HOT TOPICS:Public-Private Partnerships

Presented by: Samuel ELUSOJI MGPP, Research Methods for Public Policy

Thursday, 3rd November, 2016

OUTLINE1) PPP in infrastructure: A

Comparison Between China and India

2) PPP and Environmental Sanitation in Ghana

3) Development of Drugs in PPP environments

4) Strengthening PPPs for More and Better Health Outcomes in Ethiopia

5) ‘Hamilton’ Shows the Power of PPP

6) PPPs for Jobs in Libya are Key for Youth and Women, Now More than Ever

7) Assessing Models of PPPs for Irrigation Development in Africa

8) PPP in Ethiopia: The Inclusive Modality In Tourism Development

TOPIC 1: Public-Private Partnership in Infrastructure: A Comparison

Between China and IndiaXuwen Luo; January,2016

BRICS Information Sharing & Exchanging Platformhttp://www.brics-info.org/public-private-partnership-in-infrastructure-a-

comparison-between-india-and-china/

NOTES1. Both India and China have been promoting Public Private

Partnership in delivering infrastructure in various sectors.2. India prioritizes in transport and energy while China puts its

emphasis in public services.3. State-owned enterprises (SOEs) have a bigger presence in PPPs

in China while foreign investors have more space in India.4. The main reason for India using PPP is the gap between

government fiscal capacity and the increasing infrastructure demand; while in China, the key is innovation, in the sense that private sector has better technology and management skills in tackling sophisticated issues such as water treatment and elderly care.

5. China takes a top-down approach in the promotion of PPP while India, in the national level, also takes a top-down approach but has to take a bottom-up approach in the state level.

CONCLUSIONS1. PPP is not a panacea for the government to shred risks

to private sector of even build up infrastructure for free, as some people believe both in India and China.

2. There are some common challenges of implementing PPP in both countries, with their distinctive characters, which can be summarized as human resources, legal and regulatory framework and financing gap.

3. These major challenges are not easy to tackle. However, both the Indian and the Chinese seem to understand these issues well and have been putting serious efforts into them.

TOPIC 2: PPP and ENVIRONMENTAL SANITATION in GHANA: A Case Study of Accra Metropolitan

Assembly (AMA) and Zoomlion Company Ltd (Zl)

Vincent Kwasi Bi; June,2016Institute of Local Government, Accra, Ghanahttp://ijecm.co.uk/wp-content/uploads/2016/06/4645.pdf

NOTES1. The contract between

AMA and ZL Ltd is a type of franchise with limited tenure of five (5) years. ZL Ltd is one of nine (9) companies contracted by AMA to provide solid waste management service for the local authority.

2. The objective of the

contract is to shift the financial burden of waste management services from AMA to ZL under a system called fee-based refuse collection. Thus the major objective of the partnership is financial in that the assembly seeks a zero financial commitment to the provision of the service by ZL

CONCLUSIONS1.The study revealed that the partnership between the

AMA and ZL, to a large extent, have met the set targets with regards to the coverage area, improved sanitation facilities, the frequency of collection of waste and the charges paid by customers as set out in the partnership agreement.

2.However, critical challenges such as rapid urbanization, population pressure, low level of investment in sanitation delivery and fast unplanned expansion of cities pose major challenges for the full attainment of this partnership agreement.

TOPIC 3: Development of Drugs in Public-Private Partnership environments

Haramija et al; April,2011Pompeu Fabra University, Barcelona, Spainhttp://www.slideshare.net/pmaugeri/development-of-drugs-in-publicprivate-partnership-ppp-environments

NOTES1. Process of introducing new drugs in the market is expensive,

long and risky.2. Drug makers only have incentive to introduce drugs to

markets where customers can pay development costs.3. Most of the resources and experience in drug discovery are

held by the private sector.4. 90% of the world’s diseases receive only 10% of the

resources, leading many of those diseases neglected, or “orphaned”.

5. Public-Private partnerships (PPPs) could allow for some of these diseases to receive the attention they need.

6. The Public sector has a great interest in stimulating discoveries and, knowledge of multiple diseases links to government, while the Private sector has strong R&D expertise, marketing, PM, and regulatory affairs.

POLICY RECOMMENDATIONBayer’s Initiative: Grants4Targets

• Grants4Targets allows public researchers to apply for research grants from Bayer Healthcare:

1. Applicants apply for grants via the Grants4Targets website using a standard format application

2. A committee of researchers at Bayer then decide on the proposal3. Grants are decided in as little as 8 weeks4. Grants come in three sizes, ranging from 5,000-250,000 Euros. Up to 125,000 Euros,

no Intellectual Property (IP) are necessary, applicant keeps IP.

TOPIC 4: STRENGTHENING PPPs FOR MORE AND BETTER HEALTH OUTCOMES IN ETHIOPIA: Expert

Reviews and Case Studies*HEPCAPS2 Project; June,2015Ministry of Health, Ethiopia; Harvard T.H. School of Public Health; JSI Research and Training Institutehttps://cdn1.sph.harvard.edu/wp-content/uploads/sites/1325/2013/01/HEPCAPS-PPP-Report-FINAL.pdf

NOTES1. Leveraging non-state resources through partnership with the private sector serves as a

viable opportunity for the Government of Ethiopia to narrow the gaps caused by resource constraints as well as improve access to quality health services.

2. Information from the key informant interviews and identified “sixteen PPP case studies” were synthesized, compiled, and reported by the team of experts from the Federal Ministry of Health, Resource Mobilization Directorate, and HEPCAPS2 project from June to November, 2014.

3. Contracting partnerships was found to be promising in reaching needy populations with quality health services.

4. Infrastructure-based hospital PPP arrangements, seen in the establishment of specialized medical care services like dialysis and eye care within public hospitals were found to create opportunity for affordable and conveniently located service.

