4.2.1 Define the institutional framework

Ex post evaluation of PPP projects enables lessons to be learned from projects that have already been implemented and covers both successes and failures. These lessons can improve future decisions on whether to take the PPP route, how to design PPP contracts and ultimately how best to prepare and implement PPP projects.

It is important that the information needed for ex post evaluation is thought through carefully and specified in the PPP contract. This ensures that the right information will be gathered during the course of the project by the PPP Company, with the support of the Authority.

Timing the evaluation of a PPP is an open question. A balance is needed between obtaining useful information quickly in order to inform current processes and obtaining meaningful data on performance. Evaluation around 12 to 18 months after the commencement of operations will provide information on the bidding process, the delivery of the project assets and initial performance. Subsequent evaluations will provide better information on operational performance and the actual delivery of the expected value for money.  Guidance 111

The purpose of an ex post evaluation is twofold:  Guidance 112

•  to evaluate the merits of PPPs associated with a particular type of project; and

•  to identify potential issues relating to the implementation or management of specific PPP contracts (e.g. availability-based PPPs)

Evaluation requires the establishment of relevant criteria and methods and the capacity within the Authority to carry out the process. In order for this process to be successful, it is important that the public authorities:

•  define the set of questions they would like to see answered; and

•  decide on who is best placed to answer those questions.

The type of body most suitable for the ex post evaluation exercise depends on the objectives of the evaluation. It is not unusual, for example, for national audit units to undertake such studies.  Guidance 113 In some instances, ex post evaluation can be contracted out to a consulting firm, especially when in-house expertise is not available within a public body.

But whatever form it takes, the Authority will have to ensure that the body conducting the evaluation is independent from the teams responsible for delivering and implementing the PPP project subject to evaluation.  Guidance 114