Iob Study No 378 Public Private Partnerships in Developing Countries

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    IOB Study

    ature review | IOB Study | no. 378 | Public-Private Partnerships in developing countries | IOB Study | no. 378 | Public-Private Partnerships in dev

    Public-Private Partnerships

    in developing countries

    A systematic literature review

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    April 2013

    IOB Study

    Public-Private Partnerships

    in developing countries

    A systematic literature review

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    Public-Private Partnerships in developing countries

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    Preace

    Public-privae parnerships (PPPs) are a relaively recen phenomenon in inernaional

    developmen cooperaion. Curren policy documens requenly reer o expecaions

    regarding heir poenial conribuions o global developmen goals.

    In 2000, he Duch Miniser or Developmen Cooperaion and he Miniser or Foreign

    Trade submited a join leter o parliamen regarding he role o privae secor in reducing

    povery.1 In his documen hardly any reerence was made o Public-Privae Parnerships.

    The roles and ariculaion o public and privae agens were sill reerred o in raher general

    erms like nding he righ balance, demarcaing responsibiliies and righ inerplay.

    Only once, a PPP is menioned, namely a Worldbank-led iniiaive or giving policy advice ogovernmens o developmen counries o involve he privae secor in nancing and

    operaing inrasrucure (he Public-Privae Inrasrucure Advisory Faciliy - PPIAF).

    In he inernaional debae on he eeciveness o aid aking place wihin he OECD

    Developmen Assisance Commitee (DAC), he privae secor was unil recenly hardly

    invied as a sakeholder o join he discussions. The atenion or muli-sakeholder

    parnerships or pursuing developmen objecives received a major simulus a he UN

    World Summi or Susainable Developmen (WSSD), held in Johannesburg (Souh Arica) in

    2002. During he winding up o he debaes a he 4h High Level Forum on Aid

    Eeciveness aking place in Busan (Souh-Korea) in he period November 29h

    December1h 2011 horough atenion was given o he role o public-privae parnerships in

    developmen cooperaion.

    This growing atenion was rmly backed by he Neherlands governmen. Nowadays PPPs

    are increasingly considered o be an atracive developmen insrumen and are oen being

    used in he Duch developmen programs. However, here are sill ew diagnosic ools

    available o deermine when and how PPPs represen a preerred insiuional arrangemen.

    Moreover, he empirical evidence on he eeciveness and eciency o PPPs is noably

    scarce.

    The sudy provides insighs in he wide variey o PPP arrangemens and he someimes

    raher diuse conracual ramework under which PPPs ake place. Due atenion is given o

    he moives and raionale or relying on PPPs and he expeced oucomes o PPP

    arrangemens. A major conclusion derived rom his review is ha PPP evaluaions ocus

    more on resource sharing bu pay litle atenion o he risk-sharing and revenue

    disribuion dimension o parnerships.

    The Policy and Operaions Evaluaion Deparmen (IOB) o he Neherlands Minisry o

    Foreign Aairs commissioned a research eam rom APE (Aars De Jong Wilms Goudriaan

    Public Economics bv) o underake a sysemaic review o available proessional lieraure

    In Business agains Povery, Parliamenary Papers, House o Represenaives, - session, , no. .

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    Preace

    and evaluaion repors regarding he perormance o PPPs. Main quesions guiding he

    sysemaic review reer o: Wha can be considered o be a public-privae parnership?

    Wha is he inervenion logic o PPPs?

    Wha resuls can be expeced rom PPPs?

    Wha are criical success acors o PPPs?

    The APE-eam was composed by Seanie Bouman, Raq Friperson, Maarje Gielen and Peer

    Wilms. Guidance has been provided by a reerence group composed by Naalie den Breugom

    de Haas and Anno Galema (boh Minisry o Foreign Aairs). Commens were received rom

    Renko Campen (independen consulan). Inernal supervision and qualiy assurance has

    been provided by Max Timmerman and Jiska Gieema o IOB.

    The Policy and Operaions Evaluaion deparmen (IOB) sincerely hopes ha his

    publicaion will encourage he refecions and debaes on he opions and opporuniies or

    public-privae parnerships in developing cooperaion.

    Pro. dr. Ruerd Ruben

    Direcor Policy and Operaions Evaluaion Deparmen (IOB)

    Minisry o Foreign Aairs, The Neherlands

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    Table o Contents

    Preace 3

    Table o Contents 5

    List o tables, gures and textboxes 7

    Acronyms and abbreviations 7

    Summary and conclusions 11

    1 Background 15

    2 Objective 16

    3 Denition o key terms 17

    4 Research steps 20

    5 Overview and classication 21

    6 Denition and key criteria o developmental PPPs 23

    6.1 Deniion developmenal PPPs 23

    6.2 Five key crieria o developmenal PPPs 23

    6.3 Summary able (case sudies) 24

    7 Intervention logic 25

    7.1 Raionale o he PPP 25

    7.2 Goals and expeced resuls o PPP 27

    8 Results o PPP 28

    8.1 Oupu 28

    8.2 Oucome 33

    8.3 Impac 36

    8.4 PPP pahways 368.5 Transacion coss 37

    8.6 Risk sharing 37

    8.7 Pro sharing 38

    9 Success and ailure actors 39

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    Table o conens

    10 Answers on research questions 42

    11 Outlook: Evaluating Public-Private Partnerships 44

    12 Reerences 50

    Annexes

    Annex 1 Abou IOB 57

    Annex 2 Research mehodology 59

    Annex 3 Coding shee sysemaic review 64

    Annex 4 Summary ables case sudies 67

    Annex 5 Summary able reviews (overview sudies) 93

    Evaluation reports o the Policy and Operations Evaluation Department

    (IOB) published 2008-2013 108

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    List o tables, fgures and textboxes

    TablesTable 1 Duch spending on PPPs in 2011 15

    Table 2 Number o sudies by secor 21

    Table 3 Number o sudies by region 21

    Table 4 Number o sudies by ype o PPP 22

    Table 5 Five key crieria on developmenal PPPs (case sudies) 24

    Table 6 Eec o PPP inervenion on oupu (case sudies) 28

    Table 7 Eec o PPP inervenion on oupu (reviews) 32

    Table 8 Eec o PPP inervenion on oucome (case sudies) 34

    Table 9 Eec o PPP inervenion on oucome (reviews) 35Table A-1 Number o aricles colleced and remaining aer check or relevance ile/

    absrac 60

    Table A-2 Number o aricles remaining aer check on ile/absrac and qualiy 62

    Table A-3 Number o case sudies by MSSM 63

    Table A-4 Deniion and ype o PPP (case sudies) 67

    Table A-5 Inervenion logic (case sudies) 74

    Table A-6 Resuls o PPP (case sudies) 82

    Table A-7 Summary able reviews 93

    FiguresFigure 1 Remaining number o sudies aer each selecion sep 20Figure 2 Word cloud o PPP deniions in reviewed case sudies 23

    Figure 3 Relaionship beween PPP design and oupu 31

    Figure 4 Relaionship beween key PPP design and oucome 35

    Figure 5 PPP Transacion coss 48

    TextboxesBox 1 Five key crieria o developmenal PPPs 17

    Box 2 Types o (developmenal) Public Privae Parnerships (PPPs) 18

    Box 3 Implemen a PPP o increase eeciveness 26Box 4 Evaluaion mehodology o PPRS program 29

    Box 5 Punjabi Educaion Foundaion 31

    Box 6 The weak oupu o he Arican horiculure parnership 33

    Box 7 ASAQ Winhrop led o price reducion o ATCs 34

    Box 8 The ailure o he Bolivia waer concession 36

    Box 9 No pro no loss prices 37

    Box 10 Criical success acors o PPPs 39

    Box A-1 Keywords used or nding relevan aricles 59

    Box A-2 Qualiy crieria (knock-ou) 61

    Box A-3 MSSM levels and descripion 62

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    Acronyms and abbreviaions

    Acronyms and abbreviations

    3IE Inernaional Iniiaive or Impac Evaluaion

    ADB Asian Developmen Bank

    ADB Arican Developmen Bank

    AVRCD The World Vegeable Cener

    CGAP Consulaive Group o Assis he Poor

    CGIAR Consulaive Group on Inernaional Agriculural Research

    CIMMYT The Inernaional Maize and Whea Improvemen Cenre

    DAC Developmen Assisance Commitee

    DBFMO Design Build Finance Mainain Operae

    DEReC DAC Evaluaion Resource CenreDFID Deparmen or Inernaional Developmen (Unied Kingdom)

    Evalne DAC nework on Developmen Evaluaion

    ERR Exernal Rae o Reurn

    FAO Food and Agriculure Organizaion

    FLO Fairrade Labelling Organisaion

    GAFSP Global Agriculure and Food Securiy Program

    GDP Gross Domesic Produc

    GNI Gross Naional Income

    HH Household

    ICARDA Inernaional Cener or Agriculural Research in he Dry AreasICRAF The World Agrooresry Cenre

    ICRISAT Inernaional Crops Research Insiue or he Semi-Arid Tropics

    ICS Inernal Conrol Sysem

    IDB Iner-American Developmen Bank

    IFAD Inernaional Fund or Agriculural Developmen

    IFPRI Inernaional Food Policy Research Insiue

    IITA Inernaional Insiue o Tropical Agriculure

    IOB Policy and Operaions Evaluaion Deparmen

    IPM Inegraed Pes Managemen

    IRR Inernal Rae o ReurnIRRI Inernaional Rice Research Insiue

    KIT Royal Tropical Insiue

    MDG Millennium Developmen Goal

    MFA Minisry o Foreign Aairs

    MV Modern Varieies

    NGO Non-Governmenal Organizaion

    NPV Ne Presen Value

    NRM Naural Resources Managemen

    OECD Organisaion or Economic Co-operaion and Developmen

    OPV Open Pollinaed VarieiesPARC Pan Arican Rinderpes Eradicaion Campaign

    PETT The Peruvian Rural Land Tiling Programme

    PPIAF Public-Privae Inrasrucure Advisory Faciliy

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    PPP Public-Privae Parnership

    SSA Sub-Saharan AricaWB World Bank

    WDR World Developmen Repor

    WFP World Food Programme

    WSSD World Summi or Susainable Developmen

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    Summary and conclusions

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    Public-Privae Parnerships (PPPs or 3P) are increasingly envisaged as an atracive

    proposiion or involving he privae secor in inernaional developmen cooperaion. Inpracice, however, PPPs include a wide variey o arrangemens and are no always

    uniormly dened. We hereore caegorized developmenal PPPs according o a se o

    crieria relaed o he degree o cooperaion in erms o shared goal, join unding, resource

    and aciviy sharing and risk disribuion.

