Presented by Muyheng Hong (Cambodia) and Laura Graham (United States) during the YSEALI Generation Earth Workshop in Siem Reap, Cambodia.

1. Public Private
Partnerships
How community
collaboration drives change

2. Agenda
1. Introduction / Public service delivery & roles of government
2. Why PPP?
3. Definition
4. Historical Milestones
5. Community Partners
6. Recent Trends
7. Best Practices, Advantages, Disadvantages
8. Cambodian Examples
9. Case Study (River Walk, Des Moines)
10. Break Out
11. Group Reports & Discussion
2

3. 3

4. 4
Why PPP?
For better government
Prudent PPP leads to more cost-effective (efficient) public services.
For quality of life
Glowing affluence allows more people to provide for their own
needs, making them more receptive to PPP.
For small government
Government is too big, too powerful, too intrusive in people’s lives.
For more business opportunities
Government spending is a large part of the economy; more of it can
and should be directed toward private firms.
For better society
People should have more choice in public services. (By relying less on
distant bureaucratic structures and more on family, neighborhood,
faith, and ethnic and voluntary associations.) (Savas, 2000)

5. 5
Definitions
“An agreement between the government and one or more private
partners (which may include the operators and the financers)
according to which the private partners deliver the service in such a
manner that the service delivery objectives of the government are
aligned with the profit objectives of the private partners and where
the effectiveness of the alignment depends on a sufficient transfer
of risk to the private matters.”
-Organization for Economic Cooperation and Development
“Arrangements where the private sector supplies infrastructure
assets and services that traditionally have been provided by the
government.”
-International Monetary Fund

6. 6
Definitions
“A generic term for the relationships formed between the
private sector and public bodies often with the aim of
introducing private sector resources and/or expertise in order
to help provide and deliver public sector assets and services.”
-European Investment Bank:
“Any arrangement between a government and the private
sector in which partially or traditionally public activities are
performed by the private sector”
-E.S. Savas

7. 7
Historical Milestones
• Peter F. Drucker first suggested privatization in
the word “reprivatise”
• Multiple studies on contracting with private
sector were conducted by Savas, Poole, Spann,
Rothbyard, etc.
• Elections of Margaret Thatcher (1979) and Ronald
Reagan (1980) gave impetus to PPP. Other
Western and developing countries followed
• PPP penetrates in central and local governments
around the world
• Some drawbacks of PPP became visible Still, the
trend continues
1969
1970s
1980s
1990s
2000s-

8. 8
Increasing Needs
PPPChanging
Boundary
Fiscal Stress
Business
Opportunities
Personal
Affluence
Opposition to
Big
Institutions

9. 9
Community Partners
Public
Central government
Local governments
Public agencies
Public corporations
Private
Corporations
Professional organizations Industry groups
NPOs
Citizen groups/ Volunteers

10. 10
Recent trend: Developing countries
Fiscal stress of developing countries became visible in early 1980s
• Many developing countries relied on government owned monopolies
for major infrastructures, which resulted in heavy fiscal burden
• Increased concerns for default of Central and South American countries
• Investment projects that involve private companies dramatically
increased in 1990s
Major donors consider PPP as a part of development aid strategy
• World Bank: made clear to utilize PPP for infrastructure development
• US: private sector leads projects; public sector supports
• UK: clearly expressed the emphasis on the partnership with various
actors
• Japan: strengthen the collaboration of business activates and public
finance to accelerate development (Savas, 2000)

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Service Share as Part of PPP
Service Share: Utilize private sector expertise for more effective
and efficient management of public facilities.
Recreational and sports facilities: Stadium, tennis court, swimming
pool, ski site, public hotel
Industrial development facilities: Exhibition facility, open research
facility
Basic facilities: Parking lot, large park, water utility, cable utility
Cultural and educational facilities: community center, museum
Social welfare facilities: Hospital, senior care center. (Savas, 2000)

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Service Share
Shared service is expected to achieve cost and service
improvement through:
Efficiency through standardization, simplification and economy
of scale, often with technology leverage
Improvement of service quality through accumulation of
knowledge and experience
• The shared service has been broadly used in the private sector as a
way of management reform. There are number of shared service
providers.
• Recently, government agencies has introduced the shared service
approach to increase efficiency in regular works including
accounting, human resource management, procurement, IT system,
public relations, etc. (Savas, 2000)

