In order to drive the introduction and implementation of robust and sustainable use of the private sector to deliver public infrastructure and services, many governments in other countries have established a PPP Centre. This entity is the focal point in PPP matters. The PPP Centre will provide leadership for the PPP program by supporting all parties involved in the implementation of projects, procured via PPP modality. In developed and developing countries, PPP Centres are playing useful roles in stimulating the use of PPP projects as a means to secure greater private sector investment and management in infrastructure.
In PNG , where PPPs are a new modality that offers potential for increasing investment in infrastructure, there is a need for a PPP Centre in cooperation with Government agencies and the private sector. The primarily role will be to assess whether a PPP is the preferred modality for delivery of public infrastructure and services. The Centre will help promote PPP initiatives and understanding throughout the public sector, and stimulate interest among private sector investors and lenders in PNG and abroad.
Papua New Guinea's National PPP Policy calls for the establishment of a PPP Centre to serve as the focal point for PPP projects seeking the Government's direct and contingent fiscal support. The PPP Centre will be an entity under the portfolio of the Minister for Treasury & Finance, and will be a centre of excellence in all matters relating to PPP. It will drive the implementation of National PPP Policy, manage and coordinate the PPP program, and will advise and assist Departments and line agencies of National, Provincial and Local Level Governments with projects that are to be procured as PPPs.
The PPP Centre will report to the Minister of Treasury and Finance.
It is proposed that the PPP Centre will have a clear responsibility for the PPP program. This will include:
i. Acting as the public face of PPPs communicating and promoting the PPP Program across government, to the private sector, to the wider community and, as appropriate, internationally. Communications to improve understanding with stakeholders and the general public about PPPs and individual PPP projects is vital;
ii. Development and coordination of policy and guidance materials for PPPs with sector regulators;
iii. Advising on the efficacy of proceeding with particular infrastructure and service initiatives as PPPs, including the investigation of potential PPP projects and developing PPP proposals and where projects satisfy objective criteria and have been approved by the relevant authorities, advise and assist authorities to procure projects through PPP arrangements;
iv. Direct involvement in recommending the granting of approvals for the tendering of PPPs through open market processes;
v. Direct involvement in the evaluation and selection of providers (of infrastructure and services) as a result of public tendering for PPPs;
vi. Support for contract negotiation and determination of the final terms and conditions together with guidance on contract management regimes;
vii. Oversight of PPPs to ensure the use of consistent and best practice processes for PPP tending and contract management.
viii. Advice to the PPP Steering Group of its opinion regarding whether a PPP arrangement adequately satisfies requirements of affordability, value for money and risk transfer, and act as a secretariat to the PPP Steering Group on all aspects of financing, refinancing and insurance of PPP arrangements.
To fast track the establishment of the PPP Centre, the PNG Government is in the process of recruiting an Organizational Specialist. He/She will lead and manage the establishment of the PPP Centre, pending Government's approval of a fully fledged legal and institutional framework, including an appropriate structure.
The services that the Organizational Specialist will render to the PNG Government include, but are not limited to, the following:
• Explore, assess options and provide advice to the Task Force on the most appropriate physical location and set up of the PPP Centre in Port Moresby;
• Determine and propose options for the PPP Centre office layout to the Task Force;
• Formulate and submit for the Task Force's deliberation the PPP Centre's preliminary monthly cash flow based on the 2010 budget appropriation;
• Document implementation reports for Quarterly reviews of the 2010 budget to the Task Force;
• Finalize the organizational structure including duty statements and staff remuneration for the PPP Centre;
• Facilitate the advertisement, selection, and engagement of the Chief Executive Officer (CEO) for the PPP Centre;
• Facilitate the advertisement, selection, and engagement of the Senior Officers, support staff and PPP subject matter experts, in close collaboration with the CEO of the PPP Centre;
• Draft NEC Submissions for circulation to the PPP Task Force relating to any of the above;
• Design the PPP Policy's communication strategy in collaboration with the Task Force;
• Carry out other duties as determined by the Task Force consistent with the above; and
• Brief the incumbent CEO of the PPP Centre during a transitional phase of up to 12 months.
The PNG Government will be engaging a recruitment firm to manage the recruitment process, including advertisement, screening, short-listing, and interviews for an Organizational Specialist. It recognizes outsourcing as the most efficient and effective means of obtaining qualified candidates for this job.