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Public-Private Partnerships: Establishing Institutional Frameworks

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Practice Advice on Strategy and Structure

Public-Private Partnerships: Establishing Institutional Frameworks (OECD)

Summary Advice: The OECD advises that, in creating public-private partnerships, governments should establish a clear, predictable and legitimate institutional framework supported by competent and well-resourced authorities.

Main Points: 

  • The political leadership should ensure public awareness of the relative costs, benefits and risks of Public-Private Partnerships and conventional procurement. Popular understanding of Public-Private Partnerships requires active consultation and engagement with stakeholders as well as involving end-users in defining the project and subsequently in monitoring service quality.
  • Key institutional roles and responsibilities should be maintained. This requires that procuring authorities, Public-Private Partnerships Units, the Central Budget Authority, the Supreme Audit Institution and sector regulators are entrusted with clear mandates and sufficient resources to ensure a prudent procurement process and clear lines of accountability.
  • Ensure that all significant regulation affecting the operation of Public-Private Partnerships is clear, transparent and enforced. Red tape should be minimised and new and existing regulations should be carefully evaluated.

Source: OECD (2012) "OECD Principles for Public Governance of Public-Private Partnerships" at http://www.oecd.org/governance/50254119.pdf (accessed 19 December, 2012).

Page Created By: Matthew Seddon on 19 December 2012. Updated by Ian Clark 2 January 2013. The content presented on this page is drawn directly from the source(s) cited above, and consists of direct quotations or close paraphrases. This material does not necessarily reflect the official view of the publishing organization.


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