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

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<strong>Development</strong> <strong>of</strong> <strong>Policy</strong>, <strong>Legal</strong>, & Institutional <strong>Framework</strong> <strong>for</strong> the PPP Program in Malawi<br />

Final Report<br />

International Examples <strong>of</strong> Reporting Relationships <strong>for</strong> PPP Units<br />

MoF Reporting Structures<br />

South Africa - PPP Unit in National Treasury<br />

Sri Lanka - Independent Board with MoF Chairing the Board<br />

Egypt - PPP Unit in <strong>of</strong>fice <strong>of</strong> the Minister <strong>of</strong> Finance with a PPP promotion unit in Ministry <strong>of</strong> Investment<br />

Brazil - National <strong>Development</strong> Bank/MOF with implementation at State level<br />

Chile - Each Ministry has PPP Node, with national law & policy guidelines<br />

Reporting through Office <strong>of</strong> the President<br />

Philippines - Coordinating Counsel <strong>for</strong> Private Sector Participation (CCPPP ). View is the fluctuations in MoF<br />

attitude & budget toward PPP, which is long–term vision. MoF focused on the budget not on a national priority<br />

<strong>for</strong> infrastructure development while it is a assumed the President will strongly supportive with a long-term view.<br />

Jordan – Executive Privatization Unit (EPC), Office <strong>of</strong> the Prime Minister (King is Head <strong>of</strong> State). Unclear legal<br />

m<strong>and</strong>ate <strong>for</strong> PPP, even though EPC is default PPP promotion <strong>and</strong> management organization. Lack <strong>of</strong><br />

coordination with important line ministries, particularly water <strong>and</strong> planning.<br />

Malawi - ‘Dotted line’ relationship between the PPP Unit (P3CU) <strong>and</strong> the MoF & Risk Management Unit (RMU).<br />

Conflict between Presidential Vs MoF.<br />

1. Difficult over Monorail project – lack <strong>of</strong> competition in tenders<br />

2. Toll road sc<strong>and</strong>als over the same issue.<br />

Developed Economies Reporting Structures<br />

The Netherl<strong>and</strong>s - A PPP Knowledge Centre has been established within the Ministry <strong>of</strong> Finance with staffing<br />

from MoF <strong>and</strong> Economic Affairs.<br />

Italy - A temporary government body (the Unita Finanza di Progretto) has been established within the<br />

Economic <strong>Policy</strong> Committee a joint initiative involving Ministries <strong>of</strong> Public Works, Finance <strong>and</strong> Treasury<br />

The United Kingdom - Initially Treasury Task<strong>for</strong>ce more recently has given way to Partnerships UK (PUK) <strong>and</strong><br />

the Office <strong>of</strong> Government Commerce. Independent <strong>of</strong> all these local authorities set up an association to support<br />

their initiatives Public Private Partnerships Programme (4Ps)<br />

Australia - The PPP program within Victoria is co-coordinated centrally by the Treasury.<br />

Irel<strong>and</strong> - Set up with an independent PPP Unit within the Ministry <strong>of</strong> Finance.<br />

Overall Working Relationships<br />

The team has proposed to strengthen the role <strong>of</strong> regulation <strong>and</strong> ensure its independence more<br />

so <strong>of</strong> the line ministries involved in PPP. The intent is to place the line ministries, municipalities,<br />

<strong>and</strong> community groups into a central role in the promotion <strong>of</strong> PPP projects through the PPP<br />

Unit. Due to the need <strong>for</strong> financial approvals <strong>for</strong> the main stages <strong>of</strong> PPP feasibilities, the MoF<br />

has a direct role in either managing the PPP unit or supporting its review <strong>of</strong> PPP proposals.<br />

Then there is procurement oversight by the ODPP to ensure openness, competitiveness, <strong>and</strong><br />

transparency <strong>of</strong> the procurement process.<br />

Possible PPP Unit Reporting Structure<br />

The following figure illustrates possible reporting structures <strong>for</strong> the PPP Unit to guide <strong>and</strong><br />

manage its relationship with other government departments <strong>and</strong> agencies.<br />

THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 61

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