Detailed project definition.
Here the project development flows from the initial planning stage into detailed project definition. An agency must prepare well-defined project objectives, project parameters and conditions under which the private sector may participate. This is the time to develop project timelines and identify any necessary land use and environmental assessments. If an environmental assessment is needed and a full one cannot be completed, there must be a preliminary assessment at the very least. Other regulatory constraints must also be considered.
The planners must study the feasibility of other options, including any non-capital solutions. At this stage there needs to be a an economic analysis to determine if private sector funding is achievable, and if so at what cost. This step should also address the fiscal impacts associated with any government support that may be required by a partnership to include any contingent liabilities that private financing could have on other government financial requirements. Depending on the complexity of the project a market analysis may also be needed, in order to predict probable responses to a competitive solicitation.
A preliminary risk management plan is also prepared as part of this step. It assesses (although broadly) the various risks associated with the proposed partnership, and identifies the associated costs. An economic development assessment will identify opportunities for local business development. Project management arrangements will vary from project to project, but they must all take into account the range of agencies likely to be affected and possible conflicts of interest that may arise.
The evaluation criteria, and the method for managing the evaluation process, must be specified at this stage to ensure competitive neutrality throughout the process.
The analysis at this stage must allow government to choose among three results: (1) support for further consideration, (2) deferral, or (3) rejection.
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