Publication: Creating a Framework for Public-Private Partnership Programs: A Practical Guide for Decision-makers
Loading...
Other Files
533 downloads
Date
2015
ISSN
Published
2015
Author(s)
Editor(s)
Abstract
Public private partnerships (PPP) represent an approach to procuring infrastructure services that is radically different from traditional public procurement. It moves beyond the client-supplier relationship when government hires private companies to supply assets or a service. PPP is a partnership between public and private to achieve a solution, to deliver an infrastructure service over the long term. It combines the strength of the public sector’s mandate to deliver services and its role as regulator and coordinator of public functions with the private sector’s focus on profitability and therefore commercial efficiency. There is a tendency to approach reform of the PPP framework as a single action, generally delivered by external consultants in one massive report, with a few workshops and training sessions (in an effort to deliver the guidance in a more digestible form). Achieving a viable PPP framework involves a complex series of parallel, iterative initiatives, and efforts. It involves updating the different elements of the PPP framework discussed in this text as each new lesson is learned from PPP transactions as they are implemented and national best practice as it develops. Section one introduces the framework required to support PPP and provides a summary of the text. Sections two to six describes five key elements of the PPP framework and what the government can do to improve them.
Link to Data Set
Citation
“Delmon, Jeffrey. 2015. Creating a Framework for Public-Private Partnership Programs: A Practical Guide for Decision-makers. © World Bank. http://hdl.handle.net/10986/22822 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Understanding Options for Public-Private Partnerships in Infrastructure : Sorting Out the Forest from the Trees--BOT, DBFO, DCMF, Concession, Lease . . .(World Bank, Washington, DC, 2010-01)This paper provides a methodology for categorizing public-private partnerships in infrastructure, based on the following key characteristics: whether the project involves new or existing business, the nature of the private sector s construction obligations, the need for the private sector to mobilize significant private funding ab initio, the nature of the private sector s service delivery obligations, and the source of the project revenue stream. The purpose of this methodology is to facilitate mapping, referencing, cross-comparison, analytical studies, and descriptions of public-private partnerships in infrastructure projects with similar key characteristics across sector, commercial, regional, and geopolitical lines. The methodology is tested against 15 case studies representing different infrastructure sectors, regional applications, and commercial approaches to public-private partnerships.Publication Unlocking the Public-Private Partnerships Deadlock in Indonesia(World Bank, Jakarta, 2011-03)The challenges faced by Indonesia in creating a robust Public-Private Partnership (PPP) program are similar to those faced by many other middle-income countries. This paper provides a gap analysis for Indonesia's PPP framework based on lessons learned and good practice from countries with successful PPP programs. It identifies, in particular, the need for the government to: select good projects for PPP, rather than only complex ones that are less likely to attract private partners. Establish a list of projects by a limited cabinet meeting and stick to it-issuing different lists of projects and holding showcase summits with open agendas tends to confuse the market. Keep those projects on track for PPP-allowing the contracting agencies to develop prospective projects directly, or to award them without competition leads investors to question the commitment and resolve of the government to its own PPP process. Prepare projects well, using the Ministry of Finance to provide access to: 1) a team of PPP experts to help contracting agencies develop projects; 2) project preparation funding to help pay the high costs of preparation; and 3) viability gap funding to make projects more affordable and bankable by defraying some of the capital costs.Publication Green Infrastructure Finance : A Public-Private Partnership Approach to Climate Finance(World Bank, Washington, DC, 2013)In June 2012, the Green Infrastructure Finance Framework Report was published to address the constraints in financing green infrastructure and to develop a new approach to accelerate investments in low-emission technologies. The approach includes a financing and advisory interface, which clarifies