i) Value for Money:
Value for money is paramount in Public-Private Partnerships (PPPs). It ensures that the PPP arrangement provides better value than the best realistic public sector project designed to achieve similar service outputs. Achieving value for money is a key requirement at all stages of a project’s development and procurement, balancing service outcomes with the degree of risk transfer and financial implications for the government. Value for money drives the adoption of the PPP approach, beyond reasons like capital scarcity or balance sheet treatment.

ii) Risk Allocation:
Efficient risk allocation is vital to achieving value for money in PPP projects. Risks should be allocated to the party best able to control and manage them to maximize value for money. The government’s principle in risk allocation aims to optimize rather than maximize the transfer of project risks to the private party, ensuring that the allocation of responsibilities aligns with protecting the public interest.

iii) Ability to Pay:
End-user ability to pay is a key consideration for all PPP projects. The PPP option must demonstrate long-term affordability to the public and ensure overall government budgetary sustainability. The financial implications of PPP projects should be assessed in terms of forward commitments, public expenditure, and the potential for returns on private sector investment, considering other government priorities and commitments.

iv) Competition:
Competition is essential in PPP procurement processes to ensure value for money and efficiency. PPP projects should be subjected to competitive processes unless justified otherwise by regulations. The competitive selection criterion ensures that the best proposals are chosen, promoting transparency and fairness. In cases of unsolicited proposals, the government must regulate them consistently with the principles of PPP, maintaining competition and value for money.