Private Public Partnerships

Presented By: Mohsin RazaPresented To: Dr. Aashiq Hussain DogarPhD Education 1st SemesterRoll No. A.DPE01161006 The University of Lahore

Definition of PPP

• Public private partnerships (PPPs) are agreements between government and the private sector for the purpose of providing public infrastructure, community facilities and related services.

• The private sector enter into a contract with government for the design, delivery, and operation of the facility or infrastructure and the services provided.

• The private sector finance the capital investment and recover the investment over the course of the contract.

• The asset transfers back to the public sector at the end of the contract

Collaboration may be at

a) Government learning sites /institutions, b) Community sites, and c) Private sector sites d) Community & NGOse) Government & NGOs

Range of PPPs

Adapted from Canadian Council PPP 2009

Design and build

Operate and maintain

Build and finance

Design build finance maintain

DBFM-operate

Concession

Privatisation

PPP

Mod

els

Degree of private sector involvement

Degr

ee o

f priv

ate

sect

or ri

sk

Principles of PPPs

• Contracting Authority defines the service required• Design of the works to deliver that service lies with the private sector Output based specification

• The contract can be for 25/30 years plusLong-term contractual arrangements

Value for money

Transfer of risk

• Competition will drive best value• Gives public sector access to innovationMarket competition

Whole life costing

•Cost measured against conventional procurement.•Whole life costs and quality are combined to gauge VFM

•Long term responsibility for building operation and maintenance•Focus on reducing cost

•Transfer of design and construction risk•Risk of ownership transferred to the private sector

Typical SPV structure for PPPs

Government

PPP Agreement

Private Sector(Special Purpose Vehicle)

(SPV)

Loan agreement Debt

Subcontractors

SubcontractorConstruction

SubcontractorOperations

ShareholdingEquity

Work on PPP in Education in Pakistan

Punjab Education Foundation in Pakistan (PEF) Foundation-Assisted Schools programme (FAS) Continuous Professional Development Program

(CPDP) Teaching in Clusters by Subject Specialists

program (TICSS) Education Voucher Scheme (EVS) Sindh Education Foundation (SEF)

The arguments againstpublic-private partnerships

• PPPs will lead to the privatization of educationand thus will reduce the government’s control over a public service.• Increasing the educational choices available to students and their families may increase socioeconomic segregation if better prepared students end up self selecting into high-quality schools, thus further improving their outcomes.

What makes a successful PPP?

• Political will• Government commitment• PPP Champion• Clear output specification• Appropriate risk sharing• Value for money• Performance management

Registration Criteria for Private Schools should

be:1. Realistic and achievable, so that they do not

unduly restrict the establishment of new schools;2. Objective and measurable, to limit the scope for

corruption;3. Open to all prospective private school entrants;4. Output-focused, to allow schools to change how

they deliver their education services;5. Applied consistently across different government

levels and departments.

Conclusions

• Undertake projects for the benefit of the citizens, including the socially and economically disadvantaged

• Allows governments to approach projects hitherto unobtainable due to lack of funding

• Provide incentives to the private sector to adopt green criteria

• Embraces the MDGs• PPPs allow the injection of private sector

capital