Public investment projects normally need to go through a project appraisal and approval process (to determine whether it is a good project), usually closely integrated with the budget process (determining whether and when the project is affordable). The finance ministry typically plays a central role in this process. Because PPPs often involve neither capital investment nor other expenditure in the short term, they may not be automatically included in these control mechanisms.
Section 2.3: PPP Processes and Institutional Responsibilities describes how governments often create an approval process for PPPs, which mirrors that used for their large investment projects. Such processes generally provide a central role for the finance ministry. This section offers guidance on how the finance ministry can decide whether to approve the fiscal commitments to a proposed PPP project. In doing so, a finance ministry typically considers two questions: will the project provide value for money; and is the project affordable.