Introduction

Public-Private Partnerships (PPPs) are an arrangement between two or more public and private sector organizations to finance, build and operate a public infrastructure project. In this arrangement, the public partner is a local, state or central government while the private partner is a single privately owned business or an association of businesses with similar expertise.

PPPs could be for short-term or long-term and may or may not involve the element of funding. PPPs are extremely necessary and beneficial for large-scale projects that require focused and strategic planning, implementation and operation as well as high skill and funding. In this arrangement, the risks are distributed between the partners depending on which partner has the ability to assess, control and cope with the risks.

PPPs are extremely advantageous to the public because they result in better, faster and well-managed public services. Because of the involvement of a private sector partner in this association, the best innovation and technologies significantly contribute to the overall success of the project, mainly operational efficiency.

The economic diversification through this project makes the public sector, governments and the nation stronger and more competitive. The degree of involvement of the private and public partners determines whether it is a substitutive or collaborative partnership.

A substitutive partnership is one in which the private partner completely replaces the public sector partner; on the other hand, collaborative partnership is one in which each partner has specific functions.

PPPs are the best way to undertake large-scale projects that are critical in terms of timelines and quality because the public sector alone lacks funds, skill, and technology to expedite the entire process and give the best outcome.

The uncertainty of the success or return on investment for a project is mitigated through PPPs because the private sector partner reduces the risk of failure through well-thought strategies and plans at the start of the project, with the best use of skill and technology to support the project throughout.

Thus, given the multiple benefits of this type of partnership, it is extremely important that public sector professionals and private sector owners understand these thoroughly and realize the advantages of optimally using these to successfully implement projects with least risk and deliver high-quality services to citizens.

This Xcelerate PPP training course will empower you with an in-depth understanding of PPPs and the benefits of these to large-scale public sector projects. It will also provide you with the necessary information, experience and exposure to undertake such partnerships and make the best use of them for delivering high-quality services to citizens.

Learning Objectives

• An in-depth understanding of all principles and information related to PPPs.
• Necessary information and experience to choose the correct type of PPPs and successfully implement PPP programs and initiatives.
• Complete clarity on the role and importance of each partner in a PPP
• Additional skill and capabilities to work with the most advanced technologies and innovations of the private sector.
• Experience of working with government and government regulations and legislation.
• Exposure to large-scale projects and their planning, implementation, and operations.
• The ability to devise strategic plans around manpower, funding and project timelines, and exposure to the public and private sectors, thus expanding their professional portfolio.
• The ability to work in any sector and successfully spearhead large projects with high quality and within set timelines.

Training Methodology

This PPP Model and Program Development training course is delivered in various formats customized to the audience and their professional backgrounds. The training method includes face-to-face presentations by the trainer and assignment-related presentations by the trainees, case study discussions, best practice sharing through experiential learning activities, role-plays, etc. Recent examples of successful PPPs are also discussed in detail.

Benefits For Your Organization

• A more skilled and experienced workforce to manage large-scale projects and operations.
• Seamless and timely completion of projects with high-quality results.
• More innovation and faster implementation because of the use of advanced technologies.
• Risk mitigation because of higher skill contribution and greater experience from both sectors addressing almost all challenges in their own capacity.
• Higher potential and preparedness to enter into Public Private Partnerships because of technically equipped and trained employees to successfully undertake these.
• A more strategic and planned approach to projects, thus leading to the achievement of all objectives at the end of the project.
• Greater accountability and ownership throughout the project.
• Higher quality of services to the public because of skill or fund availability and support.
• Greater customer satisfaction because of better services.

Benefits For You

• In-depth understanding of PPPs and their benefits to the respective organizations.
• Increased skill and experience to play an important role in strategizing and implementing the best-suited PPP for one’s organization.
• Increased skill and capabilities to work with advanced technologies.
• Greater ability and broader perspective to think and innovate for better ways to complete a project.
• Hands-on experience of working in large-scale projects involving large-scale operations and critical decision making.
• Better financial planning and accounting skills because of funding decisions at such a large platform.
• Higher potential and preparedness to work in any sector, thus expanding the spectrum of opportunities for career growth and progression.
• An enhanced work ethic because of interaction and coordination with highly experienced professionals from both sectors.
• Greater opportunities to play an important role in providing good services to citizens.

Target Audience

• Senior and top management members of a public and/or private sector organization – to thoroughly understand all important aspects of PPPs and their benefits to the respective organizations and projects
• Shareholders and investors who are part of or want to be part of a public or private sector organization as it is important for them to understand funding requirements, the scope of the project, remuneration and return on investment and the like
• Members of the human resource departments of public and private sectors responsible for creating a performance-driven, technologically skilled and professional work culture for better results in terms of efficiency, quality and innovation.
• Auditors and compliance experts from both sectors responsible for ensuring transparency and integrity of information during and after the establishment of PPPs
• Legal authorities and regulators responsible for ensuring the creation of contracts and the adherence of both partners to the clauses therein
• Any other personnel of the public or private sectors who would need to be part of PPPs for seamless execution and completion of large-scale public sector projects

Course Outline

Overview of Public-Private Partnerships (PPPs)

• Definition of PPPs
• Possible reasons for the development of PPPs
• Recent successful PPPs

Different Types of PPPs

• Design-build
• Operation and maintenance contract
• Design-build-finance-operate
• Build-own-operate
• Build-own-operate-transfer
• Buy-build-operate
• Build-lease-operate
• Operation license
• Finance only

Advantages of PPPs

• Better public sector management because of adequate investments in the public sector
• High quality and efficiency of public services
• No unforeseen or unnecessary expenditures
• Long-term income for private sector organizations
• Higher operational quality and efficiency in the public sector because of the involvement of private sector expertise and experience
• Risk mitigation/better risk management
• Best practice sharing across sectors
• Planned and strategic approach to completion of projects
• Increased accountability and transparency
• Greater client satisfaction

Disadvantages of PPPs

• More expensive infrastructure and services
• Longer procedures for procurement of services under PPPs
• Rigid and complex partnership and project agreements
• Probable increase in government costs for compensating the private partner for accepting risks involved in the project
• Compromise on competency for cost-effective partnering in case of inadequate skill across both partners

Principles for Successful PPPs

• Good preparation (Testing feasibility, checking legislation, finding resources, etc.)
• Creation of a shared vision between partners
• Understanding partners and key players
• Clarity on risks and rewards for all parties involved
• Establishment of a clear and rational decision-making process
• Secured and coordinated leadership across partners
• Regular and transparent communication
• Defined set of work values

Steps in PPP Programmed and Initiative Development

• Identification of the right PPP project (strategy, project committee, etc.)
• Project development and due diligence (planning, risk analysis, etc.)
• Implementation arrangement/pr-procurement (bidding documents, draft contracts, etc.)
• Procurement (final tender, bid evaluation and selection, etc.)
• Contract award and management (contract signing, contract compliance, etc.)
• Dispute resolution (establishment of processes, dispute resolution guidelines and team, etc.)

Role of the Private Sector in PPPs

• Providing additional funding
• Providing addition skills and expertise for strategizing and planning
• Providing alternative management and implementation ideas and experience
• Carrying out seamless operations through defined processes and advanced technologies
• Providing value-adds to citizens
• Sharing risks with the public sector
• Optimizing use of available resources
• Reducing corruption and encouraging transparency and accountability

Some Funding Instruments in PPP Programmes and Initiatives

• Grants and capital contributions
• Payments for services rendered
• Loans
• Equities