5 Public–Private
Partnership Handbook
6.3
Institutional Structures and Capacity Building
When restructuring sector roles is part of the PPP process, the private sector is engaged to un-
dertake activities that were in the public domain and the public sector becomes a regulator or
monitor, playing a limited role in actual service provision, if any. Most countries initially lack the
institutions and institutional capacity required to organize, manage, and implement a PPP process.
Existing institutions need to build capacity to be able to take on new roles and new institutions
often have to be created. Some key institutional arrangements used to support PPP are:
•
PPP units,
•
project implementation office/project
implementation unit, and
•
technical assistance.
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