5. Social marketing and franchising are contributing their share in increasing access to sexual and reproductive health services. In the year 2013 alone, DKT Ethiopia in partnership with private providers distributed more than 66 million condoms, 4.1 million cycles of oral contraceptives, 2.7 million injectable contraceptives, 1.7 million emergency contraceptive pills, 122,455 Implants, and 195,000 Intrauterine Contraceptive Devices (IUCDs) that translates into 2,442,890 Couple Years Protection (CYPs).

POLICY RECOMMENDATIONSKey informants provided the following recommendations to strengthen partnerships between government and private for profit and private for-nonprofit sector in health service provision:

1. Organize regular consultations between government and private providers and implement

effective and agreed upon mechanisms to strengthen PPP;

2. Establish a unit dedicated to coordinating PPP from MoH and regional health bureau (RHB) to

local (woreda) health office levels;

3. Develop guidelines, standard operating procedures, and tools to standardize implementation of

PPPs;

4. Support the development of legal framework to provide PPP legal coverage;

5. Build trusting, supportive, and inclusive relationship between government and private providers.

TOPIC 5: 'HAMILTON' SHOWS THE POWER OF PUBLIC-PRIVATE PARTNERSHIP

Mohammed A. El-Erian; January,2016Bloomberg Viewhttps://www.bloomberg.com/view/articles/2016-01-04/-hamilton-shows-the-power-of-public-private-partnership

NOTES1. The production's success (genre-advancing production by Lin-Manuel

Miranda, who plays the lead role and also composed the music) provides another example of a public-private partnership that could help revolutionize an established model.

2. The Public provided Miranda with the support and space for experimental evolution, together with funding, feedback and encouragement to create "Hamilton" over several years.

CONCLUSION

The success of "Hamilton" should end the argument about whether venture innovation and segment disruption are the sole domain of the private sector. The musical powerfully demonstrates the effectiveness of the type of well-designed public-private partnerships that also have proved successful in education, health, technology and other sectors. And it offers a road map for private sector ventures and the public sector to work together, including by leveraging resources and space for experimentation, innovation and beneficial disruption.

TOPIC 6: PPPs FOR JOBS IN LIBYA ARE KEY FOR YOUTH AND WOMEN, NOW MORE THAN EVER: A World Bank Report

The World bank; May,2016

http://www.worldbank.org/en/news/feature/2016/05/03/public-private-partnerships-for-jobs-in-libya-are-key-for-youth-and-women

NOTES

1. To support stabilization (for the youths and ex-combatants) and pave the way for post-conflict recovery, the report says trade, services, tourism, and agribusiness, are all possible areas for job placement, on-the-job training in firms and entrepreneurship.

2. Innovative public-private partnerships are emerging at local levels and have continued operating even during the current conflict.  In Tripoli, for example, the local municipal council and a non-governmental organization had opened an employment center in 2014 that had begun placing youth in jobs in firms, and in late 2015 mobilized an investor forum to support young entrepreneurs looking to expand.

POLICY RECOMMENDATIONS1. Establishing a public-private partnership contracting

system for entrepreneurship and job placement could provide the incentives needed to stimulate job creation in the private sector.

2. Contracts that provide incentives to train and retain workers and that improve social security for nationals and non-nationals alike might help investors attract the talent needed away from the public sector.

3. Creating a consolidated database and information system would give the public sector, employers and jobseekers alike the support they need.  

TOPIC 7: ASSESSING MODELS OF PPPS FOR IRRIGATION DEVELOPMENT IN AFRICA: A Study of

TanzaniaRuth Meinzen-Dick; August,2016CGIAR Research Program on Water, land and Ecosystemhttp://www.slideshare.net/wle_cgiar_media/assessing-models-of-publicprivate-partnership-for-irrigation-development

KEY CHALLENGES IDENTIFIED1.Difficulty in aligning profit and development

objectives2.Information on water availability and use

(competing uses, climate change)3.Needs beyond irrigation infrastructure (technology,

taxation, training, markets, inputs)4.Land and water rights5.Dominance by governments / limited involvement

by farmers, communities and markets6.Challenges to build trust (history matters)

IMPLICATIONS AND POLICY RECOMMENDATIONS1.Add finance to interdisciplinary mix for irrigation2.Is irrigation likely to be profitable for investors?

Logic for state investment, less for private sector3.“Beyond panaceas”

a. Need to engage with complexityb. Tools for understanding complex arrangementsc. Range of options for PPP arrangements

4.TIME: Needed to build trust, but time cost tradeoffs

TOPIC 8: PPP IN ETHIOPIA: THE INCLUSIVE MODALITY IN TOURISM DEVELOPMENT

Gebre Miruts PhD, Sisay Getachew; November,2015Ethiopian Civil Service UniversityJournal of Tourism, Hospitality and Sports www.iiste.orgISSN (Paper) 2312-5187 ISSN (Online) 2312-5179

NOTES AND CONCLUSIONS1. The need for PPP has already been captured as an agenda since

1992 appearing in strategic government documents. Nevertheless, in spite of the huge potential, the implementation of PPP has been very low in the tourism Industry.

2. The study recognized that there are still gaps in the level of understanding about the concept of PPP across the industry and lack of awareness about the existing legal frameworks both hindering the application of PPP in tourism sector.

3. The restraining factors to PPP in tourism investment in Ethiopia also include; lack of awareness about PPP, prioritization of other sectors and financial arrangements.

4. A well designed incentive packages to PPP projects will attract the private sector while lack of mutual trust is still to be considered in the view of appropriate legal assistance.

Thanks for your Attention!