    Since 2002 he Duch Minisry o Foreign Aairs has been increasingly using PPPs or he

    execuion o developmen cooperaion programs. In 2011, Duch governmen spen 48.3

    million on 54 PPPs mainly in secors like healhcare, waer and saniaion and ood securiy.

    Moreover, subsanial unding is provided o worldwide sraegic produc developmen

    coaliions as well as o hemaic muli-donor rusunds ha operae in close alliance wihhe privae secor. Finally, also Duch non-governmenal organizaions are engaged in

    several parnerships wih he privae secor.

    PPPs are generically dened as a orm o cooperaion beween governmen and business

    agens someimes also involving volunary organizaions (NGOs, rade unions) or

    knowledge insiues ha agree o work ogeher o reach a common goals or carry ou a

    specic ask, while joinly assuming he risks and responsibiliies and sharing resources and

    compeences. While here are many concepual sudies available ha provide insighs in

    he principles and poenials o PPPs in inernaional developmen cooperaion, empirical

    evidence ha highlighs he (developmenal) raionale and he acual oucomes orsakeholders is sill scarce.

    This sysemaic review o he available evidence regarding he developmen impac o PPPs

    is based on a careul search and selecion process ollowing he guidelines and procedures

    o he Campbell proocol. From an iniial collecion o 1.433 sudies derived rom several

    sources (i.e. aricles rom scienic porals and developmen evaluaion sudies) nally

    remained 81 sudies ha qualied as valid evaluaive repors. Aer a urher screening

    regarding he reporing on PPP resuls, 47 sudies nally remained ha provide empirical

    evidence on PPP eeciveness, including 18 case sudies and 29 reviews. We summarize he

    main ndings and conclusions below:

    1. Evaluaion sudies make dierence beween various ypes o PPPs ha dier wih

    respec o he degree o sharing resources, responsibiliies and risks.

    Mos evaluaion evidence is available rom PPP arrangemens ha are characerized as

    join venures and managemen conracs. In addiion, many PPPs rely on a

    combinaion o various conracual principles. Subsidies and concessions o privae

    parners or he execuion o developmen programs could also qualiy as a PPP, since

    hese are usually assigned or ousourcing o aciviies. Oherwise, grans and revenue

    subsidies (ax breaks) are considered as specic incenives or enabling privae secor

    involvemen in paricular secors ha are economically viable (e.g. providing a nebene o sociey) bu ha are nancially no ye sucienly atracive.

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    Summary and conclusions

    2. PPPs are currenly used in dieren secors, bu evidence is mainly available or PPPs in

    healhcare (insurance), inrasrucure (including ranspor and energy), waer supplyand agriculure.

    Imporan areas or PPP developmen are ound in secors where subsanial iniial

    capial invesmens are required and ha oer real opporuniies or cos recovery

    hrough paymen o aris and ees. Noably ew PPP evaluaions are regisered in he

    elds o educaion and environmen. PPPs seem o ocus on aciviies ha could

    bene rom producion and/or disribuion echnologies ha are widely available

    rom privae secor agens. Mos evaluaive evidence regarding PPPs is available rom

    Arica and Asia, paricularly reerring o setings o marke ailure.

    3. Many PPP evaluaions ocus on resource sharing, while litle atenion is usually giveno he risk-sharing and revenue disribuion dimension o parnerships.

    More han hal o he PPP evaluaive case sudies pay no atenion o he disribuion o

    risks beween public and privae parners. The parnership is usually conceived as a

    cooperaive agreemen ocusing on common goals and sharing inpus and resources.

    Clear arrangemens or he disribuion o revenues and rules or assigning

    responsibiliies or poenial losses are commonly absen. Moreover, rules or

    disribuion o public and privae shares are dened mechanically or on an ad-hoc

    base; bidding schemes are hardly used o ideniy appropriae privae parners.

    4. The raionale or relying on PPPs is mosly based on resource mobilizaion moivesraher han or eeciveness reasons.

    In heory, PPPs can be considered a preerred opion when marke and/or insiuional

    ailures exis ha preven he delivery o goods and services wih a ne developmen

    impac. In pracice, however, mos PPPs are moivaed or nancial reasons in order o

    mobilize addiional resources ha enable he execuion o large public programs. Few

    evaluaion repors menion overcoming nancial marke ailure and produc/marke

    risks as a moive or public engagemen. Marke ailures may be a relevan moive or

    jusiying PPPs in medicine research and agriculural produc developmen where high

    sunk coss inhibi privae sar-ups. Governmen ailures can be equally relevan o

    pursue PPPs i he adequae provision o public goods is a sake.

    5. The goals perceived by PPPs are oen dened in a very general way and crieria or

    specic, measurable, atainable, relevan and imely objecives are usually absen.

    Many PPP evaluaion sudies menion perceived goals ha are dened a a raher high

    level o aggregaion and ha are dicul o assess empirically a he end o he

    program. Process-ype o goals (beter cooperaion) are requenly orwarded, while

    oupu-oriened goals are scarcely specied. Especially he ime dimension is usually

    overlooked in PPP evaluaions. An adequae ime rame or evaluaion is required,

    since iniially high ransacion coss during he sar-up phase o PPPs could be

    compensaed by lower coss during implemenaion.

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    6. Repored eecs o PPPs are raher posiive a oupu level, bu also weak, mixed and

    negaive eecs are regisered in several occasions.In 15 o he 18 reviewed case sudies here was reporing on he eec o he PPP on

    oupu. The majoriy (13 ou o 15) describes a posiive eec, 2 sudies nd no eec

    and 1 sudy regisers a negaive eec. A similar picure emerges rom he review

    sudies. In mos repors i remains unclear wheher he eec can be atribued o he

    PPP. Moreover, cliens or beneciaries o PPPs are no always unambiguously dened.

    No sraighorward relaionship has been ound beween he compliance on PPP

    characerisics and he eec o PPPs on delivering oupu.

    7. Developmen oucomes and eeciveness: some bu raher weak evidence

    The developmenal oucome and impac o PPPs is assessed in hal o he available casesudies (9 ou o 18) and in 7 ou o 9 cases posiive eecs are regisered. However, he

    robusness o hese resuls is raher limied wih low scores on he Maryland Scale o

    Scienic Mehods (MSSM). Resuls were repored in erms o higher educaion scores,

    beter reamen raes, lower consumer prices and adopion o new producion

    echnologies, bu no sysemaic relaionship wih PPP design eaures could be proven.

    PPP projecs ocusing on privaizaion o public services (waer, elecriciy) someimes

    cause ari increases ha may aec poorer households. Almos no evidence was ound

    regarding he cos-eeciveness and he environmenal benes o PPPs.

    8. The evidence base on PPP evaluaions is sill scarce and hardly relies on sound androbus empirical couneracual analysis.

    The large majoriy o he PPP evaluaions are no based on robus impac analysis. Only

    one sudy provides a couneracual (e.g. siuaion wihou PPP inervenion). This

    implies ha atribuion o eecs o paricular PPP eaures is no possible. However,

    some specic pahways or generaing PPP resuls could be discerned, wih mos

    noable oucomes ound in aciviies relaed o raining and proessional developmen,

    R&D suppor, knowledge sharing and leverage o echnical and managerial experise,

    work and paricipaion incenives, and price conrols and ari ceiling measures.

    9. Sysemaic analysis o PPP perormance could provide more insighs in he success andailure acors underlying PPP eeciveness.

    The proessional lieraure provides several overviews o acors ha infuence success

    or ailure o PPPs. Criical success acors reer o (a) sandard seting and permanen

    involvemen o public agencies, (b) clear ormaion requiremens (goals, inpus and

    expecaions), (c) sound regulaory ramework regarding coss recovery and bene

    disribuion, (d) adequae parner selecion arrangemens (based on compaibiliy,

    capabiliy, commimen and conrol), (e) common vision and muual rusul

    relaionships and ( ) ransparen negoiaion on muliple ineress o key paricipans.

    The validiy o hese acors is conrmed rom he case sudies, bu heir muual

    ineracion and relaive imporance remains subjec o debae.

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    Summary and conclusions

    10. Decision-making regarding he reliance on PPPs or developmen could be suppored

    wih a clear ramework or selecing and designing PPPs and should provide insighs inhe raionale and inervenion logic o PPPs in any specic siuaion.

    Since PPPs canno be universally dened and hey can include a variey o dieren

    organizaional eaures, heir selecion nally depends in paricular on a judgmen

    regarding appropriaeness and expeced resuls ha can be reached in any paricular

    siuaion. Thereore, i migh be useul o ideniy key consrains ha hinder local

    developmen and o ouline wheher or no PPPs can be considered as an adequae

    sraegy or addressing hese consrains. For making such judgmens, i is considered

    paricularly imporan o clearly dene PPP eligibiliy crieria and o compare he PPP

    opion wih alernaive implemenaion arrangemens.

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    1 Background

    Growing role o privae secor

    Involving he privae secor is a growing prioriy in Duch developmen cooperaion. Since

    2002 he Duch Minisry o Foreign Aairs (MFA) has increasingly used Public-Privae

    Parnerships (PPPs) or he execuion o aid programs. The PPPs are designed o bring he

    realizaion o he Millennium Developmen Goals (MDG) closer (MFA, 2010).

    Duch spending on developmenal PPPs is concenraed in healhcare and waer.

