Public Private Partnership (PPP)
Corinne Waelti, seecon international gmbh
Public Private Partnership
1
Find this presentation and more on: www.sswm.info.
Copyright & Disclaimer
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 opensource 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.
Public Private Partnership
Find this presentation and more on: www.sswm.info.
Contents
1. Introduction
2. Specifications
3. Actors
4. The Implementation Process
5. Conclusion
6. References
Public Private Partnership
3
Find this presentation and more on: www.sswm.info.
1. Introduction
How to Improve and Expand Public Sanitation and Water Services?
•
•
•
•
No connection to the water or sanitation system
No constant supply
Poor drinking water quality
No proper wastewater treatment
Problem:
Unsatisfactory delivery of water and wastewater services
Nationalisation
Mixed
Privatisation
(e.g. Public Private
Partnership)
Possible institutional frameworks
Public Private Partnership
4
Find this presentation and more on: www.sswm.info.
1. Introduction
Problem
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.
Public Private Partnership
5
Find this presentation and more on: www.sswm.info.
2. Specifications
Difference to Privatisation
Privatisation
≠
Public Private Partnership
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.
Public Private Partnership
6
Find this presentation and more on: www.sswm.info.
3. Actors
Who Is Involved in PPP’s? (1/2)
Stakeholders
(interested/affected)
Contracting parties
Key stakeholders
(heavily involved)
Source: SDC et al. (2005)
Public Private Partnership
7
Find this presentation and more on: www.sswm.info.
3. Actors
Who Is Involved in PPP’s? (2/2)
Stakeholders
(interested/affected)
Contracting parties
•
•
Local authority
Service operators
Public Private Partnership
All other stakeholders
plus:
• Households
• Community &
gender groups
• Beneficiaries
• etc.
Key stakeholders
(heavily involved)
• Contracting parties
• National & municipal
governments
• Investors
• Regulators
• Donors
• Trade unionsSource: SDC et al. (2005)
• Consumers
• NGOs
8
Find this presentation and more on: www.sswm.info.
4. The Implementation Process
How does the Implementation of a PPP work?
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)
Public Private Partnership
9
Find this presentation and more on: www.sswm.info.
4. The Implementation Process
What Needs to Be Considered?
• 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)
Public Private Partnership
10
Find this presentation and more on: www.sswm.info.
5. Conclusion
Advantages and Disadvantages
Professional expertise
Functions can be delegated
Shorter implementation time
Opportunities for private
investments  higher budget
• Contracts should assure
fairness between contracting
partner
•
•
•
•
Public Private Partnership
• 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
11
Find this presentation and more on: www.sswm.info.
6. References
APPP (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
12
“Linking up Sustainable Sanitation,
Water Management & Agriculture”
SSWM is an
initiative
supported by:
Created
by:
Public Private Partnership
13