Dr. Karisa Ribeiro, Transportation Engineer, MWH-Christchurch.

Dr. André Dantas, Senior Lecturer, University of Canterbury.

PRIVATE-PUBLIC PARTNERSHIP INITIATIVES AROUND THE WORLD:

LEARNING FROM EXPERIENCE

Future for PPP in New Zealand?

Issues in adopting PPP in New Zealand?

Overseas experiences and issues?

Outline

• Public Private Partnership (PPP)

• PPP Programmes Around the World

• New Zealand Context and PPP Issues

• Learning from Experiences

• Conclusions

Public Private Partnership

Government Private Company

Service and Infrastructure

Differences between PPP and bid contracts:•uncertainties and risks•realignment of responsibilities•complicated contractual arrangements

Types of partnerships

•Build-Operate-Transfer (BOT)•Design-Build-Operate-Maintain (DBOM)•Design-Build-Finance-Operate (DBFO)

•Build-Own-Operate (BOO)•Rehabilitate-Operate-Transfer (ROT)

(1) Planning and Institutional Issues;(2) Legal and Regulatory Framework; (3) Types of Contracts; (4) Government Support; (5) Traffic Forecasting; (6) Setting and Adjusting Toll Rates; (7) Financing Structure and Sources; (8) Public Acceptance; and (9) Role of Donor Agencies.

Key issues in implementing PPP Programmes

Public Private Partnership

PPP Programmes Around the World

Americas•Toll fees at levels that users are willing to pay;

•Negative public response;

•Cross-subsidies to fund unprofitabletoll roads;

•Construction risk can be reduced if public sector provides reference designs

PPP Programmes Around the WorldAsia Pacific

•Government involvement in the comprehensive planning of the project;

•Project fitting in road network and the transportation system;

•Planning providing for growth and change

•Unique features of the road industry creating difficulties for private sector involvement.

PPP Programmes Around the World

Europe •Sharing of revenue risks; •Appropriate scope and procedures for government;

•Limited use of direct government subsidies;

•Need for reliable traffic forecast;

•Potential conflicts of interest in contractor-driven projects

(1) Planning and Institutional Issues;(2) Legal and Regulatory Framework; (3) Types of Contracts; (4) Government Support; (5) Traffic Forecasting; (6) Setting and Adjusting Toll Rates; (7) Financing Structure and Sources; (8) Public Acceptance; and (9) Role of Donor Agencies.

Key issues in implementing PPP Programmes

Public Private Partnership

Public Private PartnershipFRANCE AUSTRALIA UK HK CHILE ITALY BRAZIL CHINA ARGENTINA

(1) Planning and institutional issues(2) Legal and regulatory framework(3) Types of contracts(4) Government Support(5) Traffic Forecasting(6) Setting and adjusting toll rates(7) Financing structure and sources(8) Public acceptance(9) Role of donor agenciesCOMPARATIVE SUCCESS HIGH MEDIUM HIGH L O W VERY LOW

PPP success depends upon balanced achievement levels in key implementation

areas.

Isolated achievements do not guarantee general success.

High level of planning combined with Government Support are critical elements to achieve success.

General low achievement levels leads to difficulties in implementing PPP

Future for PPP in New Zealand?

Issues in adopting PPP in New Zealand?

Overseas experiences and issues?

NZ INITIATIVES :

New Zealand Context and PPP Issues

NZG: Land Transport Management Act (LTMA 2003)

Transit NZ: 1)Alternative Methods of Funding Future State Highway Projects and Finance;

2)Toll Projects-Implementation Guide.LTNZ: Implications of Road Tolling Policies in New Zealand.

New Zealand Land Transport Strategy (2002)

New Zealand Context and PPP Issues

1- A long-term planning process of PPP is likely to

attract private companies; and

2- Selection of PPP projects has to be in accordance to LTNZ’s mission / goals

Future for PPP in New Zealand?

Issues in adopting PPP in New Zealand?

Overseas experiences and issues?

Future for PPP in New Zealand ?

Transmission Gully ProjectIF PPP is part of a Strategic Planning Process

Public sector would be released to re-allocate available resources to areas in need for infrastructure investment

Potential Financial Attractiveness is explored

Future for PPP in New Zealand ?

IFTake advantage of Take advantage of

a high-demand a high-demand roading networkroading network

Conclusions• Significant potential in attracting private sector investment;• Success depends on planning activities prior to

implementation;• Simplicity, transparency and continuity are critical criteria;• Need for tools and methods to accurately analyse the

complex PPP environment;• Social, political and economical as well as operational

performance must be analysed; and• Future for PPP, IF PPP developed as part of strategic

planning process and IF projects are carefully selected to attract the private sector.