Inte

rnat

iona

l Exp

erie

nce

in E

stab

lishi

ng a

nd

Ope

ratin

g PP

P U

nits

Vic

kram

Cut

tare

eS

usta

inab

le D

evel

opm

ent D

epar

tmen

tE

urop

e &

Cen

tral A

sia

Reg

ion

The

Wor

ld B

ank

Frid

ay D

ecem

ber 7

, 200

7

2

Purp

ose

of th

e re

view

•P

rese

ntat

ion

of fi

ve c

ase

stud

ies

of

form

atio

n of

PP

P U

nits

, com

plem

ente

d by

in

tern

atio

nal t

rend

s•

Obj

ectiv

e is

to d

raw

key

less

ons

appl

icab

le

to S

t Pet

ersb

urg

(goo

d pr

actic

e an

d pi

tfalls

)•

Ana

lysi

s is

par

t of a

bro

ader

adv

isor

y se

rvic

e of

the

Wor

ld B

ank

to h

elp

the

City

of

St P

eter

sbur

g es

tabl

ish

its o

rgan

izat

ion

entit

y fo

r the

man

agem

ent o

f PP

P

3

Inte

rnat

iona

l Tre

nds

in P

PP U

nits

Inte

rnat

iona

l Tre

nds

in P

PP U

nits

Pres

enta

tion

of C

ase

Stud

ies

Less

ons

Lear

ned

on P

PP U

nits

Sum

mar

y an

d C

oncl

usio

n

4

Rec

ent T

rend

s of

Suc

cess

ful P

PPs

•P

PP

are

see

n le

ss a

s a

way

of r

aisi

ng fu

nds

outs

ide

the

Sta

te b

alan

ce s

heet

than

a m

eans

to a

chie

ve

effic

ienc

y ga

ins

•La

ck o

f fea

sibi

lity

stud

ies,

lim

ited

gove

rnm

ent s

uppo

rt an

d no

n-tra

nspa

rent

pro

cure

men

t con

tribu

ted

to

failu

res

in e

arly

PP

P p

rogr

ams

in C

EE

/SE

E•

Cen

tral M

inis

try c

oord

inat

ing

PP

P p

rovi

des

som

e so

rt of

bud

get s

uppo

rt to

fund

pro

ject

dev

elop

men

t cos

ts•

PP

P p

rogr

ams

are

mor

e in

tegr

ated

with

ove

rall

infra

stru

ctur

e pl

anni

ng v

s. a

d-ho

c ap

proa

ch o

f se

lect

ing

proj

ects

•P

ilot P

PP

pro

ject

s ha

ve b

een

used

to te

st th

e op

erat

iona

l and

sup

port

syst

em b

efor

e en

gagi

ng in

to a

fu

ll P

PP

pro

gram

s

5

Inte

rnat

iona

l exp

erie

nce

show

s an

incr

easi

ng

focu

s on

inst

itutio

nal f

ram

ewor

k

•E

xper

ienc

e sh

ows

that

som

e fa

ilure

s co

uld

have

bee

n av

oide

d w

ith b

ette

r pr

ojec

t des

ign,

coo

rdin

atio

n or

mor

e tra

nspa

rent

pro

cure

men

t•

Spe

cial

ized

PP

P U

nits

hav

e be

en

crea

ted

in re

spon

se to

wea

knes

ses

in m

anag

ing

PP

P p

rogr

am e

ffect

ivel

y•

The

role

of P

PP

Uni

ts v

arie

s fro

m a

pu

re a

dvis

ory

one

to b

eing

act

ivel

y in

volv

ed in

pro

ject

iden

tific

atio

n an

d de

sign

, pro

cure

men

t and

con

tract

m

onito

ring

•S

ever

al P

PP

uni

ts h

ave

evol

ved

over

th

e ye

ars

and

ther

e is

not

a p

refe

rred

de

sign

Poor

Pro

cure

men

t In

cent

ives

Lack

of C

oord

inat

ion

Lack

of S

kills

Hig

h Tr

ansa

ctio

n C

osts

Lack

of I

nfor

mat

ion

Gov

ernm

ent F

ailu

res

6

Inte

rnat

iona

l tre

nds

rela

ted

to P

PP U

nits

•A

lthou

gh m

any

coun

tries

hav

e no

w

esta

blis

hed

such

uni

ts, s

ever

al h

ad a

n ac

tive

prog

ram

for y

ears

bef

ore

that

•H

owev

er, t

he c

reat

ion

of a

PP

P u

