Public Private Partnership Public Private Partnership (PPP) 1 Corinne Waelti, seecon international...

Public Private Partnership

Public Private Partnership (PPP)

1

Corinne Waelti, seecon international gmbh


Find this presentation and more on: www.sswm.info.

Copy it, adapt it, use it – but acknowledge the source!Copyright

Included in the SSWM Toolbox are materials from various organisations and sources. Those materials are open source. Following the open-source concept for capacity building and non-profit use, copying and adapting is allowed provided proper acknowledgement of the source is made (see below). The publication of these materials in the SSWM Toolbox does not alter any existing copyrights. Material published in the SSWM Toolbox for the first time follows the same open-source concept, with all rights remaining with the original authors or producing organisations.

To view an official copy of the the Creative Commons Attribution Works 3.0 Unported License we build upon, visit http://creativecommons.org/licenses/by/3.0. This agreement officially states that:

You are free to: • Share - to copy, distribute and transmit this document • Remix - to adapt this document. We would appreciate receiving a copy of any changes that you have made to improve

this document.

Under the following conditions: • Attribution: You must always give the original authors or publishing agencies credit for the document or picture you are

using.

Disclaimer

The contents of the SSWM Toolbox reflect the opinions of the respective authors and not necessarily the official opinion of the funding or supporting partner organisations.

Depending on the initial situations and respective local circumstances, there is no guarantee that single measures described in the toolbox will make the local water and sanitation system more sustainable. The main aim of the SSWM Toolbox is to be a reference tool to provide ideas for improving the local water and sanitation situation in a sustainable manner. Results depend largely on the respective situation and the implementation and combination of the measures described. An in-depth analysis of respective advantages and disadvantages and the suitability of the measure is necessary in every single case. We do not assume any responsibility for and make no warranty with respect to the results that may be obtained from the use of the information provided.

Copyright & Disclaimer



Contents

1. Introduction

2. Specifications

3. Actors

4. The Implementation Process

5. Conclusion

6. References

3



How to Improve and Expand Public Sanitation and Water Services?

4

1. Introduction

PrivatisationMixed (e.g. Public

Private Partnership)

Nationalisation

Problem:Unsatisfactory delivery of water and wastewater services

• No connection to the water or sanitation system• No constant supply• Poor drinking water quality• No proper wastewater treatment

Possible institutional frameworks



Problem

5

1. Introduction

The public sector is sometimes not able to cope with the challenges it faces regarding sanitation and water management. Public Private Partnerships (PPP’s) are one possible solution to this problem.

PPP’s are partnerships between the public and the private sector. Together, they develop projects which would traditionally be the responsibility of the public sector.

The aim is to give the responsibility of the project to the person most capable to manage it.



Difference to Privatisation

6

2. Specifications

PPP’s differ to privatisation processes because of a definite time period. After expiration of the agreed term, the responsibility usually goes back to the public.



Who Is Involved in PPP’s? (1/2)

7

3. Actors

Stakeholders(interested/affected)

Key stakeholders(heavily involved)

Contracting parties

Source: SDC et al. (2005)



Who Is Involved in PPP’s? (2/2)

8

3. Actors

Stakeholders(interested/affected)

Key stakeholders(heavily involved)

Contracting parties

Source: SDC et al. (2005)

All other stakeholders plus:•Households•Community & gender groups•Beneficiaries•etc.

• Contracting parties• National & municipal

governments• Investors• Regulators• Donors• Trade unions• Consumers• NGOs

• Local authority• Service

operators



How does the Implementation of a PPP work?

9


The lifecycle of a PPP-project includes seven steps:

1.Strategic planning: Defining long-term goals

2.Setting implementation goals and selecting the most appropriate implementation solution

3.Is PPP the best suited strategy? Deciding upon the model and searching for potential investors

4.Setting up and approving tender contracts

5.Selecting and contracting the partner

6.Implementing the contract

7.Expiration of the contract

Adapted from: APPP (2009)



What Needs to Be Considered?

10


• The private sector is not always more efficient than the public

• For the consumer, service provision often gets more expensive

• The process of finding a private partner is time consuming

• There needs to be an enforcing body

• Clear definition of the roles is required

• Who is exposed to disputes – the public or the private partner?

Is a PPP really the right measure to take?Adapted from: FARLAM (2005)



• Professional expertise• Functions can be delegated• Shorter implementation

time• Opportunities for private

investments higher budget

• Contracts should assure fairness between contracting partner

• Preparation and implementation is lengthy and expensive

• It can be difficult to find agreement

• Contract design needs to be deliberate and is therefore very complex

• Danger of exploitation from one contracting partner

Advantages and Disadvantages

11

5. Conclusion



12

6. ReferencesAPPP (Editor) (2009): A Step-by-Step Guide to Public-Private Partnerships (PPPs). Croatia: Agency for Public Private Partnerships. URL: www.javnanabava.hr/userdocsimages/userfiles/file/Razne%20publikacije/Step%20by%20step%20guide%20to%20PPP.pdf [Accessed: 30.08.2012]

FARLAM (2005): Working Together. Assessing Public-Private Partnerships in Africa. The South African Institute for International Affairs. URL: www.oecd.org/dataoecd/44/4/34867724.pdf [Accessed: 30.08.2012]

SDC, SWISS RE, SECO (Editor) (2005): Policy Principles-Framework for Sustainable Partnerships. Berne: Swiss Agency for Development and Cooperation (SDC). URL: www.partnershipsforwater.net/web/d/doc_7.pdf [Accessed: 30.08.2012]

Public Private Partnership 13

“Linking up Sustainable Sanitation, Water Management & Agriculture”

SSWM is an initiative supported by:

Created by:

Public Private Partnership Public Private Partnership (PPP) 1 Corinne Waelti, seecon international...

Documents

Transcript of Public Private Partnership Public Private Partnership (PPP) 1 Corinne Waelti, seecon international...