    Currenly he Duch governmen is involved in PPPs in several Arican- (such as

    Mozambique, Rwanda and Burundi) and Asian developing counries (such as Indonesia and

    Mongolia). Examples o concree projecs are worldwide coaliions such as he so-calledGlobal Alliance or Vaccines and Immunizaion (GAVI), parnerships wih individual

    companies like he Duch energy company Nuon in he Foundaion or Rural Energy

    Services (FRES) in Mali and produc developmen parnerships (PDPs). In 2011, he Duch

    governmen spen 48,3 million on 54 PPPs. The projecs were concenraed in he secors

    ood securiy/PSD, waer, saniaion & hygiene and healhcare, seeTable 1.

    Table 1 Dutch spending on PPPs in 2011

    Theme Number o projects Spending (x mln.)

    Food securiy/PSD 17 8,7

    Waer, saniaion & hygiene 15 13,5

    Healhcare 13 24,5

    Innovaive nance 6 0,3

    Climae and energy 3 1,3

    Total 54 48,3

    Source: Tweede Kamer, 0-0 50 nr. 6

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    Objecive

    2 Objective

    Our main research quesion

    The main research quesion o his review is: wha is he evidence or he eeciveness and eciency

    o Public-Privae Parnerships (PPPs) in inernaional developmen cooperaion as derived rom credible and

    valid evaluaive sudies?.

    covers ve key issues.

    The specic research quesions can be divided across ve key issues:

    1. Precise denition o developmental PPPs

    a. Wha are he crieria or an inervenion o be considered developmenal PPPs?

    2. Categorization o dierent types o PPPs according to dierent interventionstrategies

    a. Which ypes o developmenal PPPs can be disinguished?

    b. Wha is he inervenion sraegy o developmenal PPPs?

    c. Which pahways in developmenal PPPs can be disinguished?

    d. Wha is he relaion beween dieren ypes o PPPs and he inervenion sraegy?

    3. Identication o results o PPPs pathways at outcome and possibly impact level

    a. Wha are he oupus o PPPs in developing counries?

    b. Wha are he oucomes PPPs in developing counries?

    c. Wha are he impacs o PPPs in developing counries?

    4. Analysis o the eectiveness o PPP pathways according to relevant evaluative studiesa. Why did a PPP produced he desired resuls or no?

    b. Are here general paterns in success or ailure acors?

    5. Synthesis o the available inormation o PPP efciency.

    a. Wha are he benes o he PPPs compared o he coss?

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    3 Defnition o key terms

    Beore answering he research quesion we dene he key erms in our research quesions.

    This enails he deniion o PPP, oupu, oucome, impac and inervenion logic.

    No broad acceped deniion o PPP

    There is no universal acceped deniion o Public Privae Parnership (PPP). Marin (2009)

    illusraes his poin: here is no single deniion o PPP. I covers a wide range o

    ransacions where he privae secor is assigned some responsibiliy, including invesmen.

    I ranges rom managemen conracs wih no invesmen obligaions o concessions

    conracs wih signican invesmen obligaions in addiion o operaional and

    managemen obligaions (Marin, 2009).

    bu deniions do have common characerisics.

    Alhough deniions vary, hey do have some common characerisics. Illusraive or his is

    he analysis in a orhcoming paper o Da Rosa e al. (2012). Da Rosa e al. (2012) presen an

    exensive overview o 28 PPP deniions which hey score along 14 dimensions. They nd

    ha mos deniions describe ha PPPs: have dieren socieal backgrounds (18 ou o 28),

    share objecives, goals and problems (17 ou o 28), are or he provision o public goods

    (14), bene rom complemenary resources (14) and have parners which collaborae in an

    inerdependen and ineracive way (Da Rosa e al., 2012).

    We use he deniion o he Duch MFA

    Given he conex o our review we use he PPP deniion rom he Duch Minisry o

    Foreign Aairs (MFA, 2010): A orm o cooperaion beween governmen and business (in

    many cases also involving NGOs, rade unions and/or knowledge insiuions) in which hey

    agree o work ogeher o reach a common goal or carry ou a specic ask, joinly assuming

    he risks and responsibiliy and sharing heir resources and compeences.

    and derive ve key crieria o developmenal PPPs.

    Based on he MFA deniion, deniions rom key developmenal insiuions (such as

    OECD, World Bank and IMF) and he analysis o Da Rosa e al. (2012) we derive ve keycrieria o developmenal PPPs, see Box1. In our sysemaic review we will score he PPPs in

    he case sudies on hese crieria.

    Box 1 Five key crieria o developmenal PPPs

    # Characteristic

    1 A cooperaion beween he public and privae secor (also NGOs, rade organizaions andknowledge insiues) wih a common (developmen) goal;

    2 A clear agreemen beween he public and privae pary on he goal(s) o he PPPs;

    3 A combinaion o Public and Privae unding

    4 A clear agreemen beween he public and privae pary on he sharing o resources and asks;

    5 Disribuion o risks beween he public and he privae secor.

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    Deniion o key erms

    Types o developmenal PPPs.

    Wihin his ramework here are several ypes o developmenal PPPs. On a scale rompublic o privae we disinguish he ollowing ypes o PPPs (ADB, 2008): 2

    Service conrac

    Managemen conrac

    Aermage and lease conracs

    Concession

    Buildoperaeranser (BOT) and similar arrangemens (including BTO, BOO, DBO, DBFO)

    Join venure

    These ypes are described in Box2.

    Box 2 Types o (developmenal) Public Privae Parnerships (PPPs)

    Form Description (quoted rom ADB, 2008)

    Serviceconrac

    The governmen (public auhoriy) hires a privae company or eniy o carryou one or more specied asks or services or a period, ypically 13 years.The governmen pays he privae parner a predeermined ee or he service,which may be based on a one-ime ee, uni cos, or oher basis.

    Managemenconrac

    A managemen conrac expands he services o be conraced ou o includesome or all o he managemen and operaion o he public service (i.e., uiliy,hospial, por auhoriy, ec.). Obligaion or service provision remains in hepublic secor, while daily managemen conrol and auhoriy is assigned o heprivae parner or conracor.The privae conracor is paid a predeermined rae or labor and oher anicipa-ed operaing coss. The conracor is paid an addiional amoun or achievingprespecied arges or he managemen conracor can be paid a share opros. The public secor reains he obligaion or major capial invesmen.

    Aermage orLease conracs

    Under an aermage or a lease conrac, he privae parner is responsible orhe service in is enirey and underakes obligaions relaing o qualiy andservice sandards. Excep or new and replacemen invesmens, which remainhe responsibiliy o he public auhoriy, he operaor provides he service ahis expense and risk. The duraion o he leasing conrac is ypically or 10

    years and may be renewed or up o 20 years.Under a lease conrac he nancial risk or operaion and mainenance isborne enirely by he privae secor operaor. The privae secor reainsrevenue colleced rom cusomers and makes a specied lease paymen o heconracing auhoriy.An aermage allows he privae secor o collec revenue rom he cusomers(ypically an agreed rae per uni sold), pays he conracing auhoriy anaermage ee, and reains he remaining revenue.

    In our opinion he ADB handbook on PPP provided he mos broad and horough overview odevelopmenal PPPs.

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    Form Description (quoted rom ADB, 2008)

    Concession A concession makes he privae secor operaor (concessionaire) responsible orhe ull delivery o services in a specied area, including operaion, mainenance,collecion, managemen, and consrucion and rehabiliaion o he sysem. Theoperaor is responsible or all capial invesmen. The public secor is responsibleor esablishing perormance sandards and ensuring ha he concessionairemees hem. A concession conrac is ypically valid or 2530 years.The concessionaire collecs he ari direcly rom he sysem users.

    Buildoperaeranser (BOT)and similararrangemens(including BTO,

    BOO, DBO,DBFO)

    Under a BOT and similar arrangemens a privae rm or consorium nances anddevelops a new inrasrucure projec or a major componen according operormance sandards se by he governmen. The privae parner provides hecapial required o build he new aciliy. A he end o he conrac, he ownershipis ranserred o he public secor. Variaions on he basic BOT srucure are:

    buildranseroperae (BTO) where he ranser o he public owner akesplace a he conclusion o consrucion raher han a he end o he conrac;buildownoperae (BOO) where he developer consrucs and operaes heaciliy wihou ranserring ownership o he public secor;design buildoperae (DBO) where he privae secor provides design,consrucion, and operaion o he inrasrucure projec;designbuildnanceoperae (DBFO) where he responsibiliies or designing,building, nancing, and operaing are bundled ogeher and ranserred oprivae secor parners.

    Join venure Under a join venure, he public and privae secor parners can eiher orm anew company or assume join ownership o an exising company hrough a

    sale o shares o one or several privae invesors. Boh public and privaeparners inves in he company and share risks.

    Source: ABD (008)

    Oupu (immediae resuls)

    We dene oupu as he number o goods or services produced by he PPP. For insance he

    number o mosquio nes or malaria medicines. These are he mos immediae resuls o

    aciviies (OECD, 2001).

    Oucome (inermediae eecs)

    We dene oucome as he inermediae (shor erm) eec o he PPP on he communiy.Examples: since he PPP in waer service more people have access o clean drinking waer. Oen

    he ime rame is such ha oucomes can be achieved wihin he projec lie cycle (OECD, 2001).

    Impac (nal goal)

    We dene impac as he causal eec (ne eec) o he PPP inervenion on he nal goal. For

    insance: less people die o waer polluion because o he PPP inervenion. The casual eec o

    PPP should be indicaed by couneracual analysis, hereor a srong couneracual is needed.

    Inervenion logic

    Inervenion logic we describe as all he aciviies and expeced eecs (oupus, resuls andimpacs) o an inervenion, as well as he assumpions ha explain how he aciviies will

    lead o he eecs in he conex o he inervenion (European Commission, 2006).

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    Research seps

    4 Research steps

    Six research seps

    In our sysemaic review we ollowed he guidelines and procedures menioned in he

    Campbell proocol or sysemaic reviews. We ollowed six research seps o nd, selec, and

    analyze relevan sudies:

    Sep 1: keyword search

    Sep 2: quick scan aricles on ile and absrac

    Sep 3: assessing general characerisics o sudies

    Sep 4: check on qualiy (6 knock-ou crieria)

    Sep 5: scoring o remaining case sudies on couneracual Sep 6: in deph analysis o remaining sudies

    An exensive descripion o he research seps can be ound in Annex 2 (research

    mehodology).

    resuled in 18 case sudies and 29 reviews.

