Public-Private Partnerships UN SU/SSC DAY 3 September 20, 2006 Rick Norment NCPPP Executive Director

O OMI 1 Public-Private Partnerships Defined A Public-Private Partnership is a contractual agreement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility. source:

O OMI 2 Six Keys to Successful PPPs  Statutory and Political Environment  Organized Structure  Detailed Business Plan  Guaranteed Revenue Stream  Stakeholder Support  Pick Your Partner Carefully

O OMI 3 Managing for Success – Six Keys Component Five: Stakeholder Support  Public Sector Employees  Private Sector  Labor Unions  End Users  Competing Interests  Requires: –Open and frank discussion between sectors –Knowing the FACTS (no myths) –Translating each other’s language

O OMI 4 Public Employees Recognize they are a valuable resource  Understand the existing infrastructure  Understand the local environment  Potential source of political influence (both positive or negative)  Applies to both union and non-union employees

O OMI 5 Private Sector  In-country private sector –A potential source of political influence –Understand the open procurement process –Understand the capital requirements and realistic evaluation of the sources –Understand the benefits to them  International private sector –Understand the legal/political environment –Understand the open procurement process

O OMI 6 End Users/Customers Probably the most critical group  The need for open, clear and full disclosure  Explain the benefits and the costs  Explain the reasons for using a PPP –Financial –Technical

O OMI 7 Competing Interests Who are they? Why do they oppose the PPP approach?

O OMI 8 Six Keys to Successful PPPs  Statutory and Political Environment  Organized Structure  Detailed Business Plan  Guaranteed Revenue Stream  Stakeholder Support  Pick Your Partner Carefully