Although legal and regulatory frameworks enable PPPs, a second tier of institutions and processes is needed to implement applicable laws, regulations, rules, and policies. Well-functioning institutional arrangements are essential for this process going smoothly. Without them, PPPs will be harder to develop-and the agencies with specific responsibilities under legislation to implement PPPs will not be doing this effectively. Many governments have established specialized PPP units to develop and supervise projects, and these units play a vital role in successfully promoting and developing PPP projects.