Public-Private Partnership Units: What are they, and what do they do?

This ViewPoint note, coming from the World Bank, looks into the role of Public-private partnership units and draws some conclusions based on a review of 10 national PPP Units. In general, a PPP-unit is set up to fulfil the demand for new skills and capacities which are needed to deal with PPP project and takes on the form of a special cell within an existing government agency. Examples of these skills are: the ability to design project packages and contracts with sound risk allocation and incentives scheme to attract private investors, to assess costs for tax-payers, contract management skills and advocacy skills. Most PPP-units prove information and guidance on PPP and many provide advisory support and funding for agencies developing PPP projects. They often play a role in the approval of PPP schemes. The authors raise two critical questions: what should be the relation between the PPP-unit and line agencies, and how to prevent potential conflicts of interest, when a PPP unit is both providing input as well as has a role in the approval of a PPP scheme.