Public-Private Partnerships for Service Delivery UNECA High level Workshop on PPPs in Energy Sector in Africa UNDP work on Pro-poor PPP for Local Service Delivery Addis Ababa (Ethiopia), 30 June – 1 st July 2011 By:Maleye DIOP, Global Manager Public Private Partnerships for Service Delivery Capacity Development Group, Bureau for Dev. Policy UNDP Regional Centre, Johannesburg, South Africa

Public-Private Partnerships for Service Delivery → Decentralization process in UNDP programme countries. → MDGs: growing number of people not having access to basic services (e.g.: clean water, sanitation, solid waste, energy, health care, education, etc...). → Increasing demand for support from UNDP programme countries to respond to unsolicited proposal from private sector offering local governments solutions to the service delivery problems they faced. Gov’t (national, local) not being able to make it alone and inclusive P’ships with Non State Actors (incl. users) offer opportunity to face local service delivery challenges. Drivers of UNDP work on pro-poor PPP

Public-Private Partnerships for Service Delivery....… as a result, Various Non-State Providers (large, small, formal, informal private sector, CBOs, NGOs, CSOs, FBOs) are filling in the gap in the context of a regulatory vacuum leading to: poor getting services at higher cost, poor quality and limited quantity…

Public-Private Partnerships for Service Delivery To support alternative LSD approach that complement efforts of Gov’t that uses comparative advantages of both State and Non State Actors (incl. the Private Sector) to improve service delivery and to advance MDGs and long term sustainable development. Objective of UNDP/PPPSD

Public-Private Partnerships for Service Delivery Who are the Partners? PP P Government(s) Enabling Policies, Regulation, Oversight Government(s) Enabling Policies, Regulation, Oversight Businesses Capable Providers or FinanciersBusinesses Financiers Civil Society [CBOs, CSOs, FBOs] Beneficiaries or Providers Civil Society [CBOs, CSOs, FBOs] Beneficiaries or Providers

Public-Private Partnerships for Service Delivery Passive Public Investment Equity Debt Guarantees Grants Fully Public Sector Fully Private Sector Broadest Definition of “Public-Private Partnerships” Traditional Public Contracting Design Build Joint Ventures Co-ownership Co-responsibility Agreeing Frameworks Local Agenda 21 Community Visioning Agreeing Frameworks Regulatory Dialogue Covenants Passive Private Investment Government Bonds Service Contracts Operate Maintain Lease Build Operate and Invest BOT Concession PublicPrivate Investment Responsibility Government Role Provider Enabler and Regulator Menu of PPP options in LSD

Public-Private Partnerships for Service Delivery Basic services including: renewable energy, primary education, health care, water supply, sanitation, solid waste management that are vital for poverty eradication and achievement of MDGs. Services of Focus

Public-Private Partnerships for Service Delivery  Promoting enabling environment: Policy, regulation and institutional frameworks for pro-poor PPP.  Capacity Dev. for local governments, businesses & communities to effectively engage through PPP in service delivery.  Implement “quick wins” pro-poor PPP.  Knowledge sharing to foster exchange of good practices and experiences. PPPSD Service Offerings

Poverty is not just lack of income. It is lack of: - Income and productive assets. - Access to basic services. - Power, participation and dignity.

Public-Private Partnerships for Service Delivery Public Sector as Direct Provider Public Sector Basic Services and related Infrastructure Users / Consumers / Communities Taxes User Fees Direct Provision, Operation + Maintenance Administration Emergency Services Healthcare Roads/Transportation Water, Energy, Sanitation, etc..

Public-Private Partnerships for Service Delivery PPP provide practical solution and framework for actors to work together to:  Deliver basic services to the poor & contribute to the achievement of the MDGs targets.  Provide livelihood opportunities for the poor.  Ensure participation and representation by the poor.  Contribute to local development efforts.

Public-Private Partnerships for Service Delivery Municipal Waste Collection, Nepal

Public-Private Partnerships for Service Delivery From Waste to Wealth, Energy

Public-Private Partnerships for Service Delivery PPP: Shifting role of Government From Govt as Direct Provider of basic services to Regulator/Enabler of services provision to Purchaser of services and Infrastructure provided by the private sector or other NSA &

Public-Private Partnerships for Service Delivery Public Sector as Regulator Government Private Provider User Fees Regulation - price - quality - quantity Users / Consumers / Community Services

Public-Private Partnerships for Service Delivery also Public Sector as Regulator Government Non State Provider User Fees Regulation - quality Users / Consumers / Community Water Non State Provider Non State Provider Services Competition Services User Fees

Public-Private Partnerships for Service Delivery Public Sector as Purchaser Government Non State Providers Taxes User Fees Purchase / Service Agreement Users / Consumers / Community Services

Public-Private Partnerships for Service Delivery Types of PPP Arrangements Private - after contract expiration to be transferred to the public yrsPrivate company develops, finances & operates facilitiesBOT Public25-30 yrsPrivate company pays fee to operate public assets & is expected to finance capital investments Concession Public5 -15 yrsPrivate company rents public assets, responsible for the service provision & buys the right to revenue stream Lease Public3 to 5 yrsPrivate company assumes the managerial responsibility & is remunerated based on key performance indicators Managt Contract Public1 to 3 yrsPrivate company performs specific tasks on a contractual basis Service Contract Public/PrivateVariousCan take various forms, but in the main are self- governing, voluntary organisations, which serve the interests of their own members Cooperatives OwnershipDurationDescriptionOptions

Public-Private Partnerships for Service Delivery Country Experience in Energy India: from Waste to Energy

Public-Private Partnerships for Service Delivery Example: From Waste to Sustainable Local Energy Services Provision in Tamil Nadu State (India) Develop Public Private Community partnership model for poultry litter management to

Public-Private Partnerships for Service Delivery generate electricity (3.7 MW of power) from the poultry waste to…

Public-Private Partnerships for Service Delivery.....feed it to the state grid and ultimately to be sold to users (long term purchase contract)

Public-Private Partnerships for Service Delivery Lessons from Practices On pro-poor PPP for LSD

Public-Private Partnerships for Service Delivery Learning by Doing: Feedback loop It is important to have a constant feedback mechanism between country level experiences and global level analysis and to ensure mutual learning through sharing of lessons, analysis + dissemination of good practices to better inform new partnerships for service delivery: Dev. partners have critical role. InnovativePartnerships Learning Network Analysis Country Experience

Public-Private Partnerships for Service Delivery Capacity Development is key!  Capacity of Government to identify service sectors for Non State Providers’ (NSP) involvement.  Capacity to establish adequate policies, institutions in support of PPP in Service Delivery.  Capacity to regulate service sectors to ensure inclusive participation of users to assess services provision through adequate oversight & feedback mechanisms;  Capacity to effectively engage non State Partners: Partnership Dialogue Forum facilitated by neutral broker.  Capacity to monitor performance of service providers through adequate contractual arrangements that ensure flexibility, continuous revisions to reflect evolving needs.

Public-Private Partnerships for Service Delivery  Sequencing Policy-Implementation versus Implementation-Policy based on context.  Institutionalization of PPP in local SD.  Participation of communities and local SP is key to serve the un-served poor areas and meet poverty reduction objectives.  Access to sustainable services provision better ensured through users participation. 26 Policy versus Implementation

Public-Private Partnerships for Service Delivery Let service provider decide on the best option to deliver the required services !! Input Choices Solid Waste Management, Malaysia

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