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Applied Methods and Techniques Flashcards

7 cards from real CP3P practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. Before formal procurement, a government holds structured meetings with potential bidders and lenders to test interest and key terms. This technique is called:

    Answer: Market sounding

    Market sounding gathers market feedback on project appetite, risk allocation and bankability before tender launch.

  2. Which appraisal technique scores options against several weighted criteria, including non-monetary ones such as social impact?

    Answer: Multi-criteria analysis

    Multi-criteria analysis assigns weights and scores to multiple criteria, allowing qualitative factors to be compared.

  3. A fiscal affordability assessment for an availability-based PPP mainly checks whether:

    Answer: Long-term payment commitments fit within the authority's projected budget

    Affordability analysis confirms the government can meet the PPP payment obligations within its budget envelope over the contract life.

  4. Which of the following is an example of a contingent liability that should be assessed for a PPP?

    Answer: A minimum revenue guarantee given to the concessionaire

    A minimum revenue guarantee only becomes a payment if a trigger event occurs, making it a contingent liability.

  5. In a cost-benefit analysis used at project screening, which discount rate is normally applied to economic flows?

    Answer: The social discount rate

    Economic appraisal uses a social discount rate reflecting society's time preference, not private financing costs.

  6. A procuring authority prepares a 'shadow bid' model during structuring. What is its main purpose?

    Answer: To estimate a realistic private-sector bid and test bankability and affordability

    A shadow bid simulates how a private bidder would price and finance the project, helping test affordability and bankability before tender.

  7. When the government's evaluation of PPP bids considers both price and technical quality with set weightings, it is using:

    Answer: Most economically advantageous tender (best value) evaluation

    Best-value evaluation combines weighted price and quality scores to select the most economically advantageous tender.