Qatar education conference v2

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This is the presentation that I made at Qatar Education in London in June this year.

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  • As in other advanced countries, the demand for public services in the UK is growing faster than the economy as a whole. Especially for health and education, this trend is set to continue as the population ages and the UK invests in the skills and infrastructure it needs to compete in the global economy.
  • The Qatar national Vision 2030 recognises the need for education. PPP can play an important part in this.Perhaps the best model of PPP for Qatar may be adapted from the annuity-based DBFO model typified by the Private Finance Initiative (PFI) in the UK, Japan and Malaysia. Qatar should, perhaps, embrace partnerships between the public and private sectors to meet the needs of rapid increases in population. PPP can lead to new ideas and resources that can be focussed on developing social infrastructure necessary to evolve from a hydrocarbon based economy to a wider knowledge-based economy. PPP offers such huge potential. The private sector can create high quality knowledge-based jobs for the growing population within a framework that is supported by the public sector; who in turn would develop its ability to design the quality attributes of its increasing social infrastructure. PPP represents improved opportunities to administer and develop the economy alongside a job-rich, flourishing and industrious private sector. New service industries will evolve out of the hydrocarbon expertise that exists in abundance in Qatar. Redefining the quality of services, improving delivery standards, and looking for social returns, rather than just quarterly economic returns, are important for achieving success in PPP. Private sector involvement in the provision of public services is not new but the PPP model enables and encourages a greater depth of such involvement. If done properly it epitomises a win-win scenario
  • PPP often involves a new discipline for the public sector to define the long-term service that it wants, and the associated payment mechanisms necessary to incentivise the private sector to deliver the service on time and within the budget. It requires a system of checks and balances to ensure a fair balance of rights and responsibilities between public and the private sector. Due to these disciplines, PPP, as a form of public service procurement, will usually lead to reform of public service delivery through service improvement, a commitment to transparency and best value for money.This is a very complex structure, but very well worth embarking on it if done properly. Both the public sector and the private sector need to develop new skills. It also offers great opportunities for new local businesses – but they may need considerable hep from experienced people like us.
  • PPP means a contractual arrangement between a government entity and a private firm which incentivises the private firm to effectively and efficiently design, build, maintain and finance public infrastructure. There are two main types: the first is where the private firm takes revenue and/or demand risk (usually called a concession) and where the government retains those risks (usually called a DBFO or annuity based project). Many countries try to use concessions to start . The firm is incentivised to deliver and maintain, say, a toll highway, at the risk of losing revenue if they fail to provide a good quality highway that people are prepared to pay for. Unfortunately, the government has very little power to reduce payments if standards are not met. This is determined by the market. Real value comes from the second type (DBFO). In this case the private firm is incentivised to perform well in meeting the public's requirements (in, say, providing and maintaining primary healthcare facilities, or educational facilities) by having a performance measurement system that will only lead to full payment of a regular payment by government if the performance meets pre-determined levels. The use of good advisers is paramount. Too much concentration on the capital value and not enough attention is paid to the operating, management and maintenance costs especially when estimating the contract cost and secondly during bid evaluation .
  • Broadly, PPP in school education can operate to provide (i) infrastructural services, (ii) support services and (iii) educational services. There appears to be a progression in scope with the simplest being one in which the private partner provides infrastructure services but the government provides educational and other support services. The next stage in progression is where the private sector provides both infrastructure services and support services. The third type is where private sector provides infrastructure, support and educational services bundled together.Various models of PPP exist around the world. The World Bank research study “Public Private Secondary Education for Developed countries – a comparative study” analysed the costs and achievements of private and public schools in five developing countries i.e. Columbia, Dominican Republic, Philippines, Tanzania and Thailand and it was found that:-(i) Students in private schools outperformed students in public schools on a variety of achievements (ii) Unit costs of private schools were lower than those of public schools and (iii) Private schools had greater authority for decision making at the school level and better emphasis on enhancing student achievement.
  • Lebanese American artist, poet and writer .
  • Qatar education conference v2

