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Effective Regulatory Framework for Public Private Partnerships: 

Effective Regulatory Framework for Public Private Partnerships Delia Rodrigo Policy Analyst Regulatory Policy Division Directorate for Public Governance and Territorial Development OECD

Three main points:: 

Three main points: The government role & Regulatory challenges Regulatory Policy Framework Ex ante Assessment

The Government Role & Regulatory Challenges: 

The Government Role & Regulatory Challenges Main goal of PPPs: Provide quality public goods efficiently and fairly through private sector participation Implementing high quality regulation may contribute to improved trust and framework conditions for PPP success: policy goals political considerations ethical concerns PPPs without sufficient ex-ante analysis, competition, and the proper institutional framework will not deliver its promise

Regulatory Policy Framework (I): 

Regulatory Policy Framework (I) Clear goals and objectives Establish clear benchmarks for success and failure Ensure policy coherence Expectations and requirements of PPPs are distinct from other forms of public-private associations Define critical ex ante assessments needed: risk assessment and sharing Political support Project champion and consensus building Risks: bad legislative framework distrust from private sector financial consequences

Regulatory Policy Framework (II): 

Regulatory Policy Framework (II) Corruption and ethical issues Information asymmetry Contacts, informal networks and collusion Officials’ conflict of interest Political financing Regulatory guidelines for PPP policy framework Regulatory policy must “ensure that the public interest is not subordinated to those of regulated entities and stakeholders”.

Slide6: 

Assessment helps to Question if PPP is the best alternative to achieve specific policy objectives Ensure consistency with economic performance principles: Fairness Competition Efficiency Transparency Effectiveness Use of assessment tools to achieve Value for Money: Risk Sharing Analysis Financial Analysis: Public Sector Comparators (PSC) Ex ante Assessment

Summary and Conclusions: 

Summary and Conclusions The government role & Regulatory challenges Provide quality public goods efficiently and fairly through private sector participation Implementing high quality regulation may contribute to improved trust and framework conditions for PPP success ex-ante analysis, competition, and the proper institutional framework for PPP success Regulatory Policy Framework Clear goals and objectives Political support Corruption and ethical issues Regulatory guideline principles Ex ante Assessment Challenges how to best achieve policy objectives

Thank you!!!: 

Thank you!!! For more information about our work: delia.rodrigo@oecd.org www.oecd.org/mena www.oecd.org/gov/regref