Guidance Note No. 1 - Outline for a PPP feasibility study
In response to some queries seeking clarification of the general structure of a PPP
feasibility study, this guidance note sets out the general outline of the various elements
that should normally be included in any PPP assessment. Local authorities should also
have regard to Circular IPPP 04/04 and the Framework for Public Private Partnerships,
both of which are available for downloading from the PPP section of the Department of
the Environment, Heritage and Local Government website. A Policy Framework for PPP
Projects in the Water Sector should also be of interest to Local Authorities embarking
on a PPP project. This framework outlines the procedures to be followed at each stage
of a PPP project and is also available on the PPP website.
These guidelines are not intended to constrain local authorities, in terms of the proper
evaluation of a project, but should assist in focussing the study to address the core PPP
issues.
The feasibility study should assist local authorities in determining if a particular
project is suitable to be advanced as a PPP, the form that this might take and the
appropriate level of risk allocation to the private sector.
Upon completion of the
feasibility study, the local authority should be in a position to determine:

whether or not to proceed with the project by means of a PPP or alternative
more conventional routes,

the form of PPP, i.e. DB/DBO/DBOF,

the allocation of risk proposed between the public and private sectors and who
should have responsibility for securing the necessary statutory approvals, and

the procurement procedure to be used.
The feasibility study should include, inter alia, the following sections:

Executive Summary and Main Conclusions [1-2 pages] - It is proposed to upload the
executive summary for each feasibility study on the PPP website, therefore, this
element of the report should be written as a document that can be made public and
therefore should not include any confidential or commercially sensitive information;

Introduction and Scope of the Feasibility Study – a short outline of the nature of
the project, the scope of the feasibility study and the key issues to be addressed;

Initial Output Specification - to define the output requirements for the project in
the context of a PPP project implementation, compared with a conventional scheme;

Demand Assessment - To determine the need for the project concerned

Preliminary Risk Assessment – this should identify the significant risks in the
project (including statutory process risks) and considers their optimum allocation
between the public and private sectors in the context of PPP contract alternatives.
It should also develop the likely cost impact of each major risk to both public and
private parties;

Legal Viability Assessment, which investigates and reports on specific legal aspects
of the project, where relevant;

Stakeholder Consultation, which should consider the issues likely to affect all
interested parties (known as “stakeholders”), with particular reference to impacts
on staff, and the scope to engage them in the PPP process;

Value for Money (VFM) Assessment, which should provide an initial quantitative
and qualitative review of the cost effectiveness of each of the procurement options
(i.e. DB/DBO/DBOF/Joint Venture/conventional route, etc.), having regard to
potential advantages and disadvantages in each case. The VFM assessment should
also include a Precedent Review, i.e. a review of experience with similar types of
contracts;

Market soundings on the three major elements of the project (i.e. construction
& development; facilities management; private sector finance), to establish the
following
a) previous experience with the type of project involved
b) familiarity with PPP procedures and concepts
c) determine general market interest in the development
d) discuss different payment mechanisms that could be used
e) identify appropriate risk allocations

Bankability Assessment which considers whether the project is “bankable”, i.e.
whether it will attract private finance. This element will only be needed where it is
likely that the project will require substantial private finance e.g. from investment
bankers, to carry it out; and