nit i

s ne

ither

a n

eces

sary

or s

uffic

ient

con

ditio

n fo

r a s

ucce

ssfu

l PP

P p

rogr

am•

PP

P u

nits

tend

to s

trugg

le w

hen

–S

enio

r pol

itici

ans

do n

ot s

uppo

rt th

e P

PP

pr

ogra

m–

Pro

cure

men

t of i

nfra

stru

ctur

e an

d ca

pita

l w

orks

in n

ot tr

ansp

aren

t or c

ompe

titiv

e–

Coo

rdin

atio

n w

ithin

Gov

ernm

ent i

n w

eak

7

Pres

enta

tion

of 5

Cas

e St

udie

s

Sub-

natio

nal

Nat

iona

l

MATUREUNIT

EARLYSTAGE

Uni

ted

Kin

gdom

(UK

)

Sout

h A

fric

a

Hun

gary

Cze

ch R

epub

lic

Stat

e of

Vic

toria

(Aus

tral

ia)

8

Pres

enta

tion

of C

ase

Stud

ies

Inte

rnat

iona

l Tre

nds

in P

PP U

nits

Pres

enta

tion

of C

ase

Stud

ies

Less

ons

Lear

ned

on P

PP U

nits

Sum

mar

y an

d C

oncl

usio

n

9

UK

Cen

tral

PPP

Uni

t: Pa

rtne

rshi

p U

K

Rol

e•C

reat

ed in

200

0 by

the

UK

Gov

ernm

ent t

o pr

ovid

e th

e pu

blic

se

ctor

with

impr

oved

clie

nt c

apab

ility

and

the

be a

vaila

ble

to

supp

ort i

mpl

emen

tatio

n of

PP

P p

rogr

ams

•PU

kw

orks

exc

lusi

vely

with

pub

lic s

ecto

r and

is m

ainl

y a

proj

ect d

evel

opm

ent a

genc

y•P

Uk

resp

onds

to d

eman

d fro

m p

ublic

sec

tor c

lient

s an

d w

orks

on

ver

y la

rge

or in

nova

tive

proj

ects

•All

PP

P tr

ansa

ctio

ns m

ust b

e gi

ven

Trea

sury

app

rova

l at

seve

ral s

tage

s be

fore

fina

l con

tract

sig

natu

re

Stru

ctur

e/

Gov

erna

nce

•PU

kha

s ev

olve

d fro

m a

Tre

asur

y Ta

sk F

orce

to a

sep

arat

e U

nit

•PU

kB

oard

con

stitu

ted

by n

on-e

xecu

tive

Cha

irman

, 4

exec

utiv

e di

rect

ors,

and

7 n

on-e

xecu

tive

dire

ctor

s•A

dvis

ory

Cou

ncil

over

sees

the

wor

k of

PU

kan

d en

sure

s it

follo

ws

its c

harte

r

Loca

tion

•Par

tner

ship

UK

is a

sep

arat

e en

tity,

stru

ctur

ed a

s a

PP

P (5

1%

priv

ate

sect

or, 4

9% G

over

nmen

t)

10

UK

Cen

tral

PPP

Uni

t: Pa

rtne

rshi

p U

K

Staf

fing

•PU

kst

aff,

incl

udin

g C

hief

Exe

cutiv

e, is

com

pose

d of

priv

ate

and

publ

ic s

ecto

r exp

erts

, with

stro

ng s

kills

in p

roje

ct fi

nanc

e(fi

nanc

e, le

gal,

etc…

)•T

he s

taff

also

brin

gs m

arke

t kno

wle

dge

whi

ch is

impo

rtant

to

test

inte

rest

of t

he p

rivat

e se

ctor

•Boa

rd o

f Dire

ctor

s is

com

pose

d of

Exe

cutiv

e fro

m th

e pu

blic

an

d pr

ivat

e se

ctor

•Adv

isor

y C

ounc

il is

exc

lusi

vely

com

pose

d of

mem

bers

of t

he

Pub

lic S

ecto

r

Inte

rfac

e•P

olic

y Ta

skfo

rce

sits

with

in T

reas

ury

and

sets

gui

danc

e on

pr

ocur

emen

t, de

al s

truct

urin

g an

d ev

alua

tion

•Tre

asur

y’s

Pro

ject

Rev

iew

Gro

up u

ses

PU

kfo

r tec

hnic

al

com

pone

nt o

f rev

iew

pro

cess

for l

ocal

aut

horit

y pr

ojec

ts•P

Uk

has

also

set

up

join

t ven

ture

s w

ith p

ublic

aut

horit

ies

(Par

tner

ship

for H

ealth

, Par

tner

ship

for S

choo

ls)

