This document summarizes a book on rethinking public-private partnerships. It provides an overview of the book's contents and production process. Key points from chapters include discussions on how the global financial crisis impacted PPPs, the need for improved transparency in PPP contracts, and the importance of relationship management and trust between public and private partners. Later chapters propose a theory-based evaluation approach and set of principles for improved PPP models. The concluding remarks discuss trends in PPP financing and governance.

2. Rethinking Public-Private Partnerships
(Greve, Hodge - editors)
Book launch
Copenhagen
30 April 2013
Carsten Greve
Professor, Ph.D.
cg.dbp@cbs.dk
With introduction by Susana Borrás, Head of Department, DBP
and comments from Professor Grahame Thompson, DBP

3. Overview: A PPP project
Source: OECD. 2008. Public-Private Partnerships. In Pursuit of Risk
Sharing and Value for Money. Paris: OECD. p. 41.

4. 1
HOW WAS THE BOOK MADE?

5. Selected papers from IRSPM conferences: Panel on PPP
(International Research Society for Public Management) + a few requested papers
Copenhagen
Bern
Dublin
Rome

6. PPP panel at IRSPM in
Copenhagen back in ‘09
The editors

7. Publication process
2011:
Mail to authors:
all said yes
2012:
All chapters
submitted
2013:
Publication of
edited volume

8. Rethinking PPPs
The global
financial crisis
and PPPs
Assessing PPP
projects and
performances
Strategies for
turbulent times

9. PPPs: Varieties, forms & levels
A: Single project/activity
B: Type of delivery mechanism
C: Policy
D: Governance style/tool/symbol
E: Cultural/historical tradition

10. 2
WHY IS PPP STILL TOPICAL?

11. HM Treasury 2012 p. 16

12. The new “PF2” approach in the UK (report December 2012)
“A new approach to public private partnerships’ sets out the Government’s
approach to involving private finance in the delivery of public
infrastructure and services through a long-term contractual arrangement.
PF2 will;
• Strengthen significantly the partnership between the public and private
sector by Government looking to act as a minority public equity co-investor in PF2
projects;
•
•
•
•
Ensure that procurement is much faster and cheaper
Improve the flexibility of services introducing periodic reviews of service
provision.
Transform the approach taken to transparency Improve the value for
money of risk allocation in the contract Widen sources of debt and equity
finance by;
Deliver value for money by developing and consulting on guidance which
will replace the existing Value for Money Assessment Guidance”

13. Recent OECD policy guidelines for PPP (2012)
“Establish a clear,
legitimate and predictable
framework supported by
competent and wellresourced authorities
Ground the selection of
PPPs in value for money
Use the budgetary process
transparently to minimize
fiscal risks and ensure the
integrity of the procurement
process”

14. 3
TURBULENT TIMES

15. The European PPP market:
Source: European Investment Bank – presentation to OECD conference 2013

16. Connoly & Wall – chapter 2 –
on the impact of the GFC on PPP from a UK perspective
Significant improvements are required in
the economic circumstances, together
with a greater availability of finance,
before PPPs will become as
substantial as they were prior to the
GFC.
Whilst large amounts of money are still
being raised for PPPs, the totals
remain considerably lower than they
were before the crisis.
A return to what may be termed as normal
lending conditions may not be enough
to resurrect PPPs as a major means
of improving the UK’s infrastructure.
There should be no presumption that
continuing the use of private finance
at current rates will achieve VFM
(NAO, 2010)

17. Connoly & Wall – chapter 2
on the impact of the GFC on PPP from a UK perspective
Since the change of government in 2010
is that there is a much greater
emphasis on what is appealingly
referred to as ‘efficiency savings’ on
projects;
The financial sector continues to have a
dominant position in the UK economy
and thus the role of private finance in
infrastructure development is unlikely
to disappear.
A shift from bank lending to more marketbased solutions such as pension and
wealth funds and investment from
insurance companies.

