(4) The Fund may be utilised to provide financial support for conducting studies, hiring the services of experts and consultants, preparing feasibility studies,  detailed project studies, capacity building, research and for such other purposes, as may be prescribed in the rules.

Use of Project Preparation Fund :-

(1) The Project Preparation Fund may, in addition to the purposes specified in sub-section (4) of Section 25 of the Act, be used for the following purposes

(a) Any technical study required to finalize the technical, legal or financial parameters of a project including legal reviews and commercial assessment studies;

(b) Preparation of Impact Assessment Studies including Environmental Impact Assessment Studies ;

(c) Preparation of tender documents including standard tender documents;

(d) Preparation of other essential project documentation prior to signing concession agreement;

(e) Training; and

(f) Conduct of outreach events including seminars and conferences.

(2) Any public agency will be eligible to apply for support from the Project Preparation Fund for hiring of experts and consultants, preparation of feasibility studies, detailed project studies and the activities specified in clauses (a), (b), (c) and (d) of sub-rule (1) intended for a specific project, whether already recommended by the Board under sub-section (4) of Section 14 of the Act or not.

(3) Such application shall be made in the format contained in Appendix III;

(4) The Board may also utilize the Project Preparation Fund for any of the activities covered under sub-rule (1);

(5) The expenditure related to the conduct of the meetings of the Board or the Executive Committee, sitting fees and allowances of expert members and any staff recruited by the Board may also be met from out of the Project Preparation Fund;

(6) Financial assistance from the Project Preparation Fund shall not be utilised for the following purposes:

(a) Expenses incurred by the Public Agency on its own staff;

(b) Expenses incurred for engagement as Consultants of any serving employees of Government by the Board or a public agency.

Recovery of expenditures made through Project Preparation Fund:-

1. In every case where the expenditure from the Project Preparation Fund is intended for preparatory activities related to a specific project, the Board shall make a specific determination as to whether the expenditure should be recovered from the tenderers or the successful tenderer or both.
2. For all cases where the Board determines that the expenditure on project preparation is to be recovered, the public agency or sponsoring agency shall be directed to ensure such recovery through levy of fee on the sale of tender documents or on the successful tenderer or in such other manner as may be specified and to include appropriate provisions in the tender documents.

The amounts collected under sub-rule (2) shall be deposited by the sponsoring agency in the Project Preparation Fund.