    The search process resuled in 18 case sudies and 29 reviews. In Figure 1 we visualize he

    number o remaining sudies aer each selecion sep.

    Figure 1 Remaining number o sudies aer each selecion sep

    sudies ound

    aer ile/absrac check

    aer qualiy

    check

    case sudies

    reviews

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    5 Overview and classifcation

    Majoriy o reviewed PPPs are in healhcare, inrasrucure and agriculure

    We reviewed PPP evaluaions in a broad number o secors. Mos o hem were in healhcare

    (11), inrasrucure (6) and waer supply (5). SeeTable 2.

    Table 2 Number o studies by sector

    Case studies Reviews

    (overview

    studies)

    Total

    Agriculure 0 4 4

    Educaion 2 0 2

    Energy 2 1 3

    Environmen 1 1 2

    Healhcare 6 5 11

    Housing (consrucion) 1 2 3

    Inrasrucure 3 3 6

    Transpor 1 2 3

    Waer 0 5 5

    Muliple secors 0 3 3

    Oher 2 3 5

    Total 18 29 47

    Majoriy o reviewed PPP were in Asia and Arica

    We reviewed evaluaions rom PPP in various developing counries. Mos PPP were siuaed

    in Asia (19) and Arica (11). SeeTable 3.

    Table 3 Number o studies by region

    Case studies Reviews

    (overview

    studies)

    Total

    Asia 10 9 19

    Asia (various counries/regions) 1 3 4

    China 2 0 2

    India 2 3 5

    Lebanon 1 0 1

    Malaysia 0 1 1Nepal 1 0 1

    Pakisan 3 1 4

    Yemen 0 1 1

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    Overview and classicaion

    Arica 4 7 11

    Arica (various counries/regions) 3 4 7

    Ghana 0 1 1

    Eas Arica 0 1 1

    Nigeria 1 0 1

    Tanzania 0 1 1

    Lain America 1 3 4

    Lain America (various counries/regions)

    0 3 3

    Peru 1 0 1

    Various coninens 3 10 13

    Total 18 29 47

    Majoriy o reviewed PPP are join venures and managemen conracs

    We reviewed several dieren ypes o parnership conracs. Mos PPP conracs are join

    venures (11) and managemen conracs (9). SeeTable 4.

    Table 4 Number o studies by type o PPP

    Case studies Reviews

    (overviewstudies)

    Total

    Concession 1 0 1

    Buildoperaeranser (BOT) and similararrangemens (including BTO, BOO, DBO, DBFO)

    2 1 3

    Join Venure 8 3 11

    Lease conrac 1 0 1

    Managemen conrac 4 5 9

    N/A 0 4 4

    Various (combinaions o above) 2 16 18

    Total 18 29 47

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    6 Defnition and key criteria o

    developmental PPPs

    In his secion we ake a closer look a he deniion and characerisics o he PPPs in he 18

    reviewed case sudies. How is PPP dened in he reviewed sudies and do hese PPPs ulll

    he ve key crieria o developmenal PPPs? In he nex paragraph we discuss he deniions

    and we assess wheher he reviewed PPPs ulll he ve key crieria o developmenal PPPs.

    We nish his secion wih a summary able on he key characerisics o he reviewed case

    sudies.

    6.1 Deniion developmenal PPPs

    Mos sudies don give an explici deniion o PPP

    A subsanial amoun o auhors use he erm Public Privae Parnership wihou acually

    explaining wha he erm means. This refecs our nding ha here isn a consisen

    deniion o PPP. In only 4 ou o he 18 case sudies he deniion o PPP is explained (see

    Annex 4 or hese deniions per case sudy). We have summarized hese deniions in a

    so-called Word cloud (see Figure 2). The gure shows ha mos deniions conain he

    words join, governmen and collaboraions.

    Figure 2 Word cloud o PPP deniions in reviewed case sudies

    Source: reviewed case studies

    6.2 Five key crieria o developmenal PPPs

    Mos sudied PPP projecs ulll majoriy o he ve crieria o developmenal PPPsWe looked wheher he in he case sudies described PPP projecs ullled each o he ve

    PPP crieria (see Box1). We ound ha a majoriy o hese PPP projecs ulll hree or more

    o he ve PPP crieria. SeeTable 5 (an overview per sudy is presened in Annex 4).

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    Deniion and key crieria o developmenal PPPs

    Table 5 Five key criteria on developmental PPPs (case studies)

    # Key criterion Yes No Total

    1 Cooperaion beween public- and privae pary 18 0 18

    2 Clear agreemen on goal 16 2 18

    3 Combinaion o public- and privae unding 13 5 18

    4 Agreemen on sharing o resources and asks 17 1 18

    5 Disribuion o risks beween he public and he privae secor 8 10 18

    1. All (in he case sudies reviewed) PPP projecs ulll crierion 1 (cooperaion beween public

    and privae secor). So in each PPP case sudy here is some orm o cooperaion beween hepublic and he privae secor described. We expeced his because we seleced he sudies on

    his crierion. A ew noable examples: The Chad-Cameroon peroleum developmen and

    pipeline projec, a collaboraive venure beween an oil consorium and he governmens o

    Chad and Camroon (Uzinger, 2005); Rescue-15, an Emergency Service Medical (EMS)

    parnership beween he Islamabads Police Deparmen, NGOs and he privae secor.

    2. 16 ou o 18 PPPs in he sudies ulll crierion 2 (clear agreemen beween public and

    privae pary on he goals). For example he Womens Healh Iniiaive (WHI), a PPP where

    he paries agreed o improve reproducive and maernal healh or woman and girls in

    India. (Kruesmann and Timmermann, 2009).

    3. 13 ou o 18 case sudies explicily menion ha he PPP goes wih a combinaion o publicand privae unding (crierion 3). However, he division o he budge (beween he

    public- and privae pary) is no always menioned.

    4. 17 ou o 18 reviewed PPP projecs ulll crierion 4 (clear agreemen on sharing o

    resources and asks). Noable example is he Lebanese nework and elecom PPP

    concession. The privae secor became responsible or building and operaing he nework

    and he public secor or regulaion (Jamali, 2004).

    5. The disribuion o risks is addressed in 8 ou o 18 o he sudied PPP projecs. A noable

    example is presened by Shen e al. (2006) in he aricle on he parnership beween he

    Hong Kong3 governmen and privae secor (Wal Disney Company) on he developmen o

    Disney Land. In his PPP projec acquisiion-, legal- and policy risks are allocaed o hepublic secor. While he design-, consrucion-, operaion and indusrial acion risk are

    allocaed o he privae secor. Developmenal risk, marke risk and nancial risk are

    shared beween he parners (Shen e al., 2006).

    6.3 Summary able (case sudies)

    In Annex 4 we presen a summary able o he 18 reviewed case sudies by secor. For each case

    sudy we describe he subsecor, region, exac deniion o PPP (quoe), key characerisics, ype

    and budge. I we couldn derive a characerisic rom a sudy (because i was no available orrelevan) we noed his as NA. We have writen he mos imporan ndings in bold.

    Since Hong Kong isn a developing counry according o he IMF (IMF, ). However, wedecided o include his case sudy in our review because he parnership was se-up in he laes. Thereby Hong Kong is par o China, which is a developing counry.

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    7 Intervention logic

    Beore looking a he eecs o PPPs in erms o oupu, oucome and impac i is imporan

    o consider he so-called inervenion logic o PPPs: wha is he reason o implemen PPP in

    developmen counries? Wha are he goals or PPP and he expeced resuls? We consider

    he later quesions in his secion. In paragraph 7.1 we discuss he raionale o PPP in he

    reviewed case sudies. In paragraph 7.2 we discuss he goals and expeced resuls o PPP in

    he reviewed case sudies.

    7.1 Raionale o he PPP

    PPPs can be implemened or (a combinaion o ) nancial, developmenal, eciency, ideological and

    poliical reasons.

    The raionale o implemen he PPP is described in 12 o he 18 reviewed case sudies. These

    reasons can be grossly divided in: (1) nancial reasons (including risk diversicaion), (2)

    developmen reasons (3) eciency reasons and (4) ideological/poliical reasons

    (see Annex 4 or deails per case sudy):

    Financial reasons (including risk diversicaion, 7 sudies): in a subsanial amoun o hereviewed case sudies PPP is implemened because he local governmen doesn have

    enough resources o carry ou a ask alone: he governmen o Pakisan decided o

    implemen PPP in educaion because hey did no have he resources o accomplish hegiganic ask o providing qualiy educaion and meeing he arges o he Millennium

    Developmen Goals alone (Malik, 2010). The Lebanese governmen considered PPP in

    elecom because hey waned o reorm public enerprise bu lacked nancial resources

    (Jamali, 2004). In heir case sudies on Chinese subway PPPs De Jong e al. (2010) sae

    ha he use o PPP in (large) inrasrucure projecs has mainly risen because he

    governmen has insucien nancial resources: In many cases local ocials believe ha

    only unding rom he privae secor can ll he immense gap beween he limied

    presence o public resources and rapidly growing susainable urban inrasrucure needs.

    (de Jong e al., 2010). Risk diversicaion is also menioned as a moive o implemen

    PPP. For example he PSOM (Cooperaion Emerging Markes) PPP which wasimplemened o encourage invesmen projec ha would oherwise no have been

    carried ou because o he high produc/marke risks (Triodos Face, 2010).

    Developmen reasons (3 sudies): he realizaion o (Millennium) developmen goals orcerain inernaional sandards is menioned in 3 o he 18 sudies as reason o implemen

    PPP: he governmen o India implemened ICTD o disribue he benes o he IT

    secor in rural regions and make more persons e-lierae (Kuriyan and Ree, 2008). In heir

    review on PPPs in uberculosis research (no in summary able) Dewan e al. (2006)

    menion ha collaboraions beween he public and privae healh secors, or public-

    privae mix, may be an imporan soluion o he problem ha diagnosis, reamen, and

    reporing pracices oen do no mee naional or inernaional sandards oruberculosis.

