Preparation Stage – Collecting Information
4.4 Using information (what is needed and when?)
The information collected from various sectors can be used during
the analysis and planning stages of developing the PPP. This information
also needs to be conveyed to the potential partners by a champion,
who might originate from within either of the (public or private
sector) parties to the partnership.
The information collected can be used for the processes outlined
1. Identification of problems that need to be solved.
This stage identifies the weaknesses within the services
currently being provided by the municipality. The information
needed to identify problems includes:
- an assessment of
the performance of the utility/agency; and
- an assessment of consumer perceptions.
2. Overview of existing political, legislative and legal
This will help to determine if the existing framework supports
private sector participation and the areas that require modification.
3. Identification of key stakeholders…
… that support and those who
are likely to oppose private sector participation. This
information will highlight:
- processes and policies that may be put in place to meet
- procedures that can be put in place to minimise the risk
of political interference.
4. Study of implications of increased coverage and service levels
for the tariffs that consumers will pay.
For this, the information needed includes:
- assessment of the performance of the utility (coverage
area, service levels, cost of service provision and tariffs);
- appraisal of the efficiency of the private sector to perform
better than the utility, but without increasing tariffs
- analysis of consumers’ willingness and ability to pay
for improved services.
5. Assessment of viability of the assets of the utility/agency.
This information will be used to determine if the utility’s
existing assets are good enough to form the basis for long-term
private sector participation.