18. Hellowell & Vecchi chapter 3
on the price of equity capital in PPPs
Institutional investors in the UK will not
enter the project finance market
unless contracts are modified so as to
reduce the risk borne by creditors.
In future contracts, risk will need to be reallocated from debt-holders to one or
both of the other main counterparties:
the public authorities and/ or the
equity investors.

19. Eoin Reeves – chapter 4 on the Irish PPP experience
Clear challenges in terms of improving
transparency and the extent of
information concerning individual
contracts that is released to the public
and the timing of any such releases.
When considering the need for
confidentiality on commercial grounds
however, policy makers must
recognize that large amounts of public
funds are committed to PPPs.
The reach of PPP is extending more and
more into sectors that are sensitive in
terms of the nature of services
involved (e.g. education, health, water
and environmental services).

20. 3
STRATEGIES FOR TURBULENT
TIMES

21. Innovation and dynamic processes in PPPs
Innovation and PPPs : Tamyko Ysa, Marc Esteve and
Francisco Longo - Spain
The non-profit perspective on PPPs: Anna Amirkhanyan and
Sarah Pettijohn - USA
A Foucault perspective on PPP mega projects: Sophie
Sturup - Australia
Public management of PPP urban redevelopment projects in
US cities: Rob Alexander - USA

22. Anna Amirkhanyan & Sarah Pettijohn,
American University, Washington DC. – Chapter 6
“Furthermore, in the search for the
best approaches to PPPs, we are
likely to come to the usual “it
depends” conclusion: different
institutional contexts,
contingencies, and service areas
introduce complexities that need
to be accounted for in the analysis
and understood by the
practitioners.”

23. Anna Amirkhanyan & Sarah Pettijohn,
American University, Washington DC – Chapter 6
“One promising direction for the future
research on PPPs may involve
understanding their diversity and
creating typologies that facilitate the
future theory building efforts.
Specifically, while much attention has
been paid to various service delivery
partnerships, some cross-sector
partnerships may be focused on
advocacy or regulation.
Currently, a large number of nonprofit
organizations are involved in
advocacy and some form of “shared
governance” .They pressure public
agencies to satisfy urgent social
needs or create collaborative alliances
to address those needs”

24. Rob Alexander, James Madison University, USA – Chapter 8
“”Awareness and management of the
broader actor network matters
particularly if project success includes
measures of satisfaction with project
processes. Such measures become
more relevant when researchers
examine PPP projects in the broader
social context of agency relationships
over time.
Under the appropriate organizational
capacity and market stability
conditions, public managers that
employ trust-based network
management strategies not only
achieve desired project outcomes,
they also generate positive
relationships that extend into the next
project, impacting overall perceptions
of success.”

25. An improved PPP model? Can a theory-based approach help?
Beyond the Contract:
A theory-based
evaluation of PPP
performance(s):
Jeffares, Sullivan &
Bovaird – UK/Australia
A theory of the
dynamics of
complexity and control
in PPPs: Verhoest,
Voets and Van Gestel
- Belgium

26. 12 composite partnership principles (Jeffares, Sullivan,
Bovaird) – Chapter 9
1.
2.
3.
4.
5.
6.
7.
8.
9.
Purpose is clear, aligned and realistic
Availability of appropriate financial and human resources
Clarity of motivations, roles, capabilities and contributions
Sufficient organisational processes and procedures that foster collaboration
Alignment of partners and policies
Commitment, ownership and responsibility of partners towards the partnership
Partnership is participative and empowering
Culture of collaboration trust and openness
Presence (and awareness) of cultural transformation, synergy, efficiencies or
exchange
10. Defines success monitors and reports its performance
11. Partnership is continually engaging with others, developing and learning
12. Clear attribution of benefits, risks and blame

27. 4
CONCLUDING REMARKS
RETHINKING PPP

28. Trends in PPPs
From bank finance
to mixed finance
and finance from
other sources
From Europe to
Asia and possibly
North America
From primary
deals to
secondary market
and M&A

29. Further questions
Risk sharing:
Who takes
on the risks?
Financing:
Where is it
going to
come from?
Governance:
Have
governments
learned how
to govern
more
efficiently?
Policy: How
do
governments
create a
robust PPP
policy
framework?