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Recommendations in Drafting ToRs for Pre-Feasibility and Feasibility Studies

On this page: Find sample clauses clearly specifying Commercial Value Capture (CVC) assessment in the TOR.  Read more below, visit the Guidelines on Innovative Revenues for Infrastructure section or check the Content Outline. 

Annex 3 of the Annex for IRI Guide: Drafting TOR of Pre-Feasibility and Feasibility Study with CVC

In order for Project Owners to practically operationalize CVC, engaging a qualified expert and clearly specifying CVC assessment in the scope of work for the feasibility study are key steps. This section provides recommendations on suggested clauses on a CVC-related scope of work and expert qualifications to include in the TOR. 

Scope of Work 

Table below provides some suggested clauses to add CVC assessment in the scope of work of the TOR for a feasibility study based on the six steps of project level assessment discussed in the Guidelines. 

Topic
Suggested Clauses to Include in the Scope of Work
Identifying potential CVC for projects
  • Analyse and identify the potential for CVC in the project based on a comprehensive review of project characteristics, stakeholder mapping and international experience
  • Assess demand for CVC considering factors such as market trends, customer preferences, and industry dynamics.
  • Analyse how the CVC activities will contribute to and strengthen the core services 
Readiness of enabling environment for CVC
  • Review readiness of policy, legal and institution to implement identified CVC for the project.
  • If gaps are identified, provide recommendation on how to address those gaps in order to implement CVC.
Technical assessment of potential CVC 
  • Assess technical, legal, political, environmental and social feasibility of CVC opportunities , including cost of implementing CVC and any additional cost for core services resulting from the CVC
  • Review and adjust technical design to add CVC in the project design by considering both commercial services and supporting facilities  
Assessing commercial feasibility of CVC
  • Identify additional revenue streams that can be generated through commercial activities, and risks associated with those revenues
  • Conduct market sounding to gather feedback from local community, potential investors and financial institutions on the commercial potential of CVC, proposed project structure and risk allocation. 
Planning for implementation
  • Assess the capacity of the Project Owners to implement CVC and identify any technical support required for successful implementation, including any changes to the project, financial/commercial structuring and regulatory complexity 
Managing risks
  • Identify risks associated with CVC and propose measures to mitigate those risks 

Personnel and Expert Requirements

In addition to the scope of work, the TOR should include requirements for experts with experience in analysing and implementing commercial activities, for example: 

  • A commercial specialist with relevant experience in carrying out commercial activities.
  • A real estate specialist with relevant experience in assessing demand and key commercial structures in the real estate sector.
  • A financial specialist with relevant experience in developing business models and commercial structures, commercial contract terms and analysing financial and commercial feasibility of commercial opportunities.
Related Content
Additional Resources

The Guidelines on Innovative Revenues for Infrastructure (IRI) is intended to be a living document and will be reviewed at regular intervals. They have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. 

To find more, visit the Innovative Revenues for Infrastructure section and the Content Outline, or Download the Full Report.  For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.