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4337_3549_Public-Private Partnerships for Urban Enviroment

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									  Public-Private Partnerships for the Urban Environment




          UNDP-PPPUE
Pro-Poor PPPs for Service Delivery
      www.undp.org/pppue
     Public-Private Partnerships for the Urban Environment


         Outline of the Presentation

I.   Brief Background of UNDP-PPPUE
II.  Concept and approach and rational for Pro
     PPP in SD
III. Lessons Learned from PPPUE initiatives
IV. CD Tools, Audience and Applications-
•    Tools for pro-poor Municipal PPP-www.undp.org/pppue
•    Step-by-step guide to start pro-poor PPP.
•    PPP Global Learning Network (GLN)-www.undp.org/pppue
      Public-Private Partnerships for the Urban Environment
                       What is PPPUE?
It‟s a UNDP global facility supporting National & LG :
   • To develop enabling environment conducive for inclusive
     pro-poor local PPP for service delivery.
   • To enhance capacity of local partners to understand and
     promote local level PPP as an approach to deliver services that
     contribute to poverty reduction and achievement of MDG 7.
   • To use UN neutrality as a trusted partner to facilitate dialogue for
     inclusive and sustainable PPPs and to attract investments for
     service delivery to reach & meet the needs of the poor
   • Broker tripartite partnerships for SD in Water Supply, Sanitation,
     SWM, Local Energy Services, Central Municipal Services, Education,
     Health, Agriculture, Transport and public infrastructure
   Public-Private Partnerships for the Urban Environment
           Inclusive Partnerships
 Using Strengths of All Partners to Address
     SD Challenges and achieve MDGs
                   Formal or informal PPP Contract

Government                                           Business

                            PP
National Government,                            National & International,
   Federal States,                                Formal & Informall



                            P
 Municipalities, LAs                                  Enterprises




                         Civil Society
                         Communities, NGOs,
                            Universities,
                          Research Centres
          Public-Private Partnerships for the Urban Environment

          Menu of options for PPP in SD
                                     Broadest Definition of
                                  “Public-Private Partnerships”

                Agreeing            Traditional      Joint                 Passive Public
                Frameworks          Public           Ventures              Investment
                Local Agenda 21     Contracting      Co-ownership          Equity
                Community           Design           Co-responsibility     Debt Guarantees
Fully           Visioning           Build                                  Grants               Fully
Public                                                                                        Private
Sector         Passive              Service            Build         Agreeing                 Sector
                Private           Contracts         Operate       Frameworks
            Investment              Operate       and Invest             Regulatory
             Government             Maintain            BOT                Dialogue
                  Bonds               Lease       Concession             Covenants


              Public               Investment Responsibility                Private
                                                                                Enabler and
         Provider                      Government Role
                                                                                Regulator
                 Public-Private Partnerships for the Urban Environment


                                 Snap Shot: PPP Options
   Option        Asset           Capital        O/M         Duration      Tariff         System        Tariff        System
                 Ownership       Investment     Finance                   Collection     Operations    Setting       Regulation


  Service          L/Authority    L/Authority   L/Authori    1-3 years      Local        L/Authority     Local       L/Authority
  Contract                                         ty                      Authority     and Private    Authority



 Management        L/Authority    L/Authority   L/Authori    3-8 years       Local         Private       Local       L/Authority
  Contract                                         ty                     Authority or                  Authority
                                                                            Private


Lease Contract     L/Authority    L/Authority    Private    8-15 years      Private        Private       Local       L/Authority
                                                                                                        Authority         or
                                                                                                                     independent
                                                                                                                         body

 Concession        L/Authority      Private      Private    25-30 years     Private        Private        Local      L/Authority
  Contract                                                                                             Authority &        or
                                                                                                         Private     independent
                                                                                                        Operator         body


Joint Venture      L/Authority    L/Authority   L/Authori     Varies         Local         Private     L/Authority   L/Authority
  Contract           /Private       /Private        ty                     Authority                    & Private         or
                                                 /Private                   /Private                    Operator     independent
                                                                                                                         body


  Franchise         Private &       Private      Private      Varies        Private        Private     L/Authority   L/Authority
  Contract         L/Authority
       Public-Private Partnerships for the Urban Environment

                  Rational for Pro Poor PPP

 Combines the social responsibility, regulatory, and
public accountability role of Government with technology, investment,
managerial efficiency & entrepreneurial spirit from private sector and
civil society community mobilization skills and watchdog role in a
tripartite partnership
 Facilitates development of Commercial Organizations for
    Growth. CO: Formal or Informal; Small or Large company or
    enterprise with commercial motivates and who wants to profit
    through innovation in service delivery.
 Allows for thorough Risk assessment and Risk management e.g.-
   Availability risk, demand risk design risk, political risk etc.
     Public-Private Partnerships for the Urban Environment

