1. The document discusses public-private partnerships (PPPs), including defining PPPs as contractual agreements between public and private entities to deliver public services or projects through risk sharing. 2. It identifies some obstacles to PPP implementation like unstable governments and lack of cooperation among agencies, and lists the main types of PPP arrangements in Nepal. 3. Risks and benefits of PPPs are analyzed, with risks including economic, financial, market, political, operations and maintenance, and environmental risks, and benefits being improved efficiency, on-time project delivery, budget certainty, and developing local private sector capabilities.

1. 1. Public private partnership
2. Risks and Benefit Analysis
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Presenters
Shivram Shrestha
Shreekanta Kandel
Suson Sapkota
Yubraj Ghimire

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1. Public Private Partnership

3. Public private partnership
 A contractual agreement between a public entity and private entity
 Arrangement of involving private sector in developing and delivering facilities
that are developed by government
 Private party provides a public service or project
 For the delivery of infrastructure or services in the public interest Where the
public partner focuses principally on the output and allows the private partner to
determine the input in which a substantial transfer of appropriate risk takes place
to the private party
 Better value of money demonstration than traditional public provision
 Funded and operated through a partnership of government and one or more
private sector companies
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4. Obstacles of PPP Implementation
Factors are:
 unstable government
 lack of cooperation and cooperation
 among government agencies
 lack of political commitment
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5. Main Types of PPP Arrangements In Nepal
 Revenue PPPs(revenue from user charge)
 Availability PPPs(revenue from organization)
 Hybrid PPPs
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6. Public Private Partnership
PPP – Background
 Global competitiveness Report 2009/10 produced by the world Economic Forum
 Nepal's position in infrastructure at 131 out of 133 countries surveyed
throughout the world
 need for increased investment in infrastructure and other basic services
 government's investment and involvement is not enough implying the needs
for a greater role of the private sector
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7.  The Government of Nepal (GON) has accepted public-private partnerships (PPP)
as an alternative source of procuring assets and services, including the private
sector's financial participation for meeting the increasing demand for
infrastructure and services in the country
 For Example, KMC started PPP for Gongabu bus park, construction of foot-
bridges at different locations.
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8. Eligible Partners and their Roles in PPP
 Private partners
 Private enterprises: domestic or foreign NGO/INGOs
 Community based organizations, cooperative organizations
 Public partners
 Central or National level ministerial and government departments
individually
 Electricity Authority etc.
 Local level public bodies, specifically district, municipal and VDC level
government entities
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9. 2. Risks and Benefit Analysis
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10. Risk Issues
Risks related to PPPs:
 Economic and financial risks
 Market risks
 Political risks.
 Operations and Maintenance risks
 Environmental risks
 Acceptability of user fees
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11. Risk Management
Importance:
 Monitor and measure progress
 Identifies new risk items and issues
 Establish new risk management priorities
 Provide management with visible target dates and milestones
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12. Risk Management
Methodology
 Identify the risks
 Plan the risk response
 Monitor the risks
 Document lessons learned
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13. Benefits of Public Private Partnerships
 Exploring PPPs as a way of Introducing public sector technology and innovation in
providing public services through improved operational effiency.
 Motivating the private sector to deliver projects on time and within budget.
 Imposing budgetary certainly by setting present and the future costs of
infrastructure projects over time.
 Utilizing PPPs as a way of developing local private sectors capabilities through
joint ventures for local firms in areas such as civil works, electrical works
,maintenance services, etc.
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14. THANK YOU!!!
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