Public-Private Partnerships UN SU/SSC DAY 3 September 20, 2006 Rick Norment NCPPP Executive Director
Public-Private Partnerships
UN SU/SSC
DAY 3September 20, 2006
Rick NormentNCPPP Executive Director
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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: www.ncppp.org
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Six Keys to Successful PPPs
Statutory and Political Environment
Organized Structure
Detailed Business Plan
Guaranteed Revenue Stream
Stakeholder Support
Pick Your Partner Carefully
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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
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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
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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
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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
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Competing Interests
Who are they?
Why do they oppose the PPP approach?
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Six Keys to Successful PPPs
Statutory and Political Environment
Organized Structure
Detailed Business Plan
Guaranteed Revenue Stream
Stakeholder Support
Pick Your Partner Carefully