PPP Institutional Strengthening in the Western Balkans

Public procurement in the form of public-private partnerships (PPPs) uses private sector methods and tools to deliver modern public services, creating value for money and reducing fiscal risk. A prerequisite for the successful delivery of projects and a reasonable balance between the public and private sector is the establishment of an adequate institutional framework. Most of the Western Balkans countries are currently in a transition period during which the state structures are harmonised and adapted to the requirements stemming from potential membership to the European Union. Apart from the increase in the efficiency of the administration, these complex changes also entail the harmonisation of the complete legal and institutional framework with the European Union. Hence, the norms and structures related to public-private partnerships also need to be addressed.

The project brings some of the European PPP Expertise Centre's (EPEC) expertise to the region, both its experienced executives and its network of 40 public sector members, from within the EU and border countries. It also helps to share knowledge and experience among the PPP public stakeholders of the region's countries. By doing so, the countries covered by the WBIF will be able to establish harmonised institutional structures as well as go forward with their PPP programming and PPP project readiness assessment to procure and deliver projects at the right stage of development. In particular, the project focuses on:

• obtaining access to and extending the current EPEC network structures and databases to all countries governed by WBIF;
• assessing current PPP and related institutional structures and making some recommendations for improvement; and
• developing a methodological tool for PPP project readiness assessment.

The project beneficiaries are all the countries of the Western Balkans. The first phase has provided access to the current EPEC network structures, databases and activities to all countries where WBIF operates. Although the second and third phases, which look at assessing and revising institutional structures, have originally been implemented with Croatia and Montenegro, the lessons learned product from these countries would be helpful across the wider WBIF. The fourth phase aimed at developing a project readiness tool that can be used across the whole region. The project has enabled a general increase in PPP-related knowledge to all WBIF countries which will help them both to increase their level of usage of private funds, as well as their effectiveness. The readiness tool project will help to secure the quality of PPP projects before they come to market.

The project was completed in June 2014.