private public partnerships
TRANSCRIPT
Private Public Partnerships
Presented By: Mohsin RazaPresented To: Dr. Aashiq Hussain DogarPhD Education 1st SemesterRoll No. A.DPE01161006 The University of Lahore
Definition of PPP
• Public private partnerships (PPPs) are agreements between government and the private sector for the purpose of providing public infrastructure, community facilities and related services.
• The private sector enter into a contract with government for the design, delivery, and operation of the facility or infrastructure and the services provided.
• The private sector finance the capital investment and recover the investment over the course of the contract.
• The asset transfers back to the public sector at the end of the contract
Collaboration may be at
a) Government learning sites /institutions, b) Community sites, and c) Private sector sites d) Community & NGOse) Government & NGOs
Range of PPPs
Adapted from Canadian Council PPP 2009
Design and build
Operate and maintain
Build and finance
Design build finance maintain
DBFM-operate
Concession
Privatisation
PPP
Mod
els
Degree of private sector involvement
Degr
ee o
f priv
ate
sect
or ri
sk
Principles of PPPs
• Contracting Authority defines the service required• Design of the works to deliver that service lies with the private sector Output based specification
• The contract can be for 25/30 years plusLong-term contractual arrangements
Value for money
Transfer of risk
• Competition will drive best value• Gives public sector access to innovationMarket competition
Whole life costing
•Cost measured against conventional procurement.•Whole life costs and quality are combined to gauge VFM
•Long term responsibility for building operation and maintenance•Focus on reducing cost
•Transfer of design and construction risk•Risk of ownership transferred to the private sector
Typical SPV structure for PPPs
Government
PPP Agreement
Private Sector(Special Purpose Vehicle)
(SPV)
Loan agreement Debt
Subcontractors
SubcontractorConstruction
SubcontractorOperations
ShareholdingEquity
Work on PPP in Education in Pakistan
Punjab Education Foundation in Pakistan (PEF) Foundation-Assisted Schools programme (FAS) Continuous Professional Development Program
(CPDP) Teaching in Clusters by Subject Specialists
program (TICSS) Education Voucher Scheme (EVS) Sindh Education Foundation (SEF)
The arguments againstpublic-private partnerships
• PPPs will lead to the privatization of educationand thus will reduce the government’s control over a public service.• Increasing the educational choices available to students and their families may increase socioeconomic segregation if better prepared students end up self selecting into high-quality schools, thus further improving their outcomes.
What makes a successful PPP?
• Political will• Government commitment• PPP Champion• Clear output specification• Appropriate risk sharing• Value for money• Performance management
Registration Criteria for Private Schools should
be:1. Realistic and achievable, so that they do not
unduly restrict the establishment of new schools;2. Objective and measurable, to limit the scope for
corruption;3. Open to all prospective private school entrants;4. Output-focused, to allow schools to change how
they deliver their education services;5. Applied consistently across different government
levels and departments.
Conclusions
• Undertake projects for the benefit of the citizens, including the socially and economically disadvantaged
• Allows governments to approach projects hitherto unobtainable due to lack of funding
• Provide incentives to the private sector to adopt green criteria
• Embraces the MDGs• PPPs allow the injection of private sector
capital