| Implementation & Monitoring > Advisors and Organization |
The cost of advisors
The advice needed to implement a major reform program can be expensive. Table below provides an example of the range of fees used across a number of projects ranging from basic institutional analysis to the full range of policy, legal, technical assistance and transaction advice.
| Representative of Typical costs of hiring advisors for PPP assignments (2008 Values) | |||||
| Type of study | Duration | Major skills Needed | Total Approx. Cost or Range | Outputs | Services are needed In what circumstances? |
| Preliminary PPP (Project) | 2-3 months | PPP/Highways/Other | USD 200,000-300,000 | Indicative study of potential for PPP related to limited number of highway proposals | Need for very preliminary assessment of the highway program for PPP potential |
| PPP in Highways- National Sector Study | 6-9 months | PPP/Institutional Economic/Financial Other |
USD 500,000+ | Country study of requirements for development of PPP potential in highways; output includes policy, legal, regulatory, risk, financial, institutional, capacity building etc | PPP framework not well developed or understood. Need for how the country can develop its PPP program nationally and sub nationally |
| Preliminary PPP/Highway study | 3-4 months | Technical: Design etc Traffic Analysis/Forecasts Socio-economic Impacts PPP Planning |
USD 300,000- USD 500,000 |
Pre feasibility study | Project that may have potential but government does not want to commit to full FS yet |
| FS Study (Toll Road) |
6-12 months | Technical; Design, survey etc Traffic/Economic PPP EIA/Resettlement Plan Risk Business scheme Draft Tender Documents |
USD 1.0 M- USD 2.0 M |
Full feasibility study including consultation and draft tender documents | Government has confidence that project has potential but need much detailed information, understanding and basis for going to tender |
| Transaction Advisors | 12 months (Intermittent) | Legal Financial Other as required |
USD 1.0 M+ | Submission of specific advice on the bidding, negotiations and general contract management process, and implementation issues. | Specialist advice needed between tender stage and commencement of construction |
| Transaction Advisors | AD Hoc/ Ongoing support |
Legal Financial Other as required |
Fees: around USD 30,000-USD 50,000/person month depending on time and the skill levels needed | Ad hoc advice on issues arising | At any stage need for ad hoc advice |
Unless otherwise stated in the table, costs would normally be total including fees, travel and subsistence in country. (Office accommodation would normally be provided by country but included as their contribution to total cost of study if funded by IFI).
Governments spend such sums on advisors because of the benefits they obtain from them, including the avoidance of costly mistakes.