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    Inervenion logic

    Eciency reasons (3 sudies): in heir exensive review on PPPs on Eas Arican Expor-OrienedHoriculure, Pserer e al., (2009) sae he raionale o he horiculure PPP can be ound inmarke ailure and governmen ailure.

    Marke ailure means ha privae rms ail o innovae and ensure coninuous improvemen in

    produc and process developmen (Pserer e al., 2009) because his is no proable or

    hem. This kind o marke ailure is also addressed by Grace and Duce (2011). In heir review on

    drug developmen PPP in developing counries (no in summary able). They sae ha PPP is

    implemened because he privae paries on heir own do no inves enough in diseases ha are

    especially occurring or have a dieren disease paterns in developing counries, because or hese

    medicine research [Aids, TB and malaria] is needed ha is hardly relevan or developed counries

    (Grace and Duce, 2011) See also Box 3.

    Governmen ailure means ha he governmen ails o secure accounabiliy beween decisionmakers and horiculure indusry (Pserer e al., 2009). A PPP can eecively address hese

    ailures.

    Ideological/poliical reasons (3 sudies): Kuriyan and Ree (2008) menion ha PPPs has gainedsuppor in he 1990s because o he inernaional environmen ha srongly suppored economic

    liberalizaion and less sae inervenion. Kuriyan and Ree (2008) menion ha ICTD-PPPs in India

    were also enorced because he sae was rying o make visible is atemps o accommodae he

    rural elecorae. Furhermore Kruesmann and Timmerman (2009) noe (in heir shor review o he

    Womens Healh Iniiaive, a PPP o improve reproducive and maernal healh or woman and girls

    in India) ha in India he governmen acknowledges ha parnerships wih he privae secor

    -boh he or-pro and non-pro- are imporan o atain public healh goals and o improve hehealh delivery sysem (Kruesmann and Timmerman, 2009)

    Box 3 Implemen a PPP o increase eeciveness

    In he pas he public secor had he primary responsibiliy or he provision ohousehold wase managemen services bu i was no very successul. In order o

    increase eeciveness in he service delivery he Kwara Sae Governmen conraced aprivae company in and was charged wih he responsibiliy o keeping Iloringclean, and o ormalize he recycling process. Currenly, he privae company and heKwara Sae Wase Managemen Council (a governmen agency) are in charge o

    household wase managemen services in Ilorin. The Wase Managemen Council playsa supervisory role, while he privae company is in charge o collecion o householdwase. The challenge o eecive and ecien household wase managemen sraegyhas become a prioriy or policymakers in Kwara Sae. The people who are in suppor

    o more privae companies argue ha i more privae companies are involved in wasemanagemen services i will lead o compeiion beween he companies, increaseeeciveness and consequenly improve environmenal qualiy. Beore involving more

    privae companies in he provision o household wase managemen services i isimporan o have an overview o how Ilorin residens perceive he presen householdwase managemen services. This is he aim o he sudy, as well as he examinaion osome socio-economic acors inuencing heir percepions.

    Source: Ezebilo and Animasaun (0)

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    7.2 Goals and expeced resuls o PPP

    Goals o PPPs are oen very general and no SMART ormulaed

    The goal o he PPP is described in almos all reviewed case sudies (see Annex 4). However

    he described goals in he case sudy evaluaions are oen very general and no SMART

    (specic, measurable, atainable, relevan, imely) ormulaed especially he dimension

    imely oen isn ullled. Some ypical examples:

    The goal o Rescue-15 (an emergency service parnership beween he Islamabad PoliceDeparmen NGOs and he privae secor) was [o] boos public condence and o

    inculcae a spiri o ciizen-riendly policing wih communiy paricipaion. (Ali, 2006).

    This is an example o a goal ha is neiher measurable (because is no clear how publiccondence and a sense o ciizen-riendly policing would be measured), nor atainable

    (because is no clear how he goals will be achieved) or imely (because is no saed

    when he goal should be reached).

    The Hong Kong Inernaional Theme Parks Limied join venure aimed o providerecreaional aciliies or general public in Hong Kong and conribue o he Hong Kong

    economy. The later goal is neiher measurable (because i is no clear how he

    conribuion o he economy will be measured) nor imely (because i is no saed when

    he goal should be reached).

    The goal o he Lebanese elecom PPP was seting up an aordable elecommunicaionnework (Jamali, 2004). This goal is neiher specic (wha is aordable?) nor measurableor imely.

    Oen unclear on wha expeced resuls are based

    The expeced resuls o PPP are described in 11 o he 18 reviewed case sudies. However is

    no always clear on which argumens hose expeced resuls are based, see Annex 4.

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    Resuls o PPP

    8 Results o PPP

    In his secion we presen he resuls o he PPPs in he reviewed sudies. In paragraph 8.1

    we discuss he oupu o PPP in he reviewed case sudies. In paragraph 8.2 we discuss he

    oucome and in paragraph 8.3 he impac. Where applicable we complemen hese ndings

    wih he resuls in he overview sudies. In paragraph 8.4 we discuss he pahways/sraegies

    o he PPPs in he reviewed case sudies. We end his chaper wih a discussion on

    ransacion coss (8.5), risk- (8.6) and pro sharing (8.7).

    8.1 Oupu

    Case studies

    Mos case sudies presen a posiive eec o he PPP on oupu

    We have dened oupu as he number o goods or services produced by he PPP. In 15 ou o

    18 reviewed case sudies we were able o derive an eec o PPP on oupu. The majoriy o

    hose sudies (13 ou o 15) describes a posiive eec o he PPP on oupu. 2 sudies

    describe no eec on oupu and zero sudies describe a negaive eec.

    bu he evidence is weak and limied.

    The majoriy o sudies has a no couneracual. As we noe in Annex 2, in he ideal siuaionhe sudy should compare he siuaion wih PPP wih he siuaion ha would have

    happened wihou PPP. So he oucome o PPP in a region should be compared wih a

    comparable region wihou PPP (a robus comparable conrol group while conrolling or

    exernal acors), MSSM level 5. In only 1 sudy he eec o he PPP inervenion is

    esimaed wih he use o a couneracual on MSSM level 3 (oupu beore/aer and conrol

    group). The remaining couneracuals are on level 2 (oupu beore/aer) and 1 (only

    oupu a 1 poin in ime), see Table 6.

    Table 6 Eect o PPP intervention on output (case studies)

    Eect on outputMSSM level (see box A-3 or description)

    Total 1 2 3 4 5 NA

    + (posiive eec in general) 13 4 8 1 - - -

    +/- (mixed eec) - - - - - - -

    - (negaive eec in general) - - - - - - -

    0 (no eec in general) 2 2 - - - - -

    NA (no available/applicable) 3 1 2

    Total 18 7 8 1 - - 2

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    Only one sudy presens a posiive eec on oupu wih a couneracual on MSSM level 3.

    The one sudy wih a couneracual on MSSM level 3 is abou he provision o primary educaionhrough PPP in Pakisan. This resuled in he so-called Promoing Low-Cos Privae Schooling

    in Rural Sindh (PPRS) program: Goal o he PPRS program was o ake advanage o he local

    knowledge and underuilized resources wihin [rural] communiies o provide viable,

    appropriae, and aordable educaion (Barrera-Osorio e al., 2011). Wihin he PPRS program

    privae enrepreneurs could sar heir own school and receive a per-child ee rom he

    governmen. The governmen seleced hese enrepreneurs wihin a random sample o 100

    villages chosen rom a sample o 163 qualiying [villages] (Barrera-Osorio e al., 2011). The

    remaining 63 villages remained in he conrol group. Barrera-Osorio e al. (2011) esimae he

    eec on school enrolmen while conrolling or child- and household characerisics and

    disric xed eecs. They nd ha he inervenion had a signican posiive eec on schoolenrolmen, (see also Box4): enrolmen increases by 51 percenage poins in reaed villages.

    Thereby girls have a 4-5 poins greaer increase han boys (Barrera-Osorio e al., 2011).4

    Box 4 Evaluaion mehodology o PPRS program

    In order o ideniy he causal impac o he inervenion, he qualiying localiies wererandomly assigned o he conrol and wo reamen groups, hereby ensuring ha

    receip o a school is uncorrelaed wih village characerisics ha may inuence heecacy o he program. Insoar as randomizaion has esablished saisically indisin-guishable groups across he conrol and reamen villages, any dierences beween

    hem can be atribued o he inervenion. The paricipaing villages were chosenaccording boh o heir need as well as he abiliy o he enrepreneur o secure anadequae aciliy or conducing classes and qualiying eachers o lead hem.

    A baseline survey was conduced in all qualiying villages in February, .Following he survey, he villages were randomly assigned o he wo reamensand one conrol group. The schools were hen esablished in he summer o .

    Because he new school erm normally commences in spring, he sudens receivedan abbreviaed erm heir rs year. In anicipaion o conducing he ollow-upsurvey, a census was conduced o reamen and conrol villages in June . Inboh he baseline survey and he census, socio-demographic inormaion was

    colleced. The conen o hese wo surveys was slighly dieren, however. Whilehey boh included quesions on he age, gender and enrollmen saus o allchildren ages - in he household, he census also colleced inormaion abou

    children ages -. The ollow-up survey will include numeric and lieracy ess orall children beween he ages o and in a randomly chosen sample o house-holds rom each village. In addiion, repored enrollmen will be veried hroughschool surveys. This will allow us o esablish he eeciveness o he inervenion

    in increasing enrollmen and es scores.

    Source: Barrera-Osorio et al., (0)

    Despie he success o he program, in schools were closed because hey were wihinwihin he radius o .km o governmen schools. Now all hese are declared in close proximiyo governmen schools (Dawn, ).

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    8 case sudies presen posiive eec on oupu wih a couneracual on MSSM level 2.

