Government teams aggregating staff with specific knowledge on PPPs are often called 'PPP Units'. The functions of these PPP Units vary widely, as do their location within Government and team structure- reflecting the variation in priorities and constraints facing PPP programs both between governments, and within a government over time as the PPP program evolves.
Functions allocated to such 'PPP Units' can include:
• Policy guidance and capacity building-defining PPP policies and processes, and building the capacity of implementing agencies to follow those processes. This can often including preparing guidance materials and standard documentation for PPPs. Table 2.1: Example PPP Program Objectives and the 'key references' section in Module 3 provide examples of such guidance material
• PPP promotion both within and beyond government-that is, encouraging sector agencies to consider using PPPs, or promoting the opportunities presented by the PPP program to potential investors
• Technical support in implementing PPP projects. As described in Section 2.3.2: Institutional Responsibilities: Implementation above, this may involve providing hand-holding support to responsible implementation teams in Ministries or Agencies; or being directly responsible for some aspects of PPP implementation
• 'Gatekeeping', or reviewing and overseeing the management of PPP projects for efficiency and affordability; and either approving PPP projects, or advising on the approval process. As described in Section 2.3.3: Institutional Responsibilities: Review and Approval, such reviews can take place at several stages during project development; while the oversight role of such PPP teams can extend into PPP implementation and portfolio management.
PPP units may perform more than one of these functions, while a single PPP program may involve more than one PPP unit performing different roles.
The structure and location within government and structure of PPP units typically depends on their combination of functions, as well as existing institutional roles and experience within Government. PPP units may be departments within ministries or agencies, units with some kind of special status but reporting to ministries, autonomous government entities, or even government-owned or public-private corporations. Gatekeeping units are most often located within ministries of finance, or other oversight agencies; while technical support units may be housed centrally, sometimes alongside other relevant functions such as procurement, or be established at the sub-national or sector level where a sector has a significant PPP program. Units with a PPP promotion focus may part of broader investment promotion entities.
The functions of PPP units, and hence their structure, may also change over time as the PPP program evolves. For example, in the United Kingdom, the original Treasury Task Force (its first PPP Unit) was partially converted into a joint public-private venture (Partnerships UK, or PUK, 51 percent owned by private entities), with more of a focus on PPP promotion and technical support. However, as the PPP program developed and ministries and agencies gained more experience, the focus shifted towards oversight and integration of PPP with the broader public investment function. Eventually PUK was reabsorbed into government as 'Infrastructure UK'.
The following studies provide more information on the functions and structure of PPP Units, detailed case studies, and assessments of the effectiveness of these units in achieving their objectives:
• An OECD study on PPP units [#195], which describes the range of PPP unit functions along the lines of the list above, and provides detailed case studies of PPP Units in Germany, Korea, South Africa, the United Kingdom, and the State of Victoria, Australia
• A report by the Brookings Institution [#162] provides a similar break-down of the functions of PPP units, into three categories: review bodies, or gatekeepers; full service agencies providing technical assistance to review agencies, and centers of excellence acting as repositories of best practice.
• A set of reports published by the European PPP Expertise Centre, based in Luxembourg, on member countries' PPP Units and institutional frameworks [#85, #86]
Key References: PPP Processes and Institutional Responsibilities | |
Reference | Description |
Yescombe, E. R. (2013) Public-Private Partnerships: Principles of Policy and Finance, 2nd edition, Elsevier Science, Oxford | This book provides a comprehensive review of PPPs, including guidance to practitioners about key aspects of designing and implementing PPP policy and projects. Chapter 5 provides guidelines for public-sector appraisal of PPP projects |
Chile, Ministerio de Obras Públicas (2010) Ley y Reglamento de Concesiones de Obras Públicas, Santiago | Sets out the processes for handling unsolicited proposals, tendering, monitoring, and dispute resolution |
Egypt, Ministry of Finance (2007) National Program for Private Partnership (2nd ed.) Cairo | Egypt's comprehensive guidelines and policies for PPPs, including regulations for the PPP procurement process. It also provides an outlines of the institutional responsibilities within the government and the approval process |
Kim, Jay-Hyung, Jungwook Kim, Sung Hwan Shin & Seung-yeon Lee (2011) PPP Infrastructure Projects: Case Studies from the Republic of Korea (Volume 1), Manila, Philippines: Asian Development Bank | This report reviews the PPP program in Korea, including case studies of interesting PPP projects |
Malaysia, Jabatan Perdana Menteri (2009) Garis Panduan: Kerjasama Awam-Swasta, Kuala Lumpur | The Government of Malaysia's policy framework and procurement process for PPPs are outlined in this document |