Fund

ing

•PU

kch

arge

s a

fee

to th

e pu

blic

sec

tor f

or it

s se

rvic

es•F

ees

are

set i

n Fr

amew

ork

Agr

eem

ents

sig

ned

with

clie

nt a

nd

rene

wed

eve

ry fo

ur y

ears

•Fee

s ar

e be

nchm

arke

d ag

ains

t priv

ate

advi

sory

com

pani

es

11

Sout

h A

fric

a C

entr

al P

PP U

nit

Rol

e•T

he P

PP

Uni

t was

cre

ated

in 2

000

as a

filte

r to

excl

ude

fisca

lly ir

resp

onsi

ble

PP

P tr

ansa

ctio

ns•D

esig

n of

PP

P U

nit i

nflu

ence

d by

Tre

asur

y P

PP

Tas

k Te

am in

th

e U

K (f

ocus

on

VfM

, ris

k tra

nsfe

r, af

ford

abilit

y)•O

bjec

tives

are

to m

ake

sure

(i) a

ll P

PP

sm

eet a

bove

crit

eria

an

d (ii

) est

ablis

h fra

mew

ork

to p

rote

ct G

over

nmen

t aga

inst

P

PP

likel

y to

fail

•The

PP

P u

nit h

as 5

func

tiona

l des

ks: F

inan

cial

, Leg

al,

Bus

ines

s D

evel

opm

ent,

Pro

ject

Eva

luat

ion,

Mun

icip

al

Loca

tion

•PP

P U

nit i

s lo

cate

d w

ithin

the

Sou

th A

frica

n Tr

easu

ry

Stru

ctur

e/

Gov

erna

nce

12

Sout

h A

fric

a C

entr

al P

PP U

nit

Staf

fing

•Sta

ff is

com

pose

d of

pro

fess

iona

ls g

ivin

g ha

nds-

on a

ssis

tanc

e on

sec

tor-s

peci

fic (h

ealth

, tou

rism

, …) o

r fun

ctio

n sp

ecifi

c is

sues

(leg

al, f

inan

cial

, …)

•The

Uni

t ass

igns

1 o

r 2 in

tern

al p

roje

ct a

dvis

ors

to a

ssis

t lin

ede

partm

ents

from

pro

ject

regi

stra

tion

to s

igni

ng o

f PP

P

agre

emen

t

Inte

rfac

e•T

he P

PP

Uni

t wor

ks c

lose

ly w

ith th

e R

evie

w a

nd L

iabi

lity

com

mitt

ees

of th

e N

atio

nal T

reas

ury

for t

he a

ppro

val p

roce

ss

and

pro

vide

s te

chni

cal a

ssis

tanc

e to

Lin

e D

epar

tmen

t•T

he N

atio

nal T

reas

ury

has

appr

oval

righ

ts fo

r loc

al o

r pr

ovin

cial

pro

ject

s an

d ca

n m

ake

advi

sory

reco

mm

enda

tions

on

loca

l gov

ernm

ent p

roje

cts

Fund

ing

•The

PP

P U

nit i

s fu

lly fu

nded

by

Trea

sury

13

Aus

tral

ia S

ub-n

atio

nal P

PP U

nit:

Part

ners

hip

Vict

oria

Rol

e•G

over

nmen

t of V

icto

ria in

trodu

ced

Par

tner

ship

Vic

toria

(PV

) in

1999

, fol

low

ing

the

exam

ple

of U

K, i

n an

ticip

atio

n of

exp

ansi

on

of P

PP

pro

gram

(sta

rted

in 1

980)

