Effective Regulatory
Framework for Public
Private Partnerships
Delia Rodrigo
Policy Analyst
Regulatory Policy Division
Directorate for Public Governance
and Territorial Development
OECD
1
Three main points:
1.The government role &
Regulatory challenges
2.Regulatory Policy
Framework
3.Ex ante Assessment
2
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”.
5
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)
6
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:
delia.rodrigo@oecd.org
www.oecd.org/mena
www.oecd.org/gov/regref
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