DBPapers
DOI: 10.5593/SGEM2014/B53/S21.022

FEASIBILITY STUDIES OF PPP PROJECTS FOR ENVIRONMENTAL INFRASTRUCTURE IN THE WATER SECTOR

E. Augustinova
Wednesday 1 October 2014 by Libadmin2014

References: 14th International Multidisciplinary Scientific GeoConference SGEM 2014, www.sgem.org, SGEM2014 Conference Proceedings, ISBN 978-619-7105-19-3 / ISSN 1314-2704, June 19-25, 2014, Book 5, Vol. 3, 159-166 pp

ABSTRACT
Insufficient Feasibility study in the water sector is an issue in both developed and
developing countries. This deficit requires a significant capital investment. One solution is to carry out projects by Public - Private Partnership (PPP). The article is devoted to analyzing and assessing the possibility of financing PPP projects (DBFO model) in terms of available resources. The Design Build Finance Operate (DBFO) model is a form of Public-Private Partnership (PPP). A PPP is a contractual relationship between a public authority and a private contractor used for construction projects requiring longterm investments. Significant for the DBFO model is that while the public authority is the owner, it is the private contractor that designs, builds, finances and operates the construction in question. The environmental potential in DBFOs would be considerably larger if public sector procurers focused more on the environmental side of the projects. The model in itself makes it easy to apply TCO-thinking. Feasibility study analyzes the financial, technical and legal feasibility of the project and part of the study is also a financial model to verify the implementation of the PPP project, which will provide for the public sector better value for money (VFM) in comparison to its realization in the traditional way.

Keywords: Public-Private Partnership (PPP), Feasibility study, water sector,