VfM in CEE and SEE Countries

When developing and implementing Public Private Partnerships (PPP) there are a number of key issues that must be taken into account during the justification of this form of procurement. One of the most important considerations is ensuring that the PPP will provide Value for Money (VfM) to the Public Sector when compared to more traditional methods of procurement. The process of calculating VfM for a PPP is called a Public Sector Comparator (PSC) and is an economic evaluation of both the traditional and the PPP forms of procurement that takes into account all aspects of the design, financing, delivery and maintenance of an asset. This paper defines the complexities of a PSC and shows how they have been adopted in Central and Eastern Europe (CEE) and South Eastern Europe (SEE) countries through a practical case study.