Operational issues in a multi-operator environment

Discussion on specific nature of the sectoral problems in PPPs is beyond the scope of this primer. However, the intention here is to flag that there are important sectoral issues that need to be considered in PPP projects. Many of these issues need to be resolved in the policy framework as well as in the country’s legal and regulatory regimes. Some other matters need to be included in the contract agreements with explicit reference to future arrangements for their resolutions.

One common problem relates to vertical and horizontal integration of the new systems with the existing and future relevant systems. Most infrastructure facilities are of network nature. As such they should not be undertaken in isolation without considering system and service integration with the existing networks and operators as well as with future networks, and other issues related to network development. The system and service integration issues for each sub-sector are however different due to difference in their technological and operational characteristics. Depending on the nature of the issue, they may be dealt in three ways:

How integration issues can be addressed

• Issues that can be addressed through sector reforms (this is also necessary to promote PPPs)

• Issues that need to be considered in the policy framework and regulatory regimes

• Issues that need to be considered/reflected in contract agreements