A Public–private partnership unit (PPP unit) is an organisation responsible for promoting, facilitating and/or assessing Public-private partnerships (PPP, P3, 3P) in their territory. PPP units can be government agencies, or semi-independent organizations created with full or partial government support. Governments tend to create a PPP unit as a response to prior criticisms of the implementation of P3 projects in their country. In 2009, 50% of OECD countries had created a centralized PPP unit, and many more of these institutions exist in other countries.
Definition There is no widely accepted definition of what a PPP unit is. The World Bank defines a PPP Unit as an organization that “promotes or improves PPPs. It may manage the number and quality of PPPs by trying to attract more PPPs or trying to ensure that the PPPs meet specific quality criteria such as affordability, value for money, and appropriate risk transfer.” Heather Whiteside describes them as "quasi-independent" institutions operating at "arm's length" from the government, and "created to promote, evaluate and develop P3 projects and policies."
Overview Different governments have encountered different institutional challenges in the PPP procurement process which justified the creation of a PPP Unit. Hence, these centralized PPP units need to address these issues by shaping their functions to suit their government's needs. The function, location (within government), and jurisdiction (i.e., who controls it) of dedicated PPP units may differ among countries, but generally, they include:
Policy guidance and advice on the content of national legislation. The guidance also includes defining which sectors are eligible for PPPs, as well as which PPP methods and schemes can be carried out. Approving or rejecting proposed PPP projects (e.g., playing a gatekeeper role at any stage of the process, such as the initial planning or final approval stage). Providing technical support to government organizations at the project identification, evaluation, procurement, or contract-management phase. Capacity building (e.g., training of public-sector officials that are involved in PPP programs or interested in the PPP process). Promoting PPPs within the private sector (e.g., PPP market development).World Bank (2007) "Public-Private Partnership Units: Lessons for their designs and use in infrastructure"
The United Kingdom's PPP units, the Treasury Task Force on PPP (1997) and later Partnerships UK (1998) were staffed with people linked with the City of London, and accountancy and consultancy firms who had a vested interest in the success of the country's PPP policy: Private Finance Initiative. This helped the government override the public sector's opposition to expanding P3s. These institutions played a central role in establishing P3s as the "new normal" for public infrastructure procurements in the country. In contrast, the Infrastructure Investment Facilitation Center (1999) suffered from a lack of formal or informal power, and so was involved in less than half of the 3P projects developed in the country.
Effectiveness A 2013 review of research into the value of centralized PPP units (and not looking at the value of PPPs in general or any other type of PPP arrangement, as it was aimed at providing evidence needed to decide whether or not to set up a centralized PPP unit) found:
No quantitative evidence: There is very little quantitative evidence of the value of centralized PPP coordination units vis-à-vis ministries or government agencies individually procuring PPP projects. Most of the studies conducted on PPP units focus on their role and carry out only brief descriptive analyses of their value. Limited authority: The majority of the PPP units reviewed in the literature do not play a particularly important role in approving or rejecting PPP programs or projects. While their advice is used in the decision-making process by other government bodies, the majority do not actually have any executive power to make such decisions themselves. Hence, when they have more authority, their value is seen to be higher. PPP units differ by country and sector: Government failures, in regards to PPP units, vary by government. The requirements for PPPs also vary by country and sector, as do the risks involved (financial, social, etc.) for the country government. Hence, PPP units need to be tailored to solve these failures and properly assess risks and need to be located in the correct government departments, where they can command the most power. PPP units can play a number of important roles in the PPP process, but not all such units will play the same role, as their functions have been tailored to the individual country's needs. In some cases, limits on their authority have curtailed their effectiveness. Implicit value: The lack of rigorous evidence does not prove that PPP units are not an important contributor to the success of a country's PPP program. The literature review does show that while there is no quantitative data to this effect, there are widespread perceptions about the importance of a well-functioning PPP unit for the success of a country's PPP program.
The author of the 2013 review found no literature that rigorously evaluates the usefulness of PPP units. The literature does show that PPP units should be individually tailored to different government functions, address different government failures, and be appropriately positioned to support the country's PPP program. Where these conditions seem to have been met, there is a consensus that PPP units have played a positive role in national PPP programs.
Criticism Centralized PPP units have been criticized for structuring their project assessments with a bias in favor of PPPs over traditional procurement methods, especially if Promoting PPPs as part of their mandate. As P3 units are usually staffed with people linked with private financial, consultancy and accountancy firms who have a vested interest in the success of P3 policies, this creates an apparent conflict of interest.
