Road planning, policy objectives and PPP policy framework

A public-private partnership policy can only be successful if the public authorities play their role correctly. Inefficient organization in the management of these partnerships can result in substantial and unnecessary costs for the government, developers, consumers and private partners.

Module 3: Policy and Planning describes the public sector functions under PPP in order to ensure protection of the public interest. It includes the definition of the PPP policy framework

Module 3 provides assistance to the public sector to provide the appropriate national and sub national planning framework to give their PPP policy and projects the best chances of success. It introduces the national or macro level of planning for PPPs, the obligations they impose on the public sector in particular and the need for PPP planning and policy frameworks to facilitate implementation of PPP projects. It provides public authorities with an important set of tools at the macro level before considering legal and contract requirements in Module 4 and finally PPP implementation in Module 5. The content of Module 3 is presented under three main headings as follows:

Sector Planning and Strategy describes highway sector and network planning, technical standards, maintenance strategies and sustainability principles and tools, and introduces PPPs within the sector planning process.

Promoting and Protecting the Public Interest describes the two key important public functions within PPP development of (i) promoting and accelerating socio-economic development and (ii) protecting the public interest. It introduces user and community perspectives including public participation, social and environmental safeguards including identifying and mitigating the negative impacts arising from for example land acquisition and the need for resettlement and on the environment, as well as including both positive and negative impacts on the poor. It also includes road safety.

PPP Policy Framework describes why and how the Public Sector can provide the appropriate frameworks and environment for PPPs. It describes the various frameworks needed for successful PPP implementation including policy, regulation and regulatory bodies, risk, financial and institutional/governance (refer Module 5 for PPP project implementation). It includes sector institutional reforms and HRD/ training and enhancing the capacities of the private sector including contracting, advisory services and financing.

Guide to New Methods of Financing and Public/Private Partnership, PIARC, 1999, Ref. 3, page 83