Mexico, Congreso General de los Estados Unidos Mexicanos (2012) Ley de Asociaciones Público Privadas, Ciudad de México | Sets out in detail the process and institutional responsibilities for developing and implementing PPP projects in Mexico |
Peru, Congreso de la República (2008) Lei N° 1012, Lima | Sets out the entire PPP process (from appraisal to tendering and implementing the contract), and it also defines the institutional framework for PPPs in infrastructure-this includes defining the role of the Ministry of Finance and the PPP promotion Agency PROINVERSION) |
Philippines, Congress (1994) Republic Act No. 7718, Manila | The set of laws for PPPs in the Philippines, including implementing rules and regulations of the PPP process |
Puerto Rico, Legislature (2009) No. 29 (S. B. 469) San Juan | Sets out the processes for assessing the desirability and convenience of the PPP project, tendering the project, designing the contract, and monitoring its implementation. It also establishes the PPP Authority, and assigns responsibilities to the Authority and other government agencies. |
South Africa, National Treasury (2004) PPP Manual: National Treasury PPP Practice Notes issued in terms of the Public Finance Management Act, Johannesburg | The comprehensive PPP manual outlining the PPP procurement process for South Africa, including the approval process |
España, Ministerio de Economía y Hacienda (2011) Texto Refundido de la Ley de Contratos del Sector Público, Boletín Oficial del Estado, 276, I, 117729-117914 | Describes the different stages and studies that must be carried out when using a PPP as a procurement option. PPP that use private public-private legal framework will take into account the principles of transparency, openness, and non-discrimination of public legal framework. |
European PPP Expertise Centre (2011) The Guide to Guidance: How to Prepare, Procure, and Deliver PPP Projects, Luxembourg | A guide and sourcebook for PPP policies and project implementation. Chapter 1 presents a short guide on project identification |
World Bank (2011) PPP in Infrastructure Resource Center for Contracts, Law and Regulation | "Legislation" section includes information and questions for assessing legal environments for PPPs, information on types of legislation, and example PPP legislation from over 30 countries |
Farquharson, Torres de Mästle, and Yescombe, with Encinas (2011) How to Engage with the Private Sector in Public-Private Partnerships in Emerging Markets, World Bank/PPIAF | This guide for public sector practitioners describes how to develop and implement a PPP successfully, by developing a marketable project and attracting the right private partners. Chapter 4 describes guidelines for PPP project selection |
World Bank (2009) Toolkit for Public Private Partnerships in Roads and Highways | An online product. Module 4 on Laws and Contracts section of the online toolkit on "Legislative Framework" describes the various types of laws that comprise the framework for PPPs in roads |
United Nations (2004) Model Legislative Provisions on Privately Financed Infrastructure Projects, New York | This report by the UN offers legislative recommendations and model provisions for PPP legislation that are favorable to privately financed infrastructure projects |
Yong, H. K. (Ed.) (2010) Public-Private Partnerships Policy and Practice: A Reference Guide. London, UK: Commonwealth Secretariat | This report provides a comprehensive review of PPP policies worldwide, including guidance to practitioners about key aspects of designing and implementing PPP policy and projects. Chapter 4.1 outlines key issues for a PPP legal framework, and principles for PPP legislation |
Republic of Korea, Ministry of Strategy and Finance (2010) Basic Plan for Public-Private Partnerships (Public Notice 2010-141) Seoul | Establishes the PPP process and institutional responsibilities of various parties involved in the PPP process. |
United States, Federal Highway Administration (2009) Public Policy Considerations in Public-Private Partnership (PPP) Arrangements, Department of Transportation, Washington, D.C. | This report reviews how different states within the United States have responded to the issues most frequently raised 14 PPP issues. Both legislative and contract provisions are examined in order to identify how states vary in addressing the public policy concerns in PPP arrangements. |
United Kingdom, Her Majesty's Treasury (2011) Valuing infrastructure spend: supplementary guidance to the Green Book, London | Based on interviews across 10 departments in the United Kingdom, the report develops a benchmarking model which can be used to compare the management performance of PFI and PPP programs. |
European PPP Expertise Centre (2012) France: PPP Units and Related Institutional Framework, Luxembourg | The report surveys the developments in PPP legislations and institutions in France. It describes the role of the central PPP unit (MAPPP) in relation with other PPP units in respective line ministries. |
Tanzania (2010) Public Private Partnership Act | Tanzania's PPP law, which creates and outlines responsibility for a new PPP unit. The law also describes the requirements for PPP projects in the country and the responsibility of each actor and stakeholder |
Colombia, Ministerio de Hacienda y Crédito Público (2010) Manual de Procesos y Procedimientos para la ejecución de Asociación Público Asociaciones Público-Privadas, Bogotá | Manual that provides, in detail, the PPP procurement process in Colombia |
Zevallos Ugarte, J. C. (2011) Concesiones en el Perú: Lecciones Aprendidas, Lima, Perú: Fondo Editorial de la USMP | Describes lessons learned from Peru's PPP program, including a description of the institutional arrangements for implementing PPP projects |
Bernardin Akitoby, Richard Hemming & Gerd Schwartz (2007) Public Investment and Public-Private Partnerships, Economic Issues 40, International Monetary Fund | A short booklet describing the implications of PPPs for public investment, including how PPP commitments should be managed and controlled |
