Investment decision-making for public investment projects is typically coordinated around the annual budget process. However, because PPPs often do not have immediate budget implications, specific coordination mechanisms may be needed to ensure reviews and approvals proceed smoothly and do not hold up the project development process. In some cases PPP units are tasked with a coordinating role, as described further in Section 2.3.4 below. Some governments also form inter-departmental committees to oversee each PPP transaction, to ensure the perspectives of oversight agencies are taken into consideration throughout the project development process rather than just at review points.
Table 2.4: Example PPP Approval Requirements
Country | Reference | Approval Requirements |
State of Victoria, Australia | National PPP Guidelines-Partnership Victoria Requirements Version 2 (2010) [#12, page 5]. | All 'high value or high risk' projects-including PPPs-go through a 'gateway approval' process, established by the Department of Treasury and Finance. A panel of experts that are not directly involved in the project carries out reviews at key stages in developing and implementing the project, called 'gates'. For PPPs, there are five gates: strategic assessment, business case (before issuing the requests for expressions of interest), readiness for market (before issuing project briefs and contract), readiness for service (before the contract is executed), and benefits evaluation [#12, pages 5-6] |
Chile | Concessions Law (Law 20410, 2010) [#46, Article 7, 20, and 28] | Final approval of a PPP-through signing the decree that formalizes the concession-rests with the President and the Ministry of Finance together. Contracts cannot be bid out unless the Ministry of Finance has approved the bidding documents. The Ministry of Finance must also approve any changes to economic aspects of the bidding documents, as well as certain changes during implementation |
Colombia | PPP implementation rules (2010) [#55, Section 3.2.3] Also set out in the National PPP Law (Law 1508, 2011) [#52, article 26] | PPPs must be approved by: ▪ CONFIS-the National Fiscal Council, which leads the national fiscal policy and coordinates the budgetary system, approves the future appropriations (vigencias futuras) for PPP projects. CONFIS is made up of the Ministry of Finance, the Director of the Administrative Department of the National Planning Agency, the Chief Economic Advisors of the Presidency, the Vice-minister of Finance, and the directors of the National Treasury, Public Credit, and Tax and Customs Authority. Before reaching the CONFIS the project must have the approval of the sector ministry, and the National Planning Department ▪ CONPES-the National Council for Economic and Social Policy, which is the highest planning authority in Colombia and advises the government in all aspects related to the economic and social development of the country, certifies the strategic importance of the project. Such certification is required for the project to be eligible to receive future appropriations. In addition, this sets the limits on how many future appropriations can be approved by CONFIS in any given year. CONPES comprises the President, Vice President, the Cabinet, the director of the administrative department of the presidency, the director of the national planning department, and the director of Colciencias |
Philippines | All national projects and projects over PHP200 million (US$4.6 million) require approval from the Investment Coordination Committee (ICC) under the National Economic and Development Authority (NEDA) Board. The members of the NEDA Board are Cabinet members responsible for the major infrastructure, economic and finance departments. PPP projects also require approval from both the NEDA Board and the President, upon recommendation by the ICC. The ICC's recommendation is in turn informed by a review by NEDA's technical staff, to check the project submission is complete, and adequately demonstrates the project complies with requirements for financial, economic, social, and environmental impacts. | |
South Africa | Public Finance Management Act and Treasury Regulation 16 (2004) [#219, pages 8-10] | PPP approvals are made by the Treasury, through its PPP Unit. Projects are submitted for approval at four points, after: (1) the feasibility study has been completed, (2) the bid documents have been prepared, (3) bids have been received and evaluated, and (4) negotiations have concluded and the PPP contract is in its final form |