PPP project governance structure

Public–private partnerships (PPPs) also have a variation for structure, which is described in chapter 8 of the Practitioners’ Guide to the National PPP Guidelines. The Practitioners’ Guide also provides a description of the specific roles and skills required.

Figure 11 is extracted from the Practitioners’ Guide and relates to the procurement phase (project delivery). The governance structure may change during the ongoing operational, contract management phase.

The suggested project management structure for the delivery of a successful PPP project will vary by project type as will the mix of skills and experience required.

The project director is a key resource and is responsible for delivering all critical elements of the project. This is a dedicated role, with overall responsibility for delivery of the project and management of the procurement team, including external advisors and consultants.

The public sector procurement team should reflect the breadth of skills brought to the project by a private sector consortium. Experience and knowledge need to be captured, retained and shared to enhance the likelihood of success of future PPPs.

The project team will require some specialist roles, which may be filled by internal resources or seconded to the team. However, external advisors are likely to be required to provide specialist advice and to supplement the internal team.

The skill sets also differ according to the phase of the project. Different skills are required for the procurement phase, versus the construction management phase, versus the contract management phase during operations. Adequate transition through these roles is key to success of long-term PPP contracts.

It is important that adequate funding be allocated to project delivery and ongoing contractual management of PPP projects.

Figure 11: Project governance structure for the procurement phase