The first step for government in establishing a PPP framework is to articulate its PPP policy. PPP policy is used in different ways in different countries. This Reference Guide uses PPP policy to mean the government's statement of intent to use PPPs as a course of action to deliver public services and the guiding principles for that course of action. A PPP policy would typically include:
- PPP rationale/program objectives—why the government is pursuing a PPP program
- PPP program scope—what types of projects will be pursued under the PPP policy
- Implementing principles and governance arrangements—how PPP projects will be implemented, to ensure the PPP program meets its objectives
The following sections provide examples of how different countries define their PPP program objectives, scope, and implementing principles.
Many governments issue a PPP policy statement or document to communicate their intention to use PPPs to civil servants, the public, and potential investors and the rationale behind this decision. The policy statement also describes how PPPs will be implemented. The OECD’s report on fostering investment in infrastructure (OECD 2015b, 16–17) highlights the importance of a stable government position on private participation. The following sections reference some examples of PPP policy documents. Other countries incorporate these elements of PPP policy within PPP laws and regulations, or guidance material. PPP policies benefit from being more comprehensive public investment or infrastructure policy framework, as described further in PPP Processes and Institutional Responsibilities.