145. The most frequently-mentioned and heavily stressed recommendation made during ISMED consultations is the need for increased experience and expertise on the part of MENA region governments. There are a number of dimensions to this need and capacity building is required on a number of levels. At the most senior official and political level the need may be more attitudinal than technical. As high-level support is essential, the benefits and proper motivations for procuring by PPP must be understood and any negative attitudes about the participation of the private sector in the provision of public infrastructure or services should be addressed. At the working level, those officials and public servants at the line ministry or agency implementing the project and working with the private-sector counterparty, training needs are both attitudinal and more technical. These officials must understand how the transaction will be structured, how the various contracts will interact and the respective rights and responsibilities of the public and private counterparties. Individuals benefitting from this training or otherwise holding this knowledge should be formed into a satellite PPP unit. In addition to acquiring the necessary skills for entering and closing the transaction, the satellite unit must also be skilled in contract administration and management for the duration of the contract.
146. The creation of a PPP central unit is also essential. The central unit is not a substitute for capacity in the contracting ministry or agency but is properly seen as a type of internal transaction advisor assisting in the structuring and closing of the project. However, a central unit, while skilled in matters of project finance will not be knowledgeable of the needs and realities of the contracting authority and will not be able to manage the project over its lifecycle. It is for this reason that a satellite unit must be formed to work with and complement the central unit.
147. ISMED consultations suggest that the hiring of external transaction advisors may be desirable to maximise the probability of a project being successful. Transaction advisors are not a substitute for a PPP central unit but rather work best when teamed with a central unit. Where PPP central units exist, they are generally under-resourced and given the limited PPP track-record of closing projects may be lacking experience, especially in the specific type of project being proposed. Central units may also be involved with multiple projects simultaneously dividing attention and resources. External transaction advisors can focus on one project and can bring relevant experience specific to the project. However, the use of advisors does not create institutional capacity and memory and efforts should be made to ensure that any use of advisors helps build the capacity of the officials for the long-term benefit of the government.