Section 11(1) in Tamil Nadu Infrastructure Development Board Regulations, 2013
(1)The Board shall examine the Project Concept Note and the Feasibility Study and recommend implementation through the Public Private Partnership on a consideration of the following factors:-(a)The project is of sufficient scale and with major capital investment over a long-term and the life cycle costs and revenues of the Project establish the sustainability of the Public Private Partnership mode throughout the concession period.(b)The value for money assessment at the pre-tender stage indicates that the Public Private Partnership mode of implementation is likely to achieve a net present value higher than public sector comparator.(c)The risk profile of the project is appropriate for transfer of some risks to a potential private partner.(d)The allocation of risks between the public agency and the private party implementing the project is appropriate and implementation through the Public Private Partnership mode does not pass on abnormally high risk to the public agency either in terms of direct financial commitments or indirect or contingent liabilities.(e)An independent assessment of the market demand, including a comprehensive justification of major assumptions and key findings, has been made and the project revenues are considered realistic and viable for the potential private partner;(f)The project has measurable outputs which can be specified and a performance based agreement can be entered into;(g)Managerial efficiency can be achieved through better asset utilization or through more efficient design to meet performance specifications;(h)A competitive market exists and the use of a competitive process would encourage private entities to develop innovative means of service delivery while meeting the Public Agency's cost objectives.(i)User charges projected, if any, are affordable and acceptable to users and would be socially and economically acceptable.(j)The tariffs setting and revision framework is predictable and transparent.(k)The direct financial commitments of the public agency or the Government or both have been quantified and reasonably estimated for the entire contract duration and are within the budgetary limits of the Government or the Public Agency, as the case may be.(l)The Contingent Liabilities, including guarantees (Corporate or Government) legal obligations and commitments and implicit obligations including the need to continuously provide a public service, if any, have been assessed and are acceptable to the Public Agency.
