In the rigorous and analytical world of Public-Private Partnerships (PPPs), conducting comprehensive Feasibility Studies for PPP Projects is an indispensable and pivotal stage, serving as the critical due diligence process that rigorously assesses a project's technical, economic, financial, legal, environmental, and social viability before significant resources are committed to procurement. A well-executed feasibility study provides the evidence-based foundation for informed decision-making, enabling public authorities to determine if a project is suitable for a PPP modality, if it offers genuine value for money, and if it is attractive to the private sector, thereby mitigating risks and safeguarding public interest. This comprehensive training course is meticulously designed to equip public sector officials, project developers, financial analysts, technical experts, and legal advisors with the advanced knowledge and practical skills required to commission, manage, conduct, and critically review robust feasibility studies for diverse PPP projects, ensuring sound project preparation and successful outcomes. Without robust expertise in Feasibility Studies for PPP Projects, stakeholders risk proceeding with unviable projects, incurring substantial costs, and failing to attract qualified private partners, undermining the credibility and effectiveness of their PPP programs, underscoring the vital need for specialized expertise in this critical domain.

Duration: 10 Days

Target Audience

• Public Sector Officials from Ministries of Finance, Planning, Infrastructure, and Sectoral Ministries
• PPP Unit Professionals and Staff responsible for project appraisal
• Project Managers and Technical Experts in Public Entities
• Economists and Financial Analysts in Government
• Private Sector Project Developers and Investors involved in project preparation
• Legal Advisors and Environmental/Social Specialists
• Consultants involved in preparing or reviewing PPP feasibility studies
• Development Finance Institutions (DFIs) and Multilateral Development Banks (MDBs) staff
• Anyone involved in the detailed appraisal and structuring of potential PPP projects.

Objectives

• Understand the purpose, scope, and critical importance of feasibility studies for PPP projects.
• Learn about the various components of a comprehensive PPP feasibility study (technical, economic, financial, legal, environmental, social).
• Acquire skills in commissioning, managing, and overseeing feasibility study consultants.
• Comprehend techniques for conducting rigorous demand and market analysis.
• Explore strategies for developing robust financial models and assessing project viability.
• Understand the importance of Value for Money (VfM) analysis and Public Sector Comparator (PSC).
• Gain insights into identifying, assessing, and allocating project risks within the study.
• Develop a practical understanding of legal and regulatory due diligence.
• Master the role of environmental and social impact assessments (ESIAs).
• Acquire skills in critically reviewing and interpreting feasibility study reports.
• Learn to apply international best practices and guidelines for PPP feasibility studies.
• Comprehend techniques for making informed go/no-go decisions based on feasibility findings.
• Explore strategies for integrating stakeholder feedback into the study process.
• Understand the importance of data quality and evidence-based analysis.
• Develop the ability to lead and implement effective Feasibility Studies for PPP Projects.

Course Content

Module 1: Introduction to PPP Feasibility Studies

• The role of feasibility studies in the PPP project cycle.
• Why comprehensive feasibility is essential for successful PPPs.
• Consequences of inadequate feasibility studies: project failures, cost overruns.
• Overview of the different components of a PPP feasibility study.
• The iterative nature of feasibility assessment.

Module 2: Project Scope and Technical Feasibility

• Defining the project scope, outputs, and service requirements in detail.
• Assessing technical solutions and technology options.
• Site analysis, geological surveys, and infrastructure requirements.
• Preliminary design concepts and engineering considerations.
• Ensuring technical robustness and constructability.

Module 3: Demand and Market Analysis

• Methodologies for forecasting demand for project services (e.g., traffic studies, demographic analysis).
• Market sounding and private sector interest assessment.
• Analyzing competitive landscape and market conditions.
• Identifying potential revenue streams and their elasticity.
• Data sources and analytical tools for demand forecasting.