    1. 1.
    2. 2. Qatar Education<br />Successful Public Private Partnerships in the Education Sector <br />June 2011<br />John Davie<br />Chairman Altra Capital Limited<br />Visiting Professor London Metropolitan Business School<br />Former Chairman UKTI PPP Export Advisory Group<br />Member UN Economic Council for Europe PPP Panel of Experts<br />www.altracapital.com<br />
    3. 3. Thinking ‘Outside the Box’<br />●<br />●<br />●<br />Join all the dots with without taking your pen off the paper <br />You cannot go through any dot more than once<br />●<br />●<br />●<br />●<br />●<br />●<br />Slide number 3<br />www.altracapital.com<br />
    4. 4. What is PPP?<br /><ul><li>A Public Private Partnership (PPP) is an umbrella term for Government schemes involving the private sector in public sector projects.
    5. 5. A method of providing public services, not simply for buying infrastructures.
    6. 6. It should contain
    7. 7. an expectation of service improvement
    8. 8. a commitment to transparency
    9. 9. the dismantling of monopolies and the reform of public services</li></ul>Slide number 4<br />www.altracapital.com<br />
    10. 10. Qatar National Vision 2030<br /><ul><li>Education is one of the basic pillars of social progress. The state shall ensure, foster and endeavour to spread it.
    11. 11. Hitherto, Qatar’s progress has depended primarily on the exploitation of its oil and gas resources....the country’s hydrocarbon resource will eventually run out
    12. 12. Future economic success will increasingly depend on the ability ......to deal with a new international order that is knowledge-based and extremely competitive
    13. 13. To meet the challenge, Qatar is establishing advanced educational and health systems, as well as increasing the effective participation of Qataris in the labour force. ...... Qatar will continue to augment its labour force by attracting qualified expatriate workers in all fields</li></ul>www.altracapital.com<br />
    14. 14. A cardinal principle behind the PPP <br /><ul><li>Intended to transform government departments from being owners and operators of assets into purchasers of services from the private sector</li></ul>www.altracapital.com<br />© Altra Capital Limited 20101<br />
    15. 15. Two main types of PPP?<br /><ul><li>PPP is a contractual arrangement between a government entity and a private firm which incentivises the private firm to effectively and efficiently design, build, maintain and finance public infrastructure
    16. 16. There are two main types:
    17. 17. where the private firm takes revenue and/or demand risk
    18. 18. PPP is usually called a concession
    19. 19. where the government retains those risks
    20. 20. PPP is usually called a DBFO or annuity based project</li></ul>Slide number 7<br />www.altracapital.com<br />
    21. 21. What are outputs?<br /><ul><li>What the government wants to achieve from the facilities and services to be provided
    22. 22. The specification of outputs helps to frame the bidders’ response to the request for proposals
    23. 23. The output specification should detail what needs to be achieved, not how it is to be achieved
    24. 24. The following examples illustrate the differences between the inputs and outputs
    25. 25. “Classrooms must have an adequate power supply to meet operational requirements” is an output.
    26. 26. “Ensure that classrooms have at least two pairs of 240V power supply socket outlets available on each wall” is not an output</li></ul>www.altracapital.com<br />
    27. 27. Types of Educational PPP Contracts<br />www.altracapital.com<br />© Altra Capital Limited 20101<br />
    28. 28. Types of Educational PPP Contracts<br /><ul><li>PPP: Government-Aided Schools at the Secondary Level (India)
    29. 29. PPP: Charter Schools (USA)
    30. 30. PPP: Contract Schools (Latin America)
    31. 31. PPP: Private Management of Public Schools (UK)
    32. 32. PPP: Alternative Education Schools (New Zealand)
    33. 33. PPP: Per Child Subsidy or Voucher (Chile)
    34. 34. PPP: Private Financing of School Construction (UK)
    35. 35. PPP: School Infrastructure (Canada)
    36. 36. PPP: School Infrastructure (Australia)
    37. 37. PPP: Publicly-funded private schools (Netherlands)</li></ul>www.altracapital.com<br />© Altra Capital Limited 20101<br />
    38. 38. PPP: Range of Possible Private Sector Responsibilities<br /><ul><li>School Facility Services (build and maintain schools)
    39. 39. Provide non-educational services (e.g. catering) and support services (e.g. technology)
    40. 40. Provide curricula and educational services
    41. 41. Provide teacher training services
    42. 42. Manage public schools
    43. 43. Provide all teaching and non-teaching services at public schools
    44. 44. Provide teaching services to publicly-funded students at privately-owned and managed schools</li></li></ul><li>Understand the Value Chain in Education<br />Infrastructure facilities<br />Operational Services<br />Allied Services<br />Management of Professional services – development of building/infrastructure<br />Operations – O & M<br />Provision of Faculty<br />Training and development<br />Provision of books<br />Transport, Catering, etc<br />Library<br />Labs, ICTs, Sports, administration,, etc<br />Bundled Approach for development of New Institutions<br />
    45. 45. Thinking ‘Outside the Box’<br />●<br />●<br />●<br />Inside the box thinking means accepting the status quo. <br /><ul><li>For example, Charles H. Duell, Director of the US Patent Office, said, "Everything that can be invented has been invented."
    46. 46. That was in 1899: clearly he was in the box!
    47. 47. In-the-box thinkers are skilful at killing ideas. They are masters of the creativity killer attitude such as "that'll never work" or "it's too risky."</li></ul>●<br />●<br />●<br />●<br />●<br />●<br />Slide number 13<br />www.altracapital.com<br />
    48. 48. If a teacher is indeed wise, he does not bid you enter the house of his wisdom, but rather leads you to the threshold of your own mind.<br />(Kahlil Gibran)<br />Thank Youwww.altracapital.comjohndavie@altracapital.com <br />

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