2.14 Most countries engaged in a broad-based PPP program have felt the need to develop a cross-sectoral pool of expertise in a dedicated PPP unit to supplement capacities in the line agencies that contract for PPPs. These fulfill different roles depending on the needs of the situation. In some cases their role is limited to disseminating information on PPPs and providing broad guidance on good practices. In others they have an active role in helping line agencies and ministries successfully contract for PPPs, and in yet others they play a role in approving PPPs developed by other government agencies, for example looking at the quality of the PPP deal, affordability and expected fiscal cost. Where developed, these cross-sectoral units are often located in, or attached to, the Ministry of Finance or Treasury. This probably reflects concerns about the need to strengthen understanding and monitoring of the fiscal costs of PPPs.
2.15 Line departments will usually retain the primary responsibility for PPPs within their mandate. The role that central units play depends on a number of considerations. The most important is the deal volume in the line department. If a department develops a large number of PPPs, it may make the most sense to build up full capacity within the department to handle these activities. For example, in the U.K., the Prison Service and the Highways Agency both have their own dedicated PFI teams. However, many PFI projects for hospitals and schools are implemented by National Health Service trusts and local education authorities, each responsible for one or two projects. It would not be cost effective for each trust or authority to set up a permanent dedicated PFI unit.
2.16 It may also be a matter of timing. It may be appropriate for a cross-sectoral unit to provide assistance to a line department at the start of its program, when the line department does not yet have sufficient experience. The converse may however also be true, with some pioneering line departments having more hands-on experience than a newly-created PPP unit. In these cases, it will be important for a cross-sectoral unit not to slow down these more experienced agencies, whilst at the same time ensuring that critical issues (e.g. affordability and value-for-money) are properly addressed.
2.17 Cross-sectoral units can perform a broad set of functions, including: undertaking the development of PPP policies and legislation; the development of guidance material including standard contracts, manuals and processes for identifying and developing PPPs; clearance and approval functions during the PPP process; a source of expertise in one or more aspects of PPP procurement and management; development of training programs; dissemination of information on PPPs; and assessment of the fiscal costs (direct and contingent) of PPPs. Box 4 shows the range of responsibilities granted to the South African PPP unit. Like units or agencies elsewhere, such as in the Netherlands and with several of the agencies involved in the UK PPP program, they have developed training material to supplement or reinforce the guidance material and contractual or procedural approaches they have developed.
2.18 One important policy decision is whether the cross-sectoral unit will have the power to impose mandatory requirements on the line departments - and in that case, what kind of requirements. This is often done by involving the PPP unit in approval of the PPPs. In South Africa, the Treasury relies on the PPP Unit to assess whether the expenditures incurred by PPPs developed by line agencies and provinces can be met within their future budgets. The PPP Unit is involved at three different points: after the feasibility study, before issuing the bidding documents, and before signing the contract. In contrast, in some countries - e.g. Italy- the national cross-sectoral PPP unit plays only an advisory role.