Policy frameworks

2.6  A clear policy advocating the use of PPPs, as well as the rationale for their use, provides political commitment and support for the program. This is vital particularly in the early years of a PPP program. It is important that policies stress that PPPs are being pursued to provide better services, not simply to attract private sector resources to supplement those that the government lacks. Policies can also provide clarity on other aspects, such as the approach towards risk transfer, procurement, financing, and the need for transparency. Setting policy also encourages the discussion of key issues among different stakeholders, furthering an increased understanding of the main characteristics of PPPs, their advantages, and their drawbacks. In addition, it may be important to look at other ways of developing an understanding of PPPs by policy makers, government officials and other stakeholders (see Box 2).