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Establishing a PPP Framework

21.7.1 Typical Responsibilities

In developing a PPP framework, it is useful to consider the main responsibilities and identify an existing institution, if available, that is suitable for each one. The main responsibilities include the following.

  • Identifying and procuring projects: Driving forward the PPP project: identifying potential projects, appraising, structuring, drafting the contract, bidding on it, and finally managing the contract after it is signed (this is explored in detail in section 4.6.2);
  • Ensuring coordination and best practice approaches: Ensuring that the correct processes are followed, that analysis of a proposed PPP is complete, that all the agencies that need to comment or give their go ahead do so, and that the body with approval authority receives all the information it needs to make a sound decision (this is explored in detail in section 4.6.3);
  • Public financial management: Making sure that there is sufficient fiscal space to fund direct liabilities and also deal with situations where risks allocated to the public sector do crystallize into fiscal expenditures (section 4.6.4 discusses this concept); and
  • Approving projects: Giving the go ahead for the project to proceed. As shown in section 4.5, approvals may be needed at several stages of project development (this is discussed in Section 4.6.5).

Where existing institutional infrastructure and skills are insufficient, the establishment of a PPP unit may be helpful (see section 4.6.6). External advisors may be needed to support the skills available in-house.

 

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