the principles and concepts of the shared financing roles recommended by the methodology. The Framework attempts to bring clean investments towards a more familiar financing environment and to distance them from the charged political debate that has adversely affected the progress in international climate change discussions for over a decade. The detrimental effect of climate change is growing, yet clean investments are still grossly insufficient making it necessary to rethink the approach to greening the global energy mix. The need for some level of concessional financing or outright subsidy support is widely understood but the approach must be equitable, non-political and deliver a sufficient level of support. The concept of anchoring regulation in a country's existing public-private partnership (PPP) framework to focus on creating the right policy environment will greatly facilitate mainstream implementation and reduce costs. This aspect of the framework is widely understood by many developing country governments and can be easily replicated not only in East Asia, but also in other regions.Publication An Operational Framework for Managing Fiscal Commitments from Public-Private Partnerships(Washington, DC: World Bank, 2013-02-09)The National policy on public-private partnerships (PPP) recently approved by the Government of Ghana (GoG) sets out the government's intention to use PPPs to improve the quality, cost-effectiveness, and timely provision of public infrastructure in Ghana. The PPP policy highlights the role of the government's financial support to PPPs, as well as the importance of putting in place a system to manage the associated fiscal commitments (FCs). As noted in the policy, the government's contribution to a PPP may include remuneration to the private party from government budgets, which may be fixed or partially fixed, periodic payments (annuities) and contingent. This report proposes an operational framework for managing fiscal obligations arising from PPPs in Ghana. This framework aims to ensure that PPP FCs are consistently identified and assessed during PPP project preparation, and that these assessments are fed into project approval. The report outlines roles and responsibilities, concepts, and processes for managing PPP FCs, drawing on international standards and practices, bearing in mind existing institutions and capacities in Ghana. The report also suggests legislative additions and capacity building needed to establish this framework in practice. This report focuses primarily on managing long-term FCs to PPPs, including regular payments or contingent liabilities (CL) that typically last throughout a project's lifetime. This report is structured as follows: chapter 1 is introduction; chapter; 2 introduces the concept of FCs from PPPs: how and why PPPs create FCs, why managing them is important, and an overview of what it entails; chapter 3 presents institutional roles and responsibilities; chapter 4 describes how FC management should be incorporated in the PPP development and approval process; chapter 5 describes how FCs can be managed during PPP implementation by monitoring, reporting, and budgeting adequately; and chapter 6 sets out the steps needed to begin to implement this PPP framework-to build its core requirements into the forthcoming PPP Law, and to build capacity in the relevant entities to carry out those requirements in practice.Publication Public-Private Partnerships in the New EU Member States(Washington, DC: World Bank, 2007)Public-private partnerships (PPPs) operate at the boundary of the public and private sectors, being neither fully public nor fully private. PPPs are defined in this paper as privately financed infrastructure projects in which a private firm either: (i) sells its services to the government; or (ii) sells its services to third parties with significant fiscal support in the form of guarantees. Despite these common elements of PPPs across sectors, there are differences in the type of arrangements that are typical in each sector. This study focuses on whether and when using PPPs can create fiscal space for additional infrastructure investments in the EU8. In doing so, the paper will examine the fiscal risks of PPPs and the role of fiscal institutions in this regard, including how these affect the use and design of PPPs and thus the potential for creating fiscal space while promoting investment in infrastructure. Chapter 2 distinguishes the illusory from the real fiscal effects of PPPs. Chapter 3 relates the extent to which PPPs reduce fiscal costs to the nature of fiscal institutions. Chapter 4 explains how fiscal institutions can be improved to encourage fiscal prudence in the use and design of PPPs. Chapter 5 concludes.
