A national PSP policy should be developed and adopted, especially if the PSP agenda is sizable. Such a policy articulates the government's goals vis-à-vis private-sector participation. A comprehensive PSP policy that covers both PPPs and privatization allows policymakers to properly prioritize sectors and projects, assess sector readiness and capital availability, and consider all of this within the country's PSP plans and targets.
A PSP policy highlights the government's commitment to enhance the role of the private sector. It facilitates a consistent and streamlined approach to PSP and a basis for enacting PSP laws. It ensures alignment with the country's broader national policy and economic targets. Moreover, it inspires trust in the government's PSP plans.