Public Private Partnership Public Private Partnership (PPP) 1 Corinne Waelti, seecon international gmbh

Public Private Partnership Find this presentation and more on: Copy it, adapt it, use it – but acknowledge the source! Copyright Included in the SSWM Toolbox are materials from various organisations and sources. Those materials are open source. Following the open- source concept for capacity building and non-profit use, copying and adapting is allowed provided proper acknowledgement of the source is made (see below). The publication of these materials in the SSWM Toolbox does not alter any existing copyrights. Material published in the SSWM Toolbox for the first time follows the same open-source concept, with all rights remaining with the original authors or producing organisations. To view an official copy of the the Creative Commons Attribution Works 3.0 Unported License we build upon, visit This agreement officially states that: You are free to: Share - to copy, distribute and transmit this document Remix - to adapt this document. We would appreciate receiving a copy of any changes that you have made to improve this document. Under the following conditions: Attribution: You must always give the original authors or publishing agencies credit for the document or picture you are using. Disclaimer The contents of the SSWM Toolbox reflect the opinions of the respective authors and not necessarily the official opinion of the funding or supporting partner organisations. Depending on the initial situations and respective local circumstances, there is no guarantee that single measures described in the toolbox will make the local water and sanitation system more sustainable. The main aim of the SSWM Toolbox is to be a reference tool to provide ideas for improving the local water and sanitation situation in a sustainable manner. Results depend largely on the respective situation and the implementation and combination of the measures described. An in-depth analysis of respective advantages and disadvantages and the suitability of the measure is necessary in every single case. We do not assume any responsibility for and make no warranty with respect to the results that may be obtained from the use of the information provided. Copyright & Disclaimer

Public Private Partnership Find this presentation and more on: Contents 1. Introduction 2. Specifications 3. Actors 4. The Implementation Process 5. Conclusion 6. References 3

Public Private Partnership Find this presentation and more on: How to Improve and Expand Public Sanitation and Water Services? 4 1. Introduction PrivatisationMixed (e.g. Public Private Partnership) Nationalisation Problem: Unsatisfactory delivery of water and wastewater services No connection to the water or sanitation system No constant supply Poor drinking water quality No proper wastewater treatment Possible institutional frameworks

Public Private Partnership Find this presentation and more on: Problem 5 1. Introduction The public sector is sometimes not able to cope with the challenges it faces regarding sanitation and water management. Public Private Partnerships (PPP’s) are one possible solution to this problem. PPP’s are partnerships between the public and the private sector. Together, they develop projects which would traditionally be the responsibility of the public sector. The aim is to give the responsibility of the project to the person most capable to manage it.

Public Private Partnership Find this presentation and more on: Difference to Privatisation 6 2. Specifications PPP’s differ to privatisation processes because of a definite time period. After expiration of the agreed term, the responsibility usually goes back to the public. Public Private Partnership Privatisation ≠

Public Private Partnership Find this presentation and more on: Who Is Involved in PPP’s? (1/2) 7 3. Actors Stakeholders (interested/affected) Key stakeholders (heavily involved) Contracting parties Source: SDC et al. (2005)

Public Private Partnership Find this presentation and more on: Who Is Involved in PPP’s? (2/2) 8 3. Actors Stakeholders (interested/affected) Key stakeholders (heavily involved) Contracting parties Source: SDC et al. (2005) All other stakeholders plus: Households Community & gender groups Beneficiaries etc. Contracting parties National & municipal governments Investors Regulators Donors Trade unions Consumers NGOs Local authority Service operators

Public Private Partnership Find this presentation and more on: How does the Implementation of a PPP work? 9 4. The Implementation Process The lifecycle of a PPP-project includes seven steps: 1.Strategic planning: Defining long-term goals 2.Setting implementation goals and selecting the most appropriate implementation solution 3.Is PPP the best suited strategy? Deciding upon the model and searching for potential investors 4.Setting up and approving tender contracts 5.Selecting and contracting the partner 6.Implementing the contract 7.Expiration of the contract Adapted from: APPP (2009)

Public Private Partnership Find this presentation and more on: What Needs to Be Considered? The Implementation Process The private sector is not always more efficient than the public For the consumer, service provision often gets more expensive The process of finding a private partner is time consuming There needs to be an enforcing body Clear definition of the roles is required Who is exposed to disputes – the public or the private partner?  Is a PPP really the right measure to take? Adapted from: FARLAM (2005)

Public Private Partnership Find this presentation and more on: Professional expertise Functions can be delegated Shorter implementation time Opportunities for private investments  higher budget Contracts should assure fairness between contracting partner Preparation and implementation is lengthy and expensive It can be difficult to find agreement Contract design needs to be deliberate and is therefore very complex Danger of exploitation from one contracting partner Advantages and Disadvantages Conclusion

Public Private Partnership Find this presentation and more on: References APPP (Editor) (2009): A Step-by-Step Guide to Public-Private Partnerships (PPPs). Croatia: Agency for Public Private Partnerships. URL: [Accessed: ] FARLAM (2005): Working Together. Assessing Public-Private Partnerships in Africa. The South African Institute for International Affairs. URL: [Accessed: ] SDC, SWISS RE, SECO (Editor) (2005): Policy Principles-Framework for Sustainable Partnerships. Berne: Swiss Agency for Development and Cooperation (SDC). URL: [Accessed: ]

Public Private Partnership 13 “Linking up Sustainable Sanitation, Water Management & Agriculture” SSWM is an initiative supported by: Created by: