© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Institutional Models for Co-ordinating and Supporting Concessions.

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© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Institutional Models for Co-ordinating and Supporting Concessions / PPPs Martin Darcy

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Building the Internal Capacity (1) l Most observers now agree that, in the case of PPP, scarce human resource in the government sector should be centralised l Reasons: One stop shop for policy advice and assistance for government officials The same for bidders, investors and funders Develop a critical mass of internal knowledge l …..But where in the Government? l Examples: Ministry of Finance Ministry of Economy Prime Ministers Office State Planning Authority Semi-autonomous Agency Public Procurement Office

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Building the Internal Capacity (2) l However, if there is a real prospect of dealflow due to the size of the sector (eg Health or Education) then it can be viable to have a PPP Unit in the Line Ministry. But not always. l Must also consider the capacity of the domestic market to participate l Ongoing public and media awareness and stakeholder training is essential l Capacity building takes significant time and money Learn from other projects (but be careful about which ones) There are plenty of financial assistance programs out there to support capacity building

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU The Challenges l Recruiting at market rates l Retaining skilled staff l Funding l Engaging all the stakeholders l Internal competition