CP3P Infrastructure Planning & Feasibility 2

Question 1

What is the role of a 'market sounding' exercise in P3 project planning?

Accepted Answer

To gauge private sector interest and appetite for a proposed P3 project

Answer

Market sounding involves consulting potential private sector participants to gauge interest, identify concerns, and refine project structures before formal procurement is launched.

Question 2

Which analysis helps determine the minimum project size that makes P3 procurement cost-effective given its higher transaction costs?

Accepted Answer

Minimum viable size or threshold analysis

Answer

Minimum viable size analysis determines whether a project is large enough that the benefits of P3 delivery outweigh the higher transaction costs compared to conventional procurement.

Question 3

What is meant by 'additionality' in the context of P3 infrastructure planning?

Accepted Answer

The incremental value achieved through P3 that would not occur through conventional procurement

Answer

Additionality refers to the incremental benefits — such as additional projects, accelerated delivery, innovation, or private capital mobilization — that P3 achieves beyond what conventional public procurement alone would deliver.

Question 4

During P3 project planning, a 'demand study' primarily aims to:

Accepted Answer

Project future usage levels and revenue potential for the infrastructure

Answer

A demand study projects future usage — such as traffic volumes, patient numbers, or passenger counts — to estimate revenue potential and support the project's financial model.

Question 5

What is the significance of 'interface risk' in P3 infrastructure planning?

Accepted Answer

The risk arising from dependencies between P3 project components or between the P3 project and other projects

Answer

Interface risk arises from dependencies between project components (e.g., civil and mechanical works) or between a P3 project and adjacent infrastructure projects, potentially causing delays or cost overruns.

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CP3P Infrastructure Planning & Feasibility 2