Human resources

2.11  The public sector needs individual capacities to be strengthened to provide the gamut of skills required for an effective PPP program, not just transactions skills, but also those involved in selecting which projects to be pursued as PPPs, estimating the fiscal costs of PPPs, oversight and contract management, and ex-post evaluation and auditing of the performance of PPPs. Developing the capacities to design and execute transactions may be the most difficult for the public sector, since the legal and financial skills may not be present and given public sector pay scales it may be difficult to attract skilled individuals in from the private sector.

2.12  Sustaining capacities is made more difficult by the rotation of staff out of positions once they have built up knowledge by closing transactions. This problem is likely to increase at the municipal or local level, where capacities are likely to be lower and the number of PPPs fewer, offering a reduced opportunity for learning-by-doing. Consultants can play a large role in providing specialist skills for public authorities in any PPP program. But certain core skills have to remain with the public sector or it will be impossible to make the best use of the consultants. Training will also help, and, as noted below, the development of clear processes and guidelines can accelerate the transfer of knowledge and learning-by-doing.