By PPIAF, Infrastructure Consortium for Africa
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Additional resources for Attracting Investors to African Public-Private Partnerships: A Project Preparation Guide
20 Attracting Investors to African Public-Private Partnerships But how many lanes should the road include, what should its alignment be, or would rail be a better option? One of the fundamental causes of project failure, for both traditional public sector procurement and PPPs, is often a lack of clarity on the part of the public authority regarding the exact scope and requirements of the project. At the outset, lack of clarity usually means change later on. If this happens during the procurement phase, then the level of private sector interest may be significantly reduced or the procurement phase will be drawn out, which can cause higher costs and delays for both parties.
A change in project scope can sometimes reduce risk. For example, giving the private sector party control over the fuel transport facilities for a power generation project, and including this in the scope of the project, may reduce interface risks. Risk monitoring and review. 2). Existing risks need to be monitored and new risks identified as the project develops and the environment changes. The contract management team will normally update the risk management plan, which is linked to the risk register, regularly throughout the life of the project.
Subsequent chapters discuss the frameworks for decision making or “governance” of individual projects and how the rules relating to the development, construction, financing, and operation of PPPs are made. To ensure better quality and consistency in the way the public sector goes about this, the private sector often expects to see a centralized source of PPP expertise giving support to individual public sector project teams. In this regard, the relevance of PPP units is increasingly recognized, and there is a growing body of experience and literature on this issue, which need not be covered here (see Sanghi, Sundakov, and Hankinson 2007).