Once it enters the construction and operation phases, the success of the PPP from the public perspective will depend on the ability of the public entity to monitor performance of the private partner against standards and to enforce the terms of the contract. When a PPP project performs below its expectations, it is often due to the lack of capabilities in the public entities to carry out enforcement and monitoring activities, partly because it has inadequate established procedures for this task.
Module 14 of the PPP Guide to Practitioners discusses the post award contract management issues that emerge in PPP arrangements.
In addition to these limitations, there are other factors that deter the development of projects through a PPP framework. For instance, most of the legislation and rules were formulated at a time when PPPs were not yet conceptualised. The law is, consequently, usually silent on the possibility of PPPs in the sector. Furthermore, Government budgeting systems are usually not aligned with the needs of PPP financing and support as they do not make any provisions for committed and/or contingent liabilities arising out of PPP arrangements. Also, the lead time for structuring and procurement for PPPs is long, which impacts the ability to see through a PPP without leadership changes. This challenges the commitment of the public entity towards project development activities.