Building Stronger Institutions to Deliver Better PPPs (English)
There is unprecedented interest among developing countries to attract private investment into infrastructure and basic services to meet growing national demand. Today, nearly all developing countries have successfully brought an infrastructure public-private partnership (PPP) to market. Establishing strong PPP frameworks and institutions communicates a government’s commitment to PPPs and is expected to foster efficiency and accountability in their governance and lead to higher quality transactions. PPPs can be implemented on a one-off basis without any specific supporting legal and institutional framework. However, to fulfill countries’ ongoing infrastructure investment requirements and to generate value-for-money transactions, they will need to go beyond first-mover projects to establishing PPP programs that encourage an active bidder and financing market. To better understand the drivers of success for PPP programs and how development partners can best provide support to national governments to establish and build their PPP program, the World Bank Group ’s Infrastructure, PPPs, and Guarantees (IPG) group and the public-private infrastructure advisory facility (PPIAF) established the PPP institutions building program. The program undertook: (i) analysis and research to identify critical factors for success and failure of PPP programs, and (ii) a review of tools, resources, and technical assistance provided to develop PPP institutions.
Six practice notes are now available:
- The Role of PPP Frameworks: This practice note describes findings and lessons learned relating to the role of legal and institutional frameworks in the success of PPP programs.
- Funding and Financing Support to PPP Programs: This practice note describes findings and lessons learned relating to the impact that funding and financial support from government can play - in both project preparation and investment - on the development of PPP programs.
- The Role of Capacity Building: This practice note describes findings and lessons learned relating to the role of capacity building and the development of PPP programs.
- The Role of Early-Stage Project Preparation: This practice note describes findings and lessons learned relating to pipeline identification and screening and early-stage project preparation and does not focus on individual transaction structuring support.
- Mapping of Tools and Resources: This practice note maps the tools and products utilized to provide PPP institutional support that were reviewed as part of the research.
- The Role of Contract Management: This practice note describes findings and lessons learned relating to the role of contract management in the success of PPP programs.