Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Public Private Partnerships

60,037 views

Published on

Published in: Business, Technology
  • DOWNLOAD FULL. BOOKS INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • useful information
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Useful Academicwise
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Interested as to why Tourism PPPs focus on facility development? Any wider/in depth sources apart from UNWTO which is very weak on 'real' PPPs
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • It is really useful for me and class teaching also. Thank you sir for your valuable contribution to the academic community
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Public Private Partnerships

  1. 1. Public Private Partnerships Exploring the Possibilities James Robinson PSOJ Research Economist July 28, 2008
  2. 2. Public Private Partnerships (PPP’s) <ul><li>Definition </li></ul><ul><li>Characteristics </li></ul><ul><li>Reasons </li></ul><ul><li>Types </li></ul><ul><li>Good Practices </li></ul><ul><li>Benefits </li></ul><ul><li>Pitfalls </li></ul><ul><li>Recap </li></ul>
  3. 3. What are Public Private Partnerships (PPP’s) <ul><li>Definitions: </li></ul><ul><li>PPP is an arrangement where private parties participate in or provide support for the provision of infrastructure. </li></ul><ul><li>PPP describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector company. </li></ul><ul><li>PPP is Not the procurement of an asset but the payment of a stream of services under specified terms and conditions. </li></ul>
  4. 4. Key Characteristics of PPP’s <ul><li>Participants </li></ul><ul><li>Relationship </li></ul><ul><li>Resourcing </li></ul><ul><li>Sharing </li></ul><ul><li>Continuity </li></ul><ul><li>Focus on services </li></ul><ul><li>Whole-of-life cycle costing </li></ul><ul><li>Innovation </li></ul><ul><li>Risk allocation </li></ul>
  5. 5. Frameworks for PPP’s <ul><li>Project level </li></ul><ul><ul><li>Project level PPP deals with the design and operation of infrastructure </li></ul></ul><ul><ul><li>assets on behalf of the public sector. </li></ul></ul><ul><li>Policy level </li></ul><ul><ul><li>Policy level PPP deals with specialized decision making on behalf of </li></ul></ul><ul><ul><li>the public sector </li></ul></ul><ul><ul><li>Example : </li></ul></ul><ul><ul><li>Determining the best policies to effectively curb crime within a specified jurisdiction </li></ul></ul><ul><ul><li>Improving the quality of education within schools eg. Curriculum content, teaching methods, learning environments etc. </li></ul></ul>
  6. 6. Why Public Private Partnerships? <ul><li>Traditional Procurement </li></ul><ul><ul><li>Inefficient </li></ul></ul><ul><ul><li>Unreliable with </li></ul></ul><ul><ul><li>Poor fiscal Management </li></ul></ul><ul><li>Other factors </li></ul><ul><ul><li>Short political tenures – government rush </li></ul></ul><ul><ul><li>Rent seeking behavior - interest groups </li></ul></ul><ul><ul><li>Putting on a good spin – moral hazards </li></ul></ul>
  7. 7. Why Public Private Partnerships? <ul><li>Mott MacDonald Report - Optimism Bias </li></ul><ul><ul><li>Inadequacy of the business case (58%) </li></ul></ul><ul><ul><li>Environmental impact (19%) </li></ul></ul><ul><ul><li>Disputes and claims incurred (16%) </li></ul></ul><ul><ul><li>Economic influences (13%) </li></ul></ul><ul><ul><li>Late contractor involvement in design (12%) </li></ul></ul><ul><ul><li>Complexity of contract structure (11%) </li></ul></ul><ul><ul><li>Legislative and regulatory changes (7%) </li></ul></ul><ul><ul><li>Degree of innovation (7%) </li></ul></ul><ul><ul><li>Poor contractor capabilities (6%) </li></ul></ul><ul><ul><li>Project management team (4%) </li></ul></ul><ul><ul><li>Poor project intelligence (4%) </li></ul></ul>
  8. 8. Why Public Private Partnerships? <ul><li>Financial need - budget deficit, large debt </li></ul><ul><li>Aging or deteriorating infrastructure </li></ul><ul><li>Growing demand on public sector services </li></ul><ul><li>Search for greater efficiency and creativity </li></ul><ul><li>Strides to introduce competition </li></ul><ul><li>Lack of domestic experience or skills </li></ul><ul><li>Need to educate local contractors while remaining competitive </li></ul><ul><li>Bandwagon effect </li></ul>
  9. 9. Varying Models of PPP’s <ul><li>Model 1 </li></ul><ul><ul><li>The Public entity transfer land, property or facility to private sector. </li></ul></ul><ul><ul><li>Private sector builds or renovates facility </li></ul></ul><ul><ul><li>Public sector sets standard of service </li></ul></ul><ul><ul><li>Private sector provide service for set term </li></ul></ul><ul><ul><li>Private sector transfer ownership at end of term </li></ul></ul><ul><li>Model 2 </li></ul><ul><ul><li>Public sector defines service over long-term </li></ul></ul><ul><ul><li>No payments made until asset is delivered as promised </li></ul></ul><ul><ul><li>Private sector assumes risks associated with design & performance </li></ul></ul><ul><ul><li>Private sector provides no funding during construction </li></ul></ul><ul><ul><li>Private sector allowed to own and run facility for profit </li></ul></ul>
  10. 10. One Type of PPP <ul><li>BOT – Build Operate Transfer </li></ul><ul><li>The Private Sector: </li></ul><ul><li>Source Financing </li></ul><ul><li>Carries out all designs </li></ul><ul><li>Builds the infrastructure </li></ul><ul><li>Operates the facility and, </li></ul><ul><li>Hands over ownership to public sector. </li></ul>
  11. 11. BOT – Build Operate Transfer The Dartford Crossing over the Thames River in London is an example of a BOT. The negotiated term of operation before transfer was 20 yrs.
  12. 12. BOT – Build Operate Transfer The Sydney Harbour Tunnel is 2.3 Km long with dual carriage way.
  13. 13. Types of PPP’s <ul><li>BOT – Build Operate Transfer </li></ul><ul><li>BOO – Build Own Operate </li></ul><ul><li>BOOT – Build Own Operate Transfer </li></ul><ul><li>DBF – Design Build Finance </li></ul><ul><li>DBFO – Design Build Finance Operate </li></ul><ul><li>DBO – Design Build Operate </li></ul><ul><li>BLT – Build Lease Transfer </li></ul><ul><li>BTO - Build Transfer Operate </li></ul><ul><li>DBFOM – Design Build Finance Operate Manage </li></ul><ul><li>Leasing </li></ul><ul><li>Joint Ventures </li></ul><ul><li>Operations or Management Contracts </li></ul><ul><li>Cooperative Arrangements </li></ul><ul><li>LROT – Lease Renovate Operate Transfer </li></ul><ul><li>DCMF – Design Construct Manage Finance </li></ul><ul><li>BOOR - Build Own Operate Remove </li></ul>
  14. 14. Suitable Candidates for PPP’s <ul><li>Transport (road, rail, ports, airports) </li></ul><ul><li>Fixed links (bridges, tunnels) </li></ul><ul><li>Water resources (filtration plants, irrigation, sewage treatment, pipelines) </li></ul><ul><li>Tourism (facility development) </li></ul><ul><li>Health (hospitals and specialized health services) </li></ul><ul><li>Specialized accommodation facilities (courts, police stations) </li></ul><ul><li>Educational facilities (schools, museums, libraries) </li></ul><ul><li>Correctional services (prisons, remand and detention centres) </li></ul><ul><li>Arts, sport and recreational facilities </li></ul><ul><li>Convention centres </li></ul><ul><li>Government office accommodation </li></ul><ul><li>Social housing </li></ul><ul><li>Grimsey and Lewis, 2004, pp 92-93, - List is based on experience: </li></ul>
  15. 15. Suitable Conditions for PPP’s <ul><li>Accommodating Political framework </li></ul><ul><li>Right Legal framework </li></ul><ul><li>Public acceptance </li></ul><ul><li>Quality practitioners </li></ul><ul><li>Availability of finance </li></ul>
  16. 16. Good Practice, using PPP’s <ul><li>Ensure that: </li></ul><ul><ul><li>Private sector partner has the required capacity </li></ul></ul><ul><ul><li>Ensure public sector interests are factored in </li></ul></ul><ul><ul><li>Taxpayers are guaranteed value for money </li></ul></ul><ul><ul><li>Private sector partner/s has proper motivation </li></ul></ul><ul><li>Establish a PPP Unit for Government </li></ul>
  17. 17. Benefits of PPP’s <ul><li>Mitigates and properly allocates risks </li></ul><ul><li>Provide incentives for lowering costs </li></ul><ul><li>Ensures value for money </li></ul><ul><li>Attract the right skills and management expertise </li></ul><ul><li>Promotes innovation </li></ul><ul><li>Reduces corruption and waste </li></ul><ul><li>Reduce burden on taxpayers </li></ul>
  18. 18. Pitfalls of PPP’s <ul><li>Depends on EGAP principle (Everything Goes According to Plan) </li></ul><ul><li>The process of creating a PPP is much more demanding than a traditional procurement process. This is normally underestimated. </li></ul>
  19. 19. Recap on Public Private Partnerships (PPP’s) <ul><li>Definition </li></ul><ul><li>Characteristics </li></ul><ul><li>Reasons </li></ul><ul><li>Types </li></ul><ul><li>Good Practices </li></ul><ul><li>Benefits </li></ul><ul><li>Pitfalls </li></ul>
  20. 20. The End Have a Productive Discussion

×