The Project Readiness Assessment (PRA) is a standardized tool managed and financed by the Global Infrastructure Facility (GIF) that assesses the completeness of project preparation to date, identifies key information gaps, and recommends actions client governments can take to foster robust project preparation, and maximize the probability of reaching project financial close and attaining long-term sustainability.
This tool provides governments with an independent “snapshot in time” assessment of the quality of project preparation work and provides an action plan of recommendations to ensure governments possess the information necessary before taking key investment and tendering decisions. The tool also includes a basic high-level risk assessment for the project. This action plan will then typically form the basis for an application for a full package of project preparation support to the government, including funding and staff support by the GIF, if desired.
How It Works
The tool uses a standard scoring methodology for all projects, and covers six key components, which are scored independently: (i) technical solution; (ii) commercial structure and financing; (iii) affordability; (iv) government; (v) regulatory environment; and (vi) social and environmental impacts. Each component is scored as red, yellow, or green, with green indicating that the project meets international best practice. Assessments are performed by an independent third party, and can be done at either of two times during a project’s preparation: Stage 1, an early stage, pre-feasibility assessment to inform a go/no-go decision for government to proceed with detailed preparation; and Stage 2, a more detailed feasibility-stage assessment for projects close to procurement/tendering.
PRA Process Overview
PRA Pilot in Brazil
The planned $2.5-billion, 130-kilometer São Paulo Intercity Rail (TIC) Line I project consists of a medium-speed passenger rail service between Americana and São Paulo, and includes upgrading, operations and maintenance of an existing commuter rail line. The São Paulo State Government had received several unsolicited proposals for the TIC project, and requested the GIF’s assistance to review the proposals, make a high-level feasibility assessment, and provide recommendations for the transaction. Working with an expert rail consultancy for six weeks, the GIF and a team from World Bank Transport assessed the existing studies and provided a set of strategic recommendations focused on improving the affordability of the project, and ensuring the institutional leadership and coordination necessary to take the project forward as a government-led initiative. As a result of this flexible, prompt and strategically valuable support, GIF is now providing follow-up assistance to help the government implement the recommendations and action plan. This technical assistance is being implemented jointly by the World Bank and Inter-American Development Bank. GIF resources are focused on adding the commercial input required to take ongoing technical work streams and tailoring their efforts towards the information required for a private-sector financed transaction.
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