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Public Private Partnerships

Across the developing world, governments are increasingly turning to the private sector to help meet socio-economic objectives, develop much needed infrastructure and improve the delivery of public services through public private partnerships (PPPs). PPPs allow governments to access additional sources of funding and draw on private sector expertise in the design, construction and operation of public infrastructure and services.

We support national governments, individual ministries and agencies, who as contracting authorities are responsible for implementing PPP projects, by building capacity and advising on all aspects of the project cycle, from project selection and feasibility through the procurement process and during the operational phase of the project.

Services

Effectively designing and tendering a PPP transaction is only the beginning of the long-term process to manage a PPP contract. Monitoring contracts and regulating prices and services are critical to ensuring that the PPP delivers value for money throughout the life-cycle of the PPP. PPPs can fail without sufficient attention to contract management.

Good contract management ensures that services are delivered continuously and payments are made/penalties levied in accordance with the contract, the government's responsibilities and risks managed carefully and changes in the external environment, both risks and opportunities, are spotted and acted upon

Public Private Partnerships offer a unique and innovative method of involving the private sector in the nation building activity and in accelerating the delivery of public goods and services of high quality through joint enterprises, without spreading the limited available resources too thin. In order to sustain the high annual growth rate, PPP will be an attractive option in meeting this challenge.

The basic objective of project audit is to provide unbiased, objective assessment of whether public resources are responsibly and effectively managed to achieve the intended results. Auditors, through their evaluation, (should) help the government organizations achieve accountability and integrity, improve operations, and instill confidence among citizens and stakeholders.

Project design is an early phase of the project where a project’s key features, structure, criteria for success, and major deliverables are all planned out. The point is to develop one or more designs which can be used achieve the desired project goals. Stakeholders can then choose the best design to use for the actual execution and management of the project.

The PPP Readiness Diagnostic assesses a country’s readiness to implement PPPs by reviewing the PPP environment and comparing it to global best practice standards to determine areas that require change or improvement. The areas under review include PPP experience, stakeholder support and ownership, legislative and regulatory framework, institutional framework, government support and managing fiscal risk, access to finance, and transparency and accountability.

Defining an approach to addressing the areas that require attention depends on country circumstances and the relative importance of each area. There are three phases - desktop preparation, on-site due diligence and strategy definition. Each phase is structured around a set of key questions, known as due diligence checklists. This process culminates in the development of a customized PPP strategy for the country.

PPPs are about changing the way a public service is delivered. This creates uncertainly for end users and uncertainty for the workers providing the public service. People need to be respected, consulted, and heard —especially in times of uncertainty and change. Managing stakeholders (i.e. consulting, involving, respecting, and communicating with affected people) is critical to the success of all projects, particularly high profile, large, complex projects, as PPPs often are.

PPP projects often fail because of poor stakeholder analysis and engagement. Successful stakeholder management starts with an early identification of stakeholders and the deliberate implementation of tailored strategies for each group. Analysis should be done early in the project cycle – after project identification, but well before the formal transaction development process begins.

Engagements

 

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