Users also downloaded
Showing related downloaded files
Publication Ten Steps to a Results-Based Monitoring and Evaluation System : A Handbook for Development Practitioners(Washington, DC: World Bank, 2004)An effective state is essential to achieving socio-economic and sustainable development. With the advent of globalization, there are growing pressures on governments and organizations around the world to be more responsive to the demands of internal and external stakeholders for good governance, accountability and transparency, greater development effectiveness, and delivery of tangible results. Governments, parliaments, citizens, the private sector, Non-governmental Organizations (NGOs), civil society, international organizations, and donors are among the stakeholders interested in better performance. As demands for greater accountability and real results have increased, there is an attendant need for enhanced results-based monitoring and evaluation of policies, programs, and projects. This handbook provides a comprehensive ten-step model that will help guide development practitioners through the process of designing and building a results-based monitoring and evaluation system. These steps begin with a 'readiness assessment' and take the practitioner through the design, management, and importantly, the sustainability of such systems. The handbook describes each step in detail, the tasks needed to complete each one, and the tools available to help along the way.Publication Zimbabwe(World Bank, Washington, DC, 2019-03-01)This report presents an assessment of Zimbabwe’s agriculture sector disaster risk and management capacity. The findings indicate that Zimbabwe is highly exposed to agricultural risks and has limited capacity to manage risk at various levels. The report shows that disaster-related shocks along Zimbabwe’s agricultural supply chains directly translate to volatility in agricultural GDP. Such shocks have a substantial impact on economic growth, food security, and fiscal balance. When catastrophic disasters occur, the economy absorbs the shocks, without benefiting from any instruments that transfer the risk to markets and coping ability. The increasing prevalence of ‘shock recovery-shock’ cycles impairs Zimbabwe’s ability to plan and pursue a sustainable development path. The findings presented here confirm that it is highly pertinent for Zimbabwe to strengthen the capacity to manage risk at various levels, from the smallholder farmer, to other participants along the supply chain, to consumers (who require a reliable, safe food supply), and ultimately to the government to manage natural disasters. The assessment provides the following evidence on sources of risks and plausible risk management solutions. It is our hope that the report contributes to action by the Government of Zimbabwe to adopt a proactive and integrated risk management strategy appropriate to the current structure of the agricultural sector.Publication World Development Report 2019(Washington, DC: World Bank, 2019)Work is constantly reshaped by technological progress. New ways of production are adopted, markets expand, and societies evolve. But some changes provoke more attention than others, in part due to the vast uncertainty involved in making predictions about the future. The 2019 World Development Report will study how the nature of work is changing as a result of advances in technology today. Technological progress disrupts existing systems. A new social contract is needed to smooth the transition and guard against rising inequality. Significant investments in human capital throughout a person’s lifecycle are vital to this effort. If workers are to stay competitive against machines they need to train or retool existing skills. A social protection system that includes a minimum basic level of protection for workers and citizens can complement new forms of employment. Improved private sector policies to encourage startup activity and competition can help countries compete in the digital age. Governments also need to ensure that firms pay their fair share of taxes, in part to fund this new social contract. The 2019 World Development Report presents an analysis of these issues based upon the available evidence.Publication The Power of Survey Design : A User's Guide for Managing Surveys, Interpreting Results, and Influencing Respondents(Washington, DC: World Bank, 2006)The vast majority of data used for economic research, analysis, and policy design comes from surveys-surveys of households, firms, schools, hospitals, and market participants, and, the accuracy of the estimate will depend on how well the survey is done. This innovative book is both a 'how-to' go about carrying out high-quality surveys, especially in the challenging environment of developing countries, and a 'user's guide' for anyone who uses statistical data. Reading this book will provide data users with a wealth of insight into what kinds of problems, or biases to look for in different data sources, based on the underlying survey approaches that were used to generate the data. In that sense the book is an invaluable 'skeptics guide to data'. Yet, the broad storyline of the book is something that should be absorbed by statistical data users. The book will teach and show how difficult it often is to obtain reliable estimates of important social and economic facts, and, therefore encourages you to approach all estimates with sensible caution.Publication Supporting Youth at Risk(World Bank, Washington, DC, 2008)The World Bank has produced this policy Toolkit in response to a growing demand from our government clients and partners for advice on how to create and implement effective policies for at-risk youth. The author has highlighted 22 policies (six core policies, nine promising policies, and seven general policies) that have been effective in addressing the following five key risk areas for young people around the world: (i) youth unemployment, underemployment, and lack of formal sector employment; (ii) early school leaving; (iii) risky sexual behavior leading to early childbearing and HIV/AIDS; (iv) crime and violence; and (v) substance abuse. The objective of this Toolkit is to serve as a practical guide for policy makers in middle-income countries as well as professionals working within the area of youth development on how to develop and implement an effective policy portfolio to foster healthy and positive youth development.