Some PPP units have been criticized for paying their executive staff well above the public sector's standard pay rate, which was deemed necessary for enticing people with financial experience to work for them.
Some have questioned the usefulness of creating P3 units, as everything in their mandate could theoretically be accomplished by the government ministry responsible for public infrastructure.
List of PPP Units Country Territory PPP unit Duration Australia New South WalesNSW Public–private partnerships QueenslandProjects Queensland VictoriaPartnerships Victoria1999–present Bangladesh National Infrastructure Investment Facilitation Center 1999–presentPublic–Private Partnership Authority 2010–present Belgium FlandersFlemish PPP Knowledge Center WalloniaFinancial Information Cell BrazilFederalPPP Unit BahiaPPP Unit Espírito SantoPPP Unit Minas GeraisPPP Unit PernambucoPPP Unit São PauloPPP Unit Rio Grande do SulPPP Unit CanadaFederalPPP Canada2009–2018 British ColumbiaPartnerships BC2002–present New BrunswickPartnerships New Brunswick Ontario Infrastructure Ontario 2005–present QuebecQuebec Agency for Public–Private Partnerships2004–2009 Saskatchewan Saskbuilds2012–present ChinaNationalPublic–private partnerships Center Hong KongHong Kong Efficiency Unit CroatiaNationalAgency for Public–Private Partnerships Czech RepublicNationalPPP Association DenmarkNationalDanish Business Authority EgyptNationalPPP Central Unit EstoniaNationalPublic Procurement Center FranceNationalMission d'Appui aux Partenariats Public–Privés2004–2017 Germany Lower SaxonyPPP Task Force North Rhine-WestphaliaPPP Task Force GhanaNationalPPP Advisory Units GreeceNationalSecret Secretariat for PPPs HondurasNationalCommission for the Promotion of Public–Private Partnerships Hungary National Hungary Central PPP Unit 2003–present IrelandNationalCentral PPP Policy Unit IsraelNationalPPP Unit (Ministry of Finance) India Federal Department of Economic Affairs PPP Cell 2006–presentAndhra PradeshUrban Finance and InfrastructureAssamAssam PPPBiharInfrastructure Development AuthorityKarnatakaInfrastructure Development DepartmentMaharashtraRegion Development AuthorityOdishaPPP UnitPunjabInfrastructure Development BoardUttarakhandPPP cell IndonesiaFederalIndonesia Infrastructure Guarantee FundPPP Directorate of Bappenas ItalyNationalProject Finance technical unit Jamaica National National Investment Bank of Jamaica 1980–present JapanNationalPFI Promotion Office KazakhstanNationalKazakhstan PPP Center KenyaNationalPPP Unit KosovoNationalPartnership Kosovo KuwaitNationalPartnerships Technical Bureau LatviaNationalCentral Finance and Contracting Agency LebanonNationalHigher Council for Privatization and Partnerships MalawiNationalPublic Private Partnership Commission MalaysiaNationalPPP Unit MauritiusNationalPPP Unit MexicoFederal + RegionalProgram for the Promotion of Public–Private Partnerships in Mexican States2007–present NamibiaNationalPPP Unit NigeriaNationalInfrastructure Concession Regulatory Commission New ZealandNationalNational Infrastructure Unit PakistanFederalPrivate Power Infrastructure BoardInfrastructure Project Development Facility PunjabPPP Cell SindhPPP Unit PeruNationalProInversion Philippines National Public-Private Partnership Center (PPP Center) 1999–present PolandNationalThe department for PPP in the Ministry of Funds and Regional Policy Portugal National Project Monitoring Technical Unit 2012–present RussiaFederalPPP Development Center SenegalNationalAgence nationale chargée de la promotion des investissements et des grands travaux Unité Nationale d'Appui aux Partenariats Public–Privés SerbiaNationalCommission for Public Private Partnerships South Africa Federal South African Treasury PPP Unit 2000–present South KoreaNationalPrivate Infrastructure Investment Management Centre2005–present Sri LankaNationalUtilities Commission of Sri Lanka, Board of Investment UgandaNationalPPP Unit (MoFPED) United Arab Emirates DubaiPPP Unit2015–present United Kingdom National Treasury Task Force for PPP 1997–1998Partnerships UK1998–2011Local Partnerships2009–presentNorthern IrelandStrategic Investment Board ScotlandScottish Futures Trust2008–present United States Puerto RicoPPP Authority UruguayNationalPublic–Private Participation Unit2009–present Source: World Bank
See also Public-private partnerships by country Public-private partnerships in Canada Public-private partnerships in India Public-private partnerships in the United States Public–private partnership in transition economies Privatization
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