Project Concept Note (PCN)

Introduction :

Project Concept Note (PCN) is a first step towards registration and acknowledgement of the project for the consideration of the Board. PCN covers the basics of the project in terms of type of infrastructure and service to be provided. It should contain all the departmental information that may be available at that point in time. If a feasibility study is available for the same, then the feasibility report will be an additional input to the CEO, TNIDB along with the PCN.

Description:

1. Process for Project Concept Note (PCN):

a. The Board, on its own accord or based on a study or survey or inputs received from a third party can identify or conceptualize a Project to be developed, managed and operated in the State and seek the view of the concerned public agency
b. An public agency may also identify or conceptualize a Project to be developed, managed and operated in the State and send proposal therefor to the Board for its recommendation. The proposal in the form of a PCN, shall contain the details as indicated in the format prescribed in Appendix I
c. The public agency shall also submit along with the PCN, the Feasibility Study, if already completed and available of the proposed project.
d. On receipt of the PCN, the Chief Executive Officer shall first make a determination whether the project is within the ambit of the Board and if not, he shall return the project proposal to the public agency.
e. The Chief Executive Officer shall, where no feasibility study has been submitted by the public agency or if he finds that the feasibility study submitted is not adequate for the purposes of the Act and the Regulations, cause a feasibility study to be prepared either by directing the public agency to do so or by engaging the services of a consultant or expert.
f. The Chief Executive Officer shall based on the PCN and the feasibility study prepare a note for the consideration of the Board.
g. The said note prepared shall also indicate the possible extent and form of public financial support a project may require when it is proposed to be implemented in the Public Private Partnership mode.

2. Project Concept Note – Key Contents:

a. Project Details
b. Project Description
c. Brief Project Description
d. Financials
e. Next Steps

Link for online submission of Project Concept Note

Relevant Clauses:

TNID Regulations 2013
Regulation 11	Factors to be considered by the Board in determining whether to recommend Public Private Partnership implementation ((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 lifecycle 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 acceptableto the Public Agency.

TNID Regulations 2013

Regulation 11

Factors to be considered by the Board in determining whether to recommend Public Private Partnership implementation

((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 lifecycle 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 acceptableto the Public Agency.