Conclusion and Next Steps
Conclusions
The conclusions section of a feasibility study report for an infrastructure PPP project should provide a clear, concise summary of the study’s findings and a recommendation on whether the project should proceed. The conclusions should include the following:
- Confirmation of technical, legal, environmental, and social feasibility
- Summary of demand analysis and service need
- Alignment with national or regional development priorities
- Confirmation of compliance with Bappenas regulations and sectoral regulations
- Land acquisition and permitting status
- Institutional readiness of the GCA
- Summary of key economic indicators including:
- Economic Internal Rate of Return (EIRR)
- Economic Net Present Value (ENPV)
- Value for money (VfM)
- Key risks identified across the project lifecycle
- Proposed risk mitigation strategies
- Residual risk profile and its acceptability
- Summary of key financial indicators including:
- Internal Rate of Return (IRR)
- Net Present Value (NPV)
- Debt Service Coverage Ratio (DSCR)
- Assessment of affordability for government and users
- Summary of Environmental Impact Assessment (EIA) findings
- Social safeguards and stakeholder engagement outcomes
- ESG (Environmental, Social, Governance) alignment
- Summary of private sector feedback (if conducted)
- Indication of bankability and investor appetite
- Whether to proceed with procurement as a PPP
- Suggested procurement method (e.g., competitive bidding)
- Need for government support (e.g., Viability Gap Funding, Availability Payment)
- Next steps (e.g., detailed design, transaction advisory, MoF approvals)
Follow-up Issues
- Based on the key conclusions of the Pre-FS, the GCA shall note the follow-up issues that may emerge. The GCA shall detail out the follow-up issues and prepare a corresponding follow-up plan to deal with the issues. The recommendations presented in previous responses may also lead to a few follow-up issues. GCA shall include the targeted time limit to take follow-up actions, in this detailing. For example, if there is a challenge related to coordination with stakeholders about land provision or resettlement issues, specify the time limit for target resolution for such issues and the plan for it.
Procurement and Implementation Plan
- The GCA shall update any previously made procurement and implementation plan for the PPP project based on the conclusions and key takeaways of the Pre-FS. The GCA shall ensure that the updated schedule (including follow up issues cited earlier) and stages of implementation of the infrastructure provision align with any changes in the PPP project (especially since the planning stage), the project’s needs, and incorporates any changes in laws, regulations, and/or sector policies. The updated procurement and implementation plan must contain all updated and/or new activities that are to be carried out in PPP preparation as Ready-to-Offer (RTO). The procurement and implementation plan could be presented as a Gantt chart and must be followed up from time to time from the various entities/stakeholders involved, the person/s responsible for these activities and the expected output of these activities.
- The Pre-FS document serves as a background for the preparation of the management of contract plan applicable in the management of contract stage. Hence, the Pre-FS including the PPP Contract and its schedules shall be made available to the management of contract team. Further details on these submissions are available in the management of contract toolkit’s ‘management of contract training sample’.
