World Bank Guidance on PPP Legal Frameworks

This Guidance is intended for governments who wish to include public-private partnerships in their toolkit of methods for delivering infrastructure assets and services. It explains why a suitable PPP legal framework is essential and describes mechanisms for designing and implementing such framework. This Guidance sets out the main aims of and requirements for a PPP legal framework, while recognizing that there is no "one size fits all" solution. It explains how to establish a PPP legal framework that will facilitate successful PPP project development, procurement and delivery in a way that takes into account the characteristics of the relevant jurisdiction. Drawing on good practice sources and benchmarks, including the UNCITRAL legislative Guide, UNCITRAL Model Legislative Provisions and UNECE Guiding Principles, it provides succinct, practical guidance regarding: the drafting of PPP-specific primary and secondary legislation and guidance materials; the legal basis for the establishment and authority of institutions intended to drive the objectives set out in the relevant jurisdiction's broader PPP framework; the interaction between the PPP legal framework and the wider legal system; and the incorporation of key budgetary and E&S policy objectives into the PPP legal framework – to ensure such matters are considered at all stages of a PPP project and that PPPs align with government objectives relating to sustainability (including fiscal sustainability) and green, resilientand inclusive development. This Guidance does not address in detail topics such as the background and rationale for PPPs (or the various types of PPPs), comparisons between PPP and other methods of procurement, or the detailed content of a PPP Contract. For detailed information on these aspects, see the materials referenced in the Chapters and in Appendix A. Benchmark examples and references to particular practice in certain countries are included for illustrative purposes only and should not be interpreted as the World Bank’s endorsement of the respective country’s PPP framework/program or as recommended best practice.