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    Public and Private Partnership

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    Louray Jean Bereber
    1. A public-private partnership (PPP) is a long-term contract between a private party and the government for providing a public asset or service, where the private party bears significant risk and management responsibility and is paid based on performance. 2. The key characteristics of a PPP are a contractual agreement defining roles, sensible risk-sharing between public and private partners, and financial rewards for the private party tied to achieving outputs. 3. Advantages of PPPs include encouraging private investment, making projects more affordable, providing better value, sharing risks, focusing the government on outputs and benefits, and promoting innovation.

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    Public and Private Partnership

    Uploaded by

    Louray Jean Bereber
    61 views24 pages
    1. A public-private partnership (PPP) is a long-term contract between a private party and the government for providing a public asset or service, where the private party bears significant risk and management responsibility and is paid based on performance. 2. The key characteristics of a PPP are a contractual agreement defining roles, sensible risk-sharing between public and private partners, and financial rewards for the private party tied to achieving outputs. 3. Advantages of PPPs include encouraging private investment, making projects more affordable, providing better value, sharing risks, focusing the government on outputs and benefits, and promoting innovation.

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    PUBLIC AND PRIVATE PARTNERSHIP

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    1. A public-private partnership (PPP) is a long-term contract between a private party and the government for providing a public asset or service, where the private party bears significant risk and management responsibility and is paid based on performance. 2. The key characteristics of a PPP are a contractual agreement defining roles, sensible risk-sharing between public and private partners, and financial rewards for the private party tied to achieving outputs. 3. Advantages of PPPs include encouraging private investment, making projects more affordable, providing better value, sharing risks, focusing the government on outputs and benefits, and promoting innovation.

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    © All Rights Reserved
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    Download as pdf or txt
    61 views24 pages

    Public and Private Partnership

    Uploaded by

    Louray Jean Bereber
    1. A public-private partnership (PPP) is a long-term contract between a private party and the government for providing a public asset or service, where the private party bears significant risk and management responsibility and is paid based on performance. 2. The key characteristics of a PPP are a contractual agreement defining roles, sensible risk-sharing between public and private partners, and financial rewards for the private party tied to achieving outputs. 3. Advantages of PPPs include encouraging private investment, making projects more affordable, providing better value, sharing risks, focusing the government on outputs and benefits, and promoting innovation.

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    PUBLIC AND

    PRIVATE
    PARTNERSHIP

    BSDRM Lecture 5 - P224


    Lesson Outline

    What is PPP?
    Characteristics of PPP
    Advantages of PPP
    Forms of PPP
    In DRM, what
    is our long safer, adaptive and
    term goal? disaster resilient
    Filipino
    communities
    Public and Private
    Partnership
    PPP Knowledge Lab (2015) defines PPP as a
    long-term contract between a private party
    and a government entity, for providing a
    public asset or service, in which the private
    party bears significant risk and management
    responsibility, and remuneration is linked to
    performance.
    where the government pays the private
    sector to deliver infrastructure and related
    services on behalf, or in support, of
    government’s broader service
    responsibilities
    PH Context
    In the Philippines, PPP is similarly defined as a
    contractual agreement between the Government
    and a private firm targeted towards financing,
    designing, implementing and operating
    infrastructure facilities and services that were
    traditionally provided by the public sector
    (Public-Private Partnership Center, 2015b).
    CHARACTERISTICS OF PPP

    According to the Asian Development Bank (2008), PPPs have


    the following three key characteristics:
    1. a contractual agreement
    defining the roles and
    responsibilities of the
    parties
    2. sensible risk-sharing among
    the public and the private sector
    partners
    3. financial rewards to the
    private party commensurate with
    the achievement of pre-specified
    outputs
    ADVANTAGES OF PPP
    Advantages
    1. Encourage private sector capital
    2. Makes projects affordable
    3. Providing better value for money
    4. Risks sharing
    5. Government’s focus on outputs and benefits
    Advantages
    6. Quality assurance
    7. Encourage sector reform
    8. Promote innovation
    9. Sharing of responsibilities
    INSURANCE
    one of the most popular
    approaches for financing
    disasters

    . However, in most developing


    countries, insurance for
    disasters is not compulsory
    and it is also expensive.
    PPP in the
    Philippines
    The PPP in the Philippines is based on
    Republic Act 7718 and other pertinent
    laws and is administered by the Public-
    Private Partnership Center – an attached
    agency of the National Economic and
    Development Authority.
    WHAT ARE THE
    LEGAL BASIS?
    RA 6957 as amended by RA
    7718

    2013 NEDA JV Guidelines

    Local Government Code


    RA 6957
    AN ACT AUTHORIZING THE
    FINANCING, CONSTRUCTION,
    OPERATION AND
    MAINTENANCE OF
    INFRASTRUCTURE PROJECTS
    BY THE PRIVATE SECTOR, AND
    FOR THE OTHER PURPOSES
    RA 7718
    -amendment of RA 6957
    WHO CAN ENTER INTO PPP?
    Government implementing agencies (IAs) can
    enter into PPP.

    BOT Law and its IRR defines an “Agency” referring


    to any department, bureau, office commission,
    authority or agency of the national government,
    including Government-Owned and/or –
    Controlled Corporations (GOCCs), Government
    Financial institutions (GFIs), and State Universities
    and Colleges (SUCs) authorized by law or their
    respective charters to contract for or undertake
    Infrastructure or Development Projects.
    BUILD-OPERATE-TRANSFER

    The project proponent operates the facility


    over a fixed term during which it is allowed to
    charge facility users.

    The project proponent transfers the facility to


    the government agency or local government
    unit concerned at the end of the fixed term
    which shall not exceed fifty (50) years:
    BUILD and TRANSFER

    - A contractual arrangement whereby the


    project proponent undertakes the financing
    and construction of a given infrastructure or
    development facility and after its completion
    turns it over to the government agency or local
    government unit concerned, which shall pay
    the proponent on an agreed schedule its total
    investments expended on the project, plus a
    reasonable rate of return thereon.
    FORMS OF PPP

    1. Availability PPP
    2. Concession PPP
    AVAILABILITY PPP

    In this PPP, the public authority contracts with a


    private sector entity to provide a public good, service
    or product at a constant capacity to the implementing
    agency for a given fee (capacity fee) and a separate
    charge for usage of the public good, product or service
    (usage fee). Fees or tariffs are regulated by contract to
    provide for recovery of debt service, fixed costs of
    operation and a return on equity.
    CONCESSION PPP

    This form of PPP, the government grants the private


    sector the right to build, operate and charge public
    users of the public good, infrastructure or service, a fee
    or tariff which is regulated by public regulators and the
    concession contract.

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