STAIRSSelf-Assessment Tool for Appraising the Investment Readiness of Sustainable Infrastructure Start

Introduction

Welcome to the Self-Assessment Tool for Appraising Investment Readiness in Sustainable Infrastructure (STAIRS), developed by the United Nations Department of Economic and Social Affairs (UN-DESA) through its Financing for Sustainable Development Office. This tool assists countries in building a robust pipeline of high-quality sustainable infrastructure projects that significantly advance the Sustainable Development Goals (SDGs). With a focus on public-private partnership (PPP) projects, STAIRS aims to enhance the presentation and promotion of investment-ready opportunities.

STAIRS evaluates projects based on essential criteria, including SDG alignment, financial viability, environmental and social impact, and technological innovation. Developed in response to growing demand from planning and investment professionals, STAIRS seeks to increase the number of bankable sustainable infrastructure projects.

Structure of STAIRS

STAIRS is organized into two distinct stages to facilitate your evaluation

Stage 1: Pre-screener

The Pre-screener stage provides a quick initial assessment of your project’s readiness, consisting of two sections:

Section I: Basic Information: This section gathers basic information about the project, including the country of origin, region, project type, a brief description of the project and the project’s financial profile, including capital structure and cash flows.

Section II: Initial Readiness Questions: This section requires the respondent to answer 10 key questions out of a total of 48, which assess the project's readiness. Specific sub-questions are triggered only if the minimum threshold is met. Before generating a score for this stage, the tool also incorporates the project's country score from the World Bank's Infrastructure Development Preparedness Benchmark, ensuring a comprehensive evaluation. Responses are rated on a five-point scale, and projects scoring 2.84 or higher will proceed to the Complete Self-Assessment, carrying forward all answers from the Pre-screener. If the project does not meet the minimum threshold, further development is recommended.

Stage 2: Complete Self-Assessment

In this stage, your project undergoes a detailed evaluation across three pillars, focusing on various aspects of project readiness:

Pillar 1 - Project Readiness/Preparedness: This pillar consists of 5 factors and 30 questions. It assesses overall readiness through evaluations of financing, approvals, risk identification, alignment with international benchmarks, etc.
Pillar 2 - SDG Alignment and Contributions: This pillar consists of 1 factor and 7 questions. It evaluates the project’s alignment with and contributions to the SDGs, including development of metrics for effective tracking and analysis.
Pillar 3 - Management Quality and Investment Track Record: This pillar consists of 2 factors and 11 questions. It reviews the experience of the country or project sponsor in executing previous PPP projects, assessing the project team’s execution capacity, resource availability, and ability to secure external expertise.

Scoring methodology

The factors, sub-factors, or questions within the three pillars are assessed, scored, and weighted individually. Each question is designed to elicit one of five responses and is scored on a scale from 1 to 5 accordingly. For example, Pillar 1/Factor 1/Question 1a, with an assigned weight of 0.3%, is: “Is there an approved national/regional/local public investment plan?” The possible answers are: (1) Not yet started, (2) Just started, (3) In process, progress being made, (4) Significant progress made, (5) Completed. Depending on the answer, a weighted score is computed. For example, if a respondent answers “Just started,” the score is 2, and the weighted score will be 0.12 (2 * 0.3 / 5). All weighted scores from the questions under each pillar are aggregated, and a pillar-wise score and a final score are computed after all 48 questions are answered.

Note: Some questions require a different set of responses, ranging from Lowest, to Low, Moderate, High and Highest.

Based on the final score, the project is classified into one of five categories:

Ideation Phase: Represents the lowest level of preparedness, with a score below 1.
Mapping Phase: Reflects a below-average level of preparedness, with a score between 1 and 2.
Development Phase: Indicates an average level of preparedness with a score between 2 and 3.
Refinement Phase: Signifies a high level of preparedness, with a score between 3 and 4.
Presentation Phase: Demonstrates a very high level of preparedness, with a score above

Definitions of Pillars

Pillar 1: Project Readiness/Preparedness

This pillar focuses on the critical importance of comprehensive project preparation for infrastructure and public-private partnership (PPP) projects. The success and bankability of these projects largely depend on thorough preparation in the early stages. This pillar emphasizes structured evaluation through various assessments, including financial evaluations, socio-economic analyses, and environmental impact studies, which help determine a project’s feasibility. By ensuring that selected projects align with national priorities and investment goals, this pillar sets a strong foundation for successful implementation.

Additionally, the integration of the World Bank’s benchmarking standards provides valuable insights into the readiness of public authorities in preparing infrastructure projects. These benchmarks not only guide the evaluation process but also inform the structure of transactions, enabling better risk management and decision-making. By identifying potential challenges and opportunities, this pillar ultimately enhances the project’s chances of success, making it an essential component of the tool.

Pillar 2: SDG Alignment and Contributions

This pillar ensures that projects align with the United Nations' Sustainable Development Goals (SDGs) to promote inclusive and sustainable development. It encompasses a comprehensive evaluation of environmental and social factors, including an assessment of how well projects meet established SDG frameworks.

Key components of this pillar involve identifying and establishing specific SDG alignments, measuring contributions to these goals, and developing metrics for effective tracking and analysis. By creating a robust framework for monitoring SDG impacts, this pillar ensures that projects not only deliver financial returns but also contribute positively to social and environmental outcomes.

Pillar 3: Management Quality and Investment Track Record

This pillar evaluates the experience of a country or project sponsor in executing previous public-private partnership (PPP) projects. The self-assessment tool examines the success rates and challenges faced during implementation, considering both financial and non-financial outcomes.

Additionally, this pillar assesses the project team’s execution capacity, evaluating their level of experience, resource availability, and ability to secure external expertise when needed. By understanding past performance and management capabilities, this pillar provides valuable insights into the potential for successful future projects.

Analysis

A score below 2 indicates that the project falls into the lowest end of the readiness range. Conversely, a score above 4 signifies the project is in the high-to-very high range. The tool also performs an in-depth gap analysis at the pillar level to determine which pillar is most critical for improving the overall project score. The tool then identifies the areas with the greatest gaps, requiring the most attention to enhance project readiness.

Further, the tool provides actionable recommendations tailored to the project's specific needs, guiding respondents through essential aspects of project preparation such as feasibility studies, approvals, impact assessments, and risk analysis. This approach ensures that respondents can focus on the most impactful areas to improve their overall score and project readiness.

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