As more funding is becoming available for infrastructure projects in the US, public owners will need to decide what form of project delivery method they should use. As practitioners know, there is no one-size-fits-all when it comes to delivering infrastructure projects (some choices being D-B-B, DB, DBF, DBOM and PPP or a DBFOM). Before deciding, here are a few questions to explore if a PPP is right for your Project.

1. Is the Public Sector willing to relinquish a requisite amount of control to the Private Sector, and to invest in a team of advisors that can help achieve success?
2. Can the Project be accommodated within the state’s legal framework for procurement as a PPP?
3. Have all relevant laws been taken into consideration that will be needed to support a long-term contract and long-term financing?
4. Are there any significant risks or uncertainties within the Project that are not manageable by the Private Sector?
5. Is there a substantial risk of non-availability of the land or land acquisition cost overruns?
6. Does it make sense to bundle construction with operations and maintenance (O&M) in a single contract or segregate O&M?
7. Are the Project’s output and/or performance requirements clearly identifiable?
8. Is the Project too big financially for investors’ and developers’ market appetite?
9. Is the Project too high a risk profile for local construction companies to take on?
10. Is there an adequate number of competitors interested in the bidding process?
11. Is the Project’s size big enough to justify the implicit costs of structuring and managing a complex tender and transaction?
12. Are there precedent transactions that were already developed as PPPs for this type of Project in the country/region or similar countries?