Procurement Options Selection - Main Findings which will summarise the main
finding from the different sections of the report and draws these together to make
clear recommendations on the way to proceed with the project including the
selection of the appropriate procurement procedure.
Local Authorities should consider setting up a Steering Group to whom any consultants
engaged to carry out the feasibility study should report on a regular basis. This is to
help ensure
1. that the study remains focussed on the issues to be addressed
2. that the study is completed within a reasonable timeframe
In preparing a feasibility study, full account should be taken of existing reports carried
out by other local authorities for similar projects.
Use of material in an existing
report should reduce the costs involved in carrying out a feasibility study. A full list of
the approved projects is attached herewith.
If further information is required on any aspect of structuring the PPP study, you
should
contact
Ms.
Joan
joan_ryan@environ.irlgov.ie.
Ryan,
PPP
Unit
at
01-8882037
or
e-mail
Contact Name
Mr. Sean Quirke
Start-up funding for the development at Greystones Harbour Wicklow County Council
APPROVED PROJECTS 2000
Feasibility study regarding a crematorium at Shanganagh
Cemetery
Start-up funding for CHP plant at Leisureworld, Cork
Feasibility Study for a CHP for Council offices and leisure
facilities
Feasibility Study for developing and managing a business
park in North Cork
Ms. Carol McLoughlin
Dun Laoghaire/Rathdown County
Council
Mr. Michael O’Brien
Cork City Council
Mr. Brendan Fennessy
South Tipperary County Council
Mr. Pat Ledwidge
Cork City Council
Feasibility Study for the development of industrial sites for Mr. Jack Keyes
Offaly County Council
small industries at Edenderry
Feasibility study for carparking and ancillary facilities at
Letterkenny & Donegal town
Feasibility study regarding the development of a wind
energy generation project
Feasibility study for civic and commercial centres at
Donegal town and Letterkenny
Mr. Francie Coyle
Donegal County Council
Mr. Roger Adair
Donegal County Council
Mr. Fitz Howard
Donegal County Council
Ms. Bernadette Kinsella
Feasibility study for the conversion of a former reformatory
Offaly County Council
into an integrated tourism and leisure amenity
Feasibility study for 2 hydro electric schemes
Mr. Willie Moynihan
Kerry County Council
APPROVED PROJECTS 2001
Feasibility study to assess the potential for lands and
buildings to meet the needs of the public sector bodies in
the Monaghan area
Mr. Michael Fitzpatrick
Monaghan County Council
Feasibility study for the development of an existing
industrial/commercial area in Sallynoggin
Mr. Derek Jago
Dun Laoghaire Rathdown County
Council
Feasibility study for the development of Cabinteely House,
buildings and lands as a cultural, recreation and tourist
venue
Mr. Garret Murphy
Dun Laoghaire/Rathdown County
Council
Feasibility study to examine the future leisure and
recreational needs of the area covered by the Stepaside
Area Plan
Ms. Sinead McNulty
Dun Laoghaire/Rathdown County
Council
Feasibility study for the provision of sea water for the fish
processors in Killybegs to clean their fish
Mr. Paul Kilcoyne
Donegal County Council
Feasibility study for a managed store for the files of Kerry
County Council and associated UDCs
Mr. Michael McMahon
Kerry County Council
Start-up funding for the construction of a clubhouse, driving
range and machinery store for the municipal 18 hole golf
course at Williamstown in Waterford city
Mr. Paddy Power
Waterford City Council
A consultant to advise Clonmel Borough Council on the
best options available to the Council in relation to the
design, construction, management/operation and
maintenance of a multi-storey car park in Mary Street,
Clonmel
Mr. Willie Corby
Clonmel Borough Council
Feasibility study and a business plan to examine the
commercial viability of a crematorium in Limerick city
Mr. Tom Tarpey
Limerick City Council
APPROVED PROJECTS 2002
Project Manager for the development of Tralee town centre Mr. James Clifford
Tralee Town Council
Feasibility study re Dundalk Harbour - expand commercial
Mr. Willie Walsh
activities of harbour; reclaim marsh lands on the north side;
Louth County Council
provide sluice gates; riverside walks; develop Castletown
river into an attractive fishery
Feasibility study re carpark in Loughrea
Mr. Jim Cullen
Galway County Council
Feasibility study regarding provision of civic offices, public Mr. Jim Cullen
Galway County Council
library and carparking, together with commercial offices
and retail development
Ms. Catherine Halligan
Feasibility study re development of new residential and
Bray Town Council
amenity quarter in & around the harbour area in Bray
Feasibility study regarding the provision of a
telecommunications (broadband) network
Feasibility study regarding the development of open
space/amenity in Wicklow, Arklow and Greystones
Mr. Tony Pluck
Dun Laoghaire/Rathdown County
Council
Mr. Bryan Doyle
Wicklow County Council
Re-submit Donegal project for Killybegs Enterprise Park
Ms. Patricia McIntyre
Donegal County Council
Feasibility study for developing cultural, recreational,
housing & business park activities in the central area of
Dun Laoghaire
Mr. Bob Hannen
Dun Laoghaire/ Rathdown Co Co
Feasibility study for developing a multi-purpose cultural
centre in the old town hall building, Loughrea
Mr. Gerry Maher
Galway County Council
Mr. Willie Moynihan
Feasibility study to examine the economic and technical
feasibility of the Hags Glen hydro-electric and water supply Kerry County Council
scheme
Mr. Louis Brennan
Feasibility study regarding the County Museum
Laois County Council
Study on the economic & technical feasibility of extracting
gas from the landfill site at Muingnaminnane, to generate
electricity
Mr. Willie Moynihan
Kerry County Council
Feasibility study regarding management and maintenance
of Oliver Bond local authority flats, using a PPP approach
Mr. John MacEvilly
Dublin City Council
Feasibility study regarding the development of housing in
Cromcastle Environs , Coolock
Mr. John Egan
Dublin City Council
Provision of a mobile phone based parking payment system Mr. Paul McCarthy
Dublin City Council
for Dublin
Mr. Peter Minnock
Feasibility study regarding the development of a public
Kildare County Council
service support centre in County Kildare
APPROVED PROJECTS 2003
Feasibility study regarding the re-development of St. Mels
Terrace, Athlone.
Mr. Billy Coughlan
Athlone Town Council
Feasibility study regarding the development of
"Splashworld" in Tramore.
Mr. Brian White
Waterford County Council -
Start-up funding for amenity/recreational facilities for
Carrick-on-Shannon
Mr. Daniel McLoughlin
Leitrim County Council -
APPROVED PROJECTS 2004
Feasibility study to examine viability of procuring 2 park &
ride facilities in Waterford city
Mr. Lar Power/Ms. Mary Quigley
Waterford City Council
Feasibility study into the potential usage of gas developed
from Gortadroma landfill in Limerick
Mr. Tom Tarpey
Limerick County Council
Feasibility study into the potential uses of gas developed
from Poolboy Landfill, Ballinasloe, Galway
Ms. Teresa Tully
Ballinasloe Town Council
Appointment of Client Representative for development of
Kilbeggan Courthouse and Market House, using a PPP
approach
Mr. Paul Smyth
Westmeath County Council
Start-up funding for planning and procurement fees for the Mr. Sean Quirke
development of Greystones harbour
Wicklow County Council
Client Rep to carry out market consultation exercise;
planning and procurement process for the development of
Bray Harbour
Ms. Catherine Halligan
Bray Town Council
Contract staff to act as Procurement Team for 2 PPP
projects in Sligo
Start-up funding for 2 level underground carpark; park area;
public square; commercial and residential units in
Fairgreen, Navan. Design, commercial and financial
viability, market research, Part 8, project manage
construction of project
Mr. Bartley Gavin
Sligo County & Borough Councils
Mr. Michael English
Meath County Council
PPP Assessment for an Integrated Waste Management
facility - develop a range of technologies on a single site
Mr. John Brannigan
Cavan County Council