Infrastructure Planning & Feasibility Flashcards

What is the purpose of a 'reference design' in P3 infrastructure projects?

Answer: To demonstrate technical feasibility and provide a cost baseline while allowing private partners to propose better alternatives

A reference design demonstrates technical feasibility and provides a cost baseline for financial modeling, but output-based contracting allows private partners to innovate and propose superior solutions.

Which factor most directly affects the 'bankability' of a P3 infrastructure project?

Answer: Predictable revenue streams, government creditworthiness, and appropriate risk allocation that lenders find acceptable

Bankability is determined by whether lenders are willing to finance the project, which depends on predictable revenues, the government's credit strength, and a risk allocation that protects lenders' interests.

In P3 project planning, 'environmental and social screening' is conducted primarily to:

Answer: Identify potential environmental and social impacts early to determine required studies and safeguards

Environmental and social screening identifies potential impacts and risks at an early stage, determining what detailed studies and mitigation measures will be required throughout the project lifecycle.

What does 'affordability' refer to in P3 project planning from a government's perspective?

Answer: Whether the government's fiscal commitments under the P3 arrangement fit within its budget constraints

From the government's perspective, affordability means that the fiscal commitments — including availability payments, guarantees, and contingent liabilities — are sustainable within its budget framework.

Which of the following best describes a 'greenfield' P3 project?

Answer: A new infrastructure project built from scratch on previously undeveloped capacity or land

A greenfield P3 project involves designing and constructing entirely new infrastructure, in contrast to brownfield projects which expand, rehabilitate, or operate existing assets.

In P3 infrastructure planning, what is the purpose of a 'stakeholder mapping' exercise?

Answer: Identifying all parties with an interest in the project and assessing their influence and concerns

Stakeholder mapping identifies all affected and interested parties — government agencies, communities, NGOs, investors — and assesses their influence and concerns to guide effective engagement strategies.

What is the primary goal of the 'project identification' phase in P3 development?

Answer: To identify infrastructure gaps and determine which potential projects could be addressed through P3

Project identification focuses on recognizing unmet infrastructure needs or service deficiencies and determining which potential solutions might be suitable candidates for P3 delivery.