Section 5: Feasibility study

5. Feasibility study (1) Every contracting authority shall undertake or cause to be undertaken a feasibility study where it considers that a project may be implemented under an agreement, to assess whether the proposed project is feasible as a public-private partnership project. (2) The feasibility study shall— (a) demonstrate comparative advantage in terms of strategic and operational benefits for implementation under a public-private partnership agreement; (b) describe in specific terms— (i) the nature of the contracting authority’s functions, the specific functions to be considered in relation to the project, and the expected inputs and deliverables; (ii) the extent to which those functions can lawfully and effectively be performed by a private party in terms of an agreement; and (iii) the most appropriate form by which the contracting authority may implement the project under an agreement; (c) demonstrate that the agreement shall— (i) be affordable to the contracting authority; (ii) provide value for money; and (iii) transfer appropriate technical, operational or financial risk to the private party; (d) explain the capacity of the contracting authority to effectively enforce the agreement, including the ability to monitor and regulate project implementation and the performance of the private party in terms of the agreement.