54. PPPs are complex contractual and financial arrangements and it is unlikely that government participants will have the necessary skills and knowledge to structure the transaction and manage the contract over its life. This is not a criticism of public servant skills but a recognition that the skills required for PPPs are different from those traditionally found in the public service. It is extremely difficult for a government department to switch virtually overnight from the status quo (acquiring assets through traditional procurement) to managing a network of different agencies involved in the building and design of a project over a long period of time - the characteristic features of PPPs7.
55. There is a need to further develop the PPP capacities and skills of governments and the creation of dedicated PPP central units has been a key method used in OECD countries. The roles of these units may include providing policy guidance, playing a "gate-keeper" function in deciding whether or not a project should move forward, technical support to procuring departments and agencies during project identification, evaluation and procurement, capacity building (including training public sector officials) and promoting PPPs in the public and private sector (OECD, 2010).
56. A successful dedicated PPP unit requires expert staff including sector-specific technical skills and expertise in economics and finance, regulation, procurement, communications and training. To attract and retain these skills, including from the private sector, dedicated units have to offer attractive packages to both permanent staff and short-term consultants. In some cases, rigid public sector salary systems may make this difficult (OECD, 2010). In addition to having the right skill set, it is essential that any PPP central unit be empowered to make decisions and have the confidence of the highest levels of government. This suggests that the leadership of the unit should be sufficiently senior and credible.
57. PPP central units may be very helpful in evaluating and procuring a project (especially in finalising legal and financial terms) but they cannot be a long-term substitute for capacity in the procuring department or agency which is the public counterpart to the project agreement. Over the life of the agreement (up to 30 years) the procuring department or agency must have sufficient technical knowledge and experience to understand the transaction, and manage the contractual relationship. For this reason it is equally important to create capacity in the form of a satellite PPP unit in the procuring department or agency and possibly at a regional and local government level as well.
58. The use of external advisors has also proven vital in a number of successful projects including the Queen Alia Airport project in Amman Jordan (see Annex 1). Even with a capable PPP central unit engaging advisory services may be justified by the additional expertise, experience and focus they can bring to the government side of a transaction. Advisors also work best with a PPP central unit as the unit should contain a level of expertise and experience beyond that of the procuring department or agency and will not require the same level of guidance and support.
59. Creating capacity and a central unit within government also has less tangible but equally important benefits signalling to the private sector that government is committed to PPPs over the long-term and that there will be skilled counterparts on the government side of the transaction.
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7 . United Nations (2008), Guidebook on Promoting Good Governance in Public-Private Partnerships.