PPP Life Cycle

PPP transaction activities are captured in the four stages of a PPP project lifecycle. The four stages are as
follows;
Stage 1: Project Development and Appraisal
Project Identification and Preparation
Options Appraisal and Cost benefit analysis
Prioritization of economically worthwhile projects
Securing Project approval
Stage 2: Project Procurement
Preparation of tender documentation
Tendering prequalification and full tender
Tender evaluation
Selection of preferred bidder
Stage 3: Project Implementation
Award of contract
Implementation of project
Monitoring compliance with contractual requirements
Stage 4: Project Maturity
Commissioning, completion, and handover
Monitoring and maintenance of completed project
Formal post-project evaluation
A growing number of developing country governments are interested in using public-private partnerships (PPPs) to
provide public infrastructure assets and services. The PPP Cycle section of the PPP Knowledge Lab is set up to help
them achieve their goal. Specifically, it aims to help government officials and other interested parties to answer the
following questions:
What are PPPs, and why would governments want to use them?
What kind of policy, legal, and institutional framework need to be in place to ensure PPPs achieve their
objectives efficiently and effectively?
What is the process for designing and tendering a PPP project?
How can a government manage the implementation of a PPP post bid?
A substantial body of knowledge on PPPs has been collected by practitioners in the public and private
sectors, international institutions, and academic institutions. The PPP Cycle helps readers navigate this body of
knowledge step by step, by introducing key topics on PPPs and directing readers to key references and additional
information to learn more.

The information contained in the PPP Cycle primarily draws upon the PPP Reference Guide Version 2.0. jointly
developed by the Asian Development Bank (ADB), and the Inter-American Development Bank (IDB), and The World
Bank Group, and funded by a grant from the Public-Private Infrastructure Advisory Facility (PPIAF).
Cycle Stages
Basics
This section of the PPP cycle, walks though the fundamentals of PPPs:
o how are they defined
o what the the major challenges currently facing infrastructure growth and delivery
o when and how should they be used and what benefits they bring
o the basic components of typical PPP arrangements

Framework
This section of the PPP cycle walks through the characteristics of a robust PPP framework. A PPP framework
includes the policy, procedures, institutions, and rules that together define how PPPs will be identified,
assessed, selected, budgeted for, procured, monitored, and accounted for.
Although PPPs can be implemented on a one-off basis, without any specific supporting policy
framework, most countries with a successful PPP program have built it on a sound framework. Establishing a
clear framework communicates the governments commitment and helps ensure good governance by
promoting efficiency, accountability, transparency, fairness, and participation. These benefits in turn can help
generate private sector interest and public acceptance of PPPs.
Design & Bid
This section of the PPP cycle walks through the stages of designing a project and taking it to market,
including:
o understanding and allocating risks
o engaging with key stakholders
o understanding and managing environmental and social risks
o designing the PPP contract, including the performance and payment mechanisms
o sheparding the project through the tender, including marketing to investors, pre-qualifying bidders,
issuing the request for proposals and evaluation
o reaching financial closure with the private party

Implementation
This section of the PPP cycle present three critical areas of project implementation:
o managing the PPP contract
o refinancing
o handling termination, expiry and handover