Procedures and guidelines

2.13  Many PPP programs develop standardized processes and approaches towards structuring contracts. The standardization of common contractual provisions is also recommended as it firms up an acceptable public sector risk profile and creates certainty in the market. It can also promote a common understanding of the technical, operational and financial risks that are typically encountered in PPPs, a common understanding of how such risks should be allocated or shared, a consistent approach to risk transfer, risk sharing and value for money across PPPs falling in the same sector, and a reduction in time and cost of negotiations. Sector toolkits can be developed once sufficient sector experience has been achieved. Guidelines are often developed which provide specific rules on how projects are to be selected for pursuit through PPPs, on contract design and procurement, and on contract management. These can help ensure that issues such as affordability of the PPP to the government, value-for-money, overall fiscal costs, and public legitimacy concerns are addressed properly. Most countries that develop guidelines and manuals develop training courses on these for contracting authority staff.