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