Factors that determine suitability of PPPs

All aspects of the PPP arrangement (e.g. responsibilities, risk allocation, payment mechanism) need to be developed in greater detail, with the ultimate goal of producing the draft PPP contract. It is advisable to deal with this in sub-steps rather than try to draft a full
PPP contract right away as this simplifies the internal review process. For example, it is better to focus the initial internal discussion and approval on the broad commercial aspects of project design rather than on detailed legal terms.

• The government‟s economic policy, including experience with PPP projects,
• Market conditions, including the level of development of the financial market and competition of the public procurement market,
• The legal system;
• Institutional preparation (institutional capacity)