6 Create governance arrangements that are fit for purpose

Governments should develop partnership models for public authorities to demonstrate what successful partnering relationships look like and the skills required to make them successful. These bodies can act as a source of procurement and contract management excellence.35 Commercial directorates should be set up in all central government departments and large public bodies to ensure procurement and delivery are joined up. The Czech government is making moves towards this and has entered into partnership with the UK and The Netherlands through an EU twinning project. These countries provide PPP expertise to the Czech Ministry of Finance to help increase efficiency and develop PPP methodology and standards.36

Agencies should be set up to act in a role similar to that of the UK's Office of Government Commerce (OGC). This could support procurement and issue best practice guidance covering partnering arrangements.

Governments in South Africa, Germany, Ireland and Italy are among those that have developed dedicated PPP units. In South Africa, the National Treasury has already established the National PPP Unit in 2000 and also a Municipal Unit. Similarly, Germany has a public private partnership taskforce to support individual projects and help knowledge transfer. Italy has also created the '4P Council' responsible for the promotion of PPPs, and the Irish and Indian governments have set up websites (www.ppp.gov.ie and www.pppinindia.com) to act as a central point of access and support for PPPs.

CASE STUDY

Serco in Germany

Since 2005, Serco has been running the partly privatised Hünfield prison in partnership with the State of Hessen - the first of its kind in Germany. Around 45% of the services are provided by Serco, including building management, psychological and medical care for offenders, education and recreation management - with a 15% saving compared to full state provision. The company was able to use its experience from running prisons, young offender institutes and detention centres in the UK to inform its experience in Germany. More recently, the provider's prison management operations have extended to Australia.