Session 5: Making a choice: partners and options 1. Identifying partners 2. Role of different partners in providing public services 3. Partnership processes 4. Selecting PPP options PPPUE/Capacity 2015 Public-Private Partnership training

1. Identifying partners Private – local and international, small and large  For profit: owners, operators, financiers  Not for profit: community development, NGOs, unions  Individual: consumers, users, neighbors, workers, voters

Identifying partners Public – all levels, but working up from those with the least capacity  Local: municipal utilities, mayors' offices  State/Provincial: regional utilities, economic development and environmental agencies  National: national/capital city utilities, finance, economic development and environmental agencies  Multilateral: sources of finance (loans, grants, guarantees)

Sectors Core Assets and Weaknesses Adapted from Plummer and Waddell 2002

How to identify partners? 1. Carry out a stakeholder analysis  Drawing up stakeholder table, identifying stakeholders their interests likely impact setting priorities  Assessing the likely impact  Identifying assumptions and risks about stakeholders

Stakeholder table example

How to identify partners? 2. Identifying possible roles in PPPs  Enablers: setting the frameworks for service provision  Providers: supplying the services  Users: paying fees to obtain the services  Overseers: monitoring and ensuring service quality and price 3. Define relationships and gaps

Possible Roles in PPPs

3. Each party brings its own processes Public sector  Regulation  Public procurement Private Sector  Due-diligence Community  Participation in decision-making

4. Selecting a PPP option Misconceptions  Often this stage is considered as the most important step  Often refer to the main pubic ad private sectors interactions form as the PPPs

Fully Public Sector Building Awareness Fully Private Sector For-profit Non-profit Building Awareness Passive Private Investment Gov’t bonds Service Contracts Operate Maintain Lease Build, Operate and Invest BOT Concession Agreeing Frameworks Regulatory Dialogue Covenants Agreeing Frameworks Local Agenda 21 Community Visioning Traditional Public Contracting Design Build Joint Ventures Co-ownership Co-responsibility Passive Public Investment Equity, Debt Guarantees Grants Broadest Definition of “Public-Private Partnerships” PublicPrivate Investment Responsibility ProviderEnabler & Regulator Government Role Spectrum of possible relationships between public and private service providers Bradford S. Gentry Yale/UNDP Programme on Public-Private Partnerships

Often used PPP options

Objectives met by different forms of PPPs Key: √√√ to a large extent; √ to a small extent; X not usually. PPIAF/WB Toolkit

Prerequisites of successful PPP (WB’97)

Choosing the appropriate form of PPP Risk transfer to private sector Source: PPIAF/WB Toolkit

PPP forms used in the region