A PIU is a vehicle to plan and implement a project or projects. At times, it is linked with a line ministry, but it can also be quasi-independent of the ministry. Most PIUs are established to support large capital investment projects (typically donor-funded) and the life span of the PIU is linked with the project life cycle. The precise structure and role of a PIU will depend on the requirements of the funding agency and the executing agency, the type of project, and the local context.
PIUs have been used as a vehicle to dedicate staff to important projects. They are staffed with internal government staff, with external resources or a mixture of both. Recent analysis has questioned whether PIUs have been effective in the broader development of project management capacity within governments, particularly when staffing is external.
The advantages to developing a PIU are the creation of a central point of accountability and management. The PIU typically monitors and reports on project progress, performs financial management and accounting, and handles project procurement.
Where both PIU and PPP units exist, close and regular coordination is needed.