When a PSP considers a municipal PPP, it will perform due diligence and test whether the risks and investment potential merit investment of time and money for due diligence. The PSP approaches this task in a way often very different from municipal staff.
The following sets out a few issues that are critically important to the PSP to help the municipality understand the kind of issues that are important for the PSP and the due diligence it will perform. The feasibility study1 and the PPP agreement2 should address these issues. Municipalities should review their projects from the perspective of the PSP to understand better the PSP’s perspective and priorities in advance of the bidding process and to prepare for the kind of questions and concerns that the PSP will likely raise.