Program Planning

There are three primary steps to planning a PPP program:

  • Identifying PPPs through public investment planning
  • Ensuring PPP projects are good public investments
  • Building a PPP pipeline

Identifying PPPs through public investment planning

Sound public investment planning and management is crucial to the success of PPP projects. Public investment planning includes:

  • developing sector or infrastructure strategies;
  • assessing project options to meet objectives;
  • conducting detailed feasibility and cost-benefit analyses; and
  • project selection and prioritization in an overall public investment plan or fiscal envelope. (To ensure that the PPP addresses sector objectives, responsibility for project identification should rest with the relevant sector agency.)

Please note that in some cases PPP projects may also emerge from sources other than the standard public investment planning process, such as unsolicited proposals. While unsolicited proposals can be a way to capitalize on the ideas of the private sector, they can introduce the risk of the project not being well-integrated with broader sector and infrastructure plans and priorities. They should therefore be subject to the same analysis and screening as any proposed public investment and PPP.

Ensuring PPP projects are good public investments

PPPs should be seen as a means to implement public investment, not as an alternative. This means:

  • PPP processes should be aligned with public investment management processes to ensure that PPPs are subject to the same scrutiny as regular public investment projects.
  • Potential PPP projects should be subject to the same project feasibility and viability analysis as any other public investment, from initial needs and options assessment to analysis of expected project outcomes and fiscal affordability.

Building a PPP pipeline

There are several factors to consider when building a pipeline:

  • Project readiness and stage of preparation.
  • Responsiveness to the sector’s needs: for example, the project should be central to the development of the sector, as peripheral projects may turn out to be marginal and may distract from strategic priorities.
  • High implementability: that is, prioritizing PPP projects with a high likelihood of success, that are considered most likely to attract private sector interest, and for which there is a precedent in the local or regional market.
  • Affordability: a clear understanding of the likely sources of project revenues, and, in principle, agreement and ability to fund the government obligations.

Learn More

    • 2014
    • Asian Development Bank (ADB), World Bank Group (WBG), Inter-American Development Bank (IDB), PPIAF

    PPP Program Planning

    PPP Reference Guide Version 2.0

    Module 3 of the PPP Reference Guide describes the process for developing a PPP, including identifying projects, screening for PPP potential, and building a PPP pipeline. The PPP Reference Guide presents a global overview of the diversity of approaches and experiences in the implementation of PPPs, providing an entry point to the substantial body of knowledge on PPPs that has been built up by practitioners in governments, the private sector, international institutions, and academics. It seeks to provide advice on what PPP practitioners should know, rather than provide advice on what to do. 

    • 2010
    • Timothy Irwin, Tanya Mokdad
    • World Bank Group (WBG), PPIAF

    Managing Contingent Liabilities in Public-Private Partnerships: Practice in Australia, Chile, and South Africa

    Governments that use public-private partnerships (PPPs) to build infrastructure usually acknowledge contingent liabilities. Examples include contingent liabilities regarding early contract termination, or debt and revenue guarantees. Governments can face difficulties as they consider whether or not to assume these liabilities, and how to value, monitor, and limit liability. This report reviews how governments in Australia, Chile, and South Africa have tackled these problems, and explores whether other governments (such as governments with less administrative capacity) should adopt comparable practices. All three countries rely on careful project preparation, competitive bidding, and a review of proposed PPPs by a specialized unit in the...

    • 2011
    • Asian Development Bank (ADB)

    Public-Private Partnership Infrastructure Projects: Case Studies from the Republic of Korea

    Volume 2: Cases of Build-Transfer-Operate Projects for Ports and Build-Transfer-Lease Projects for Education Facilities

    The Republic of Korea has rich experience in implementing PPP projects for almost a decade. This experience provides valuable lessons for most DMCs and that merits wider dissemination. The two-volume report prepared by the Korea Development Institute (KDI) presents an in-depth assessment of the different components of PPP framework of the Republic of Korea, including comparing and contrasting the success factors of the Korean PPP model with the experience of other countries through invited presentations on PPP frameworks and multisector case studies. This publication aims to support the efforts of DMCs engaged in the development of appropriate institutional PPP framework and regulatory reforms along with a well-defined and...

    • 2004
    • Government of South Africa
    • Government of South Africa

    Public-Private Partnership Manual, South Africa

    Main Introduction and Table of Contents

    South Africa is amongst the leading countries in the world in the law, policy and systems it has established for public private partnerships. The South African National Treasury’s PPP Manual is a best practice guide for PPP practitioners. Each module of the PPP Manual is issued as a National Treasury PPP Practice Note in terms of the Public Finance Management Act, 1999 (PFMA). It should be read with Standardised PPP Provisions, issued as National Treasury PPP Practice Note Number 01 of 2004.  

    • 2014
    • Asian Development Bank (ADB), World Bank Group (WBG), Inter-American Development Bank (IDB), PPIAF

    Planeacion y Programa para las APP

    Asociationes Publico-Privadas: Guia de Referencia Version 2.0

For legal and regulatory resources go to PPPIRC

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