Download - David Wright Chief Executive CiiD. Public Interest Public sector Private sector PPP Structure
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PUBLIC + PRIVATE = PARTNERSHIP
David WrightChief Executive
CiiD
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Partnership
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Partnership
Public Interest
Public sector
Private sector
PPP Structure
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Partnership
Public interest – the MDA says WHAT it wants from the partnership – lays out the “rules of the game”
Private sector offers a solution for delivering what the MDA wants – it defines HOW the MDA will get what it wants
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What the MDA wants
Needs to◦ Reflect precisely what the MDA wants◦ Be described unambiguously◦ Be capable of being provided◦ Be capable of being measured
This is usually called the “output specification”
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Partnership
Public Interest
Public sector
Private sector
PPP Structure
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How the private sector delivers
Uses its collective skills to create the most effective and efficient solution◦ Design◦ Build◦ Maintain◦ Operate◦ Finance
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This isn’t free
The private sector solution costs money:◦ Suppliers◦ Repaying debt◦ Profit / return on investment
The private sector will estimate these amounts over the contract life and calculate the regular payment that they need to receive◦ Users◦ Government◦ Both
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Nor is this risk-free
The private sector faces risks:◦ Availability (design, build, maintenance)◦ Performance (maintenance, operation)◦ Costs
The public sector faces risks:◦ Political◦ Management◦ Fiscal
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How are risks managed The private sector:
◦ Availability (design, build, maintenance): project management, contractual, holistic approach
◦ Performance (maintenance, operation): contractual, partnership management
◦ Costs
The public sector:◦ Political: partnership management, performance measurement◦ Management: procurement management, contract
management, capacity building◦ Fiscal: assessing economic value, identifying fiscal space,
monitoring
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How can this be achieved?
The private sector:◦ Create a supply-side partnership◦ Focus on long-term solutions◦ Prepare to take on different obligations and manage the risks◦ Create and nurture a partnership with an MDA
The public sector:◦ Build capacity◦ Work outside the comfort zone – cross-functional◦ Think in terms of outputs, not inputs and processes◦ Do the right thing first time◦ MANAGE THE CONRTACT◦ Create and nurture a partnership with a private sector partner