Public-Private Partnerships for Service Delivery UNECA High level Workshop on PPPs in UNECA High level Workshop on PPPs in Energy Sector in Africa Energy Sector in Africa UNDP work on Pro-poor PPP for Local Service Delivery Addis Ababa (Ethiopia), 30 June – 1 st July 2011 By: Maleye DIOP, Global Manager Public Private Partnerships for Service Delivery Capacity Development Group, Bureau for Dev. Policy UNDP Regional Centre, Johannesburg, South Africa
Transcript
Public-Private Partnerships for Service Delivery
UNECA High level Workshop on PPPs UNECA High level Workshop on PPPs in Energy Sector in Africain Energy Sector in Africa
UNDP work on Pro-poor PPP
for Local Service Delivery
Addis Ababa (Ethiopia), 30 June – 1st July 2011
By: Maleye DIOP, Global Manager
Public Private Partnerships for Service Delivery
Capacity Development Group, Bureau for Dev. Policy UNDP Regional Centre, Johannesburg, South Africa
Public-Private Partnerships for Service Delivery
→ Decentralization process in UNDP programme countries.→ MDGs: growing number of people not having access to
basic services (e.g.: clean water, sanitation, solid waste, energy, health care, education, etc...).
→ Increasing demand for support from UNDP programme countries to respond to unsolicited proposal from private sector offering local governments solutions to the service delivery problems they faced.
Gov’t (national, local) not being able to make it alone and inclusive P’ships with Non State Actors (incl. users) offer opportunity to face local service delivery challenges.
Drivers of UNDP work on pro-poor PPP
Public-Private Partnerships for Service Delivery
....… as a result,
Various Non-State Providers (large, small, formal, informal private sector, CBOs, NGOs, CSOs, FBOs) are filling in the gap in the context of a regulatory vacuum.
........leading to: poor getting services at higher cost, poor quality and limited quantity…
Public-Private Partnerships for Service Delivery
To support alternative LSD approach that complement efforts of Gov’t that uses comparative advantages of both State and Non State Actors (incl. the Private Sector) to improve service delivery and to advance MDGs and long term sustainable development.
Basic services including: renewable energy, primary education, health care, water supply, sanitation, solid waste management that are vital for poverty eradication and achievement of MDGs.
Services of Focus
Public-Private Partnerships for Service Delivery
Promoting enabling environment: Policy, regulation and institutional frameworks for pro-poor PPP.
Capacity Dev. for local governments, businesses & communities to effectively engage through PPP in service delivery.
Implement “quick wins” pro-poor PPP.Knowledge sharing to foster exchange of
good practices and experiences.
PPPSD Service Offerings
Poverty is not just lack of income. It is lack of: - Income and productive assets.
- Access to basic services. - Power, participation and dignity.
Public-Private Partnerships for Service Delivery
Public Sector as Direct Provider
Public SectorBasic Services
and relatedInfrastructure
Users / Consumers / CommunitiesTaxes
User Fees
Direct Provision,Operation + Maintenance
Administration
Emergency Services
Healthcare
Roads/Transportation
Water, Energy, Sanitation, etc..
Public-Private Partnerships for Service Delivery
PPP provide practical solution and framework for actors to work together to:
Deliver basic services to the poor & contribute to the achievement of the MDGs targets.
Provide livelihood opportunities for the poor. Ensure participation and representation by the
poor. Contribute to local development efforts.
Public-Private Partnerships for Service Delivery
Municipal Waste Collection, Nepal
Public-Private Partnerships for Service Delivery
From Waste to Wealth, Energy
Public-Private Partnerships for Service Delivery
PPP: Shifting role of Government
From Govt asDirectProvider ofbasic services
to Regulator/Enabler of services provision
to Purchaser of servicesand Infrastructure provided bythe private sector or other NSA
&
Public-Private Partnerships for Service Delivery
Public Sector as Regulator
GovernmentPrivate
Provider
Use
r Fee
s
Regulation- price- quality- quantity
Users / Consumers / Community
Services
Public-Private Partnerships for Service Delivery
also Public Sector as Regulator
GovernmentNon StateProvider
Use
r Fee
s
Regulation- quality
Users / Consumers / Community
Water
Non StateProvider
Non StateProvider
Services
Services
Competition
Services
User Fees
Public-Private Partnerships for Service Delivery
Public Sector as Purchaser
GovernmentNon StateProvidersTaxes
User Fees
Purchase / ServiceAgreement
Users / Consumers / Community
Services
Public-Private Partnerships for Service Delivery
Types of PPP Arrangements
Private - after contract
expiration to be transferred to the public
25-30 yrsPrivate company develops, finances & operates facilitiesBOT
Public25-30 yrsPrivate company pays fee to operate public assets & is expected to finance capital investments
Concession
Public5 -15 yrsPrivate company rents public assets, responsible for the service provision & buys the right to revenue stream
Lease
Public3 to 5 yrsPrivate company assumes the managerial responsibility & is remunerated based on key performance indicators
Managt Contract
Public1 to 3 yrsPrivate company performs specific tasks on a contractual basis
Service Contract
Public/PrivateVariousCan take various forms, but in the main are self-governing, voluntary organisations, which serve the interests of their own members
Cooperatives
OwnershipDurationDescriptionOptions
Public-Private Partnerships for Service Delivery
Country Experience in Energy
India: from Waste to Energy
Public-Private Partnerships for Service Delivery
Example: From Waste to Sustainable Local Energy Services Provision in Tamil Nadu State (India)
Develop Public Private Community partnership model for poultry litter management to............
Public-Private Partnerships for Service Delivery
............generate electricity (3.7 MW of power) from the poultry waste to…
Public-Private Partnerships for Service Delivery
.....feed it to the state grid and ultimately to be sold to users (long term purchase contract)
Public-Private Partnerships for Service Delivery
Lessons from Practices
On pro-poor PPP for LSD
Public-Private Partnerships for Service Delivery
Learning by Doing: Feedback loopIt is important to have a constant feedback mechanism between country level experiences and global level analysis and to ensure mutual learning through sharing of lessons, analysis + dissemination of good practices to better inform new partnerships for service delivery: Dev. partners have critical role.
InnovativeInnovativePartnershipsPartnerships
Learning Learning NetworkNetwork
AnalysisAnalysis
Country ExperienceCountry Experience
Public-Private Partnerships for Service Delivery
Capacity Development is key! Capacity of Government to identify service sectors for
Non State Providers’ (NSP) involvement. Capacity to establish adequate policies, institutions in
support of PPP in Service Delivery. Capacity to regulate service sectors to ensure inclusive
participation of users to assess services provision through adequate oversight & feedback mechanisms;
Capacity to effectively engage non State Partners: Partnership Dialogue Forum facilitated by neutral broker.
Capacity to monitor performance of service providers through adequate contractual arrangements that ensure flexibility, continuous revisions to reflect evolving needs.
Public-Private Partnerships for Service Delivery
Sequencing Policy-Implementation versus Implementation-Policy based on context.
Institutionalization of PPP in local SD. Participation of communities and local SP
is key to serve the un-served poor areas and meet poverty reduction objectives.
Access to sustainable services provision better ensured through users participation.
26
Policy versus Implementation
Public-Private Partnerships for Service Delivery
Let service provider decide on the best option to deliver the required services !!
