Development of Policy, Legal, and Insitutional Framework for - ppiaf

Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi
Final Report
‣ In order to create a new legal mandate to conduct PPP activities, which option for
legislative initiatives will enable the desired objective with the least possible
disruption to the present legal framework; and
‣ Which option for legislative initiatives can be achieved with the least amount of time
and effort, without compromising quality and effectiveness?
In order to apply an international best practice approach to evaluating the various Legal
Framework options, we took the following approach: (1) identify all of the reasonably feasible
options; (2) use a well-established options analysis methodology to reduce the number of
options to three; and (c) perform a detailed analysis of the remaining options so as to arrive at a
preferred option for the PPP Legal Framework.
Basically, our options for designing and implementing a new legal framework for PPP fall into
the following three categories: (1) enact no new PPP legislation; (2) enact a new PPP Act; and (3)
do not enact a new PPP Act. In the cart below, we present summaries of the various options,
along with brief arguments for and against the options, and then references to any international
models that may be available.
IV.A. Legal Framework Options Analysis
Category 1: No New PPP Legislation (4 options)
Option / Number Pros Cons International Models
No legislation (1)
Issue Standards and
Guidelines instead of
PPP regulations or Act.
PPP is already
underway in many
sectors, and capacity
of line ministries and
local government to
contract with the
private sector is
already in place, so
no need to press for
new legislation at the
national level. Just
issue an operations
guideline manual for
the national and
regional PPP
stakeholders to
provide guidelines
and standards.
The PPP Unit does only
dissemination of
information, setting of
standards/procedures
and PPP standard or
model documents for
transactions, provides one
stop access for private
sector, and builds capacity
in line ministries and local
governments. PC staff
selected by Gov’t and
donor could move to the
PPP Unit.
No legislation (2) Legal framework
could be in place
Limits the MOF’s role
to information
dissemination,
capacity building,
guidance regarding
how to apply the
principles of
affordability, risk
allocation, and value
for money. Authority
for an investment
decision has to be
vested in separate
MOF framework
and/or separate legal
body with mandate
for viability gap
funding.
International
experience in such
India: Operation
Guidelines Manuals for
a National PPP Node &
PPP Nodes.
Malaysia: PPP Unit in
the Min of Economic
Planning, reports to
Prime Minister.
USA: Decentralized
PPP at all levels of
government.
Sri Lanka: Bureau for
Infrastructure
THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 24