Policy and Operations Evaluation Department (IOB)
Results Measurement in
Public-Private Partnerships
IOB Study # 378 - Systematic Literature Review
Prof. dr. Ruerd Ruben, Director
Public-private partnerships in developing
countries
Policy & Operations Evaluation Department (IOB)
Ministry of Foreign Affairs
Outline of Presentation
• Systematic literature review (MSSM levels)
• What can be considered to be a Public-Private partnership?
• What is the intervention logic of PPP’s?
• Which results are registered from PPP’s?
• What are critical succes factors of PPP’s?
• Conclusion & Outlook
2
Definition of PPPs
‘Form of cooperation between government and business agents –
sometimes also involving voluntary organizations (NGOs, trade
unions) or knowledge institutes – that agree to work together to
reach a common goal or carry out a specific task, while jointly
assuming the risks and responsibilities and sharing resources and
competences’
 Wide variety in contractual terms:
●
service contracts, management contracts
●
●
●
lease arrangement
build–transfer–operate (BTO) and similar
arrangements (BOO, DBO, DBGO, DBFMO, etc).
joint ventures
PPP's in developing countries; IOB
study
Dutch spending on PPPs (2011)
4
Review approach
1.
2.
3.
4.
5
Keyword search
 1433 studies found
Title and abstract check +
Assesment general characteristics 
81 studies
Quality check (validity and reliaibilty)  47: 18 cases +
29 reviews
Overview (by region & sector)
Regional coverage:
Asia:
Afrika:
Latin America:
Sectors:
Healthcare:
Infrastructure:
Water:
Agriculture:
6
19 (case studies: 10 / reviews: 9)
11 (case studies: 4 / reviews: 7)
4 (case studies: 1 / reviews: 3)
14
7
5
4
Key criteria of PPPs
1. Cooperation between public and private party
2. Clear agreement on goals
3. Combination of private and public funding
4. Agreement on sharing resources and tasks
5. Distribution of risk between partners
7
Character of Developmental PPPs
8
Rationale for PPPs
Alternative framwork for dealing with coordination
problems, input constraints and output risks
Motives:
Most important: financial resource mobilization
Least important: effectiveness of the partnership
(scarce results orientation)
PPP's in developing countries; IOB
study
Results (output & outcome level)
Output
Outcome
13
7
Mixed
-
1
Negative
-
1
No effect
2
-
No data
3
9
Total
18
18
Positive
10
Critical success factors (1)
1. Permanent government involvement
- Set standards and monitor product safety,
-
efficacy and quality
Assure citizens access to products and services
2. Sound regulatory framework
-
Private partner protected from expropriation,
arbitration of disputes
Respect for contract agreements and legitimate
recovery of costs and profits
Based on: Jamili (2004)
11
Critical success factors (2)
3.
Formation requirements
-
4.
Partner selection (4 C’s)
-
12
From the very start create clarity about:
inputs, committment symetry
Common goals, intensive communication,
working cultures
Compatibilty: complementary strengths
Capabilty
Commitment
Control
Critical success factors (3)
5. Common vision and trustfull relationship
-
Hold-up problem caused by change in the
position of partners
Cultural differences between partners
6. Interest of key participants negotiated and
packaged
13
Traditional ways of working independently
have limited impact
Long-term interests of partners are
balanced
Public sector comparator
 Net savings PPP: $ 9 mln = 7% VfM
14
PPP Transaction costs
PPP's in developing countries; IOB
study
Outlook
Are PPP’s a good proposition ?
-
Yes, can be
But: many ‘incomplete contracts’
Only for specific purposes
Be aware of critical succes factors – success
is not always assured!
Evidence on effectiveness & efficiency so far
is quite weak
PPP's in developing countries; IOB
study
Thanks for your attention
www.iob-evaluatie.nl
@IOBevaluatie
PPP's in developing countries; IOB
study