4.2  Government approvals

There are a number of milestones in the PPP process at which governments typically seek to approve various actions before the project proceeds to the next phase (see Figure 3). In particular, these key project milestones involve:

•  release of EOI;

•  release of RFP;

•  selection of a preferred bidder; and

•  execution of the contract.

Governments may also wish to be notified of and/or endorse the outcomes at the selection of the shortlisted bidders following the EOI phase.

Additional approvals are likely to be required where:

•  there is a material change to the project including an amendment to the key project objectives, scope of services or where the conclusions or major assumptions of the Business Case (including the economic and financial appraisals) significantly change;

•  there is any material change in the risk allocation from that which was last approved by government;

•  an amendment to the budget funding is required; and

•  issues relating to the public interest arise.

Furthermore, if the procuring agency wishes to renegotiate any area of a PPP contract after it has been approved and signed by government, the agency may also be required to obtain approval from the relevant PPP authority before renegotiating.