•Foc

us is

on

optim

al ri

sk tr

ansf

er, e

ffici

ency

max

imiz

atio

n an

d w

hole

-life

cos

ts m

inim

izat

ion

•PV

dev

elop

s po

licy

and

guid

elin

es, p

rom

ote

impl

emen

tatio

n of

be

st p

ract

ice

and

prov

ides

spe

cific

adv

ice

to d

epar

tmen

ts a

nd

agen

cies

•PV

use

d fo

r maj

or a

nd c

ompl

ex c

apita

l pro

ject

s w

ith

oppo

rtuni

ties

for i

nnov

atio

n an

d ris

k tra

nsfe

r

•PV

Uni

t is

loca

ted

with

in th

e C

omm

erci

al, I

nfra

stru

ctur

e &

Ris

k M

anag

emen

t Gro

up o

f the

Com

mer

cial

Div

isio

n of

the

Trea

sury

•Tre

asur

er is

resp

onsi

ble

for d

evel

opin

g an

d ov

erse

eing

the

Par

tner

ship

Vic

toria

Fra

mew

ork

•Eac

h P

PP

pro

ject

rem

ains

und

er th

e re

spon

sibi

lity

of th

e re

leva

nt M

inis

try

Loca

tion

•The

PV

uni

t was

des

igne

d as

a te

am lo

cate

d w

ithin

the

treas

ury

Stru

ctur

e/

Gov

erna

nce

14

Aus

tral

ia S

ub-n

atio

nal P

PP U

nit:

Part

ners

hip

Vict

oria

Staf

fing

•Sta

ff in

clud

ing

actin

g H

ead

has

exte

nsiv

e pr

ivat

e se

ctor

ex

perie

nce

Inte

rfac

e•F

eder

al G

over

nmen

t iss

ued

PP

P g

uide

lines

lim

ited

to F

eder

al

leve

l pro

ject

s•A

nat

iona

l PP

P M

inis

teria

l For

um w

as c

reat

ed in

200

3 to

im

prov

e po

licy

cons

iste

ncy,

coo

rdin

atio

n an

d ca

paci

ty b

uild

ing

acro

ss re

gion

s

Fund

ing

•PV

Uni

t is

finan

ced

by G

over

nmen

t of V

icto

ria

15

Hun

gary

Cen

tral

PPP

Uni

t

•H

unga

ry w

as th

e fir

st C

EE

cou

ntry

that

dec

ided

in 1

991

to

rely

alm

ost e

ntire

ly o

n pr

ivat

e co

nces

sion

s fo

r its

hig

hway

de

velo

pmen

t•

Ear

ly fa

ilure

s, n

eed

to im

prov

e ef

ficie

ncy

of P

PP

ar

rang

emen

ts a

nd li

mite

d in

stitu

tiona

l mem

ory

and

capa

city

co

ntrib

uted

to th

e cr

eatio

n of

the

PP

P u

nit

•Th

e P

PP

Uni

t was

cre

ated

with

in th

e M

inis

try o

f Eco

nom

ics

and

Tran

spor

t in

2003

with

the

man

date

to c

reat

e ad

equa

te

cond

ition

s fo

r the

intro

duct

ion

of P

PP

in H

unga

ry•

An

inte

rdep

artm

enta

l com

mitt

ee w

as s

etup

in 2

003

betw

een

the

Min

istri

es o

f Eco

nom

y an

d Tr

ansp

ort,

Fina

nce,

Jus

tice,

P

M o

ffice

and

Cen

tral S

tatis

tics

Offi

ce•

The

obje

ctiv

es o

f the

com

mitt

ee a

re to

(i) c

onsi

der P

PP

pl

ans

prep

ared

and

sub

mitt

ed b

y de

partm

ents

and

loca

l go

vern

men

t and

(ii)

mon

itor t

he im

plem

enta

tion

of P

PP

pr

ojec

ts

16

Cze

ch R

epub

lic C

entr

al P

PP U

nit:

