(1) Where the Steering Committee approves the project concept note, the Project Team shall develop a business case for the project.
(2) A business case referred to under subsection (1) must —
(a) set out the scope and proposed structure of the project; and
(b) present a detailed assessment of the viability and suitability of the project for implementation as a public-private partnership.
(3) The scope and structure of a proposed project under subsection (2) must —
(a) comply with the Government's economic policy priorities and sector plans over the short and long term;
(b) be technically, legally, environmentally and socially sustainable; economically cost-benefit justified and the least-cost solution to the identified service need;
(c) demonstrate that the cost of the project complies with Government fiscal priorities and that risks retained by Government would not be fiscally destabilizing;
(d) indicate that there is a qualified private party available to implement the project, and that the project is expected to provide a commercial rate of return sufficient to attract such party and create competition for the opportunity;
(e) indicate that the project is expected to achieve value for money compared to alternative implementation options and other public-private partnership structures.
(4) In developing the business case, the Project Team may, depending on the nature of the project —
(a) conduct stakeholder consultation on project needs and options;
(b) undertake or cause to be undertaken, technical feasibility analysis, including identifying costs and significant risks;
(c) prepare concept design drawings;
(d) require social and environmental impact assessments and management plans in accordance with any other law;
(e) conduct financial and economic analysis of the project and of proposed public-private partnership structures, including estimating revenues;
(f) develop key commercial terms for the proposed public-private partnership, including the contract type, allocation of risks and payment mechanisms;
(g) assess the commercial attractiveness of the proposed public-private partnership through initial market soundness for potential investors in the project;
(h) assess the rationale for implementing the project as a public-private partnership under the proposed structure in terms of value for money for Government and end users;
(i) identify and assess the level of fiscal support required for the project whether direct or contingent, and the risks to be accepted by Government and the affordability of such support given fiscal priorities and constraints.
(5) The Core Team, Steering Committee and other relevant agencies shall review the business case.
(6) Once reviewed, the Project Team shall submit the business case to Cabinet for determination.