Guidance Note No. 1 - Outline for a PPP feasibility study
In response to some queries seeking clarification of the general structure of a PPP feasibility study, this guidance note sets out the general outline of the various elements that should normally be included in any PPP assessment. Local authorities should also have regard to Circular IPPP 04/04 and the Framework for Public Private Partnerships, both of which are available for downloading from the PPP section of the Department of the Environment, Heritage and Local Government website. A Policy Framework for PPP Projects in the Water Sector should also be of interest to Local Authorities embarking on a PPP project. This framework outlines the procedures to be followed at each stage of a PPP project and is also available on the PPP website.
These guidelines are not intended to constrain local authorities, in terms of the proper evaluation of a project, but should assist in focussing the study to address the core PPP issues.
The feasibility study should assist local authorities in determining if a particular project is suitable to be advanced as a PPP, the form that this might take and the appropriate level of risk allocation to the private sector. Upon completion of the feasibility study, the local authority should be in a position to determine:
· whether or not to proceed with the project by means of a PPP or alternative more conventional routes,
· the form of PPP, i.e. DB/DBO/DBOF,
· the allocation of risk proposed between the public and private sectors and who should have responsibility for securing the necessary statutory approvals, and
· the procurement procedure to be used.
The feasibility study should include, inter alia, the following sections:
§ Executive Summary and Main Conclusions [1-2 pages] - It is proposed to upload the executive summary for each feasibility study on the PPP website, therefore, this element of the report should be written as a document that can be made public and therefore should not include any confidential or commercially sensitive information;
§ Introduction and Scope of the Feasibility Study – a short outline of the nature of the project, the scope of the feasibility study and the key issues to be addressed;
§ Initial Output Specification - to define the output requirements for the project in the context of a PPP project implementation, compared with a conventional scheme;
§ Demand Assessment - To determine the need for the project concerned
§ Preliminary Risk Assessment – this should identify the significant risks in the project (including statutory process risks) and considers their optimum allocation between the public and private sectors in the context of PPP contract alternatives. It should also develop the likely cost impact of each major risk to both public and private parties;
§ Legal Viability Assessment, which investigates and reports on specific legal aspects of the project, where relevant;
§ Stakeholder Consultation, which should consider the issues likely to affect all interested parties (known as “stakeholders”), with particular reference to impacts on staff, and the scope to engage them in the PPP process;
§ Value for Money (VFM) Assessment, which should provide an initial quantitative and qualitative review of the cost effectiveness of each of the procurement options (i.e. DB/DBO/DBOF/Joint Venture/conventional route, etc.), having regard to potential advantages and disadvantages in each case. The VFM assessment should also include a Precedent Review, i.e. a review of experience with similar types of contracts;
§ Market soundings on the three major elements of the project (i.e. construction & development; facilities management; private sector finance), to establish the following
a) previous experience with the type of project involved
b) familiarity with PPP procedures and concepts
c) determine general market interest in the development
d) discuss different payment mechanisms that could be used
e) identify appropriate risk allocations
§ Bankability Assessment which considers whether the project is “bankable”, i.e. whether it will attract private finance. This element will only be needed where it is likely that the project will require substantial private finance e.g. from investment bankers, to carry it out; and
· Procurement Options Selection - Main Findings which will summarise the main finding from the different sections of the report and draws these together to make clear recommendations on the way to proceed with the project including the selection of the appropriate procurement procedure.
Local Authorities should consider setting up a Steering Group to whom any consultants engaged to carry out the feasibility study should report on a regular basis. This is to help ensure
1. that the study remains focussed on the issues to be addressed
2. that the study is completed within a reasonable timeframe
In preparing a feasibility study, full account should be taken of existing reports carried out by other local authorities for similar projects. Use of material in an existing report should reduce the costs involved in carrying out a feasibility study. A full list of the approved projects is attached herewith.
If further information is required on any aspect of structuring the PPP study, you should contact Ms. Joan Ryan, PPP Unit at 01-8882037 or e-mail .
