The Ministry of Finance ("MOF") recently issued the Operating Guidelines for Performance Management of Public-Private Partnership (PPP) Projects (the “Guidelines”) which will go into effect 30 days after the date of issuance.

The Guidelines are divided into six chapters, including performance objectives and management of performance indicators for PPP projects, monitoring of PPP project performance and evaluation of PPP project performance, and shall apply to all PPP projects, including government-payment projects, viability gap funding projects and user-charges projects. The Guidelines clearly state that performance objectives of PPP projects include overall performance objectives and annual performance objectives, adding that performance objectives of PPP projects should touch upon the expected output, desired effects, project management, etc. Meanwhile, the Guidelines require that project implementation agencies shall, as agreed by the project contract, monitor the performance of PPP projects, while the project companies (private capital) shall be responsible for routine performance monitoring. PPP project performance monitoring usually aims at checking the accomplishment of objectives, safeguard measures to ensure the accomplishment, deviation from the objectives, elimination of such deviation, etc.

(Source: Ministry of Finance)