Section 9 in Tamil Nadu Infrastructure Development Board Regulations, 2013
9. Value for Money Assessment.
(1)The Value for Money Assessment shall be part of the Feasibility Study of any Project proposed for implementation through the Public Private Partnership mode and for other projects where the Board is of the view that such an assessment is necessary.(2)The primary purpose of a Value for Money assessment shall be to determine the most appropriate delivery mode for a project and to assist in the evaluation of tenders received from the private sector Participants in case of projects implemented in the Public Private Partnership mode.(3)The Value for Money assessment shall be conducted over different stages of the project including the project appraisal and approval stage, evaluation of the tenders and before the final award of tender stage and after the award of the tender to the successful tenderer.(4)In the feasibility study, the Value for Money assessment shall in the first instance draw up a public sector comparator and an estimate of the cost of delivering the project through the Public Private Partnership mode after specifying clear outputs from the project, accounting for competitive neutrality adjustment and costing of transferable risks and retained risks and applying such further guidelines as the Board may issue from time to time, thereby enabling a comparison of the risk adjusted life cycle costs of implementing the project directly by the public agency versus the Public Private Partnership mode of implementation.(5)At the project appraisal, pre-tender stage, the value for money assessment will be indicative and a decision of whether or not to go choose the Public Private Partnership mode of implementation would have to be supported by a consideration of this assessment as also other qualitative factors described in Regulation 8.(6)The Public Sector Comparator shall be updated before the tender stage of a Public Private Partnership project and the updated public sector comparator may be used as guidance for the following purposes:(a)For a comparison with the tenders;(b)Negotiation with the lowest tenderer; and(c)To take a final decision before awarding the tender whether to implement the project in the Public Private Partnership mode or not.(7)The Value for Money assessment shall be updated after the issue of the letter of award to the successful tenderer to enable the benchmarking and monitoring of Value for Money delivery by the private partner.
