2.2.2 PPP, being a long-term service-purchase contract, can be more complex than most government procurement projects. Public agencies and potential private sector providers need to address several issues, such as crafting and understanding output/outcome specification, preparing whole lifecycle costing, structuring a viable and realistic payment mechanism, ensuring fair termination rights, etc.
2.2.3 For the success of the PPP project, it is important to have a strong project management team within the public sector agency to oversee the implementation of the project. This team should have competencies in the financial, legal and technical aspects of contracting through PPP. Similarly, private sector bidders should demonstrate that they have a strong management team that is capable of delivering on the contract. Agencies can contact the CP2M for advice on project management.
2.2.4 This chapter describes:
a) The responsibilities of the public sector project management teams;
b) A possible project management structure for the public sector team;
c) The competencies that the project team should have. Such competencies can be developed in-house (or might already be available in-house) and/or supplemented by private sector PPP advisors who have experience in managing PPP projects; and
d) Key factors in effective project management.