PPP

Cen

trum

•P

PP

Cen

trum

was

cre

ated

in J

uly

2004

to s

peed

up

the

prep

arat

ion

of le

gal e

nviro

nmen

t and

met

hodo

logi

cal p

roce

dure

s fo

r PP

P•

Initi

ally

sta

rting

as

a kn

owle

dge

cent

er, i

ts ro

le h

as e

volv

ed to

in

clud

e te

chni

cal a

dvis

ory

for P

PP

pro

ject

iden

tific

atio

n,

prep

arat

ion,

eva

luat

ion

and

mon

itorin

g•

PP

P C

entru

m is

a jo

int-s

tock

com

pany

, with

MoF

as th

e on

ly

shar

ehol

der,

and

has

been

inte

ract

ing

with

the

publ

ic s

ecto

r on

a fe

e-fo

r-se

rvic

e ba

sis

sinc

e 20

07•

Gov

ernm

ent p

olic

y m

akes

it m

anda

tory

for p

ublic

sec

tor t

o dr

aw o

n re

sour

ces

avai

labl

e at

the

PP

P C

entru

m•

Cze

ch R

epub

lic c

autio

us a

ppro

ach

seem

s to

hav

e be

en d

riven

by

faile

d at

tem

pts

to im

plem

ent r

oll b

ase

conc

essi

ons

of D

5 m

otor

way

•Th

e co

untry

is c

urre

ntly

in th

e fin

al s

tage

s of

PP

P fr

amew

ork

(Con

cess

ion

Law

, PP

P U

nit,

regu

latio

ns, g

uide

lines

, etc

...)

•P

PP

Cen

trum

repo

rts to

a B

oard

of D

irect

ors

and

is m

onito

red

by a

S

uper

viso

ry B

oard

(with

repr

esen

tativ

es fr

om th

e M

oF, M

inis

try o

f R

egio

nal D

evel

opm

ent,

Min

istry

of L

abor

and

Soc

ial A

ffairs

, Offi

ce

of C

zech

Rep

ublic

Gov

ernm

ent…

)

17

Succ

ess

of P

PP U

nits

PPP

Uni

ts A

ssoc

iate

d w

ith

Succ

essf

ul P

PP P

rogr

ams

PPP

Uni

ts n

ot y

et

succ

essf

ul

Part

ners

hip

UK

Part

ners

hip

UK

Part

ners

hip

Vict

oria

Part

ners

hip

Vict

oria

Sout

h A

fric

a PP

P U

nit

Sout

h A

fric

a PP

P U

nit

Hun

gary

PPP

Uni

tH

unga

ry P

PP U

nit

Cze

ch R

ep. P

PP C

entr

umC

zech

Rep

. PPP

Cen

trum

Part

ners

hip

Uk

PP

P p

rogr

am c

ontri

bute

d to

10%

of t

otal

pub

lic in

vest

men

t in

2004

PP

P p

rogr

am re

pres

ente

d ab

out 2

/3 o

f all

activ

ity in

Eur

ope

(199

4-05

)

Part

ners

hip

Vict

oria

Ave

rage

sav

ings

thro

ugh

PP

P is

9%

com

pare

d to

pub

lic s

ecto

rO

nly

22%

of P

PP

had

run

over

bud

get v

s. 7

3% fo

r lin

e ag

ency

co

nstru

ctio

n pr

ojec

ts

Sout

h A

fric

a PP

P U

nit

PP

P U

nit’s

regu

latio

ns, m

anua

ls, a

nd tr

ansa

ctio

ns re

fere

nced

as

goo

d pr

actic

e ou

tsid

e S

outh

Afri

caP

PP

Uni

t sup

porte

d de

velo

pmen

t of p

roje

cts

whi

le e

nsur

ing

fisca

l im

pact

rem

aine

d m

anag

eabl

e

Hun

gary

PPP

Uni

tTo

o ea

rly to

ass

ess

impa

ct o

f PP

P U

nit

Cre

atio

n of

PP

P U

nit c

omes

late

in re

latio

n to

ear

ly

expe

rienc

e, ta

inte

d w

ith s

ome

failu

res,

of P

PP

pro

ject

s

Cze

ch R

epub

lic P

PP C

entr

umO

ngoi

ng e

ffort

to s

treng

then

PP

P F

ram

ewor

k no

t co

mpl

eted

but

Uni

t con

tribu

tion

ackn

owle

dged

Stil

l wai

ting

for a

suc

cess

ful P

PP

pro

ject

18

Less

ons

Lear

ned

on P

PP U

nits

Inte

rnat

iona

l Tre

nds

in P

PP U

nits

Pres

enta

tion

of C

ase

Stud

ies

Less

ons

Lear

ned

on P

PP U

nits

Sum

mar

y an

d C

oncl

usio

n

19

Rol

e an

d Po

wer

s of

PPP

Uni

ts

•Tw

o m

ain

func

tions

co

mm

on to

PP

P U

nits

–S

uppo

rt re

gula

tion/

over

sigh

t of

Trea

sury

ove

r PP

Ps

–Te

chni

cal a

ssis

tanc

e to

lin

e de

partm

ent/m

inis

tries

•H

owev

er, a

PP

P u

nit w

ith

broa

der s

cope

tend

s to

pe

rform

bet

ter

•Li

ne M

inis

tries

reta

in th

eir

resp

onsi

bilit

y of

pro

ject

de

liver

y•

Rol

e of

PP

P U

nit h

as

evol

ved

over

tim

e to

re

spon

d to

cha

ngin

g ne

eds

(Uk,

Cze

ch R

ep.)

