Developing a Standardized Assessment for PPP Infrastructure Project

Abstract

Many countries have been adopting Public Private Partnership (PPP) scheme for financing infrastructure as it is considered it will accelerate infrastructure development and ease fiscal constraint. However, worldwide financial crises tighten loan availability in the financial market, whilst demand for PPP funds is growing. Depending on the maturity level, many countries have adopted the rationale on the basis of value for money (VfM) in the PPP assessment. For most ASEAN (Association of Southeast Asian Nations) countries, for example, it is still not sufficiently clear how VfM is incorporated in the assessment framework. Bad project preparation was frequently found as one of the foremost impediments in PPP program, apart from financing, institution and regulatory issues. This research will focus on PPP feasibility at preparatory stage. Some existing assessment methods will be reviewed, PPP framework variation amongst countries will be outlined and finally procedure for PPP standard assessment will be proposed.