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Public Private Partnerships and
Development
Razvojni program ujedinjenih nacija
Advantages of PPPs
1. Efficiencies: faster completion time and better quality
2. Greater flexibility for policymakers.
3. PPPs stimulate development…but success dependant on
the right framework and knowledge
PPPs as remedy for budget constrains
Characteristic challenges for government:
1. Public pressure for lower prices leads to loss-making
ventures
2. Inefficient spending and budget shortfalls
3. Inability to keep pace with developments
Relationships with private-sector partners :
• mispricing, cost overruns, and lack of transparency
minimized through private sector governing principles.
• Access to investment funds and innovative financing
•Robust investment sources enable adjustment of services in
terms of supply and geographic scope
•Private-sector organizations can attract and offer new services.
How PPPs fuel development
1. PPPs free up government resources for other priority sectors in
the economy
2. Bring capital into the market while creating long-term
employment.
3. Share international business practices and standards
4. Supporting local business development - forward and backward
linkages, especially important with small, medium and microenterprises
5. Developing human capital
Providing training and health benefits in the workplace and along
the corporate supply chain
6. Creating physical and institutional infrastructure
From telecommunications and transport to legal and financial
frameworks
7. Transferring technology
In particular in areas such ads information technology,
environmental and other locally applicable technologies
8. Providing goods and services
That meet local needs and that offer increased access for poorer
communities in the case of basic goods and services, such as
medicines, energy, water and credit
Standards of living
•PPPs foster service expansion - incentive to invest more
resources to expand services and improve customer service
to generate profit.
•Operate with greater efficiency. Incentives exist to reduce
waste and improve revenue collection through new practices
•Faster delivery in less time due to incentives and capital
which allows lagging projects to be expedited
Government Role
• minimize economic and political risks to attract more PPPs to
its market
• optimization of private-sector commitments through greater
private sector involvement in PPP arrangements
• sound regulatory system to maximize resource commitment
and transfer of know-how.
• curbing opportunities for corruption