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

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Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi Final Report A great deal of training and capacity building is required to convert government officials, who understand engineering and lowest-price procurement, into officials who are Service Delivery oriented. Being Service Delivery oriented means two important things: (1) the project must be “market driven,” meaning that consumer demand, affordability, and willingness to pay are key project appraisal factors; and (2) the focus of project appraisal is not on the Facilities, but rather on the Outputs of those Facilities. The “market driven” factor is especially foreign to officials of governments in countries where government has traditionally played a pivotal role in most of the key sectors, and has extensively intervened in economic activities. Such interventions characterize the governments of most emerging economies, including Malawi. Below, we have provided framework for capacity building. The curricula need to be incorporated into a training program for all key stakeholder ministries and departments, as well as regional and local level bodies. This training should be mobilized concurrently with mobilization of the National PPP Program, with an initial emphasis on PPP Nodes, and continued until there is enough capacity for the Program to operate without being constrained by a shortage of skills. PPP Professional Certification Program Included in the capacity building for PPP should be a professional certification program for managers and senior level officials. Government personnel policies and manuals, along with individual job descriptions, should provide a role for such certification to play in the process of selecting personnel and promoting them to higher-level positions. The components of such a certification program could be as follows: Forms of PPP and where they are being used within the region and around the world; Processes to identify PPP opportunities and the key elements that go into a PPP analysis; Elements to effectively structure the financing for PPP arrangements and put your new knowledge to the test in a financial modeling simulation exercise; How PPPs can be designed so that they stimulate the development of the local private sector and encourage local participation; Develop skills to effectively manage (and communicate with) the stakeholders to a PPP, including customers, the media, and labor unions; Learn about the Indian PPP regulatory framework; Institutional reviews and case studies; and Detailed and personalized strategic Action Plan Course Module Topics THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 78
Development of Policy, Legal, & Institutional Framework for the PPP Program in Malawi Final Report Module I: PPP Concepts, Rationale, and Contractual Options Overview of the forms of PPP The global experience with PPP and SADC examples New variations on PPP, including output-based aid Module II: Project Appraisal and Feasibility Studies Objectives and key elements of feasibility studies The 'value for money' and 'public sector comparator' concepts Criteria for screening projects Managing and allocating risks in PPP Engaging consultants to assist with the PPP process Module III: Project Finance and Investment Analysis Options for financing PPPs The rationale for a project finance approach The challenges of project finance for PPP, including currency devaluation, the need for guarantees, and special considerations for donor-financed projects Module IV: The Procurement Process The various forms of procurement including competitive bidding, competitive negotiations, and sole sourcing Methods for structuring bid evaluation criteria Maximizing transparency in the procurement process Module V: Communications and Stakeholder Relations Methods for managing stakeholder relations Structuring a communications program Addressing the human resources and labor relations implications of PPP Module VI: Contract Management, Monitoring and Evaluation Using the PPP contract as a regulatory instrument Establishing an independent regulatory framework for PPP The forms of economic regulation, including price cap & rate-of-return THE INSTITUTE FOR PUBLIC-PRIVATE PARTNERSHIPS 79
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31 March 2007 Mr. Constantine Chiko
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Development of Policy, Legal, and Insitutional Framework for - ppiaf

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