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Dedicated Public-Private Partnership Units

A Survey of Institutional and Governance Structures

image of Dedicated Public-Private Partnership Units
Dedicated public-private partnership (PPP) units are organisations set up with full or partial aid of the government to ensure that the skills needed to handle third-party provision of goods and services are made available and clustered together within government. Such units enhance the capacity of government to successfully manage the risks associated with a growing number and value of PPPs. Although a relatively recent phenomenon, in 2009 more than half of all OECD countries reported the existence of a dedicated unit of some kind.  

This book provides an overview of dedicated PPP units in OECD countries, including case studies covering: the State of Victoria (Australia), Germany, Korea, South Africa (an OECD enhanced engagement country), and the United Kingdom. It examines the functions and locations of dedicated PPP units, the role they play in the procurement process and  the lessons learned for other countries that have already established or are considering establishing a dedicated PPP unit.

 

Further reading

Public-Private Partnerships: In Pursuit of Risk Sharing and Value for Money (OECD, 2008)

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Annex A. OECD principles forprivate sector participation in infrastructure

The OECD established principles covering five important sets of challenges for national authorities in private sector participation in infrastructure (OECD, 2007). First, the decision to involve the private sector has to be guided by an assessment of the relative long-term costs and benefits and availability of finance, taking into account the pricing of risks transferred to the private operators and prudent fiscal treatment of risks remaining in the public domain. Second, authorities need to ensure an enabling policy framework for investment. Third, the success of private involvement in infrastructure depends on public acceptance and on the capacities at all levels of government to implement agreed projects. A fourth challenge for public authorities and the private sector is to establish a working relationship toward the joint fulfilment of the general public’s infrastructure needs. Fifth, insofar as they are not rooted in formal legal requirements, governments’ expectations regarding responsible business conduct need to be clearly communicated by governments to their private partners.

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