Session 3: Planning and organizing PPPs 1. Planning and organizing 2. Defining Objectives 3. Defining Parameters (scope) 4. Collecting information PPPUE/Capacity 2015 Public Private Partnership training

PPPUE/Capacity 2015 PPP training Janaury 25, Planning and organizing Strategic planning  what the objectives are;  how the PPP fits within their overall goals and if a PPP is actually the best solution;  how the PPP relates to other municipal functions; and  how the PPP contributes to poverty reduction

PPPUE/Capacity 2015 PPP training Janaury 25, 2005 Key steps in strategic planning 1. identifying the service problems to be solved 2. defining service objectives 3. analysing the key factors influencing service delivery 4. understanding existing service provision and the opportunities for (and constraints of) including all stakeholders in the delivery process 5. investigating delivery options (including the PPP) 6. coordinating a system of service delivery 7. considering implications of services non-delivery

PPPUE/Capacity 2015 PPP training Janaury 25, 2005 Key steps in planning and organizing 1. Establish stakeholder consultation 2. Select a management team 3. Select a taskforce 4. Plan and agree a process 5. Select and appoint advisors

PPPUE/Capacity 2015 PPP training Janaury 25, 2005 Knowing the risks Political risks Implementation risks Construction risks Operating risks Revenue risks Financial risks Force majeure risks Environment risks

PPPUE/Capacity 2015 PPP training Janaury 25, 2005 Things to keep in mind while planning PPPs The role of a champion(s) Transparency and stakeholder consultation Every proceeds is different – there is not right solution Flexibility Appointing advisors Poverty skills

PPPUE/Capacity 2015 PPP training Janaury 25, Defining Objectives 1. Formulate and agree a transparent process 2. Hold stakeholders consultations and discussion forums 3. Set out the framework of objectives 4. Agree objectives and priorities 5. Clarify objectives with indicators

PPPUE/Capacity 2015 PPP training Janaury 25, 2005 Challenges defining objectives Including all objectives Diverse and changing objectives Convergence with urban poverty objectives Project value assessment

PPPUE/Capacity 2015 PPP training Janaury 25, Defining parameters (scope) Defining factors  Geographical area  Service requirements  Regulatory framework Level of decentralization Multi- or single-sector

PPPUE/Capacity 2015 PPP training Janaury 25, Types of information required Information from the public sector  Legal and institutional framework  State of the utility  Stakeholder information Information from the consumers  Characteristics of coverage areas and existing service levels  Market research Information from the private sector  Existing providers: nature, SWOT  Services costs

PPPUE/Capacity 2015 PPP training Janaury 25, 2005 Information How? Who? What? and When? How to collect information? Who collects the information?  Development of Terms of Reference for the initial assessment  Expertise needed for the collection of information What information need and when?

PPPUE/Capacity 2015 PPP training Janaury 25, 2005 Written assignment You are a Mayor of Dedeman, a capital of Ecis. At one of the UNDP trainings you have been introduced to the concept of PPPs You are excited and decided to think about using this instrument to fix the deteriorating sanitation system in the city Describe in no more then 200 words major steps before involving yourself into a partnership with a private sector