This slide provides information about public private partnership (PPP) and specific characteristics of PPP in different sectors. Public Private Partnership is the relationship between government and private sector entities in the context of infrastructure and other development services. At present, it is a popular method to provide quality service to citizens. As government have not enough money to provide better service and develop infrastructure, partnership with private entities help government in these regards. As private sections are financially strong, they can help government to develop infrastructure and provide service according to citizen demands. PPP possessed several features in different sectors such as transport, power supply, education, health and so on. Each sectors has unique features. This slides contains all required information. Transport Sectors: Public-private partnerships (“PPPs”) can be an effective way to build and implement new infrastructure or to renovate, operate, maintain or manage existing transport infrastructure facilities. In both areas PPPs can be a mutually beneficial way to solve critical transportation problems. Transportation infrastructure (airports, ports, rail, roads, urban transport) is indispensable to sustainable socio-economic development and trade. They link peoples and regions and connect firms to markets. Efficient transportation infrastructure is a major contributor to enhanced productivity. PPPs provide a useful avenue for governments to access additional capital as well as technical expertise in the private sector to meet the very substantial demand from their populations for new and expanded transportation infrastructure in the coming decades. Fiber optic: The project company lays the fiber optic cables to link key demand centre and sells access to various telecommunication operators and internet service provider. Where new build residential development contemplated, PPP project can provide the full range video, audio, and telecommunication service from fixed line telephone service to broadband video streaming. Issues— Property Access Power Generation sectors: The public sector alone cannot respond to the enormous investment needed to meet the growing demand for electricity. Bringing in the private sector through the use of public-private partnerships (PPPs) allows governments to share the burden of financing and management. The government must set clear limits in market power of distribution utilities while allowing competition in the generation segment with the establishment of a market for energy. Issues: Regulations Planning and strategy Health Sectors: Public-Private Partnerships (PPP) in health sector services can be described as a long-term contract (typically 15-30 years) between a public-sector authority and one or more private sector companies. In Bangladesh, private sector health financing includes household expenditures, private nursing home investments and drug fund.

1. PA-424: Public Private Partnership
Specific Characteristics of PPP in Different Sectors
Semonara Akter
Session: 2016-17
Department of Public Administration
Comilla University

2. Definition of PPP
 The term “public–private partnership” describes a range of possible relationships
among public and private entities in the context of infrastructure and other
services.
 A strong PPP allocates the tasks, obligations, and risks among the public and
private partners in an optimal way. The public partners in a PPP are government
entities, including ministries, departments, municipalities, or state-owned
enterprises. The private partners can be local or international and may include
businesses or investors with technical or financial expertise relevant to the project

3. Figure: Sectors of PPPs (Public Private Partnerships)
Sectors
of PPPs
Power
generation
and
distribution
Water and
sanitaion
Pipelines
Hospitals
School
buildings
Stadiums
Transports
Housing

4. Specific Characteristics of PPP in Different Sectors:
 Transport Sectors:
 Public-private partnerships (“PPPs”) can be an effective way to build and implement new
infrastructure or to renovate, operate, maintain or manage existing transport infrastructure facilities.
In both areas PPPs can be a mutually beneficial way to solve critical transportation problems.
 Transportation infrastructure (airports, ports, rail, roads, urban transport) is indispensable to
sustainable socio-economic development and trade. They link peoples and regions and connect
firms to markets. Efficient transportation infrastructure is a major contributor to enhanced
productivity.
 PPPs provide a useful avenue for governments to access additional capital as well as technical
expertise in the private sector to meet the very substantial demand from their populations for new
and expanded transportation infrastructure in the coming decades.

5. Transportation Sectors
 Transportation infrastructure is by its nature monopolistic assets. Accordingly,
the regulation of competition and public access in respect of the infrastructure
will have important economic implications.
 The private consortium’s ability to impose tariffs on users of the infrastructure
is another important structural consideration, as it directly impacts both public
amenity and the private consortium’s ability to recover its investment.
 The allocation of revenue / demand risk for the infrastructure is another core
negotiation point between the host government and private consortium in
transportation sector PPPs.

6. Telecommunication & Fiber Optic Backbone
Sector
 PPP projects provide an opportunity for development of telecommunication infrastructure
without placing the full burden of the ultimate financial demands on the public balance sheet.
They also allow the operator to spread the cost of infrastructure over time, rather than
requiring a considerable up-front capital expenditure.
 Public and private sectors have a critical role to play in order to ensure that a growing
percentage of the population in developing countries can access ICT and modern
telecommunications means (supply transmission bandwidth, backbone). PPP is also an
important instrument to promote universal access at this time of convergence and the edge
of information technologies. Along with power and transportation infrastructures projects,
telecommunication figures among the most growing areas in PPP projects.
 Many governments are turning to the private sector to design, build, finance, and operate
such infrastructure facilities hitherto provided by the public sector, and various PPP models
are used to promote the development of national backbones.

7. Fiber Optic Backbone Sector
 The project company lays the fiber optic cables to link key demand centre and sells
access to various telecommunication operators and internet service provider. Where
new build residential development contemplated, PPP project can provide the full
range video, audio, and telecommunication service from fixed line telephone
service to broadband video streaming.
 Issues—
 Property
 Access

8. Fiber Optic Backbone Sector
 Property – For terrestrial fiber optic network that are laid underground access to
long strips of land will be essential for installation. The project company will need
the right to dig a trench in this strip of land. Install ducts and the fiber cable and
have periodic access to jointing chambers or the fiber optic cable itself for
maintenance and the repair of defects. Most government will provide specific legal
regimes to allow telecommunication companies to have access to property for the
installation of the infrastructure
 Access: When financing such project, a full stakeholder assessment can identify
such interest groups and allow preventative measures to reduce their influence.
Open access regime can help to keep pricing at a sensible level and assure that
access is well distributed.

9. Power Generation Sector
 The public sector alone cannot respond to the enormous investment needed to
meet the growing demand for electricity. Bringing in the private sector through the
use of public-private partnerships (PPPs) allows governments to share the burden
of financing and management. The government must set clear limits in market
power of distribution utilities while allowing competition in the generation
segment with the establishment of a market for energy.
 Issues:
 Regulations
 Planning and strategy

10. Power Generation Sector
 Regulation- For PPP projects that operate within government regulation to be
successful in the power sector, regulation must be transparent, fair, accountable
and credible. Countries should have an independent and professional regulator
that can enforce regulations with a view to promoting investment in the sector and
securing quality service at reasonable tariffs.
 Planning and strategy – A strong policy framework for guiding and supporting
PPPs in power, whether they be independent power producers (IPPs) or distribution
concessions has two essential elements: A clear policy, based on a comprehensive
sector master plan, which is consistently implemented by government and
legislation that formalizes the policy. The plan needs to include reasonably accurate
supply /demand forecasts, an assessment of least cost options and contingencies.

11. Education Sector
 Many different actors from across the spectrum of public and private sector
financing and management have been delivering education and skills-based
training in Bangladesh.
Education
Basic
Education
Secondary
Education
Higher
Education

12. Education Sector
 Training
 This education and training market is characterized by a diversity of providers, including
for-profit institutions (that operate as enterprises), non-profit entities run by
nongovernment organizations (NGOs), publicly funded institutions operated by private
boards, and community-owned institutions. Even with the expansion of PPPs, as well as the
increased attention they have received recently, difficulty remains in reaching agreement
about what constitutes a PPP because, while they can be defined narrowly to include only
formal arrangements such as sophisticated infrastructural initiatives, they can be also be
defined more broadly to include all manner of partnership between the public and
private sectors.

13. Health Sector
 Public-Private Partnerships (PPP) in health sector services can be described as a long-term contract
(typically 15-30 years) between a public-sector authority and one or more private sector companies
 In Bangladesh, private sector health financing includes household expenditures, private nursing
home investments and drug funds from nongovernmental organizations (NGOs). Most Bangladeshi
usually obtain majority of their drugs from the private sector. Private nursing homes, doctors in
private clinics and other health practitioners prescribe medicines to patients who must buy them at
full price.
 According to National Health Accounts the largest single source of health care financing is direct
payments by households, which accounts for 63% of the total. Government financing is only the
second largest source of funds, contributing to 34% of the total, NGOs, private insurance and
employer's together account for less than 1% of total financing10.

14. Health Sector
 Dialysis Centre at Chittagong Medical College
 Nutrition Program of Bangladesh (Bangladesh Integrated Nutrition Program (1995-
2002) and the National Nutrition Program (2002-2010).

15. Retail Distribution of Water and Sanitation Services
 Water and sanitation are public services with specific impact on environment. Public
Private partnership has a long and complex relationship with water and sanitation.
 Water is crucial to food security and irrigation, and is affected by climate change.
Around the developing world, the water sector is chronically under-funded and
inefficient. In this context, Public-private partnerships (PPPs) can be a mechanism
(among others) to help governments fund much needed investment and bring
technology and efficiency that can improve the performance and financial sustainability
of the water sector.
 Governments are using in the water and sanitation sector increasingly to finance and
operate bulks water supply and wastewater treatment. Governments turn to PPPs to
introduce new technology and innovation where traditional sources are being scarce,
such as in desalination and water reuse.

16. Retail Distribution of Water and Sanitation
Services
 A lot has been happening in Public-Private Partnerships (PPPs) in the water supply and sanitation sector over the last few years,
contrary to some misperceptions. Today’s market is radically different from the 1990s (dominated by the large concession model
and appetite of private investors to finance projects) or the 2000s (contract terminations and nervousness about benefits that PPP
could bring in the water supply and sanitation sector).
 Developing countries, facing the challenges of sustainability and financial viability due to the inescapable realities of poor
water supply and sanitation services and constrained budgets, are looking at PPPs as an option worth considering to help
performance or to develop new sources.
 Applying lessons learned from the past, with a better understanding of what PPPs in water can and cannot bring, water PPPs
are being used increasingly by public utilities in a more focused way, to manage a specific subset of activities or challenges, such as
increasing energy efficiency and water availability through non-revenue water management, or development of a new water source.
The focus is on performance based contracting, with payments against outputs.

17. Retail Distribution of Water and Sanitation
Services
 Build-Operate-Transfer (BOT) and Design-Build-Operate (DBO), particularly in
desalination and wastewater treatment plants, have become a solid business line in
many emerging countries (especially in the Middle East, China, Mexico and Brazil) –
with strong competition from a large and growing number of international players
as well as regional players from developing countries.
Challenge
 Bangladesh has one of the highest population densities in the world, with 109.3
million people, or 75 percent of the population, living in rural areas. While
improved water supply coverage in rural Bangladesh is now above 97 percent,
water quality still poses a significant challenge. Thirteen percent of the country’s
water sources have arsenic levels above the threshold that the government
defines as dangerous.

18. Retail Distribution of Water and Sanitation
Services
 Approach
 Since 1998, the World Bank has supported the government of Bangladesh to improve safe water
availability. Built on the experience of two earlier projects, the Bangladesh Rural Water Supply and
Sanitation Project (BRWSSP) launched in 2012, applied a participatory approach to ensure community
input and a robust monitoring process to promote transparency.
 The project focused on increasing the provision of safe water and hygienic sanitation in the rural areas
of Bangladesh, particularly where shallow aquifers were highly contaminated by arsenic and other
pollutants.
 The project adopted a Public-Private Partnership (PPP) approach for the construction of the piped water
supply schemes whereby Private Sponsors for all schemes were identified through a competitive
process. This PPP model built upon Build-Operate-Transfer (BOT) modality and in which private
sponsors provided equity sharing, incentivized the private operators to maximize household
connections to increase revenue and profit.

19. Thank You