PPP Development Stage – Identifying Constraints
5.4 How to overcome existing constraints?
While the roles and responsibilities of the private and public
sector partners may differ depending on the type of project,
the overall responsibility of government does not change in a PPP.
A PPP is one of a number of ways to deliver public infrastructure
and infrastructure services. It is not a substitute for effective
governance and decision-making by government, which even in
a PPP remains accountable for delivering services to the public.
Nor does private involvement relieve the government of its
responsibility for ensuring that service providers take environmental
and social considerations into account. To fulfil their obligations
in this area, governments need to understand and respond
to the needs of users and affected populations.
…and public preferences, rather than the technical supply
of urban services, must drive service supply planning.
Differentiated or decentralised services may meet users’ needs more effectively
than traditional, centralised systems.
…may have to be undertaken to help users understand the
constraints on the system, the options for addressing
those constraints and the costs of different approaches to service delivery.
The development of clear rules…
…for the partnership (that is, self-regulation of the partnership)
can improve partnership effectiveness in general,
and partnership regulation in particular. If they are to maximise their potential,
internal partnership agreements should define clearly:
- the activities of the partnership and its key objectives
(which might be formulated as coverage and service delivery targets);
- the roles and responsibilities of each partner, decision procedures and
internal reporting; and
- arbitration mechanisms.
Such clarity would help the partnership in building its
the regulatory institutions and would increase its effectiveness.
…gives politicians and other public officials (as well as NGOs and other
civil society actors) a better sense of what the PPP involves and
the constraints that both the public and private sectors face. This may help
temper both public pronouncements and community expectations. Where social acceptance
of PPPs can be generated, the arrangement is more likely to achieve efficiency
gains that should benefit all stakeholders.