Public-Private Partnerships Workshop [1]
Monday, November 17, 2008 - 16:37. Updated on Wednesday, July 29, 2015 - 16:20.
Senior government officials from nine Pacific developing nations recently shared their knowledge and experiences in managing public-private partnerships (PPP) in a workshop held here from 17 to 22 November.
The workshop, "Strengthening Private Sector Participation for Physical Infrastructure in the Pacific Region", was sponsored by the Asian Development Bank (ADB), Asian Development Bank Institute (ADBI), and the Bond University.
The workshop aims to raise awareness of the potential for PPP projects in the Pacific and demonstrate the core elements required for their successful implementation.
PPPs are contractual arrangements between the public and private sector for the provision of assets and/or services such as power, water, transportation, education and health. Unlike traditional procurement contracts, PPPs allocate risks among the partners and create efficiency for the private sector by linking payments to specific performance criteria.
"ADB is committed to support the development of PPP policy frameworks, build capacity within the public sector to identify PPP opportunities, and provide technical assistance to structure and execute PPP transactions," said Eugenue Zhukov, Regional Director of ADB...s Sydney Office.
While PPPs are not new in the power and water sectors in the Pacific, policymakers are now exploring PPP opportunities in the transport infrastructure and health sectors to supplement public financial resources.
PPPs are more cost-effective than traditional procurement processes, as systematic project evaluation and service delivery restrict the opportunity for corruption and offer independent reviews from the bidding stage through to review and contract management.
"PPPs are achieving value for money and lowering the cost of public procurement through optimal risk transfer and sharing between the public and private sector," said Michael Regan, Associate Professor of Infrastructure at Bond University. "They account for around 10% or less of public capital expenditure in most economies and they facilitate the delivery of projects on time and within budget."
"Pacific policymakers are increasingly considering PPP options to leverage public funds and access private sector financing, as well as to improve management of public assets and access to new technologies," said Elaine Glennie, Senior Capacity Building Specialist at ADBI.
ADBI is an ADB think tank aimed at helping build capacity, skills and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in the Asia-Pacific region. ADB, 17/11/08.