Most of the countries with well-developed PPP markets have dedicated PPP units that help them design and implement their PPP projects.90 Given their primary role in infrastructure development, states and provinces in Australia, Canada and Germany are some of the early adopters of the PPP unit model. The federal PPP units are rather recent, and are often built on models that proved successful at the state level. Several lessons for U.S. states emerge from the international experience with PPP units:
First, it is clear that most often governments start developing the PPP market with the primary goal of offloading the budgetary burden of certain projects. However, they soon realize the complexity of PPP projects and the potential negative consequences if the PPP agreements are not properly assessed and the sharing of risk and revenue not well understood by all parties. Dedicated PPP units help governments develop and expedite PPP markets. while at the same time protecting the public interest, by addressing any identified gaps in dealing with PPPs from the public side.
Second, the location of the unit in a central agency is essential to its mandate. Most PPP units are in the department of finance/treasury or report to this department, which allows agencies from any sector to benefit from the PPP unit's services. Further, not setting the unit in a procuring agency prevents any potential conflict of interest between audit and technical assistance functions and procurement incentives.91
Third, there is no single model or type of functions of a PPP unit. Whether the PPP unit is an agency, independent body, or a public/private venture depends on existing legal and government structures in a specific country or state. Few PPP units are full service agencies, such as Infrastructure UK and Infrastructure Ontario. A recent review of PPP units in OECD countries revealed that technical assistance and policy guidance are the most prevalent functions. Most also perform PPP promotion.92 In addition, the functions and legal status of a PPP unit change over time, with the increasing maturity of the PPP market, the expertise of the institution and changes in the economy.93