Read the Principles
Public-Private Partnerships (PPPs) are long term agreements between the government and a private partner whereby the private partner delivers and funds public services using a capital asset, sharing the associated risks. PPPs may deliver public services both with regards to infrastructure assets (such as bridges, roads) and social assets (such as hospitals, utilities, prisons).
The interest in PPPs has been growing in recent years and the need for fiscal restraint in most OECD Member countries is expected to further increase their usage. This presents policy makers with particular challenges that should be met with prudent institutional answers.
Aims of the Principles
The OECD Principles for Public Governance of Public-Private Partnerships provide concrete guidance to policy makers on how to make sure that Public-Private Partnerships (PPP) represent value for money for the public sector.
In concrete terms, the Principles will help ensure new projects add value and stop bad projects going forward.
They provide guidance on when a PPP is relevant – e.g. not for projects with rapidly changing technology such as IT, but possibly for well known generic technology such as roads.
They focus on how you need to get public sector areas aligned for this to work: institutional design, regulation, competition, budgetary transparency, fiscal policy and integrity at all levels of government.
The 12 Principles are focused around 3 objectives:
- Establish a clear, predictable and legitimate institutional framework supported by competent and well-resourced authorities.
- Ground the selection of Public-Private Partnerships in value for money.
- Use the budgetary process transparently to minimise fiscal risks and ensure the integrity of the procurement process.
For further information on the OECD Principles for Public Governance of Public-Private Partnerships please contact Ian.Hawkesworth@oecd.org
Public-Private Partnerships: In Pursuit of Risk Sharing and Value for Money
Senior Budget Officials network on public-private partnerships (PPPs)