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    PPP Presentation

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    m.musamali5322
    Public-private partnerships (PPPs) involve long-term agreements between public and private sectors to deliver services. The public sector focuses on cost-effective acquisition of services rather than direct ownership. Services can be delivered in a more cost-effective way by combining public and private expertise. There are two main PPP models - design-build-finance-operate (DBFO), where the private partner finances facilities and provides services for the contract period, and design-build-operate (DBO), where the public sector funds facilities and the private partner operates them. PPPs provide benefits to the public sector through cost savings, the private sector through business opportunities, and the public through efficient service delivery that combines government and private expertise.

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    PPP Presentation

    Uploaded by

    m.musamali5322
    1K views16 pages
    Public-private partnerships (PPPs) involve long-term agreements between public and private sectors to deliver services. The public sector focuses on cost-effective acquisition of services rather than direct ownership. Services can be delivered in a more cost-effective way by combining public and private expertise. There are two main PPP models - design-build-finance-operate (DBFO), where the private partner finances facilities and provides services for the contract period, and design-build-operate (DBO), where the public sector funds facilities and the private partner operates them. PPPs provide benefits to the public sector through cost savings, the private sector through business opportunities, and the public through efficient service delivery that combines government and private expertise.

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    Public-private partnerships (PPPs) involve long-term agreements between public and private sectors to deliver services. The public sector focuses on cost-effective acquisition of services rather than direct ownership. Services can be delivered in a more cost-effective way by combining public and private expertise. There are two main PPP models - design-build-finance-operate (DBFO), where the private partner finances facilities and provides services for the contract period, and design-build-operate (DBO), where the public sector funds facilities and the private partner operates them. PPPs provide benefits to the public sector through cost savings, the private sector through business opportunities, and the public through efficient service delivery that combines government and private expertise.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT or read online from Scribd
    Download as ppt
    1K views16 pages

    PPP Presentation

    Uploaded by

    m.musamali5322
    Public-private partnerships (PPPs) involve long-term agreements between public and private sectors to deliver services. The public sector focuses on cost-effective acquisition of services rather than direct ownership. Services can be delivered in a more cost-effective way by combining public and private expertise. There are two main PPP models - design-build-finance-operate (DBFO), where the private partner finances facilities and provides services for the contract period, and design-build-operate (DBO), where the public sector funds facilities and the private partner operates them. PPPs provide benefits to the public sector through cost savings, the private sector through business opportunities, and the public through efficient service delivery that combines government and private expertise.

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    PUBLIC PRIVATE PATNERSHIP

    By Martin M. Musamali
    (BBM,CPAK)
    WHAT IS PUBLIC PRIVATE
    PARTNERSHIP?
     PPP refers to long-term partnering
    relationships between the public and private
    sector to deliver services.

    ‫٭‬ With PPP, the public sector will focus on acquiring


    services at the most cost-effective basis, rather
    than directly owning and operating assets.
    ‫٭‬ Public services can be delivered in a more value for
    money way by making optimal use of the public and
    private sectors’ expertise, resources and innovation
    to meet public needs effectively and efficiently.
    PPP DELIVERY MODELS
     Design-Build-Finance-Operate
    (DBFO) model.
     Design-Build-Operate (DBO) model
    Design-Build-Finance-
    Operate
     The PPP provider will raise financing from
    private financiers, e.g. banks or equity
    investors, to develop the facilities needed to
    deliver services to the public sector.
     The provider will then build, maintain and
    operate the facilities to meet the public
    sector’s requirements.
     The private provider will be compelled to
    deliver the services, at specified performance
    standards, throughout the entire contract
    length.
    Design-Build-Operate (DBO) model.

     The public sector provides the funds for


    the design and building of the facility,
    and then continues to engage the same
    private vendor to operate the facility.
     The operator is then paid a management
    fee.
     Suitable for very large projects for which
    the private sector is unable to finance
    wholly.
    Build Operate and Transfer (BOT)

     BOT means that the public sector has a right to own the
    facility, while the private sector builds the facility, hires
    the employees, gets the operation running for a certain
    period of time (usually a period of 3-5 years) and hand
    over the operations to the public sector on expiry of the
    agreed period.

     During the contract period, the private sector and the


    public sector work closely with a senior public sector
    representative monitoring the operations.

     At the time of the transition, the private sector is


    suitably compensated.
    WHY PPP?

    PPP offers a win-win-win solution for the


    public sector, the private sector and
    members of the public.
    For the public sector
     Value for money in the delivery of the public services.
     Partnership fosters efficiency and effectiveness gains
    through:-
     Private Sector Innovation
     Optimal Whole lifecycle costing
     Better asset utilization by sharing Government
    assets/facilities with private sector.
     Optimal sharing of responsibilities between the public
    and private sector.
     Increase in local revenues
     % of turnover
     Concession
     Land rates
    For the Private Sector
     Offers more business opportunities to
    the private sector.
     The private sector has more room to
    innovate and offer efficient solutions for
    public services.
    For members of the public
     PPP brings together the expertise of the Government
    and the private sector to meet the needs of the public
    effectively and efficiently.
     When the private sector is brought in to provide
    government services, the public sector will ensure that:
     The private providers can meet the public needs
    effectively
     There is clear accountability when services are delivered
    by the private sector
     The public knows who to approach for service queries
    and feedback
     Public security, health and safety will not be
    compromised in the PPP projects
     Confidentiality of information will be observed.
    CHARACTERISTICS OF
    PPP PROJECTS
    Contractual Characteristics
     Long Term Contracts
     Outcome/output specifications
     Performance based payment mechanism
     Flexible contracts
    Financial Characteristics
     Private financing
     Equity

     Debt

     Publicly funded
     Stream of payments
     User Charges & Fees
    WHICH SERVICES WILL PPP BE
    USED FOR?
     For a start, the public sector may only apply PPP to large value
    projects in sectors where there are successful PPPs in other
    countries e.g.

     Sports facilities
     Incineration plants, water and sewerage treatment works
     Major IT infrastructure projects
     Education facilities, including student accommodation facilities
     Hospitals and polyclinics
     Expressways
     Government office buildings
     Abattoirs

     Each PPP project is unique. There is no one single PPP model


    that is suitable for all PPP projects.
    Council Services suitable for
    PPP
     maintains and controls
     Markets  X
     Bus parks  X
     Fire brigade  X
     Streetlights  X
     Cemeteries  X
     Social rental houses  X
     Access roads  X
     Nursery and primary
    schools  X
     Public conveniences  X
     Sport stadia  X
     Recreational parks and  X
    trees  X
     Health centres  X
     Abattoirs/Slaughter slabs
    THE END
    SHUKRANI

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