    Uzinger (2005) nds ha aer implemenaion o he Chad/Camroon PPP on peroleumdevelopmen and pipeline projec malaria raes amongs projec workers in Chad decreased. Ali e al. (2006) nd ha since he implemenaion o Rescue-15 he number o calls

    requiring medical services has increased.

    According o Newell (2004) he implemenaion o a public privae parnership or conrol

    o uberculosis in Nepal has led o 1328 paiens regisered paiens wih uberculosis: 210

    (15.8%) o hese were reerrals rom privae praciioners, he remainder being sel-reerrals

    o DOTS [direc observaion o reamen] ceners (Newell, 2004).

    Jamali (2004) nd ha aer he implemenaion o he Lebanon elecom PPP he numbero cellular subscribers and inernaional coverage increased. However i should be noed

    ha his PPP was no a success in qualiaive erms. There was litle regulaory oversighand poor communicaion beween he parners: neiher he public nor he privae secor

    approached he new projec in a spiri o rue parnership. There was suspicion rom he

    sar in public circles abou he inclinaion o he new operaors o openly share and

    disclose inormaion (Jamali, 2004).

    Triple value (2009) repors ha aer implemenaion o he so-called Susainable TradeAgreemen (Iniiaie Duurzame Handel, IDH) parnership: (a) cacao produciviy

    increased and qualiy improved, (b) a code o conduc was implemened or he

    improvemen o labor sandards in naural sone producion and (c) an increase o RTRS

    (Round Table o Responsible Soy) members by 42.

    Triodos Face (2010) repors ha aer implemenaion o he Programme or Cooperaionwih Emerging Markes (PSOM) 205 projecs are complemened since he sar o he

    program [] 275 are ongoing and 176 have sopped, 120 o which premaurely. (Triodos Face,

    2010).

    Bompar e al. (2011) repor ASAQ Winhrop (a malaria medicine developed by a PPP) wasregisered in 30 sub-Saharan Arican counries and in India, wih over 80 million

    reamens disribued in 21 counries. 6 million reamens in 2008, 25 million in 2009,

    over 45 million in 2010 (Bompar e al., 2011).

    Malik (2010) nds ha aer implemenaion o he Punjab Educaion Foundaion (PEF, agovernmen organizaion in Pakisan ha sponsors PPPs in educaion) he number o

    schools and sudens rose, see Box5.

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    Box 5 Punjabi Educaion Foundaion

    The PEF [Punjabi Educaion Foundaion] was esablished hrough he PunjabEducaion Foundaion Ac o by he Punjab Assembly. This legislaion sipula-ed ha he PEF would advance loans and grans o privae enrepreneurs or heconsrucion o schools as a way o promoing accessibiliy o educaion. Even aer

    he passage o he Punjab Educaion Foundaion Ac o , he PEFs missionremained broadly he same: suppor he eors o privae schools o provideeducaion o he poor.

    There was a sharp rise in he number o schools and a meeoric rise in he number

    o sudens beween and . For sarers, here was an increase o .%in he number o sudens in compared o . The increases coninued

    every year: .% in , .% in , and .% in . By he PEF,hrough he FAS program, suppored , schools wih , sudens. InPakisan, more han % o sudens drop ou o school by he ime hey reach

    Grade , bu in FAS parner schools he dropou rae is zero.

    Source: Malik (00).

    Is here a relaionship beween he oupu o PPPs and he design o PPPs? We address his

    quesion in Figure 3. In his gure we presen he relaionship beween he oupu and hekey PPP characerisics. The gure shows no relaionship beween he key PPP

    characerisics and he eec o he PPP on oupu.

    Figure 3 Relaionship beween PPP design and oupu (n=18)

    no yes no yes no yes no yes no yes

    Char. 1

    (Cooperation)

    Char. 2

    (Agreement)

    Char. 3

    (Funding)

    Char. 4

    (Sharing)

    Char. 5

    (Risks)

    + (positive eect) 0 (no eect) NA

    Source: reviewed case studies

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    Reviews

    Posiive eecs o PPP on oupu are reeced in he reviews (overview sudies)

    The posiive ndings in he case sudies are refeced in he reviews, seeTable 7 (in Annex 5

    we presen a able per review).

    Table 7 Eect o PPP intervention on output (reviews)

    Eect on output

    + (posiive eec in general) 8

    +/- (mixed eec) 3

    - (negaive eec in general) 1

    0 (no eec in general) 1

    NA (no available/applicable) 16

    Total 29

    Some noable examples o reviews ha nd a posiive eec o PPP on oupu:

    De Pinho Campos e al. (2011) sudied he eec o produc developmen (PD) PPPs ordisease conrol. They conclude ha PD PPPs led o he creaion o drugs or vaccines in

    low and middle-income counries.

    Dewan e al. (2006) looked a PPP in uberculosis reamen. They nd ha in nine (75%)o he 12 public-privae mix projecs, observed reamen me or exceeded he Indian

    uberculosis programme arge o 85% reamen success. However: in wo projecs

    where reamen oucomes o public secor adminisered and privae provider

    adminisered direcly observed reamen were compared, no signican dierences were

    ound (Dewan e al. 2006).

    bu also some PPPs wih weak, mixed or negaive eecs...

    Finally, here are some PPPs wih a weak or someimes even negaive eec on oupu. An

    example o a PPP wih a weak eec on oupu is he so-called WSSD (World Summi on

    Susainable Developmen) parnership, horiculure PPP in various Arican counry, where

    he oupu mosly consiss o exploraive sudies en business plans, see Box6.

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    Box 6 The weak oupu o he Arican horiculure parnership

    The [WSSD] parnership aims o be a vehicle o address hose botlenecks in andaround he expor horiculure chain in boh owers and vegeables & ruis hacould only be ackled in a public-privae parnership. The objecive o he WSSDparnership is woold. Firs, marke access o he European marke is aimed

    a hrough capaciy building o comply wih ood saey regulaions. Second,srenghening srucures and awareness is aimed a o conribue o susainabledevelopmen, no only economic bu also social and ecological.

    The aciviies underaken by he parners resuled in a variey o projec oupus

    such as producs and services. One obvious crierion is he exen o which heprojec objecives have been achieved. The nalized projecs under review largely

    me heir original objecives. For ongoing projecs some rs oupus wereidenied When examining he resuls i demonsraed ha mos oupus areresuls o exploraive sudies such as business plans, repors or rameworks. Almos

    all projecs plan o implemen hese oupus in projec exension phases.

    Source: Pfsterer et al. (009)

    and is no always clear i he eec is due o PPP

    Thereby i isn always clear i he posiive eec o oupu is caused by he PPP or by anoherreason - or insance a subsanial increase in governmen spending. Tann (2012) looked a

    waer privaizaion in Malaysia and ound ha here was an increase in pipe lengh and

    waer producion aer implemenaion o he PPP. However Tann (2012) noes: Based on

    he evidence, i is no clear i increases in producion capaciy and pipe lengh were due o

    PPI given ha hese corresponded wih signican increases in governmen nancing.

    Moreover, large improvemens were made by public and corporaized saes in producion

    capaciy while increases in pipe lengh were relaed o waer disribuion which remained in

    he public secor or all saes excep Selangor (publicprivae) aer 2005 and Johor

    (privae) (Tann, 2012).

    8.2 Oucome

    Case studies

    Mos case sudies presen a posiive eec o he PPP on oucome, bu evidence is weak.

    We have dened oucome as he inermediae (shor erm) eec o he PPP on he

    communiy: 9 o he 18 reviewed case sudies describe an eec o he PPP on oucome. In 7

    o hose 18 sudies he resul on oucome is posiive. However as we noed when

    discussing he eec on oupu he MSSM score in hese sudies is low: none o he sudieshave a couneracual on MSSM level 4 or higher. SeeTable 8.

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    Table 8 Eect o PPP intervention on outcome (case studies)

    Eect on outcomeMSSM level (see box A-3 or description)

    Total 1 2 3 4 5 NA

    + (posiive eec in general) 7 1 5 1 - - -

    +/- (mixed eec) 1 1 - - - - -

    - (negaive eec in general) 1 1 - - - - -

    0 (no eec in general) - - - - - - -

    NA (no available/applicable) 9 - - - - - 9

    Total 18 3 5 1 - - 9

    5 case sudies presen posiive eec on oucome wih a couneracual on MSSM level 2

    Malik (2010) nds ha aer implemenaion o he Punjab Educaion Foundaion (PEF, a

    governmen organizaion ha sponsors PPPs in educaion) dropou raes decreased and

    es scores increased.

    Ali e al. (2006) nd ha since he implemenaion o Rescue-15 he mean response imebecame approximaely 10 minues. This is close o inernaional sandards.

    Newell (2004) noes ha he esablishmen he public privae parnership or conrol o

    uberculosis has led o an increase in case noicaion and reamen success raes

    (>90%): more han exceeding inernaional arges (Newell, 2004). Triodos Face (2010) nds he esablishmen o he PSOM/PSI PPP generaed 81 direc

    jobs. In 17 projecs new producs were launched in he recipien counry and in 23

    projecs a new echnology or producing exising producs was developed.

    Bompar e al. (2011) nd ha ASAQ Winhrop (a new ani-malarian combinaion

    implemened by a PPP) led o a decrease o he prices o so-called ACTs (Aresunae-based

    Combinaion Therapy, malaria drugs), see Box7.

    Box 7 ASAQ Winhrop led o price reducion o ATCs

    [The] parnership was iniiaed in beween he Drugs or Negleced Diseases

    iniiaive (DNDi) and sano-avenis [a privae rm] o develop ogeher a xed-dose combinaion o aresunae and amodiaquine, one o he orms o ACTrecommended by he WHO, which a ha ime only exised as a non-xed

    combinaion o he wo drugs.

    The availabiliy o a new medicine does no imply access in he eld. As such, he

    parnership made wo bold commimens. Firs, he produc would receive nopaen proecion. Second, he parners se a arge price o one USD per reamenor aduls and . USD cens or children. Beore ASAQ Winhrops inroducion ohe markeplace, he price or mos ACTs in public markes was approximaely .

