Public-private partnershipsin sustainable development:the Biogas Väst case study

Kim CornelissenMaster Degree in Urban Planning

School of Management, UQAM, MontréalGöteborg, September 11 2007

Context of the research

• Political issues in 2004 i Québec• Public hearings on a by-law proposal

on sustainable development• Public hearings a by-law proposal on

Public-Private partnerships (PPP)

Research question

In a context of globalization, can public-private partnerships

between the City and the Industry be used in a vision of sustainable

development?

Axis of public hierarchy

Source: adapted from Proulx, Bourque and Savard, 2005

A B CPublic sector

doesn’t share its powerwith private sector or NGO

(hierarchy)

Public sectorshares some

responsibilities with private

sectors or NGOs

Public sectorshares equal power

with private sector or/and NGOs (no hierarchy)

contractual cooperation

complementarity

collaborationrepressionthird party

rivalrycompetition

ContractPPP

ConsensusPPP

Does not induceuse of PPP

Public-private partnership (PPP)

Contract ConsensusFixed project

• Fixed planning• Fixed period

Development project• Flexible planning• Flexible period

Legal Agreement Agreement based on trust

Public services Common goal

Consortium Network

Investments in project

Investments out of the project

Alternate choice Interdependence

Example of a Contract PPP(Arlanda-Stockholm rail link)

Public partner: Swedish Government

Private partner: Arlanda Link Consortium

Alstom, John Mowlem, NCC, Siab and Vatenfall

Figure 2: Example of a Consensus PPP(USAid Campaign to Reduce Child Mortality)

Private

NGOs

Public

Source : UsAid, Unicef, Unilever et al. 2002:2

• Contract PPPs• Objectives• Some Uses:

•Infrastructures (ex: roads, schools, jails)•Public services (taxes, public transport)•Utilities (ex: water, energy)

• Consensus PPPs• Objectives• Some Uses:

•Social issues (ex: health, education)•Environment (ex: awareness campaigns)•Innovation (ex: new markets)

PPP involving Cities

•Involvement of the industry in City projects

• Government Support (infrastructures and education) • Laboratory for new products and services• Attractiveness for high-skilled employees

• World-City Status• Objectives• World-City characteristics • 2nd city status: the post-industrial city

PPP between the City and its Industry

Sustainable Development Definitions

A development that meets the needs of the present without compromising

the ability of future generations to meet their own needs.

IUCN (1980)

Brundtland (1987)

Sustainable Development in City PlanningLocal Agenda 21

Planning

private

NGOs

public population

Projects

NGOs

Projects

publicpublic private

Projects

PUBLIC

NGO: non-governmental organization

Environmental and social questions

MUST be addressed

Role of actors in Sustainable Development

PUBLIC PRIVATE

Environmental and social questions

CAN be addressed

The Biogas Väst Project

Source: Biogasmax

Groupe TRUST (1994)Göteborg

Volvo Cars Corp. AB VolvoBRG, Göteborg Energi, Traffikkontoret

BIOGAS VÄST (2000-2005)Coordination: Business Region Göteborg

Västra GötalandGöteborg and 11 other municipalities

Volvo Cars Corp./AB Volvo, LRF Göteborg Energi, Traffikkontoret, Gatubolaget,

Renova, GryabbVägverket FordonsGas

“Steering Committee” (2003)Coordination: Business Region

GöteborgVästra Götaland/Göteborg/

municipalitiesRenova, Traffikkontoret

FordonsGas, LRF

Biogas Cities (2005)Coordination: Business Region

Göteborg Västra Götaland/GöteborgVolvo Cars Corp./AB Volvo

Göteborg Energi, Traffikkontoret FordonsGas

Regional Development

International Development

Partners in Biogas Väst

N Previouswork or actionsin environment

Previous work with other partners

Private sector 4 2 0

Public sector (elected) city/region

3 3 1

Public sector (employed)regional and national

4 2 0

Parapublic sector 3 1 1

Others (civil society) 5 3 1

Total 19 11 3

Interviews (19)

PPP definitions

“Strategic partnership where municipalities, the public organizations and the private

organizations take part on an equal footing.”

“Complete cooperation…not the legislation, it’s something else .”

“When, as a municipality, you don’t want to wait for public money so you ask private

investments.

*

*

Definitions of Biogas Väst as a PPP

“A highway construction project, it’s more of a financing system. Biogas Väst, it’s more

like a cooperation project.”

*

“Cooperation project between the companies and the public sector…with a vision…some

projects and the same ideas that we will develop the market within this area…”

*“Cities and the private partners can go together because we need each other,

for the legitimacy of all of us.

Public-private partnership (PPP)

Contractual CooperativeFixed project

• Fixed planning• Fixed period

Development project• Flexible planning• Flexible period

Legal Agreement Agreement based on trust

Public services Common goal

Consortium Network

Funds in project Funds out of the project

Alternate choice Interdependence

Göteborg and Volvo’s Interdependence

“Think Global, Act Göteborg!”

1. Dependency on the transport industry2. Model “citizen” for employees3. Shared credibility and legitimity4. Shared responsibilities5. Shared image: “green” and innovative

Göteborg wants to be seen as…

National and International Leader Leader in sustainable transport Leader in environmental industries Exceptional Quality of Life (Event City)

Brundtland definitions

“In small steps, we’re gonna make the World more and more healthy to visit:

out with the bad, in with the good.”

“A technology which doesn’t destroy it for the future generations.”

“Finding possibilities for people to transport themselves in the future, without

questioning the environment.”

*

*

IUCN definitions

“The economy, the ecology and the social. None of them can be alone.”

“The possibility of combining the environmental progress, the

industrial opportunities and the city growth.”

“A development where you combine the needs of men with the care of the

Nature. *

*

Environmental Impacts of Biogas Väst

CO2 reduction Replacement for petrol Alternative to ethanol Smog reduction

Benefits

Benefits or ChallengesMultiple Biogas Production Sites can

be good for local energy independence or there can be a excess of infrastructures in the future

Economic Impacts of Biogas Väst

Local jobs offer Laboratory for new products/services Export opportunities Support of local economy

Benefits

ChallengesSmall impact in the global

environmental issues Insufficient biogas production

Social Impacts of Biogas Väst

Increase of individual Awareness Increase of Individual Empowerment Improve health conditions Independence from fossil fuels

Benefits

ChallengesResearch on health issues (biogas

emissions) is required Lack of women in the energy

sector

Comments on the absence of citizens and NGOs in Biogas Väst

Population not targeted There should be inclusion of NGOs

(i.e.women/ecologists groups) No participation without investment

Planning Sustainable Development (public)Local Agenda 21

Planning

private

NGOs

public citizens

Projects

public NGOs

Projects Projects

PUBLICprivatepublic

voters consumers

Role of Partners in Biogas Väst

Göteborg’s Aalborg CharterPlanning

private

NGOs

public citizens

Biogas Väst

consumers

Planning: LA 21Projects in

neighbourhoods

private

NGOs

public citizens

voters

public private

PPP

public

Weather station

Conclusion

type is consensus it complies with Brundtland and IUCN it complies with LA21/Aalborg Charter

PPPs in sustainable development can be used between the City and the Industry if…

More research needed on…

Contract

public-private partnerships

in sustainable development

Second-cities strategies

to become World Cities

More research needed on…

Sales and political support

to sustainable partnerships

More research needed on…

“Why should we pay if we do something

for the environment? We should pay less!”