How to Engage with the Private Sector in Public-Private Partnerships in Emerging Markets

This guide reviews the necessary steps to successfully engage and manage a public-private partnership (PPP) from the early stages. It presents a framework that highlights the requirements, options, and challenges that governments face when embarking into PPPs, and explains how to address them so that a sound PPP program can be implemented and the benefits for both public and private partners can fully materialize.

This book draws on experiences from both mature and developing PPP markets across the world, and case studies illustrate the key messages throughout. It discusses the policies, processes, and institutions needed to select the right projects and then manage preparation for market and operation. It identifies the underlying principles of why and how the various processes are carried out, how a wide range of PPPs can be implemented in different sectors and how legal and administrative systems vary. Particularly important in light of the recent financial crisis, this book provides an introduction to the various approaches to finance projects as well as the policy responses that governments have recently adopted. It also looks at the role and proper selection of advisers to support the government in the preparation, bidding, and monitoring of PPPs.

Notes re specific topic coverage:
due diligence, pp. 124-125;

financing, Chapter 5;

monitoring, pp. 153-158;

project identification, selection, and appraisal, Chapter 4;

procurement process, Chapter 9;

stakeholder engagement, pp. 81-82;

transaction advisors, Chapter 7;

value for money analysis, pp. 41-43;

viability gap funding, pp. 66-67;  

Appendix B provides a “risk register” for a PPP project, providing an example of a risk allocation matrix, and of a qualitative approach to assessing and prioritizing risks.

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