Initial PPP Suitability Test - Ministerul Finanțelor

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ONLINE GUIDE
PPP TESTING
PORTAL
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- Română
- English

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PPP Testing
Initial PPP Suitability Test

EN_Initial PPP Suitability Test

1 Strategic Rationale for the Project

1.1 The need for the project been clearly identified and justified in the Pre-Feasibility Study OR the proposed project fits with an existing clearly defined and Government approved strategic plan for the sector.

Yes

2 Economic Rationale for the Project

2.1 The proposed project definition/scope has been identified and justified in line with the approved economic analysis approach in the [Pre-feasibility] Study.

Yes

2.2 There is NO other significant related infrastructure required to be in place for the project; OR if it is needed, the related infrastructure can be expected to be delivered in time to support the proposed project.

Yes

3 Strategic and Economic Rationale for the PPP Delivery Route

3.1 Project characteristics

3.1.1 The estimated capital expenditure required for the project is expected to be between EUR 20 million and EUR [200] million.

Yes

3.1.2 Similar availability-based PPP models are currently operating successfully in other European countries.

Yes

3.1.3 The project is expected to be replicated more widely across the sector.

Yes

3.1.4 The scope of the project is such that services to be provided are limited to a reasonably homogenous bundle of services (i.e. it does not involve a wide range of different services).

Yes

3.1.5 The scope of the project is such that the infrastructure required is limited to a relatively homogeneous bundle of facilities (i.e. it does not involve the construction of numerous different types of facility).

Yes

3.1.6 The estimated duration of the construction period of the PPP project expected to be less than [5] years.

Yes

3.1.7 The estimated duration of the PPP contract expected to be at least [15] years.

Yes

3.1.8 The specific risks that the contracting authority expects to transfer to the private sector form a meaningful proportion of the expected overall project risks.

Yes

3.1.9 It is clear that it is not more beneficial to extend an existing public service to include the envisioned project scope?

Yes

3.1.10 The transfer of activities to the private sector under the PPP are NOT expected materially to limit the public sector in its ability to implement adjacent activities or projects.

Yes

3.2 Contractibility of services

3.2.1 The services can be clearly identified and can be expected to be described in clear output specifications.

Yes

3.2.2 The level of demand for the services required by the contracting authority is likely to remain reasonably stable over the period of the PPP contract.

Yes

3.3 Project deliverability

3.3.1 Sufficient information (surveys, audit, archaeology...) on the site and existing asset conditions is or can easily be provided to the private partner (to the extent relevant).

Yes

3.3.2 All major permits and consents for the project that are the responsibility of the contracting authority have been acquired, or all major consents can be expected to be easily acquired prior to the award of the PPP contract.

Yes

3.3.3 All relevant land or rights-of-way have been acquired or are expected to be easily acquired prior to award of the PPP contract.

Yes

3.4 Legal and Stakeholder Support

3.4.1 The project, including the proposed scope of services, can be delivered as a PPP under legislation / regulations governing the contracting authority including the power of the contracting authority to enter into a PPP contract.

Yes

3.4.2 There is evidence of strong political support for this project to be realised as a PPP.

Yes

3.4.3 There is evidence that the key stakeholders support the project being realised as a PPP.

Yes

4 Affordability

4.1 The construction, long term maintenance / operating and financing costs of the PPP project can be realistically estimated and an initial estimate of the payments to the PPP project partner be made.

Yes

4.2 A budget or budgets have been identified as available to fully fund the estimated PPP payments and any other costs of the contracting authority over the term of the PPP.

Yes

4.3 EU funding is NOT expected to be required or if EU funding is expected to be required, or the availability of such funding can be reasonably expected without delaying the project.

Yes

4.4 The financial obligations of the contracting authority with respect to the PPP project can be fully underwritten by the National Government or there evidence that its financial obligations are likely to be acceptable to long-term lenders.

Yes

5 Commercial Viability (‘Private actor characteristics’)

5.1 Preliminary evidence is available (e.g. from previous PPP projects procured in the region) that shows that at least 3 private sector contractors have the capability to provide for each of the design, construction and maintenance/operation requirements of the PPP project.

Yes

5.2 The identified suppliers can be expected to be sufficiently robust financially in comparison with the size of the proposed project.

Yes

5.3 A proportion of the identified suppliers have participated in PPP procurement or contracts in Europe in the last [10] years.

Yes

5.4 Preliminary evidence is available to show the financial sector (banks, multilateral lending institutions, capital market, equity investors) have recent experience of providing long-term finance for the type of PPP project envisaged.

Yes

6 Management Capacity (‘Public actor characteristics’)

There is evidence to suggest that the contracting authority is sufficiently motivated to deliver the project as a PPP (other than for balance sheet reasons?) - see Initial PPP Justification Worksheet (non-balance sheet reasons for PPP must be greater than [50]%)

Yes

6.2 The contracting authority has the resources to hire appropriately experienced advisers to prepare and procure the project as a PPP OR there is evidence that they will be able to but this in place for the Feasibility/Substantiation stages.

Yes

6.3 There is evidence to suggest that the contracting authority will have available appropriate internal resource/expertise over the period of the PPP to manage the PPP contract.

Yes

Useful links

National Bank of Romania

National Institute of Statistics

National Agency for Fiscal Administration

European Commission

Council of the European Union

European Parliament

Contact

B-dul Libertății, nr. 16, Sector 5, cod 050706, Bucureşti

+4021 2261000 / 3199759

+4021 3122509

publicinfo@mfinante.gov.ro

TELVERDE: 0800 800 085

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