infrastructure developed through KPBU (including objectives, vision & reason to propose the project, type of infrastructure, project scope, potential funding sources, potential beneficiaries etc.), need for KPBU for the project (explaining how the financial and technical capabilities of the project initiator to develop and implement the project can be improved through the proposed KPBU), responsible party in charge of the KPBU, the GCA involved, and the expertise deployed in preparing the project (including PPP node, working group, internal supervision, etc.).

To explain the methodology adopted for the project’s preparation, the GCA provides details on the process to conduct PS studies in accordance with the process of conducting a PS based on requirements of the Ministerial Regulations 07/2023, primary and secondary data sources as outputs of the PS are closely dependent on the data used, limitation (if any) as a disclaimer, and describe the structure of the PS i.e., brief details on its contents and the annexures included.

Thereafter, the GCA drafts the components of the PS. Components include the strategic review/study and assessment of the infrastructure provision (in addition to two other components described in subsequent steps 6 and 7). The strategic review/study results in confirmation of the strategic context of the proposed infrastructure plan / KPBU project. The GCA’s assessment of the infrastructure provision should result in the plan of PPP form, the plan of PPP financing/funding scheme & its source of income and the plan of PPP proposition, to include schedule, process, and assessment method.

The GCA is responsible to coordinate with the Minister of Planning to request for any facilitation required to prepare the PS.

At step 6 and after the drafting of the PS components, the GCA conducts a public consultation/s. The purpose of this activity is to obtain responses and/or inputs from stakeholders attending the consultation/s. This activity includes planning and executing pre-implementation, implementation and post-consultation activities and reporting the minutes, outcomes, conclusions and a follow-up plan of all activities. The GCA conducts an evaluation of the results of public consultation/s to support the implementation of the infrastructure provision plan. The GCA attaches the activities and results of public consultation/s, as a ‘public consultation report’, to the PS.

At step 7, ‘recommendations and follow-ups’, the GCA develops recommendations on government support, identifies the GCA, sets up the criteria for PPP procurement, defines the planned schedule & implementation, and other recommendations and lists follow-ups activities (example, follow-ups with stakeholders).

Step 5, 6, and 7 are elaborated further in the toolkit section ‘PS Components’. The section includes the necessary explanatory notes, tools, templates, and checklists that the GCA can use to support the systematic, uniform, and regulations-based preparation of the PS.

At step 8, the GCA determines the funding/financing scheme for the infrastructure provision plan, based on the results of the PS and the public consultation/s.

Lastly and based on outcome of step 8 i.e., should the GCA determine that the infrastructure provision plan will be pursued under the PPP scheme, the GCA shall execute step 9, i.e., compilation of a list of proposed PPP plan submissions to be presented to the Minister of Planning. Here, the GCA ensures that the list of proposed PPP plans is integrated into the development planning process and documents. Then, the GCA coordinates with the joint PPP office to obtain inputs related to the list of proposed PPP plans. The GCA then plans for the PPP Book i.e., the project’s entry into the annual PPP plan list as ‘new entry’ project & does the related preparation i.e., the compilation of the PPP plan list and submission of the list of proposed PPP plans based on their readiness level to the Minister of Planning. The GCA also submits supporting documents including supporting documents for PPP proposals under preparation process and these consist of the PS of the PPP and the summary sheet from the PS of the PPP.

Thereafter, the GCA is responsible to provide information on the progress of PPP project to the Minister of Planning at least once a year.