1. © 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

2. © 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

3. © 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

4. © 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