Hot topics on public private partnerships
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Presented for "Hot Topic Session" of Research Methods for Public Policy; in partial fulfillment of Master of Global Public Policy degree at The Russian Presidential Academy of National Economy and Public Administration (RANEPA) Moscow, Russia
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Hot topics on public private partnerships
- 1. Presented by: Samuel ELUSOJI MGPP, Research Methods for Public Policy Thursday, 3rd
- 2. 1) PPP in infrastructure: A Comparison Between China and India 2) PPP and Environmental Sanitation in Ghana 3) Development of Drugs in PPP environments 4) Strengthening PPPs for More and Better Health Outcomes in Ethiopia 5) ‘Hamilton’ Shows the Power of PPP 6) PPPs for Jobs in Libya are Key for Youth and Women, Now More than Ever 7) Assessing Models of PPPs for Irrigation Development in Africa 8) PPP in Ethiopia: The Inclusive Modality In Tourism Development
- 4. 1. Both India and China have been promoting Public Private Partnership in delivering infrastructure in various sectors. 2. India prioritizes in transport and energy while China puts its emphasis in public services. 3. State-owned enterprises (SOEs) have a bigger presence in PPPs in China while foreign investors have more space in India. 4. The main reason for India using PPP is the gap between government fiscal capacity and the increasing infrastructure demand; while in China, the key is innovation, in the sense that private sector has better technology and management skills in tackling sophisticated issues such as water treatment and elderly care. 5. China takes a top-down approach in the promotion of PPP while India, in the national level, also takes a top-down approach but has to take a
- 5. 1. PPP is not a panacea for the government to shred risks to private sector of even build up infrastructure for free, as some people believe both in India and China. 2. There are some common challenges of implementing PPP in both countries, with their distinctive characters, which can be summarized as human resources, legal and regulatory framework and financing gap. 3. These major challenges are not easy to tackle. However, both the Indian and the Chinese seem to understand these issues well and have been putting serious efforts into them.
- 7. 1. The contract between AMA and ZL Ltd is a type of franchise with limited tenure of five (5) years. ZL Ltd is one of nine (9) companies contracted by AMA to provide solid waste management service for the local authority. 2. The objective of the contract is to shift the financial burden of waste management services from AMA to ZL under a system called fee-based refuse collection. Thus the major objective of the partnership is financial in that the assembly seeks a zero financial commitment to the provision of the service by
- 8. 1. The study revealed that the partnership between the AMA and ZL, to a large extent, have met the set targets with regards to the coverage area, improved sanitation facilities, the frequency of collection of waste and the charges paid by customers as set out in the partnership agreement. 2. However, critical challenges such as rapid urbanization, population pressure, low level of investment in sanitation delivery and fast unplanned expansion of cities pose major challenges for the full attainment of this partnership agreement.
- 10. 1. Process of introducing new drugs in the market is expensive, long and risky. 2. Drug makers only have incentive to introduce drugs to markets where customers can pay development costs. 3. Most of the resources and experience in drug discovery are held by the private sector. 4. 90% of the world’s diseases receive only 10% of the resources, leading many of those diseases neglected, or “orphaned”. 5. Public-Private partnerships (PPPs) could allow for some of these diseases to receive the attention they need. 6. The Public sector has a great interest in stimulating discoveries and, knowledge of multiple diseases links to government, while the
- 11. • Grants4Targets allows public researchers to apply for research grants from Bayer Healthcare: 1. Applicants apply for grants via the Grants4Targets website using a standard format application 2. A committee of researchers at Bayer then decide on the proposal 3. Grants are decided in as little as 8 weeks 4. Grants come in three sizes, ranging from 5,000-250,000 Euros. Up to 125,000 Euros, no Intellectual Property (IP) are necessary, applicant keeps IP.
