A PPP project is usually more complex than similar projects in the public sector. It also requires contract management not just for the construction period but for the whole tenure of the contract, which can last many years. Public agencies and the concerned private parties may need to address many critical issues during the whole period of project development and procurement, and at any time during the entire contract or concession period. These issues may include determining the output/outcome specifications, structuring a viable project, preparing whole lifecycle costing and realistic payment mechanisms, structuring a bankable deal and crafting the broad terms of contract that are fair to all parties.
It is important to have a project management structure in place from the beginning.10 The management structure is entrusted with the responsibility of implementing the project and addressing all the above-mentioned critical issues. For a large project, a project management structure could involve:
• A Project Steering Committee
• A Project Team headed by a Project Director/Manager
• Project sub-teams (as necessary)
The Project Steering Committee provides overall direction and general guidance and has the ultimate accountability in respect of a project. The Steering Committee should consist of key decision makers/senior managers (at the level of permanent secretaries, director generals/chief executives of agencies) from the concerned ministries and departments, and from the implementing agency.
The Project Team consists of a Project Director/Manager and in-house staff supported by specialist external advisors on technical, financial and legal aspects, as considered necessary. A stable and dedicated project team is vital for structuring and implementing a successful project. While the composition of the team may change to meet the specific expertise needs during any phase of the project cycle, the core staff members of the team should be retained throughout the project development, assessment and implementation stages.
The Project Director/Manager is responsible for the delivery of the project and for the management of the project team and sub-teams. The Director/Manager should have the qualifications required for handling the project and should act on a full-time basis due to the key role of his position. The specialist expertise required within the team will vary from project to project depending on its nature. Subject to availability, they may be drawn partly from within the government and partly from the external consultants.
The main responsibilities of the project team may include the following:
• Overseeing project development activities (undertaken in-house and by the transaction advisor);
• Overseeing project development budget and expenditure;
• Serving as an information exchange platform with other government departments and agencies and the public when required;
• Approval of the deliverables of the transaction advisor; and
• Reviewing and endorsement of the documentation for submission to the government and approving authorities.
Formation of project sub-teams may be considered to deal with specific issues such as financing, contract agreement development and negotiation, public consultation and social marketing, resettlement and rehabilitation and verification of engineering drawings and designs, etc.
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10. Discussion in this section draws from National Treasury, PPP Unit, South Africa, "Public Private Partnership Manual" (undated), accessed from http://www.ppp.gov.za/Documents/ Manual/ Main%20Intro+Contents.pdf; and other sources.