APPROVED PROJECTS 2000 /Contact Name
Start-up funding for the development at Greystones Harbour /Mr. Sean Quirke
Wicklow County CouncilFeasibility study regarding a crematorium at Shanganagh Cemetery / Ms. Carol McLoughlin
Dun Laoghaire/Rathdown County Council
Start-up funding for CHP plant at Leisureworld, Cork / Mr. Michael O’Brien
Cork City Council
Feasibility Study for a CHP for Council offices and leisure facilities / Mr. Brendan Fennessy
South Tipperary County Council
Feasibility Study for developing and managing a business park in North Cork / Mr. Pat Ledwidge
Cork City Council
Feasibility Study for the development of industrial sites for small industries at Edenderry / Mr. Jack Keyes
Offaly County Council
Feasibility study for carparking and ancillary facilities at Letterkenny & Donegal town / Mr. Francie Coyle
Donegal County Council
Feasibility study regarding the development of a wind energy generation project / Mr. Roger Adair
Donegal County Council
Feasibility study for civic and commercial centres at Donegal town and Letterkenny / Mr. Fitz Howard
Donegal County Council
Feasibility study for the conversion of a former reformatory into an integrated tourism and leisure amenity / Ms. Bernadette Kinsella
Offaly County Council
Feasibility study for 2 hydro electric schemes / Mr. Willie Moynihan
Kerry County Council
APPROVED PROJECTS 2001
Feasibility study to assess the potential for lands and buildings to meet the needs of the public sector bodies in the Monaghan area / Mr. Michael Fitzpatrick
Monaghan County Council
Feasibility study for the development of an existing industrial/commercial area in Sallynoggin / Mr. Derek Jago
Dun Laoghaire Rathdown County Council
Feasibility study for the development of Cabinteely House, buildings and lands as a cultural, recreation and tourist venue / Mr. Garret Murphy
Dun Laoghaire/Rathdown County Council
Feasibility study to examine the future leisure and recreational needs of the area covered by the Stepaside Area Plan / Ms. Sinead McNulty
Dun Laoghaire/Rathdown County Council
Feasibility study for the provision of sea water for the fish processors in Killybegs to clean their fish / Mr. Paul Kilcoyne
Donegal County Council
Feasibility study for a managed store for the files of Kerry County Council and associated UDCs / Mr. Michael McMahon
Kerry County Council
Start-up funding for the construction of a clubhouse, driving range and machinery store for the municipal 18 hole golf course at Williamstown in Waterford city / Mr. Paddy Power
Waterford City Council
A consultant to advise Clonmel Borough Council on the best options available to the Council in relation to the design, construction, management/operation and maintenance of a multi-storey car park in Mary Street, Clonmel / Mr. Willie Corby
Clonmel Borough Council
Feasibility study and a business plan to examine the commercial viability of a crematorium in Limerick city / Mr. Tom Tarpey
Limerick City Council
APPROVED PROJECTS 2002
Project Manager for the development of Tralee town centre / Mr. James Clifford
Tralee Town Council
Feasibility study re Dundalk Harbour - expand commercial activities of harbour; reclaim marsh lands on the north side; provide sluice gates; riverside walks; develop Castletown river into an attractive fishery / Mr. Willie Walsh
Louth County Council
Feasibility study re carpark in Loughrea / Mr. Jim Cullen
Galway County Council
Feasibility study regarding provision of civic offices, public library and carparking, together with commercial offices and retail development / Mr. Jim Cullen
Galway County Council
Feasibility study re development of new residential and amenity quarter in & around the harbour area in Bray / Ms. Catherine Halligan
Bray Town Council
Feasibility study regarding the provision of a telecommunications (broadband) network / Mr. Tony Pluck
Dun Laoghaire/Rathdown County Council
Feasibility study regarding the development of open space/amenity in Wicklow, Arklow and Greystones / Mr. Bryan Doyle
Wicklow County Council
Re-submit Donegal project for Killybegs Enterprise Park / Ms. Patricia McIntyre
Donegal County Council
Feasibility study for developing cultural, recreational, housing & business park activities in the central area of Dun Laoghaire / Mr. Bob Hannen
Dun Laoghaire/ Rathdown Co Co
Feasibility study for developing a multi-purpose cultural centre in the old town hall building, Loughrea / Mr. Gerry Maher
Galway County Council
Feasibility study to examine the economic and technical feasibility of the Hags Glen hydro-electric and water supply scheme / Mr. Willie Moynihan
Kerry County Council
Feasibility study regarding the County Museum / Mr. Louis Brennan
Laois County Council
Study on the economic & technical feasibility of extracting gas from the landfill site at Muingnaminnane, to generate electricity / Mr. Willie Moynihan
Kerry County Council
Feasibility study regarding management and maintenance of Oliver Bond local authority flats, using a PPP approach / Mr. John MacEvilly
Dublin City Council
Feasibility study regarding the development of housing in Cromcastle Environs , Coolock / Mr. John Egan
Dublin City Council
Provision of a mobile phone based parking payment system for Dublin / Mr. Paul McCarthy
Dublin City Council
Feasibility study regarding the development of a public service support centre in County Kildare / Mr. Peter Minnock
Kildare County Council
APPROVED PROJECTS 2003
Feasibility study regarding the re-development of St. Mels Terrace, Athlone. / Mr. Billy Coughlan
Athlone Town Council
Feasibility study regarding the development of "Splashworld" in Tramore. / Mr. Brian White
Waterford County Council -
Start-up funding for amenity/recreational facilities for Carrick-on-Shannon / Mr. Daniel McLoughlin
Leitrim County Council -
APPROVED PROJECTS 2004
Feasibility study to examine viability of procuring 2 park & ride facilities in Waterford city / Mr. Lar Power/Ms. Mary Quigley
Waterford City Council
Feasibility study into the potential usage of gas developed from Gortadroma landfill in Limerick / Mr. Tom Tarpey
Limerick County Council
Feasibility study into the potential uses of gas developed from Poolboy Landfill, Ballinasloe, Galway / Ms. Teresa Tully
Ballinasloe Town Council
Appointment of Client Representative for development of Kilbeggan Courthouse and Market House, using a PPP approach / Mr. Paul Smyth
Westmeath County Council
Start-up funding for planning and procurement fees for the development of Greystones harbour
/ Mr. Sean Quirke
Wicklow County Council
Client Rep to carry out market consultation exercise; planning and procurement process for the development of Bray Harbour / Ms. Catherine Halligan
Bray Town Council
Contract staff to act as Procurement Team for 2 PPP projects in Sligo / Mr. Bartley Gavin
Sligo County & Borough Councils
Start-up funding for 2 level underground carpark; park area; public square; commercial and residential units in Fairgreen, Navan. Design, commercial and financial viability, market research, Part 8, project manage construction of project / Mr. Michael English
Meath County Council
PPP Assessment for an Integrated Waste Management facility - develop a range of technologies on a single site / Mr. John Brannigan
Cavan County Council