The Public-Private Partnership Unit (PPPU) was established in the Ministry of Finance under Public-Private Partnership Law Number 31 of 2014. The PPP Law provides the legal basis for implementation of the PPP program and outlines the institutional framework and implementation procedures as well as the duties and responsibilities of all parties related to partnership projects.
The aim of PPPs is to provide the necessary funding for government projects without resorting to external borrowing or increasing government capital spending. The PPP program allows the Government to bypass fiscal and budgetary constraints and supports political and economic stability by providing required services to citizens without imposing new taxes. PPP projects allocate risks so that the Government does not bear risks associated with design, financing, construction, operation, and maintenance. PPPs leverage the experience and expertise of the private sector and reduce maintenance and operational expenses.
The Public Private Partnership Unit operates according to the PPP Law and Regulations. Technical requirements are determined by the unit to be submitted by the contracting authorities which includes feasibility studies and sustainability reports. PPP project proposals must be completed using the approved forms and registered after the project is approved by the PPP Council. Terms of reference must be drafted for all consultants hired by contracting authorities. The PPPU reviews feasibility studies and assists relevant parties with to negotiate contracts and participate in committees formed for each project.
The PPPU also prepares the guidelines for Terms of Reference and PPP contracts and tracks reports from the project implementers. It maintains a database for all PPP projects.
The PPPU will not play the same role as contracting parties in the implementation of the projects, but will be limited to determining technical requirements, reviewing documentation, administering PPP contracts, and monitoring progress, as well as providing support, assistance, and capacity building to the contracting parties.