1. Session 1 Introduction 1. Training framework 2. PPP Toolkit 3. Why Public-Private Partnerships? 4. Overview of PPP definitions and perceptions PPPUE/Capacity 2015 Public-Private Partnership training

2. PPPUE/Capacity 2015 PPP training January 25, 2006 1. Training framework Broader objective: make participants both trainers and knowledgeable partners in development projects Syllabus – wardrobe with hangers  All parts could be “taken out” or reduced in time to minimum Heavily based on the PPP Toolkit http://pppue.undp.org/toolkit  One can refer to it if s/he does not have sufficient knowledge on a particular topic

3. PPPUE/Capacity 2015 PPP training January 25, 2006 Approach: PREPARATION Needs Assessment Questionnaire (NAQ)  Tool helping the trainer to identify the background of the trainees  Emailed prior to the training  Feedback helps to account for the trainees’ backgrounds and interests insure that the training meets the needs of the audience: neither simple nor complicated emphasize the areas of specific country/region concern during the training

4. PPPUE/Capacity 2015 PPP training January 25, 2006 Approach: IMPLEMENTATION Active learning approach  Focus on Learning not Teaching Guided discussion not lecturing Time allocated for contemplating and applying knowledge and skills to the local context Group work Case study Role play

5. PPPUE/Capacity 2015 PPP training January 25, 2006 Major Blocks of the Program 1. Before PPPs 2. Preparation 3. Development 4. Implementation

6. PPPUE/Capacity 2015 PPP training January 25, 2006 2. Toolkit What this toolkit is not  Encyclopaedia  Text book  Holy book  Handbook  Final version

7. PPPUE/Capacity 2015 PPP training January 25, 2006 What the Toolkit is For a wide spectrum of professionals related to municipal PPPs Theoretical framework based on the real world experience Hanger structure, set of modules/sections related to different stages of PPPs Some cross cutting topics Space for notes and additions – you can make it a toolkit suited to your situation Further guidance sources

8. PPPUE/Capacity 2015 PPP training January 25, 2006 How this can be used? Start with the road map Identify the stage Identify the topics Try to understand main principles Apply to the context Note any additions If you have time, read it all

9. PPPUE/Capacity 2015 PPP training January 25, 2006 Tools for pro-poor municipal PPP 2 Strategic Planning 1 Starting out 4 Collecting Information 3 Planning and Organizing 5 Defying Constraints 7 Defining Parameters 6 Defining Objectives 15 Regulating 14 Preparing Business Plans 8 Establishing Principles 10 Establishing Processes 9 Identifying Partners 11 Selecting Options 12 Financing (investment) 13 Financing (cost recovery) 19 Monitoring and Evaluation 16 Tendering and Procurement 17 Negotiating and Contracting 18 Managing PPPs 20 Managing Conflict 21 Capacity Development Tools for pro-poor municipal PPP PreparationDevelopmentImplementation Before PPP

10. PPPUE/Capacity 2015 PPP training January 25, 2006 3. Why Public-Private Partnerships? Need for resources to maintain and develop public services, especially infrastructure Efficient way of allocating risks and responsibilities An alternative to full privatization Promotes the transfer of knowledge, know-how, management skills and new technologies

11. PPPUE/Capacity 2015 PPP training January 25, 2006 Why Public-Private Partnerships? Combines the advantages of both sectors:  social responsibility, environmental awareness and public accountability of the public sector  finance, technology, managerial efficiency and entrepreneurial spirit of the private sector

12. PPPUE/Capacity 2015 PPP training January 25, 2006 A significant infrastructure gap across Europe: Old and New Member States Public investment in EU has been falling as a share of GDP in the EU Implementing the environmental legislation in conformity with European standards range from €80-110 billion or around 2% of the GDP for a sustained period. (Van Miert Report, 2003) New members need €65 billion over the next 15 years for their infrastructure investment (WB). Poland has the highest amount of infrastructure investment needs (€21.4 billion) followed by the CZ, BU, RO, HU, SV, EE, SL, LV and LT (PwC)

13. PPPUE/Capacity 2015 PPP training January 25, 2006 ODA and Private Capital Flows to Developing Countries Versus Rio Target World Bank 1998, 2004 Rio Target ODA Flows Private Capital Flows

14. PPPUE/Capacity 2015 PPP training January 25, 2006 Wide range of PPP definitions Every co-operation between public and private partners to meet a public good A spectrum of possible organisational relationships between the government and other organisations (profit and non-profit) that are not government to carry out a project or provide a service 4. Overview of PPP definitions

15. PPPUE/Capacity 2015 PPP training January 25, 2006 Overview of PPP definitions Arrangements between government and private sector entities for the purpose of providing public infrastructure, community facilities and related services characterized by the sharing of  investment  risk  responsibility and  reward between the partners

16. PPPUE/Capacity 2015 PPP training January 25, 2006 Major skepticism about PPPs and some responses 1. Increased prices for services  efficiencies  cost-recovery strategy  targeted subsidies 2. Poor communities exclusion  Wide spectrum of options  Public participation 3. Often complex requiring more efforts and capacity compared to “Business as usual”: e.g. procurement  Cost-benefit analysis  Reaction to crisis vs. “vision”

17. PPPUE/Capacity 2015 PPP training January 25, 2006 Summing up: PPP key identifiers Long term Trust based Aligned goals Power relations Non-adversarial Formal and informal Significant risk takers