1. Private Public
Partnerships
Presented By: Mohsin Raza
Presented To: Dr. Aashiq Hussain Dogar
PhD Education 1st Semester
Roll No. A.DPE01161006
The University of Lahore
2. Definition of PPP
• Public private partnerships (PPPs) are agreements between
government and the private sector for the purpose of providing
public infrastructure, community facilities and related services.
• The private sector enter into a contract with government for
the design, delivery, and operation of the facility or
infrastructure and the services provided.
• The private sector finance the capital investment and recover
the investment over the course of the contract.
• The asset transfers back to the public sector at the end of the
contract
3. Collaboration may be at
a) Government learning sites /institutions,
b) Community sites, and
c) Private sector sites
d) Community & NGOs
e) Government & NGOs
4. Range of PPPs
Adapted from Canadian Council PPP 2009
Design and build
Operate and maintain
Build and finance
Design build finance maintain
DBFM-operate
Concession
Privatisation
PPPModels
Degree of private sector involvement
Degreeofprivatesectorrisk
5. Principles of PPPs
•Contracting Authority defines the service required
•Design of the works to deliver that service lies with the private sector
Output based specification
•The contract can be for 25/30 years plusLong-term contractual
arrangements
Value for money
Transfer of risk
•Competition will drive best value
•Gives public sector access to innovation
Market competition
Whole life costing
•Cost measured against conventional procurement.
•Whole life costs and quality are combined to gauge VFM
•Long term responsibility for building operation and maintenance
•Focus on reducing cost
•Transfer of design and construction risk
•Risk of ownership transferred to the private sector
6. Typical SPV structure for PPPs
Government
PPP
Agreement
Private Sector
(Special Purpose Vehicle)
(SPV)
Loan
agreement Debt
Subcontractors
Subcontractor
Construction
Subcontractor
Operations
ShareholdingEquity
7. Work on PPP in Education
in Pakistan
Punjab Education Foundation in Pakistan (PEF)
Foundation-Assisted Schools programme (FAS)
Continuous Professional Development Program
(CPDP)
Teaching in Clusters by Subject Specialists
program (TICSS)
Education Voucher Scheme (EVS)
Sindh Education Foundation (SEF)
8. The arguments against
public-private partnerships
• PPPs will lead to the privatization of education
and thus will reduce the government’s control over a
public service.
• Increasing the educational choices available to
students and their families may increase socioeconomic
segregation if better prepared students end up self
selecting into high-quality schools, thus further
improving their outcomes.
9. What makes a successful
PPP?
• Political will
• Government commitment
• PPP Champion
• Clear output specification
• Appropriate risk sharing
• Value for money
• Performance management
10. Registration Criteria for Private
Schools should be:
1. Realistic and achievable, so that they do not unduly
restrict the establishment of new schools;
2. Objective and measurable, to limit the scope for
corruption;
3. Open to all prospective private school entrants;
4. Output-focused, to allow schools to change how they
deliver their education services;
5. Applied consistently across different government levels
and departments.
11. Conclusions
• Undertake projects for the benefit of the citizens,
including the socially and economically disadvantaged
• Allows governments to approach projects hitherto
unobtainable due to lack of funding
• Provide incentives to the private sector to adopt
green criteria
• Embraces the MDGs
• PPPs allow the injection of private sector
capital