- 13. 1. Leveraging non-state resources through partnership with the private sector serves as a viable opportunity for the Government of Ethiopia to narrow the gaps caused by resource constraints as well as improve access to quality health services. 2. Information from the key informant interviews and identified “sixteen PPP case studies” were synthesized, compiled, and reported by the team of experts from the Federal Ministry of Health, Resource Mobilization Directorate, and HEPCAPS2 project from June to November, 2014. 3. Contracting partnerships was found to be promising in reaching needy populations with quality health services. 4. Infrastructure-based hospital PPP arrangements, seen in the establishment of specialized medical care services like dialysis and eye care within public hospitals were found to create opportunity for affordable and conveniently located service. 5. Social marketing and franchising are contributing their share in increasing access to sexual and reproductive health services. In the year 2013 alone, DKT Ethiopia in partnership with private providers distributed more than 66 million condoms, 4.1 million cycles of oral contraceptives, 2.7 million injectable contraceptives, 1.7 million emergency contraceptive pills, 122,455 Implants, and 195,000 Intrauterine Contraceptive Devices (IUCDs) that translates into 2,442,890 Couple Years Protection (CYPs).
- 14. Key informants provided the following recommendations to strengthen partnerships between government and private for profit and private for-nonprofit sector in health service provision: 1. Organize regular consultations between government and private providers and implement effective and agreed upon mechanisms to strengthen PPP; 2. Establish a unit dedicated to coordinating PPP from MoH and regional health bureau (RHB) to local (woreda) health office levels; 3. Develop guidelines, standard operating procedures, and tools to standardize implementation of PPPs; 4. Support the development of legal framework to provide PPP legal coverage; 5. Build trusting, supportive, and inclusive relationship between government and private
- 16. 1. The production's success (genre-advancing production by Lin-Manuel Miranda, who plays the lead role and also composed the music) provides another example of a public-private partnership that could help revolutionize an established model. 2. The Public provided Miranda with the support and space for experimental evolution, together with funding, feedback and encouragement to create "Hamilton" over several years.
- 18. 1. To support stabilization (for the youths and ex-combatants) and pave the way for post-conflict recovery, the report says trade, services, tourism, and agribusiness, are all possible areas for job placement, on-the-job training in firms and entrepreneurship. 2. Innovative public-private partnerships are emerging at local levels and have continued operating even during the current conflict. In Tripoli, for example, the local municipal council and a non-governmental organization had opened an employment center in 2014 that had begun placing youth in jobs in firms, and in late 2015 mobilized an investor forum to support young entrepreneurs looking to expand.
- 19. 1. Establishing a public-private partnership contracting system for entrepreneurship and job placement could provide the incentives needed to stimulate job creation in the private sector. 2. Contracts that provide incentives to train and retain workers and that improve social security for nationals and non-nationals alike might help investors attract the talent needed away from the public sector. 3. Creating a consolidated database and information system would give the public sector, employers and jobseekers alike the support they need.
- 21. 1. Difficulty in aligning profit and development objectives 2. Information on water availability and use (competing uses, climate change) 3. Needs beyond irrigation infrastructure (technology, taxation, training, markets, inputs) 4. Land and water rights 5. Dominance by governments / limited involvement by farmers, communities and markets 6. Challenges to build trust (history matters)
- 22. 1. Add finance to interdisciplinary mix for irrigation 2. Is irrigation likely to be profitable for investors? Logic for state investment, less for private sector 3. “Beyond panaceas” a. Need to engage with complexity b. Tools for understanding complex arrangements c. Range of options for PPP arrangements 4. TIME: Needed to build trust, but time cost tradeoffs
- 24. 1. The need for PPP has already been captured as an agenda since 1992 appearing in strategic government documents. Nevertheless, in spite of the huge potential, the implementation of PPP has been very low in the tourism Industry. 2. The study recognized that there are still gaps in the level of understanding about the concept of PPP across the industry and lack of awareness about the existing legal frameworks both hindering the application of PPP in tourism sector. 3. The restraining factors to PPP in tourism investment in Ethiopia also include; lack of awareness about PPP, prioritization of other sectors and financial arrangements. 4. A well designed incentive packages to PPP projects will attract the private sector while lack of mutual trust is still to be considered in the
Editor's Notes
- Presented for HOT TOPICS Session of Research Methods for Public Policy Course @ The Russian Presidential Academy of National Economy and Public Administration (RANEPA) Moscow, Russia
- Orphaned, neglected or tropical diseases: Diseases which has not been “adopted” by the pharmaceutical industry because it provides little financial incentive for the private sector to make and market new medications to treat or prevent it. They also diseases that: - affect small number of patients in developed countries - affect many patients in developing countries, but because they are unable to pay, drug developers don’t invest in that market.
