TOPIC

Concept and Definitions of Public Private Community Partnerships, Elements of PPCP, Relevance of PPCP in the Development Sector

Structure of Presentation
1. 2. 3. 4. 5. 6. Concepts & definitions of PPCP Elements of PPCP Evolution of the Concept Areas of PPCP Relevance of PPCP in development sector A case study in context of inclusive marketing 7. References

Concept & Definitions

1. A contractual arrangement under which service or business venture is funded and operated through a partnership between government and one or more private sector entities. 2. A contractually established entity which benefits from the respective strengths of public and private partners to provide a public good and /or service

Concept & Definitions

3. Attracting private investments to spheres of activity traditionally regarded as the responsibility of the public sector 4. Combines the respective strengths of public and private partners ; PPP projects are planned , financed and implemented jointly 5. PPP is one expression of a strong trend towards privatisation

Concept & Definitions

6. PPP are contractual arrangements that allow governments to benefit from private sector expertise , management and finance, helping expand access to public services such as water and sanitation, transport, power, and education 7. Collaborative activities among interested groups , based on a mutual recognition of respective strengths and weak nesses, working towards common agreed objectives developed through effective and timely communication

Concept & Definitions

8. PPP are structures for joint action in which complementary resources (know how, skills, funding, equipment) can be tapped and different balanced while the parties involved retain full independence 9. PPP is an approach under which services are delivered by the private sector ( non profit/for profit organisation) while the responsibility for providing services rests with the government

Concept & Definitions

10. PPP is a mode of implementing government programs/schemes in partnership with the private sector (Planning Commission 2007) 11. PPP a collaborative arrangement between public, private, and/or civil society entities under which each party contributes to the planning, resources and activities [for] accomplishing a mutual objective, while sharing associated risks and benefits. (Building PPPs for Agriculture Innovation in Latin America, IFPRI Discussion Paper 00699, May 2007)

Concept & Definitions

12 .... PPP subsumes all objectives of the service being provided earlier by the government, and is not intended to compromise on them. shift from delivering services directly, to service management and coordination (Working Group Report, Watershed Development Programme; Planning Commission, 2007)
13. PPP Project . a contract or concession agreement, between the Government and a private sector company, for delivering an infrastructure service on payment of user charges

Concept & Definitions

14. PPP is a formal collaborative arrangements btw the public, private, and/or civil society organisations each party contributing to the planning, resources, and activities for a mutually agreed developmental objective while sharing associated risks and benefits

Concept & Definitions

15. PPPs are a contractual arrangement whereby the resources, risks and rewards of both the public agency and private sector are combined to provide greater efficiency, better access to capital, and improved compliance with a range of government regulations the environment and workplace. The publics interest are fully assured through provisions in the contracts that provide for on-going monitoring and oversight of the operation of service or development of a facility. In this way every wins the government entity, the private company and the general public. National Council for Public Private Partnerships (NCPPP), USA

Concept & Definitions

In legal terms, there is no definition of a PPP, it is still a working concept

Elements of PPP
Framework conditions Win-Win situation for all stakeholders Cost & Risk sharing arrangement Clear role definitions Partnering skills Robust monitoring system

Evolution of Concept
In some form such partnerships always existed in social systems. One example is Olympic games dating from 776B.C and lasting more than 1100 yrs until a.D.-393 ( modern games started in 1896) Massachusetts Bay Company incorporated the private Water Works Company to supply drinking water to Boston 350 yrs ago

Evolution of Concept
In USA during 1960s under the war and poverty programme of federal government financial resources were allocated to community of citys low income neighborhoods and community were responsible both for planning and implementation In wake of poor performance of the government delivery system and organisational effectiveness of Private Sector , in 1990s, concept got currency in many European countries

Evolution of Concept
PPP terminology first introduced as concept in U.K. by conservative government in 1992. Private Finance Initiative (PFI) was first systematic programme aimed at PPPs Between 1997-2000, in UK, 150 PFI projects costing GBP 12 billion Similar pattern emerged in other European countries

Evolution of Concept
In India, Community Support of government programmes was sought for construction of irrigation canals during First Five Year Plan period and such participation increased during subsequent plans Presently schemes of social sector ( like health, sanitation, family welfare etc.) have component of such community participation

Evolution of Concept
Average city in USA, private entities deliver 23 of 65 basic municipal services from wastewater handling to Urban development ( source : National Council for Public Private Partnership) Same pattern is noticeable in other developing countries also Donor agencies like UNDP,DFID World Bank and GtZ etc. gave cognizance and support to PPP model.

Rationale
the truth is that outside of its legitimate function, government does nothing as well or economically as the private sector of the economy. Ronald Reagan What takes the government 50 yrs to achieve can be done by the private sector in tenth of time Milton Friedman Best government is that which governs little Abraham Lincon

Rationale
Inefficient Public Service Delivery Insufficient Resources Failure to Expand Services to meet the rapidly growing demands General distrust of government bureaucracy

Potential Benefits
Mobilisation of more resources Cost effectiveness Higher productivity Accelerated delivery Customer focus Enhanced social service Recovery of user charges

Potential Benefits
Opportunities for additional resources Mitigates and properly allocates risks Attract the right skills and management Reduces corruption and waste Promotes innovation Reduce burden on taxpayers Improved service coverage Enhanced quality in services

Evaluation Findings
Substantial welfare gains Expansion in services Poor more benefited from PPP, than under earlier regime of exclusive public delivery Competition addressed the issues of reduced price and expanded access

PPP & Privatisation

Area Privatisation PPP
Govt fully responsible for providing the sevice Ownership of assets retained by public sector Contractually determined between two parties Shared between both sectors Responsibi Delivery & Funding rests with lity private sector Ownership Ownership rights with associated benefits and costs sold to pvt sector Nature & scope of services determined by private provider Both rests with pvt sector

Nature of service Risk & Reward

Areas of PPP
Infrastructure Health Education Water & Sanitation Inclusive Marketing Urban Services Utilities Welfare Services

PPP Models
Cooperation Model BOT Model : Build Operate Transfer TOT Model : Transfer Operate Transfer Franchise Model

PPP & Inclusive Marketing

CASE STUDY OF ANUPPUR AGARBATTI CLUSTER

Essentials for Successful PPP

Framework conditions Win-Win situation for all stakeholders Transparency Cost & Risk sharing arrangement Clear role definitions Partnering skills Robust monitoring system

Ideal PPPs
SUCH PPPs THAT CAN PROVIDE SERVICES MORE
EFFICIENTLY,

EFFECTIVELY & EQUITABILY

References
1.Report on PPP Sub-Group on Social Sector PPP : Planning Commission,GoI, November 2004 2. Public Private Partnership in Social Sector : Asian Development Bank Institute ,Policy Papers(2000) 3. Public Service Through Private Enterprise :Malcolm Harper (2000) 4. www.m4pnetwork.org 5. www.katalystbd.com 6. www.markets4poor.org 7. www.finmark.org.za 8. www.commark.org 9. www.propcom.org