Australia, Department of Treasury & Finance (2010) National PPP Guidelines: Partnership Victoria Requirements (Version 2), Melbourne | These guidelines outline the objective, scope, and principles of the PPP program in the State of Victoria, Australia. The guidelines also include a revised PPP procurement process to adhere to changes in the national guidelines |
Philippines, National Economic and Development Authority (2004) ICC Project Evaluation Procedures and Guidelines, Manila | The guidelines by which projects are evaluated by the Investment Coordination Committee (ICC) in the Philippines, including reporting requirements of the implementing agency |
Tim Irwin (2007) Government Guarantees: Allocating and Valuing Risk in Privately Financed Infrastructure Projects, World Bank | This report covers topics relating to fiscal impacts of PPP projects and provides frameworks to guide policymakers. It offers lessons learned in managing liabilities, direct or contingent, and case studies |
Colombia, Congreso (2012) Law 1508, Bogotá | Sets out the institutional responsibilities and processes for PPPs in Colombia. In particular, it sets out the roles of the Ministry of Finance and the National Planning Department, the Committee on Economic and Social Policy (CONPES), and the Committee on Fiscal Policy (CONFIS) |
United Kingdom, National Audit Office (2006) A Framework for evaluating the implementation of Private Finance Initiative projects, London | The report describes the evaluation framework which takes into account the entire lifecycle of a project from the initial strategic analysis to the mature operational phase. The matrix covers six key business management themes across six stages in the lifecycle of the project. |
Patricia Leahy (2008) Framework for PPP Audits in the United Kingdom, in Schwartz, Corbacho & Funke (eds.), Public Investment and Public-Private Partnerships (269-278) International Monetary Fund | The book chapter examines the how three PPP evaluation reports impacted and improved the PPP process in the United Kingdom. |
World Bank (2013) Implementing a Framework for Managing Fiscal Commitments from Public Private Commitments, Operational Note | Presents practical guidance on how to implement that framework. |
Key References: PPP Units | |
Reference | Description |
World Bank (2007) Public Private Partnership Units: Lessons for their Design and Use in Infrastructure | This report provides a comprehensive assessment of the effectiveness of PPP units in developed and developing countries. The report offers lessons of the context in which PPP units have been most effective |
Mark Dutz, Clive Harris, Inderbir Dhingra & Chris Shugart (2006) Public Private Partnership Units: What Are They, and What Do They Do? Public Policy for the Private Sector Note, 311 | A short note reviewing several country experiences with PPP units, and provides high-level recommendations to improve governance and their effectiveness |
Edward Farquharson & Javier Encinas (2010) The U.K. Treasury Infrastructure Finance Unit: Supporting PPP Financing During the Global Liquidity Crisis, World Bank | Describes the U.K. Treasury Infrastructure Finance Unit, which was created in response to the dearth of private sector lending due to the global financial crisis in 2008 |
Jay-Hyung Kim, Jungwook Kim, Sung Hwan Shin & Seung-yeon Lee (2011) PPP Infrastructure Projects: Case Studies from the Republic of Korea (Volume 1), Manila, Philippines: Asian Development Bank | This report reviews the PPP program in Korea, including case studies of BTO and BTL PPP projects |
World Bank (2006) India: Building Capacities for Public-Private Partnerships | More details on case studies, including their applicability to India |
Farrugia, Reynolds & Orr ( 2008) Public-Private Partnership Agencies: A Global Perspective, Working Paper #39, Stanford, USA: Collaboratory for Research on Global Projects | A review of PPP units with a focus of experience of developed countries. The report includes case studies and reviews the key aspects of eight difference agencies |
Organization of Economic Cooperation and Development (2010) Dedicated Public-Private Partnership Units: A Survey of Institutional and Governance Structures, Paris, France French Version: Les Unités Consacrées aux Partenariats public-privé: une étude des structures institutionnelles et de gouvernance | Provides an overview of dedicated PPP units in OECD countries, including case studies of the experience of five jurisdictions (State of Victoria, Australia, Germany, Korea, the United Kingdom, and South Africa) |
Burger (2006) The Dedicated PPP Unit of the South African Treasury, Paper presented at the Symposium on Agencies and Public-Private Partnerships, Madrid | This paper provides a review of the PPP program in South Africa and its dedicated PPP unit |
South Africa, National Treasury (2004) National Treasury PPP Practice Notes issued in terms of the Public Finance Management Act, Johannesburg | The comprehensive PPP manual outlining the PPP procurement process for South Africa, including the approval process |
European PPP Expertise Centre (2012) France: PPP Units and Related Institutional Framework, Luxembourg | The report surveys the developments in PPP legislations and institutions in France. It describes the role of the central PPP unit (MAPPP) in relation with other PPP units in respective line ministries. |
Istrate & Puentes (2011) Moving Forward on Public Private Partnerships: U.S. and International Experience with PPP Units, Washington, DC: Brookings Institution | This report surveys international PPP units and U.S. domestic PPP units. It addresses whether a U.S. federal PPP unit is desirable. |