    USD or an adul reamen. Aer ASAQ Winhrops inroducion, he globalreerence price or ACTs on public markes decreased o approximaely USD

    Source: Bompart et al. (0)

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    Is here a relaionship beween he oucome o PPPs and he design o PPPs? We address

    his quesion in Figure 4. In his we gure presen he relaionship beween he oupu andhe key PPP characerisics. The gure shows no relaionship beween he key PPP

    characerisics and he eec o he PPP on oupu.

    Figure 4 Relaionship beween key PPP design and oucome (n=18)

    no yes no yes no yes no yes no yes

    Char. 1

    (Cooperation)

    Char. 2

    (Agreement)

    Char. 3

    (Funding)

    Char. 4

    (Sharing)

    Char. 5

    (Risks)

    + (positive eect) +/- (mixed eect) - (negative eect) NA

    Source: reviewed case studies

    Reviews

    Few reviews describe eecs o PPP on oucome

    The evidence o he eecs o PPP on oucome is also limied in he reviews. We could derive

    an eec o PPP on oucome rom 7 reviews, see Table 9 (or deails we reer o Annex 5).

    Table 9 Eect o PPP intervention on outcome (reviews)

    Eect on outcome (average eect over all reviewed studies) reviews

    + (posiive eec in general) 5

    +/- (mixed eec) 2

    - (negaive eec in general) -

    0 (no eec in general) 1

    NA (no available/applicable) 21

    Total 29

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    Resuls o PPP

    Some reviews discuss PPP projecs which had a negaive eec on oucome. Mos noable

    example in he lieraure is he Bolivia waer concession: a PPP implemened in 1999 oimprove waer provision and services or he populaion o Cochabamba (Bolivia). See Box8.

    Box 8 The ailure o he Bolivia waer concession

    Various acors led o he ailure o he concession soon aer waer servicemanagemen was privaized. In an area where wo-hirds o he populaion live[s]below he povery line, ari increases led o exraordinarily high and unaordable

    waer prices and clashes wih he communiy, including sree proess. Theproess grew so violen ha Presiden Banzer placed Bolivia under marial law or

    days. The conrac was ulimaely erminaed and responsibiliy or waerservices was urned over o a coaliion o proesers, which also ook over SEMAPA

    s US$ million deb.

    Analysis: Privae invesmen seeks projecs ha can be sel-nancing in he long

    erm, however, projec easibiliy is primarily dependen on local condiions andpoliical risks. Concessions are no a suggesed easible projec srucure [accordingo a gure called he projec easibiliy map].

    Source: Vives et al. (006)

    8.3 Impac

    One sudy abou he impac o PPP

    We dened impac as he ne-eec o an inervenion. To esimae he ne-eec a conrol

    group is needed, hereore he couneracual should a leas be a MSSM level 3. Thereore

    only Barrera-Osorio e al. (2011) presen an eec o PPP on impac: The inervenion has

    had a large impac on enrollmen, suggesing ha he previously low enrollmen rae

    ranging beween 23.74% and 29.35% across he hree groups according o he baseline, or

    31.13% in he census or conrol villages was being driven largely by supply consrainsraher han a lack o demand.

    8.4 PPP pahways

    Hal o sudies presen a PPP pahway

    In he analyzed sudies each PPP had a cerain developmenal goal. For each sudy we

    checked hrough which pahway he PPP ullled is goal. We were able o derive he

    ollowing PPP pahways rom 8 ou o 18 case sudies (deails are presened in Annex 4):

    Training/proessional developmen, Moneary rewards, Public paricipaion, Knowledgesharing sandards, Poliical agenda seting, R&D suppor, price conrol/ari ceiling and no

    pro-no loss prices, see Box9.

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    Box 9 No pro no loss prices

    ASAQ Winhrop [a malaria medicine developed by a PPP] was made availablehrough a iered-pricing policy ha includes no pro - no loss prices or ASAQWinhrop in he public secor, while he same drug is sold in he privae secorunder a dieren brand name a marke prices. The pro margins made hrough

    sales in he privae secor ensure ha he mechanisms ha enable very low nopro - no loss prices in he public secor can be susained over he long-erm

    Source: Bompart et al. (0)

    8.5 Transacion coss

    High ransacion coss in sarup phase can be compensaed by lower operaional coss in implemenaion

    phase

    In heir synhesis review on horiculure PPPs in Arica Pserer e al. (2009) menion ha

    high ransacion coss can occur because o complex negoiaions beween he parners

    when saring he projec. However hese high sar up coss can be compensaed in he

    implemenaion phase: [he ransacion coss in he sarup phase] could be ouweigh by

    less coss or he acors involved in he implemenaion phase and he inernal eciency

    gains due o shared goals and a seeper learning curve o a large number o parners,especially or ocal organizaions in Kenya (Pserer e al., 2009).

    8.6 Risk sharing

    Few o he reviewed sudies discuss he noion on risk sharing in developmenal PPPs:

    Lobina e al. (2003) noes ha PPPs are in heory expeced o unleash he eciencies ohe privae secor and deliver social and environmenal benes subjec o he eecive

    allocaion o operaing and poliical risks o he paries bes placed o minimize andmanage such risks. I is generally assumed ha privae operaors are ables a dealing

    wih operaing risks while public bodies should preerably reain he poliical risks

    involved wih PPPs.

    Shen e al. (2006) concludes ha [he] allocaion o sie acquisiion risks, inexperiencedprivae parner risk and legal and policy risks o he public secor is appropriae. Also,

    allocaion o he design and consrucion risks, operaion risks and indusrial acion risks

    o he privae secor, and sharing o developmen risks, marke risks, nancial risks and

    orce majeure beween he wo paries is imporan.

    Phlix e al. (2011) menion ha he main risks o he UAFC Join Programme areappropriaely idenied, well documened and managed. This is being done or he UAFCJoin Programme as a whole and or is componens and counry programmes

    separaely. Bompar (2011) noes ha he risks o ASAQ are shared hrough a Risk

    Managemen Plan.

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    Resuls o PPP

    8.7 Pro sharing

    Unequal pro sharing can hreaen parnership srengh

    Pserer e al. (2009) noe ha cos and benes aren always equally shared beween

    parners. This can have consequences or he srengh o he parnership: major

    inequaliies in he disribuion o gains and losses beween parners can hreaen he

    srengh o he parnership unless hese inequaliies have been anicipaed. This was he

    case in Kenya, where he ocal parners were expeced o have higher gains o he

    parnership compared o he parners supporing he implemenaion (Pserer e al.,

    2009).

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    9 Success and ailure actors

    Governmen involvemen, a sound regulaory ramework and a common vision

    In our opinion Jamali (2004) presens he mos comprehensive overview o criical success

    acors o PPPs. These acors are explici applicable o PPPs and hereore highly relevan.

    We presen hese acors in Box10.

    Box 10 Criical success acors o PPPs

    Factor Explanation

    Permanen governmeninvolvemen

    The public secor should continue to set standards andmonior produc saey, ecacy and qualiy and esablishsysems whereby ciizens have adequae access o heproducs and services hey need (Jamali, ).

    A sound regulaoryramework

    Regulaion provides assurance to the private partnerthat the regulatory system includes protection rom

    expropriation, arbitration o commercial disputes,

    respect or contract agreements, and legitimate recoveryo coss and pro proporional o he risks underaken(Jamali, ).

    Fulllmen o key

    ormaion requiremens

    Jamali () reers o Samii e al. () when addressing

    key ormaion requiremens o eecive PPPs. Theserequiremens include resource dependency, commitmentsymmetry, common goal symmetry, intensive communi-

    cation, alignment o cooperation learning capability, and

    converging working cultures Finally Jamali () reerso Kaner () who emphasizes individual excellence,importance, interdependence, investment, inormation,

    integration, institutionalization, and integrity as he keyingrediens o eecive collaboraion (Jamali, ).

    Four Cs in parner

    selecion

    The our Cs ocompatibility, capability, commitment

    and control as criical or successul pre-selecion oalliance parners (Hagen, ). Paricularly imporan arehe noions o compatibility, which entails identiyingcomplementary strengths and weaknesses and commit-

    ment as reeced in he ormalized commimen onecessary ime energy and resources

    A common vision andrusy relaionshipbeween parners

    Some othe traditional constraints in the way o asuccessul realization o a PPP [] he hold-up problemcaused by a change in the position o parners; []reducionis measures insilling compeiive norms inseado cooperaive ones; and

    cultural dierences between private and public partners (Nijkamp e al., ; Scharle, ).

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    Success and ailure acors

    Factor Explanation

    Ensure ha he mulipleineress o key parici-pans areskillully negoiaed andpackaged.

    Parnerships appear o be mos jusied where: radiionalways o working independenly have a limied impac on aproblem; the specic desired goals can be agreed on bypotential collaborators; here is relevan complemenaryexperise in boh secors; the long-term interests o eachsector are ullled; and he conribuions o experise ohe dieren secors are reasonably balanced (Linder, ).

    Source: Jamali (00)

    We ound some noable examples o success and ailure acors in our reviewed sudies.

    Malik (2010) nds ha he Punjab Educaion Foundaion (PEF, a governmenorganizaion ha sponsors PPPs in educaion) he overall governance and managemen

    [were] criical o he successul design and implemenaion o PPP programs. Despie he

    early successes, program growh ground o a hal in 2008 as a resul o abrup changes in

    he governance and managemen o he PEF, and as a resul o a changeover in he

    naional governmen. (=success acor 1 and 2)

    Aziz e al. (2011) invesigaed success- and ailure acors o housing PPP in Malaysia. Theyhereore did a lieraure review and surveyed 184 public agencies. Aziz e al. (2011)

    assessed acors which had a posiive eec when hey exised and negaive eec whenabsen. Aziz e al. nd ha acion agains erran developers is he mos imporan

    acor in predicing PPP success (=success acor 2). Thereby he absence o a clear and

    robus agreemen is he acor which has he highes negaive eec when absence

    (=success acor 6). Oher imporan acors are repuable developer, consisen

    communicaion, developers pro-sharing accounabiliy and developers social

    accounabiliy (Aziz e al., 2011) (=success acor 2 and 3).

