The purpose of this Guidebook is twofold:
1. To demonstrate how governments and the private sector can improve governance in PPPs; and
2. To create a basis for the elaboration of training modules for PPPs.
This Guidebook is organized as follows:
The Introduction defines PPPs, the various models and the benefits. Highlighting the fact that PPPs are still in their infancy in most countries, it is argued that the lack of processes, procedures and enabling institutions, i.e. "governance", is the main barrier to extending their use.
The next parts describe governance in specific areas, looking at the main challenge, the ways of addressing it and concluding with some specific action points and case studies (Part III).
Part II consists of 8 Chapters.
Chapter 1 stresses the importance of good governance in PPPs. It identifies some key principles and the main arenas where PPPs are found. The chapter discusses the primary governance objectives in PPPs, and the economic benefits. Noting that these objectives are not being promoted enough, it describes how the UNECE Guidebook on Promoting Good Governance in PPPs can be used to integrate the principles into PPP processes.
Chapter 2 explains the need for a PPP policy to set out a 'roadmap' that fixes clear objectives. It discusses the importance of reaching consensus, identifying the right PPP projects, setting realistic targets and establishing procedures for consulting key stakeholders.
Chapter 3 discusses how to build the capacity within governments to implement PPPs. It argues for a combined approach using at the same time external advisers and internally establishing enabling institutions and training. It recognises the need to build specific PPP skills and to establish national PPP units, where multilateral cooperation can help.
Chapter 4 argues that a clear framework of law and regulation is vital for PPPs and sets out the principles and priorities for the construction of this framework. What is required, it is argued, are fewer, better and simpler laws.
Chapter 5 elaborates on the importance of risk by showing how governments should manage risks. It discusses the need for governments to take on their own share of risk responding to private sector concerns over 'red tape' and changing agreements. However, it warns against the use of guarantees that nullify the influence of incentives in boosting private sector performance.
Chapter 6 demonstrates the importance of transparency, neutrality, and non-discrimination in procuring PPPs. The specific cases of the Netherlands, the United Kingdom, and the United States are provided as examples of these principles in action.
Chapter 7 shows why putting people first in PPPs can help meet the public interest objectives in PPPs. It discusses how this can be done.
Chapter 8 presents the Green Case for PPPs, arguing that greening and private finance in PPPs is not mutually exclusive. It shows how governments can give incentives in PPP contracts to deliver public services in a more environmentally sensitive way.