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

Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi
Final Report
agreements relating to such provision of funds must be carefully examined to ensure that there
are no “strings attached” that might cause the Unit or PDF to take decisions based on factors
other than the technical factors with which they have been tasked.
Independence from Political and Industry Capture
Sources of funding for the PPP Unit, and regulations on what kinds of funds may be accepted under what
conditions, are described in detail in the Sources of Funds section of the Draft PPP Act and Regulations
provided in the Annex to this report.
A final point regarding conflicts of interest is that the PPP Unit, and obviously the PDF, must be
insulated as much as possible from political influence. This means great care will need to be
taken in defining how officers are appointed and removed. Both should be based clearly on
merit, there must be competition in the selection process, and there must be clearly defined
grounds required for removal.
V.C.
Organizational Structure of the PPP Unit
Before the internal organizational
structure for the PPP Unit is considered,
the actions described in the figure to the
right must first be carried out. The
options open to the PPP Unit in terms of
its location and to whom it will report
within the existing Government
structures are examined in another
Designing a PPP Unit’s Organizational Structure
1. Define the proposed levels of authority and responsibility;
2. Develop a terms of reference staffing profile;
3. Identify a human resource profile for the staff positions;
4. Establish recruitment requirements;
5. Develop terms of employment and pay structures;
6. Finalize training requirements of staff; and
7. Establish a budget for the PPP Unit.
section of this report. These options will be better understood by reviewing the PPP Unit
design within the current institutional context, taking into account the international models that
have been successful.
V.D.
PPP Unit Structure and Activities
In Malawi various GoM agencies are involved in PPP, yet the guiding expertise on PPP is
dispersed, leaving quality control and coordination without oversight. In most countries that
have successfully implemented PPP there is a PPP Unit or “focal point” to ensure that line
agencies and local governments pursuing PPP projects adhere to best practices and standards,
especially in the assessment of affordability, value for money, and the appropriate allocation of
risks between the public and private sector. These quality control and coordination functions
should rest with a central PPP body. Therefore, in this report we have recommended the
establishing of a National PPP Unit.
Before considering the institutional options, it is essential to define the function and form of the
PPP Unit itself. A typical PPP Unit in a country of Malawi’s size should be lean and nimble, but
should also have the capacity to cover a range of functions and grow in scale as the program
progresses. The PPP Unit should have core technical and management staff and utilize, to the
greatest extent possible, local skills to keep costs down and increase the skills mix available to
the GoM. Normally, a new PPP Unit will have one or more full-time International Advisors.
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