    Triodos Face (2010) menions: he main reason or ailure o projecs was problems wihone (or more) o he parners in he projecs. Weak nancial perormance, wrong

    expecaions, miscommunicaion ec. could be avoided i he parners have already

    worked ogeher and know each oher (Triodos Face, 2010) (=success acor 4, 5 and 6). Galilea and Medda (2012) did an empirical analysis on success acors o ranspor PPPs.They prediced PPP success (which means a projec is under consrucion, operaional or

    concluded) using a daabase o 856 PPP ranspor counries across 72 counries.5 Galilea

    and Medda (2012) predic PPP success by a log linear model and conrol or region, pas

    experience wih PPP, oal invesmen value o he projec, number o mulilaeral

    lenders in counries, GDP growh and he counries corrupion index. Galilea and Medda

    (2012) nd ha he ollowing acors have a signican posiive eec on PPP success: (i) A

    counrys pas experience in PPP agreemens; (ii) A counrys macroeconomic

    perormance (GDP growh and curren accoun) (iii) The corrupion index: corrupion has

    a negaive eec on he success o PPPs (=success acor 2). This eec is especially large in

    In [he sample o Galilea and Medda] o he projecs were in his saus (%) (Galileaand Medda, ).

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    Arica, he Caribbean and Lain America. Shorcoming o he analysis o Galilea and

    Medda (2012) is heir deniion o success. This implies i is no clear wheher he successacors also have a posiive eec on oupu, oucome and impac.

    Finally, in heir synhesis review abou horiculure PPPs in Arica Pserer e al. (2009)conclude ha parnership perormance is grossly based on (a) conex acors and (b)

    parnership design acors.

    - Conex acors are:

    (i) The willingness o (semi) governmenal organizaions o sar he parnership, (ii)

    he experience/radiion o he counry wih PPP and, (iii) he righ momen o sar

    wih PPP (Pserer e al., 2009).

    - Parnership design acors enail:

    (i) The possibiliy o build he parnership on an exising srucure. (ii) Time andcapaciy o seer paricipaory processes by he governmen [in he case o he Duch

    horiculure PPP he Duch Ambassady, EKN], (iii) Level o commimen by

    individuals, (iv) Time and capaciy or acive paricipaion by parners and (v) The

    level o ownership (Pserer e al., 2009). (=success acor 4).

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    Answers on research quesions

    10 Answers on research questions

    1. Precise deinition o developmental PPPs

    a. Wha are he crieria or an inervenion o be considered developmenal PPPs?

    There is no universal acceped deniion o Public Privae Parnership (PPP). Based on

    deniions rom he Duch MFA, key developmenal insiuions (such as OECD, World Bank

    and IMF) and he analysis o Da Rosa e al. (2012) we derive ve key crieria o developmenal

    PPPs:

    A cooperaion beween he public and privae secor (also NGOs, rade organizaions andknowledge insiues wih a common (developmen) goal;

    A clear agreemen beween he public and privae pary on he goal(s) o he PPPs; A combinaion o public and privae unding; A clear agreemen beween he public and privae pary on he sharing o resources and

    asks;

    Disribuion o risks beween he public and he privae secor.2. Categorization o dierent types o PPPs according to dierent intervention

    strategies

    a. Which ypes o developmenal PPPs can be disinguished?

    On a scale rom public o privae we can disinguish he ollowing ypes o PPPs (ADB, 2008):

    Service conrac;

    Managemen conrac;

    Aermage and lease conracs;

    Concession;

    Buildoperaeranser (BOT) and similar arrangemens (including BTO, BOO, DBO, DBFO;

    Join venure.

    b. Wha is he inervenion sraegy o developmenal PPPs?

    We operaionalized he inervenion sraegy as he ve key crieria o developmenal PPPs.

    We nd ha mos PPPs are implemened or nancial reasons. The majoriy o sudiesullls key crieria 1 hrough 4 o developmenal PPPs. Excepion is he disribuion o risks

    which is addressed in 8 ou o 18 case sudies.

    c. Which pahways in developmenal PPPs can be disinguished?

    We were able o derive he ollowing PPP pahways rom 8 ou o 18 case sudies: Training/

    proessional developmen, Moneary rewards, Public paricipaion, Knowledge sharing

    sandards, Poliical agenda seting, R&D suppor, price conrol/ari ceiling and no

    pro-no loss prices.

    d. Wha is he relaion beween dieren ypes o PPPs and he inervenion sraegy?We were no able o derive a relaionship beween he dieren ypes o PPPs and he

    inervenion sraegy.

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    3. Identiication o results o PPPs pathways at outcome and possibly impact level

    Wha are (a) he oupus, (b) oucomes and (c) impacs o PPPs in developing counries?The evidence on he eecs o developmenal PPPs on oupu, oucome and impac is

    limied. Relaively many aricles are abou he process o PPP and no abou he acual

    resuls in quaniaive erms o he PPP. This refecs he ac ha PPP in developing

    counries is a relaively young insrumen.

    We were able o derive an eec o PPP on oupu in 15 ou o 18 reviewed case sudies.The majoriy o hose sudies (13 ou o 18) describe a posiive eec o he PPP on oupu,

    2 sudies describe no eec on oupu and zero sudies describe a negaive eec. The

    couneracual in mos sudies is weak in erms o he MSSM. This means he posiive

    eec on oupu migh also have arisen in he siuaion wihou PPP. We were able o derive an eec o PPP on oucome in 9 ou o 18 reviewed case sudies. 7

    ou o hose 9 sudies describe a posiive eec o he PPP on oucome, 1 sudy describes a

    mixed eec on oucome and he nal sudy nds no eec. The couneracual in mos

    sudies is weak in erms o he MSSM. So he posiive eec on oucome migh also have

    arisen in he siuaion wihou PPP.

    We ound a posiive eec o PPP on impac in 1 case sudy. The oher case sudies did nopresen he eec o he PPP on impac.

    4. Analysis o the eectiveness o PPP pathways according to relevant evaluative

    studies(a) Why did a PPPs produced he desired resuls or no?

    (b) Are here general paterns in success or ailure acors?

    Jamali (2004) presens he mos comprehensive overview o success acors or PPPs.

    Permanen governmen involvemen A sound regulaory ramework Fulllmen o key ormaion requiremens Four Cs in parner selecion (compaibiliy, capabiliy, commimen and conrol)

    A common vision and rusy relaionship beween parners Ensure ha he muliple ineress o key paricipans are

    Skillully negoiaed and packaged.We nd ha mos PPPs in he case sudies succeed or ailed because o he above success

    acors.

    5. Synthesis o the available inormation o PPP eiciency.

    a. Wha are he benes o he PPPs compared o he coss?

    Given he limied evidence we are no able o indicae he benes o PPPs compared o he

    coss. Furher research is needed o answer his quesion.

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    Oulook: Evaluaing Public-Privae Parnerships

    11 Outlook: Evaluating Public-

    Private Partnerships

    Since several years, Public-Privae Parnerships (PPPs) are increasingly used in inernaional

    cooperaion as a device or execuing developmen aid programs. Volunary, muli-

    sakeholder parnerships or susainable developmen were an imporan oucome o he

    UN World Summi or Susainable Developmen (WSSD), held in Johannesburg (Souh

    Arica) in 2002. Mos PPPs were iniially used or a broad range o developmen aciviies

    ocusing on public service provision (e.g. uiliies and inrasrucure; social services) bu

    gradually expanded heir operaions owards privae business promoion. Acually PPPs are

    someimes also considered as insrumens or peace building and or he promoion osocial cohesion (Abramov, 2010). This paragraph refecs on lessons learned and provides an

    oulook or evaluaion o PPPs in he near uure.

    PPPs are commonly dened as a orm o cooperaion beween governmen and business

    agens someimes also involving volunary organizaions (NGOs, rade unions) or knowledge

    insiues ha agree o work ogeher o reach a common goals or carry ou a specic ask,

    while joinly assuming he risks and responsibiliies and sharing resources and compeences

    (MFA, 2010). These are srucured insiuional or conracual arrangemens o long-erm

    cooperaion beween public and privae agens or join producion o goods and/or services

    based on sharing risks, coss, knowledge and resources (van Ham & Koppenjan, 2001).

    Overall, PPPs seem o unie a leas wo dimensions. The rs dimension reers o nance

    and denes he arrangemens or engaging public and privae acors nancially in PPPs. The

    second dimension is organizaional and denes he roles and responsibiliies or

    doveailing public and privae acors in a single coordinaed execuive ramework. Boh

    dimensions inerac ighly in such a way ha he mobilizaion o resources should saisy

    boh he individual objecives o each agen and provides sucien incenives or

    enhancing heir durable cooperaion.

    Conradicory evidence rom Wesern PPPsMany early sudies regarding PPP perormance are based on experiences in Wesern

    counries and are srongly linked o privaizaion programs in he 1990s. Evaluaion

    designs used or hese sudies have mos oen been weak, and he daa mosly fawed. I is

    hereore litle wonder ha evaluaions hus ar clearly poin o conradicory assessmens

    o heir perormance (Hodge & Grave, 2011). Despie growing ineres in PPPs, he evidence

    base on resuls is sill sparse and successul parnerships have been elusive.

    A he posiive end, esimaes o eciencies o be gained hrough PPPs include a 17 percen

    cos savings in an analysis o 29 Briish inrasrucure business cases, and a 10 o 20 percen

    cos reducion in school consrucion in Ausralia (Shepherd, 2000; Nisar, 2007). Perceivedsavings in hese business cases are mainly atribuable o he calculus o risk ransers rom

    he public o he privae secor. Pollit (2005) gives a careul pass mark o PPPs, observing

    hem successul or prisons and roads bu o limied value in hospials and school projecs.

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    Based on a sample o 10 major PPP evaluaions underaken, good value or money was

    achieved in eigh o he 10 cases. Several oher sudies repor PPPs as being delivered on-imeand on-budge ar more oen han radiional inrasrucure provision arrangemens.

    From a more criical side, Blanc-Brude e al. (2006) conduced a careul regressi