Qua

lity

Con

trol

Polic

y Fo

rmul

atio

n an

d C

oord

inat

ion

Tech

nica

l A

ssis

tanc

e

Stan

dard

izat

ion

and

Dis

sem

inat

ion

Prom

otio

n/

Mar

ketin

g

20

Loca

tion

and

Stru

ctur

e of

PPP

Uni

ts

•P

PP

Uni

ts e

ither

with

in a

ce

ntra

l Min

istry

(ofte

n Tr

easu

ry) o

r as

a se

para

te

entit

y•

Trea

sury

usu

ally

kee

ps

stro

ng ro

le in

pol

icy

and

unit

cont

rol (

Boa

rd,

Adv

isor

y C

ounc

il)•

Loca

tion

betw

een

Min

istri

es d

epen

ds o

n fo

cus:

–Tr

easu

ry: f

isca

l ove

rsig

ht–

Eco

nom

y: p

roje

ct

deve

lopm

ent a

nd

prom

otio

n–

Line

Min

istry

: sec

tor-

spec

ific

PP

P p

rocu

rem

ent

PPP

Uni

t

Min

istr

y

(Tre

asur

y or

Ec

onom

y)

Min

istr

y

Trea

sury

or

Econ

omy

PPP

Uni

t

21

Staf

fing

of P

PP U

nits

•A

ttrac

tion

and

rete

ntio

n of

goo

d st

aff i

n th

e P

PP U

nit i

s es

sent

ial

•E

ven

with

use

of t

rans

actio

n ad

viso

rs, p

roje

ct a

dvis

ory

requ

ires

stro

ng s

kills

in p

roje

ct

finan

ce (f

inan

ce, l

egal

)•

Alth

ough

not

suf

ficie

nt c

ondi

tion,

go

od s

taff

are

likel

y to

be

attra

cted

by:

–S

alar

y sc

ales

–Fu

nctio

nal r

espo

nsib

ilitie

s–

Cha

lleng

ing

wor

k en

viro

nmen

t•

Inst

itutio

nal m

emor

y an

d kn

owle

dge

trans

fer t

o lin

e M

inis

tries

/Dep

artm

ent i

s es

sent

ial

for l

ong-

term

suc

cess

•S

ub-n

atio

nal u

nits

hav

e al

so th

e op

portu

nity

of s

harin

g st

aff a

nd

expe

rienc

e w

ith o

ther

regi

ons

(Aus

tralia

)

Sub-

natio

nal

PPP

Uni

t

Priv

ate

Sect

or

Line

M

inis

try/

D

epar

tmen

t

Oth

erSu

b-na

tiona

l

PPP

Uni

t

Rec

ruiti

ng s

taff

from

priv

ate

sect

or

Cap

acity

Bui

ldin

g/

Sta

ff E

xcha

nge

Cap

acity

Bui

ldin

g/

Sta

ff E

xcha

nge

22

Fund

ing

of P

PP U

nits

•S

epar

ate

PP

P u

nits

cha

rge

a fe

e fo

r ser

vice

to th

e pu

blic

sec

tor w

hile

thos

e w

ithin

a M

inis

try a

re fu

lly

fund

ed b

y th

e pu

blic

sec

tor

•C

ost r

ecov

ery

does

not

app

ear t

o be

a s

ucce

ss

fact

or b

ut is

dep

enda

nt o

n su

cces

sful

trac

k re

cord

of

PP

P p

roje

cts

and

good

repu

tatio

n•

Use

of p

roje

ct d

evel

opm

ent f

acili

ty (U

k, S

outh

A

frica

) to

supp

ort t

he h

iring

of g

ood

qual

ity

trans

actio

n ad

vise

rs b

y lin

e de

partm

ent c

an

cont

ribut

e to

bet

ter q

ualit

y pr

ojec

ts•

Fund

ing

of P

PP

uni

t sho

uld

allo

w re

crui

ting

and

reta

inin

g of

goo

d qu

ality

sta

ff

23

Inte

rfac

e an

d C

oord

inat

ion

•M

ore

succ

essf

ul P

PP

uni

ts (U

K, V

icto

ria a

nd S

A)

