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Benchmarking Public-Private Partnerships Procurement 2017: Assessing Government Capability to Prepare, Procure, and Manage PPPs
2018-03-30, World Bank
Public-private partnership (PPP) projects are gaining momentum globally as a means for delivering infrastructure. Government capabilities to prepare, procure, and manage such projects are important to ensure that the expected efficiency gains are achieved. No systematic data currently exist to measure those capabilities in governments. Benchmarking PPP Procurement 2017 is the first attempt to collect and present comparable and actionable data on PPP procurement on a large scale, by providing an assessment of the regulatory frameworks and recognized practices that govern PPP procurement across 82 economies. Benchmarking PPP Procurement 2017 presents an analysis of targeted elements aggregated into four areas that cover the main stages of the PPP project cycle:preparation, procurement, and contract management of PPPs, and management of unsolicited proposals (USPs). Using a highway transport project as a case study to ensure cross-comparability, it analyzes the national regulatory frameworks and presents a picture of the procurement landscape at the end of March 2016. The average performance in each area varies across regions and income levels. Figure ES.1 shows that the higher the income level of the group, the higher the performance in the four areas. The data also show that the Organisation for Economic Cooperation and Development (OECD) high income and Latin American and Caribbean regions perform at or above average. Benchmarking PPP Procurement 2017 shows that across the four areas measured, mosteconomies fall short of good practice. In particular, a significant number of economies have low scores in two areas: project preparation and contract management. Consequently, there is room for improvement specially in regulating the activities to be undertaken before launching the PPP procurement process as well as in preparing for those that will follow after the signature of the PPP contract.
Benchmarking Public-Private Partnerships Procurement 2015: A Pilot in 10 Economies
2015, World Bank Group
Inadequate infrastructure in developing countries is a major constraint on growth. Many governments face the challenge of low quality or non-existent infrastructure, often deriving from insufficient funding, poor planning, or ineffective delivery and maintenance. Public-Private Partnerships (PPPs) can help improve the quality of infrastructure "by vesting control rights with the private sector, bundling into one contract the design, construction, operation, and maintenance of the facility, and by transferring the risk of cost and time overruns to the private partner". Well-structured PPPs create the right incentives to maintain high performance records. They also tend to realign incentives in long-term service contracts so that responsibility for service delivery is transferred to the party with most to gain from sustained high performance. An appropriate PPP preparation and bidding process leads to a more efficient use of resources because the private partner will have a stake in the long-term implications of the cost of the infrastructure. In addition to these benefits, PPPs offer an opportunity to conduct "more informed and realistic selection procedures" by assessing long-term commitments and risk and shifting the focus from inputs to outputs (and even outcomes)