- Advantages of grants4Targets: Works well for very early stage development Low bureaucratic hurdles Not very complex and “no-strings-attached” IP rights Potential for future collaboration Disadvantages: No strong collaboration Over 70% of requested grants are for Cancer or Heart disease, NOT orphan diseases Only applicable to the very first stages of development
- *HEPCAPS2: Developing the Long-Term Capability of Ethiopia’s Health Extension Program Platform
- Contracting partnerships between government and private for profit and nonprofit organizations for the provision of comprehensive primary health care services for the rural population was found to be promising in reaching needy populations with quality health services. In particular, partnerships with health institutions operated under the Ethiopian Catholic Church Development Office, including; Dubo St. Mary Catholic Primary Hospital, St. Luke Catholic Primary Hospital and School of Nursing, and Wasera Health Center, are good examples, which have been detailed under their respective case study sections. Contracting partnerships between government and private for-profit health institutions for the provision of select health care services, specifically focusing on human immunodeficiency virus (HIV) / Antiretroviral therapy (ART) and Tuberculosis (TB), are contributing their share in expanding access to treatment and care services. Achievements of Bilal Primary Hospital and Jimma Higher Clinic illustrate the value of these partnerships.
- Mohamed A. El-Erian is a Bloomberg View columnist. He is the chief economic adviser at Allianz SE and chairman of the President’s Global Development Council, and he was chief executive and co-chief investment officer of Pimco. His books include “The Only Game in Town: Central Banks, Instability and Avoiding the Next Collapse.”
- "Hamilton," the groundbreaking musical inspired by Ron Chernow's biography of one of America’s Founding Fathers, has upended the conventional wisdom on Broadway and will help redefine the staging of musicals. The musical was first staged at the nonprofit Public Theater in New York, where it had its first very successful run in January 2015.
- A new World Bank report analyzes the current capacity of the Libyan labor market to absorb young people and ex-combatants. The report’s policy suggestions to aid Libya’s stabilization and economic recovery include innovative public-private partnerships to support young entrepreneurs, job placement and on-the-job training, and improving labor contracts in the private sector for nationals and non-nationals alike.
- Libya’s oil-rich years had also had a profound impact on Libyan society. That unemployment was on the rise even before the 2011 uprising reflected some very fundamental problems. The country’s population of about 6 million (before 2011) had grown dependent upon state largesse. Subsidies on food, energy, and housing dwarfed even those in the rest of MENA. Just before the current conflict broke out in mid-2014, its labor force stood at about 1.9 million, with the vast majority of workers found in the public sector (77 %). Agriculture, which had flourished in the pre-Qaddafi era, employed only 1% of Libya’s workforce and industry (primarily oil) less than 10%, with the remainder employed in the services sector.
- On the back of this, the Bank’s report has three key recommendations for Libyan policymakers and, especially, local actors to consider, even within the ongoing crisis: Recommendation 1 - And on-the-job training, successful in Mexico during a jobs crisis and in post-war Bosnia and Herzegovina when work for 300,000 demobilized soldiers was needed, could be particularly helpful. Targeting semi-skilled youth, ex-combatants, and women is viewed to be of the utmost importance. R2: From the viewpoint of Libyan workers and firms alike, rules pushing for more attractive labor contracts would make working in the private sector more appealing, something that might help attract new investment as well.
- Ruth Meinzen-Dick is a Senior Research Fellow at International Institute of Food Policy Research The report’s policy suggestions to aid Libya’s stabilization and economic recovery include innovative public-private partnerships to support young entrepreneurs, job placement and on-the-job training, and improving labor contracts in the private sector for nationals and non-nationals alike.
- The report’s policy suggestions to aid Libya’s stabilization and economic recovery include innovative public-private partnerships to support young entrepreneurs, job placement and on-the-job training, and improving labor contracts in the private sector for nationals and non-nationals alike.