Why reform is needed
The EBRD regions continue to experience an increased demand for infrastructure, which is particularly acute in light of scarce financial resources and competition for funds and expertise. Attracting private sector resources such as funding, efficient management and know-how facilitates overcoming limitations of the public budget for infrastructure building, maintenance and quality services provision. Public-private partnership (PPP) structures have become one of the most common instruments for the development of infrastructure, using the resources and expertise of the private sector.
The EBRD experience shows that effective implementation of PPP structures for infrastructure development, particularly in developing countries, is impossible without efficient and transparent policy, legal/regulatory and institutional frameworks encouraging private sector participation (including foreign capital), that is on sustainable terms and with appropriate allocation of risks between the public and private sectors.
The LTP’s role
For more than two decades, the LTP has been assisting governments committed to bringing their PPP/concession regimes in line with internationally accepted standards and best practice in the PPP/concessions sector.
The LTP’s technical assistance typically focuses on:
- supporting national PPP policy formulation and strategic advice on sector development to the ministry in charge or other counterparts
- assisting governments align their legal and regulatory frameworks with internationally accepted standards and best practices, including support to legislative drafting and providing necessary implementation arrangements
- helping governments to ensure that the necessary institutional infrastructure is in place, with the delineation of policy formulation, regulatory and operational functions
- providing support to capacity-building, training and awareness activities.
The scope of each technical assistance / legal reform project is carefully developed in cooperation with the respective government, to match the country’s specific needs with tailored expertise. Assessment results often serve as an indication of gaps and a starting point for the identification of areas of potential assistance.