Identifying PPP projects

As described in Section 2.3.1: PPP Process above, PPP projects emerge from the usual public investment planning and project identification process. Responsibility for identifying potential PPPs from among priority public investment projects therefore typically rests with the relevant sector agency or entity, under the oversight of entities responsible for public financial management and planning-for more on PPP review and approval responsibilities see Section 2.3.3 Institutional Responsibilities: Review and Approval below.

Sometimes a specialized PPP team may be involved in the PPP identification process, as described in Section 2.3.4: Dedicated PPP Units. For example, a PPP unit may provide support to sector agencies in screening projects for PPP potential-particularly at the early stage of a PPP program when sector agencies may have limited understanding of how PPPs work. Sometimes PPP Units are specifically given the task of promoting the use of PPP. This can help overcome initial anti-PPP bias at the early stage of new PPP programs. However, it can also risk distorting the public investment planning process-pushing forward projects because they appear to be doable as PPPs, rather than because they are public investment priorities. Instituting a clear PPP process with appropriate approvals, as described in Section 2.3.1: PPP Process and Section 2.3.3: Institutional Responsibilities: Review and Approval, helps overcome this risk.