Which is an objective of the Appraisal Phase in the PPP Process?

• a. Determine a public need for a service
• b. Determine if a project should be procured through a PPP
• c. Prioritize projects through a preliminary economic analysis
• d. Structure and draft the request for qualifications and proposals

Which key elements are progressively detailed through feasibility assessments in the Appraisal Phase? 1. Technical requirements 2. Contract pre-structure 3. Qualification criteria 4. Financial model

• a. 1, 2, 3
• b. 1, 2, 4
• c. 1, 3, 4
• d. 2, 3, 4

Which statement about the technical requirements produced during the Appraisal Phase is NOT true?

• a. Includes project design and construction requirements
• b. Focused on outputs
• c. Includes performance requirements
• d. Detailed construction specifications should be included for complex technical projects

Which is generated by incorporating risk allowances into estimated costs?

• a. Expected value of costs
• b. Most likely costs
• c. Best case costs
• d. Base line costs

What element of the preliminarily PPP contract structure defines whether a project is a user-pays or government-pays PPP?

• a. Payment mechanism
• b. Revenue regime
• c. Risk allocation matrix
• d. Project design

Which financial assessment shows the public sector cash flows for a project under PPP delivery in comparison to traditional delivery?

• a. Commercial feasibility
• b. Economic feasibility
• c. Value for Money
• d. Fiscal feasibility

Which macroeconomic assumption in the financial model data can be used to estimate the minimum expected return required by equity investors?

• a. General inflation
• b. Relative inflation
• c. Risk-free interest rate
• d. Exchange rate

Which is used to assess commercial feasibility from the investors’ perspective?

• a. Net present value of the equity cash flows and internal rate of return of the equity cash flow
• b. Stability of project revenues
• c. Ability of shareholders to provide collateral security
• d. Ratio between the cash resources generated by the project and the total amounts required to service debt

Which describes a ‘over-feasible’ project?

• a. Projected revenue is expected to be sufficient to meet the commercial feasibility criteria
• b. Expected revenue is insufficient to verify that the project is feasible from a commercial perspective
• c. Able to generate inflows much higher than those required to be commercially feasible
• d. Proposed structure of government payments exceeds cover ratio requirements

Which is an appropriate output of the commercial feasibility assessment for an over-feasible User-pays PPP?

• a. An estimate of the increase in contract term or user charges required to take advantage of the over-feasibility
• b. An estimate of the level of financial support required to achieve a bankable project
• c. An estimate of grant financing or supplementary service payments required
• d. An estimate of potential payments to the procuring authority