1. Public-Private Partnerships in German Development Cooperation
Jörg Hartmann
Executive Director
Centre for Cooperation with the Private Sector
German Technical Cooperation
Berlin, May

2. About GTZ 30 years experience in development cooperation
9.500 employees in more than 140 countries
Offices in 67 countries in Africa, Asia, Latin America, the Middle East and Eastern Europe
2.700 projects worldwide
Working mainly on behalf of the German Ministry for Economic Cooperation and Development (BMZ)
Project management for international institutions such as EU, UN, World Bank and bilateral donors
The GTZ is an international cooperation enterprise for sustainable development with worldwide operations. We are looking back onto 30 years of experiences in this field. And during this period we have acquired technical and regional expertise as well as competences in project management.
Currently GTZ employs about persons, of whom some are working at the GTZ Headquaters near Frankfurt.
Additionally we run our own offices in 67 countries in Africa, Asia, Latin America, the Middle East and Eastern Europe.

3. Capacity Development
Building the capacities of people, organisations and societies
Objective: Partners make effective and efficient use of resources in order to achieve their own goals on a sustainable basis.

4. Fields of Competence Economic and employment promotion
State and democracy
Agriculture, fisheries and food
Environment and infrastructure
Health, education, social security

5. PPP in German Development Cooperation
Programme and facility launched by BMZ in 1999
Both sides achieve their goals more effectively and rapidly, results are more sustainable
Implementation mainly by GTZ and DEG
About 1200 proposals from EU companies
About 400 projects in more than 60 countries
Average project size: €
Total volume of PPP so far: about 160 Mio. € 65% private contribution, 35% public contribution

6. PPP Principles Comply with development policy principles
Joint planning, shared cost and risk
Private partner bears at least 50% of the cost
Beyond the limits of normal commercial activity of the private partner - but driven by a business case (“neither subsidy nor charity”)
No tendering, individual negotiations
Avoid windfall gains and market distortions
Clear definitions and contracts

7. Mainstreaming PPP in Technical Cooperation
In addition to special PPP facility, PPPs can also be set up in “regular” official development cooperation
Strength: Companies from developing countries are also eligible, PPPs are close to bilateral programmes
Weakness: Less “demand oriented” from a business perspective
PPPs are strictly bound to focus areas of bilateral programmes
funds depend on respective situation
planning may take longer

8. PPP Challenges
How do we scale up? Are we bound to micro-level or can we make a structural impact?
Need to create more sector-wide approaches on a multi-stakeholder basis
Need to state both, the “business case” and the “development case”
How do PPP relate to regular bilateral cooperation?
Need for PPP on political level, e.g. contribute to good governance, enabling framework, regulatory impact assessment, fight against corruption, PPD

9. Public-Private Partnerships in German Development Cooperation
Jörg Hartmann
Executive Director
Centre for Cooperation with the Private Sector
German Technical Cooperation
Berlin, May

11. 4 Types of PPP in Development Cooperation
Source: GPPi, Business UNusual, 2005
Issue advocacy
e.g. Health (HIV workplace policies with car manufacturers)
Developing norms & standards
e.g. Supply chains (Sector-wide PPP in textiles and coffee)
Sharing & coordinating resources & expertise
e.g. Infrastructure (Waste management with cement industry)
Harness markets for development
e.g. BOP (Micro-insurance with commercial insurer)

12. Lessons Learnt (1) Issue advocacy Local ownership critical
Public scrutiny high: Be clear about the balance of the “good cause” and the business case; communicate accordingly
Developing norms & standards
Mainstream or niche?
Multistakeholder approach, brokering skills
Implementation is key and to be considered early
Political implications high

13. Lessons Learnt (2) Sharing & coordinating resources & expertise
No blueprints in difficult sectors, e.g. water, utilities
Often rather regular business than partnership
Community involvement and sector policy critical
Harnessing markets for development
BOP-modells currently seen as the most promising approaches of private contribution to development
Must be demand-driven, not supply-driven
About business modells, not only about products
Sales and distribution channels are a challenge