Transcript Effective Regulatory Framework for Public Private Partnerships Delia Rodrigo

Effective Regulatory
Framework for Public
Private Partnerships
Delia Rodrigo
Policy Analyst
Regulatory Policy Division
Directorate for Public Governance
and Territorial Development
OECD
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Three main points:
1.The government role &
Regulatory challenges
2.Regulatory Policy
Framework
3.Ex ante Assessment
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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
3
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
4
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”.
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Ex ante Assessment

Assessment helps to
– Question if PPP is the best alternative to achieve
specific policy objectives
– Ensure consistency with economic performance
principles:
Fairness
Efficiency
Effectiveness

Competition
Transparency
Use of assessment tools to
achieve Value for Money:
– Risk Sharing Analysis
– Financial Analysis: Public Sector Comparators
(PSC)
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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
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Thank you!!!
For more information about
our work:
[email protected]
www.oecd.org/mena
www.oecd.org/gov/regref
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