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Public-Private Partnership (PPP) coordination agencies are often used to assist government agencies in structuring PPP arrangements. Very few studies have compared the performance of various coordination agencies to understand the characteristics that define an effective coordination agency. The authors study three coordination agencies that were involved in projects in the water and sanitation sector in India and observe their performance across five parameters: project structuring, commercial risk management, relational risk management, project handover, and extent of institutional strengthening. The authors find that agencies with administrative expertise in handling project structuring and bid process, coupled with PPP-specific expertise and an understanding of PPP risks, are a necessary but insufficient condition for project success. In conjunction, high involvement of the coordination agency through the lifecycle of the project or measures that enhance the capacity of government departments to understand and monitor PPPs are required to ensure that real benefits are delivered to stakeholders.
Mahalingam et al. (Fri,) studied this question.