have

stro

ng li

nks

with

Tre

asur

y re

late

d to

pro

ject

ap

prov

al•

Eve

n w

hen

set-u

p as

a s

epar

ate

entit

y, P

PP

uni

t pe

rform

ance

is m

onito

red

by a

Boa

rd o

r Adv

isor

y C

ounc

il•

Alth

ough

the

sub-

natio

nal P

PP

uni

t ben

chm

arke

d al

so m

aint

aine

d lin

ks a

t Fed

eral

leve

l for

pol

icy

cons

iste

ncy,

ther

e is

a n

eed

for s

trong

er

coor

dina

tion

•Im

plem

entin

g M

inis

tries

/Dep

artm

ent a

re

incr

easi

ngly

in n

eed

of s

uppo

rt fo

r con

tract

m

anag

emen

t

24

Sum

mar

y an

d C

oncl

usio

n

Inte

rnat

iona

l Tre

nds

in P

PP U

nits

Pres

enta

tion

of C

ase

Stud

ies

Less

ons

Lear

ned

on P

PP U

nits

Sum

mar

y an

d C

oncl

usio

n

25

Sum

mar

y of

Inte

rnat

iona

l Pra

ctic

es

•P

PP

Uni

ts a

re n

ot a

sta

ndar

d re

quire

men

t for

a s

ucce

ssfu

l P

PP

pro

gram

but

rath

er a

Gov

ernm

ent r

espo

nse

to s

peci

fic

need

s•

PP

P U

nits

per

form

a w

ide

varie

ty o

f rol

es w

ith th

e m

ost

com

mon

bei

ng (i

) PP

P P

olic

y S

uppo

rt an

d C

oord

inat

ion

(ii)

Qua

lity

Con

trol a

nd (i

i) P

roje

ct P

repa

ratio

n S

uppo

rt (a

t lea

st

until

fina

ncia

l clo

se)

•P

PP

Uni

ts w

ith e

xecu

tive

pow

er te

nd to

be

mor

e ef

fect

ive

than

pur

ely

advi

sory

one

s •

Whe

ther

set

up

with

in a

coo

rdin

atin

g M

inis

try o

r as

a se

para

te e

ntity

, PP

P U

nits

kee

ps s

trong

link

s w

ith T

reas

ury,

w

hich

reta

ins

mos

t of t

he re

spon

sibi

lity

for p

roje

ct a

ppro

val

•G

iven

pro

ject

adv

isor

y re

spon

sibi

lity,

cap

acity

bui

ldin

g an

d qu

ality

of s

taff

of th

e P

PP

uni

t is

an im

porta

nt c

ontri

buto

r of

the

succ

ess

of P

PP

pro

gram

s•

Fund

ing

from

pub

lic s

ourc

es s

eem

s m

ore

appr

opria

te u

ntil

repu

tatio

n an

d su

cces

sful

pro

ject

s ar

e es

tabl

ishe

d

26

Add

ition

al fa

ctor

s fo

r suc

cess

of P

PP U

nits

•P

PP

uni

ts a

re n

ot a

mira

cle

cure

and

less

ef

fect

ive

gove

rnm

ents

tend

to h

ave

inef

fect

ive

units

•P

PP

uni

ts a

lso

tend

to s

trugg

le w

hen

proc

urem

ent o

f inf

rast

ruct

ure

and

capi

tal

wor

ks is

not

tran

spar

ent a

nd c

ompe

titiv

e•

With

out h

igh-

leve

l pol

itica

l sup

port

for t

he

PP

P p

rogr

am, a

PP

P u

nit w

ill m

ost l

ikel

y fa

il

27

Inte

rnat

iona

l Exp

erie

nce

in E

stab

lishi

ng a

nd

Ope

ratin

g PP

P U

nits

THA

NK

YO

U !

Vick

ram

Cut

tare

eTh

e W

orld

Ban

k

vcut

tare

e@w

orld

bank

.org