         Lessons Learned from Practices
        “DON„Ts” for Pro-poor PPPs
•   Create PPP’s in isolation of wider national &
    local development strategies/plans/frameworks.
•   Judge partners- needs, interests and motives.
•   Forget possible pro-poor ‘add-ons” to larger
    PPPs.
•   Establish PPPs without insufficient or
    imbalanced benefits.
•   Completely reinvent the PPP wheel.
•   Ignore longer term financing.
    Public-Private Partnerships for the Urban Environment

        Lessons Learned from Practices

       “DON„Ts” for Pro-poor PPPs
•    Let one partner dominate (Inclusiveness is key
     for success).
•    Involve a private partner (operator) without
     any type of competition.
•    Spread resources too thinly (rather focus
     specific sector or geographic area).
•    Under allocate or over allocate risks.
    Public-Private Partnerships for the Urban Environment
        CD-Tools for pro-poor Municipal
                      PPP
                              Aim
  To improving the capacity of partners at the country
  level interested in applying innovative approaches to
  solve problems of service delivery for all citizens-
  especially-the poor.
                         Adaptability
• It’s a working manual on how to plan, develop,
  implement, regulate PPPs and evaluate PPP.
• Modified as required by users after applications, to
  enhance its functionality and adaptation to local context.
   Public-Private Partnerships for the Urban Environment
       Tools for pro-poor Municipal PPP-
               (www.undp.org/pppue)
  Module 1 deals with conceptual issues:
• Understanding and explaining reasons for PPPs.
• Elaborates key features of successful PPPs
• Explores PPPs linkage with poverty reduction efforts,
  national strategy, MT Expenditure Frameworks,
  National Development Plans and Visions.

Key Outputs: Create common vision & understanding of PPP.
             Concept and link PPP strategy to local context.
      Public-Private Partnerships for the Urban Environment

          Tools for pro-poor Municipal PPP

Module 2: Preparation Stage
• Addresses planning and organizing stakeholders
  for PPPs.
• Identifying, analyzing and allocating risks to help
  structure PPPs.
• Collating of information on key stakeholders.
Key output: Share and use information collated for planning actions.
    Public-Private Partnerships for the Urban Environment

        Tools for pro-poor Municipal PPP

  Module 3: PPP Development Stage
• Legal and regulatory environment for PPPs
• Institutional framework at national & local levels
• Financial, contract related and capacity issues
• Scope for PPPs with regard to geographical
  area, service requirement, sectors, etc…
• Establish key principles, as well as identify key
  partners.
     Public-Private Partnerships for the Urban Environment

        Tools for pro-poor Municipal PPP

Module 3: PPP Development Stage
    (Continued)
•   Develop the partnership process & options.
•   Develop the financing/investment options.
•   Develop cost recovery models (Govts decision).
•   Develop business planning actions.
•   Develop a plan for regulating PPPs.
Key Output: Key constraints to PPPs analyzed and
  workable strategies developed.
    Public-Private Partnerships for the Urban Environment

         Tools for pro-poor Municipal PPP

Module 4: Implementation Phase
It addresses the following:
• Tendering and procurement process.
(Pro Poor tender documents, Pre-tender training, registration, licensing
& tender advertising)
• Negotiating and contracting procedures.
(Post Tender Training)
• Managing PPP contracts-delineating key roles.
• Monitoring and evaluation of performance.
• Managing conflicts arising from pro-poor PPP.
    Public-Private Partnerships for the Urban Environment

       The step-by-step guide to start
         pro-poor PPP in basic SD
  Aim: Facilitate smooth implementation of PPP in SD.
                             Rational
• Lessons learned and the CD needs expressed.
• Demand from COs and their partners implementing PPP
  for SD.
                        Consistency
• Has 4 basic steps developed to provide practical
  implementation solutions where PPPs has been
  identified as the preferred approach to deliver a service
  at the national or local level
Public-Private Partnerships for the Urban Environment

PPPUE Global Learning Network
 Constant feedback mechanism between country
 level experiences and global level analysis and
 learning through providing a forum for the sharing of
 lessons, and the analysis and dissemination of
 cutting edge thinking on pro-poor PPP for SD to
 better inform new interventions.


                   Experience


           Innovative         Global
          Partnerships   Learning Network



                    Analysis
  Public-Private Partnerships for the Urban Environment


                        END

Thank You; Asante Sana

								
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