Annex A. OECD principles forprivate sector participation in infrastructure

The OECD established principles covering five important sets of challenges for national authorities in private sector participation in infrastructure (OECD, 2007). First, the decision to involve the private sector has to be guided by an assessment of the relative long-term costs and benefits and availability of finance, taking into account the pricing of risks transferred to the private operators and prudent fiscal treatment of risks remaining in the public domain. Second, authorities need to ensure an enabling policy framework for investment. Third, the success of private involvement in infrastructure depends on public acceptance and on the capacities at all levels of government to implement agreed projects. A fourth challenge for public authorities and the private sector is to establish a working relationship toward the joint fulfilment of the general public’s infrastructure needs. Fifth, insofar as they are not rooted in formal legal requirements, governments’ expectations regarding responsible business conduct need to be clearly communicated by governments to their private partners.