Public institutions must monitor PPPs carefully to ensure that performance targets are met and that risks are allocated to the party best suited to manage them. Having a dedicated PPP unit plays an important role in a country's PPP program and can promote better-performing projects. Setting up a dedicated PPP unit can significantly contribute to increased private participation and project success. PPP activity increased significantly in the Republic of Korea after it set up its PPP unit, the Public and Private Infrastructure Investment Management Center, in 1998. And the Philippines' readiness to handle PPP projects improved noticeably after the Public-Private Partnership Center was reorganized and strengthened.
The success of the PPP approach is predicated on a list of prerequisites. A systematic evaluation of a project's feasibility is necessary to determine whether features required for PPPs are present or can be produced with reasonable effort. Skilled private players and incentivized private finance are the driving forces in realizing efficiency gains. Governments need to ensure that the technical, legal, and institutional requirements needed by a successful PPP program are in place. It is the complementary abilities of the public and private sector, realized through a partnership in risk and control, that lies at the heart of fruitful PPPs.