Assessing the Ability to Manage the Project

A less common but still highly relevant component of project assessment focuses on the ability of the procuring authority to manage the delivery of the project, i.e. project preparation, tendering, and contract management over the term of the PPP contract.

This requires an appraisal of the current capacity of the procuring authority including its leadership, and the identification of future needs. The exercise should lead to the formulation of a credible plan drawing upon the resources of other government agencies, and including the costs of hiring external experts and transaction advisors, and of strengthening the leadership of the project team.

This assessment of the procuring authority should demonstrate that the project is appropriately resourced and that appropriate governance arrangements are in place. The project should have gone through a detailed planning exercise with a realistic timetable; advisers should have been hired; and a risk register should have been prepared showing the primary risks faced by the procurement and how they will be mitigated. There should also be a benefits realization plan. This plan should explain how the project will be evaluated, and how project outcomes will be captured and monitored during the operational phase of the project.

In the United Kingdom, the Five Case Model methodology (Flanagan and Nicholls 2007) includes in this assessment (the management case) the following components:

  • Program and Project Management Methodology and Structure
  • Program and Project Management Plans
  • Use of Specialist Advisers
  • Change and Contract Management Arrangements
  • Benefits Realization
  • Risk Management
  • Monitoring during Implementation
  • Post Implementation Evaluation Arrangements
  • Contingency Arrangements

Key References

Project Feasibility and Economic Viability Analysis