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14. 14
Advantages
Efficiency
Quality improvement
Risks transfer, cost reduction
Utilizing private know-how
Experience from private sector
Budget increase
Transparency improvement
Good management

15. 15
Cost increase
Private sector may not satisfy needed/requirement
Problem of control
Accountability
Too much profit orientation
Downsizing
Disadvantages

16. 16
Identify a community or regional issue
• What are the challenges?
• Who is impacted?
Outline project scope to resolve the issue
• Project Cost
• Timeline (if applicable)
Define project goal
Who are the potential Community Partners?
Establish a multi-party written agreement
• Set Community Partner Expectations
Best Practices

17. 17
Find your leader/champion
Plan for the unexpected
• Things can go wrong
Sunset terms are normal, plan accordingly
Some of the best work comes from community
collaboration!
Best Practices

18. 18
PPP in Cambodia
Cambodia Electricity (51% vs 49%) Phnom Penh Water Supply

19. 19
Case Study: Principal Riverwalk
Des Moines, IA

20. 20
Principal Riverwalk

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Project Goal:
Connecting greenway trail system through the downtown along the
Des Moines River
Why PPP:
Local business wanted to provide the community with an iconic gift
for its 125th anniversary. The Des Moines River is controlled by the
Army Corps of Engineers, but property on either side of the banks is
controlled by the City.
Principal Riverwalk
Key Partners:
Principal Financial Group
City of Des Moines
Greater Des Moines Public Art Foundation
U.S. Army Corps of Engineers
State of Iowa
Department of Transportation
Wastewater Reclamation Authority
MidAmerican Energy Company

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Project Timeline
2002 – 2012
40 Different Agreements
130 City Council Actions
50 Board and Commission Actions
Creation of the Riverfront Development Authority (RDA)
Challenges
Flooding
Maintenance
Cost
Original Estimate - $25M USD
Actual Cost - $70M USD
Principal Riverwalk

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What happens when your project is
hit with a natural disaster?
Principal Riverwalk

28. 28
2008 Flood Impact
Flood control improvements
Pump Station
Combined Sewer Separation
Court Avenue Entertainment District
Central Business District
Principal Riverwalk

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Funding
Vision Iowa - $4 million
Iowa Dept. of Transportation - $1.5 million
Iowa Dept of Natural Resources – $300,000
Federal Transportation - $12.5 million
Corps of Engineers / Greenbelt - $13.5 million
City of Des Moines - $3.3 million
Principal / Private - $20+ million
Meredith - $2 million
Plus $30M in – Hansen Triangle, MidAmerican
Energy, Art
Principal Riverwalk

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33. 33
Table Exercise (30 Minutes)
• Groups of 9
• Fact sheet representing a community challenge
• Identify a scribe and a speaker
• Assignment: Assemble a recommendation for a PPP using
the best practices learned through the session.
• Project Scope
• Goal
• Partners
• Champion
• Challenges
• Prepare a 3-5 minute presentation to share
Group Work

34. 34
Rozlynn Worrall

35. 35
Group Work
Clean Water Shortage in Tnoat Village
Mrs. Ry has lived in Tnoat Village of Kampong Phlouk Commune, Prasad Bakong
District and Siem Reap Province since 2010. Her 7-member family has used unclean
water from sources such as ponds and the nearby lake to meet their needs. Because
her husband fishes away from home, she is responsible for bringing water from
other sources such as channel and pond to drink and cook. During the dry season,
Mrs. Ry walks 30 minutes, 1000 meters, to bring water from the only pond to her
house. Her two younger daughters, ages 11 and 13, help her to collect water. They
also use this pond to bathe and wash clothes twice daily.
How could a PPP assist in eliminating the suffering of villagers, especially women and
children, and minimize the challenging issues related to climate change in fishing
communities around Tonle Sap where there is a shortage of water during dry
season?

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REFERENCES
• Savas, E. S. (2000). Privatization and public-private partnerships (p.
31). New York: Chatham House.