Session 1 Introduction 1. Training framework 2. PPP Toolkit 3. Why Public-Private Partnerships? 4. Overview of PPP definitions and perceptions PPPUE/Capacity

Session 1

Introduction

1. Training framework2. PPP Toolkit3. Why Public-Private Partnerships?4. Overview of PPP definitions and perceptions

PPPUE/Capacity 2015 Public-Private Partnership training

PPPUE/Capacity 2015 PPP trainingJanuary 25, 2006

1. Training framework Broader objective: make participants both

trainers and knowledgeable partners in development projects

Syllabus – wardrobe with hangersAll parts could be “taken out” or reduced in time

to minimum Heavily based on the PPP Toolkit

http://pppue.undp.org/toolkitOne can refer to it if s/he does not have

sufficient knowledge on a particular topic


Approach: PREPARATION Needs Assessment Questionnaire (NAQ)

Tool helping the trainer to identify the background of the trainees

Emailed prior to the trainingFeedback helps to

account for the trainees’ backgrounds and interests insure that the training meets the needs of the

audience: neither simple nor complicated emphasize the areas of specific country/region

concern during the training


Approach: IMPLEMENTATION Active learning approach

Focus on Learning not Teaching Guided discussion not lecturing Time allocated for contemplating and

applying knowledge and skills to the local context

Group work Case study Role play


Major Blocks of the Program

1. Before PPPs2. Preparation3. Development4. Implementation


2. Toolkit

What this toolkit is notEncyclopaediaText bookHoly bookHandbookFinal version


What the Toolkit is For a wide spectrum of professionals

related to municipal PPPs Theoretical framework based on the real

world experience Hanger structure, set of

modules/sections related to different stages of PPPs

Some cross cutting topics Space for notes and additions – you can

make it a toolkit suited to your situation Further guidance sources


How this can be used? Start with the road map Identify the stage Identify the topics Try to understand main principles Apply to the context Note any additions If you have time, read it all


Tools for pro-poor municipal PPPTools for pro-poor municipal PPP

2 Strategic Planning

1 Starting

out

4 Collecting

Information

3 Planning and

Organizing

5 Defying Constraints

7 Defining Parameters

6 Defining Objectives

15 Regulating

14 Preparing Business

Plans

8 Establishing Principles

10 Establishing Processes

9 Identifying Partners

11 Selecting Options

12 Financing (investment)

13 Financing (cost recovery)

19 Monitoring and

Evaluation

16 Tendering and

Procurement

17 Negotiating

and Contracting

18 ManagingPPPs

20 Managing Conflict

21 Capacity Development

Tools for pro-poor municipal PPPTools for pro-poor municipal PPP

Preparation Development ImplementationBefore PPP


3. Why Public-Private Partnerships? Need for resources to maintain and

develop public services, especially infrastructure

Efficient way of allocating risks and responsibilities

An alternative to full privatization Promotes the transfer of knowledge,

know-how, management skills and new technologies


Why Public-Private Partnerships?

Combines the advantages of both sectors:social responsibility, environmental awareness

and public accountability of the public sector finance, technology, managerial efficiency and

entrepreneurial spirit of the private sector


A significant infrastructure gap across Europe: Old and New Member States Public investment in EU has been falling as a share of GDP in

the EU Implementing the environmental legislation in conformity with

European standards range from €80-110 billion or around 2% of the GDP for a sustained period. (Van Miert Report, 2003)

New members need €65 billion over the next 15 years for their infrastructure investment (WB).

Poland has the highest amount of infrastructure investment needs (€21.4 billion) followed by the CZ, BU, RO, HU, SV, EE, SL, LV and LT (PwC)


ODA and Private Capital Flows to Developing Countries Versus Rio Target

0

50

100

150

200

250

300

350

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

e

Year

US

$ B

illi

ons

World Bank 1998, 2004

Rio Target

ODA Flows

Private Capital Flows


Wide range of PPP definitions Every co-operation between public and

private partners to meet a public good A spectrum of possible organisational

relationships between the government and other organisations (profit and non-profit) that are not government to carry out a project or provide a service

4. Overview of PPP definitions


Overview of PPP definitions Arrangements between government and

private sector entities for the purpose of providing public infrastructure, community facilities and related services

characterized by the sharing of investmentriskresponsibility and reward between the partners


Major skepticism about PPPs and some responses1. Increased prices for services

efficiencies cost-recovery strategy targeted subsidies

2. Poor communities exclusion Wide spectrum of options Public participation

3. Often complex requiring more efforts and capacity compared to “Business as usual”: e.g. procurement

Cost-benefit analysis Reaction to crisis vs. “vision”


Summing up: PPP key identifiers Long term Trust based Aligned goals Power relations Non-adversarial Formal and informal Significant risk takers

Documents

Session 1 Introduction 1. Training framework 2. PPP Toolkit 3. Why Public-Private Partnerships? 4. Overview of PPP definitions and perceptions PPPUE/Capacity