5.10 Although PPP contractors are private sector organisations, because they are acting to select a provider for a public sector client they will be expected to apply the principles of fair and open competition and transparency enshrined in the EU Procurement Directives. PPP contractors should be required to present proposals to the public sector client on how they intend to ensure that fair and effective competition is maintained within PPP market testing exercises. If the parties have concerns about how to ensure fair competition, or about possible conflicts of interest, advice should be sought from the appropriate Scottish Government FPU/Approving Body.