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Module 1 -  01
Starting Out

Credits
1.1 Why public-private partnerships?
1.2 What are the key features of successful partnerships?
1.3 What are the major gaps in forming a successful partnership?
Further Guidance - How to use

Key Questions:


How do we get started?

Related Tools:


08 Establishing Principles
09 Identifying Partners
11 Selecting Options
15 Regulating the PPP



Before PPPs – Starting out


1.3 What are the major gaps in forming a successful partnership?

A range of possible gaps or deficiencies in the capacity of both public and private actors could hinder the formation of a successful partnership. Major gaps in this respect include:

  • the reciprocal mistrust and lack of understanding of one another’s interests and needs across the public and private sectors;
  • the absence of locally available information on, and experience with, arranging sustainable partnerships; and
  • the underlying legal, political and institutional obstacles to forming effective public-private relationships.

These gaps often lead to lengthy negotiations, increased transaction costs and make smaller projects much less attractive to potential investors. In order to minimise the harm from such gaps, PPP arrangements should provide certain safeguards for the public and private sectors and for the community.

The public sector…

…usually expects the private sector to contribute in one or all of the following ways:

  • to provide agreed services;
  • to make agreed investments;
  • to meet agreed standards/targets; and
  • not to exploit any monopoly situation that might exist.

The private sector...

…expects the public sector to contribute in one or all of the following ways:

  • to create an enabling environment suitable for the PPP;
  • to pay agreed fees promptly and in full;
  • to implement tariff increases as agreed; and
  • to prevent unexpected competition from others during operation (exclusivity).

The community…

...expects the PPP to:

  • provide appropriate levels of services; and
  • be affordable to the community, either through direct charges or indirectly through general taxation.



 
     
  S T A R T P A G E  
  Module 1 - Before PPPs  
  01-Starting Out  
  02-Strategic Planning  
  Module 2 - Preparation Stage  
  03-Planning & Organising  
  04-Collecting Information  
  Module 3 - PPP Development Stage  
  05-Identifying Constraints  
  06-Defining Objectives  
  07-Defing Parameters (Scope)  
  08-Establishing Principles  
  09-Identifying Partners  
  10-Establishing Partnership  
  11-Selecting Options  
  12-Financing (Investment)  
  13-Financing (Cost Recovery)  
  14-Preparing Business Plans  
  15-Regulating the PPP  
  Module 4 - Implementation  
  16-Tendering & Procurement  
  17-Negotiating & Contracting  
  18-Managing PPPs  
  19-Monitoring & Evaluation  
  20-Managing Conflict  
  21-Capacity Development  
  Contact Information