Structuring Public Infrastructure Projects with Private Investment

Colombia’s National Planning Department (DNP) developed in 2016 the guide for the structuring of infrastructure projects, which allows public entities to present, substantiate, and analyze projects under the Public-Private Partnership scheme. Subsequently, in 2020, a Memorandum of Understanding was signed between the British Government and entities of the National Government for the standardization of good practices in the formulation and structuring of infrastructure projects. These good practices are part of the UK's Global Infrastructure Program (GIP) and include the methodologies: 5 Case Model (M5C), Project Initiation/Development Routemap (PDR), and Building Information Modeling (BIM).

From 2019 to 2021, Steer supported the adaptation process of the M5C and PDR methodologies to the Colombian context, considering the processes, practices, and regulations that currently exist in the country in this area. Therefore, considering the need to update the guide for the structuring of APP infrastructure projects, the National Planning Department contracted UT KPMG ADVISORY, TAX & LEGAL S.A.S, KPMG CONSULTORÍA LTDA, and STEER DAVIES & GLEAVE LIMITED to develop the methodological proposal for the structuring of public infrastructure projects with private investment, considering the studies defined in the current regulations and the application of the best international practices.

As a result of this consultancy, the guide with guidelines for Public Entities in the realization/evaluation of private participation projects was developed. The guide recommends using the Five Case Methodology (M5C) as a logical framework for structuring projects. The specific activities of this logical framework are complemented by the tools of the Project Development Guide (PDR). Additionally, the guide describes the minimum actions and guidelines for implementing the BIM methodology in the pre-feasibility and feasibility phases for public infrastructure projects in their different sectors.

An added value of this guide is that it includes technical notes that define the scopes and studies for the pre-feasibility and feasibility stages for the Education, Drinking Water and Basic Sanitation, Health, Public Buildings, Recreation and Sports, Justice, Urban Renewal, and Urban Transport sectors.

Thanks to this guide, it will be easier to present in an orderly manner all the studies carried out in the Eligibility and Structuring stages (pre-feasibility and feasibility) through a clear argumentative process to regulatory entities, agents involved in the process, and the general public.