How can policy-makers use SAVi?

SAVi can be used across the infrastructure cycle to value the costs of risks and externalities.

1

Determine infrastructure needs.

Develop infrastructure policies.

Use SAVi to prioritize infrastructure projects based on their contributions to national development strategies and the UN’s Sustainable Development Goals.

2

Conduct a pre-feasibility study.

Undertake preliminary market sounding.

Use SAVi to plan infrastructure projects and pipelines in a “systemic” manner. SAVi can assess how environmental, social and economic gains in one project can cause unacceptable losses for other sectors and projects.

3

Position in project pipelines and master plans. 

4

Undertake preparation of project:

  • Technical feasibility study
  • Demand forecast
  • Revenue forecast
  • Cost–benefit analyses
  • Environment and social impact assessment
  • Phase 1 of financial structuring
  • Preliminary risk allocation
  • Launch design competitions

Use SAVi to identify and value material risks. These include environmental, social and economic risks, legal risks, revenue and demand risks, and financing risks.

Use SAVi to identify and value externalities.

Use SAVi to understand how externalities can become direct project risks in the future.

Use SAVi to add value to traditional cost–benefit analyses.

5

Screen for delivery as a public–private partnership (PPP) or publicly funded project:

  • Public Sector Comparator
  • Determine value for money (VfM)
6a

If better value for money (VfM) can be realized through PPP:

  • Advance financial structuring
  • Determine payment mechanisms
  • Develop scenarios on optimal risk allocation
6b

If better VfM can be obtained as a publicly funded project …

Use SAVi to add value to Public Sector Comparators.

7

Complete project preparation.

Complete financial structuring.

8

Embark on procurement phase:

  • Market consultation
  • Develop request for proposals. Determine technical specifications and award criteria
  • Launch tender
  • Evaluate bids and shortlist suppliers
  • Competitive dialogue (in cases of complex projects)
  • Award tender
  • Financial closure

Use SAVi to help draft technical specifications and award criteria.

9

Undertake contracting.

Obtain permits and clearances.

Use SAVi to draft and manage contracts that optimize the sharing of risks and bring VfM for all stakeholders.

10

Manage contracts during construction and operation.

11

Refinance after the construction phase.