Module 4: Economic Feasibility and Cost-Benefit Analysis (CBA)

• Differentiating between financial and economic analysis.
• Identifying and quantifying economic costs and benefits (e.g., travel time savings, environmental benefits).
• Conducting Cost-Benefit Analysis (CBA) to assess societal welfare.
• Discounting methodologies and economic internal rate of return (EIRR).
• Using CBA to justify public investment and project selection.

Module 5: Financial Feasibility and Modeling

• Developing a robust financial model for the PPP project.
• Key financial metrics: Internal Rate of Return (IRR), Net Present Value (NPV), Debt Service Cover Ratio (DSCR).
• Revenue projections, operating costs, and capital expenditure forecasts.
• Financing structure: debt, equity, government support.
• Sensitivity analysis and scenario planning for financial viability.

Module 6: Value for Money (VfM) Analysis

• Principles of VfM in PPPs: achieving optimal balance of cost, quality, and risk.
• Public Sector Comparator (PSC) methodology: constructing a hypothetical public delivery benchmark.
• Quantitative VfM assessment: comparing PPP vs. traditional procurement.
• Qualitative VfM factors: innovation, risk transfer, management efficiency.
• Interpreting VfM results and making informed procurement decisions.

Module 7: Risk Assessment and Allocation in Feasibility

• Detailed identification of project risks (construction, operational, demand, political, financial, legal).
• Qualitative and quantitative risk assessment methodologies.
• Preliminary risk allocation matrix: identifying which party is best placed to manage each risk.
• Analyzing risk mitigation strategies and their costs.
• Impact of risk allocation on project bankability and VfM.

Module 8: Legal and Regulatory Due Diligence

• Review of the existing legal and regulatory framework for PPPs and the specific sector.
• Identifying legal barriers, missing legislation, or regulatory gaps.
• Assessing land acquisition legal requirements and property rights.
• Review of permits, licenses, and approvals required.
• Ensuring contractual enforceability and legal certainty.

Module 9: Environmental and Social Impact Assessment (ESIA)

• Purpose and scope of ESIA in PPP projects.
• Identifying potential environmental impacts (e.g., pollution, biodiversity loss).
• Assessing social impacts (e.g., resettlement, livelihoods, cultural heritage).
• Developing mitigation measures and management plans.
• Compliance with national and international environmental and social safeguards.

Module 10: Affordability Analysis

• Assessing the public sector's ability to pay for the project (if availability-based payments).
• Analyzing the affordability for end-users (if user-pay projects).
• Impact on public debt and fiscal space.
• Developing strategies to enhance affordability (e.g., viability gap funding).
• Ensuring long-term fiscal sustainability.

Module 11: Governance and Institutional Readiness

• Assessing the capacity of public sector institutions to manage the PPP.
• Availability of skilled personnel and technical expertise.
• Clear decision-making processes and inter-agency coordination.
• Transparency and accountability mechanisms.
• Recommendations for institutional strengthening.

Module 12: Stakeholder Engagement and Communication

• Identifying key stakeholders for the feasibility study process.
• Strategies for effective consultation and feedback integration.
• Managing expectations and addressing concerns from communities and civil society.
• Communicating feasibility study findings transparently.
• Building consensus and public support.

Module 13: Managing the Feasibility Study Process

• Terms of Reference (ToR) for feasibility study consultants.
• Selection and contracting of consultants.
• Oversight and quality control of the study.
• Data collection, validation, and analysis.
• Presenting feasibility study findings to decision-makers.

Module 14: Decision Making Based on Feasibility Findings

• Interpreting the overall findings of the feasibility study.
• Making the "go/no-go" decision for a PPP project.
• Deciding on the optimal PPP model and risk allocation.
• Preparing the project for the procurement stage.
• Lessons learned from feasibility studies in different sectors.

Module 15: Practical Workshop: Developing a Feasibility Study Outline

• Participants work in groups on a hypothetical PPP project.
• Exercise: Develop a detailed Terms of Reference (ToR) for a feasibility study.
• Outline the key sections of the feasibility study report and the analysis required for each.
• Discuss potential challenges in conducting the study and how to address them.
• Present the feasibility study outline and receive peer feedback.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.