FAQ

Delegates started to define global core PPP standards and this resulted in setting patterns of the requirement of common purposes, principles to define institutional and international arrangements and set own contents for their PPP.


The question ‘What is the next level of PPP’ participants discussed a model which will optimize future PPP. The outcome was that in future PPP projects will be more socially relevant projects such as; schools, disability and elderly care, penitentiaries, hospitals, energy projects; especially renewable and clean-tech solutions, smart cities, education and innovation and projects that promote international trade and exports for the future PPP projects.

Attending Istanbul PPP Week will let you gain comprehensive information in the field of PPP. Throughout the Week, all participants discussed next generation patterns of PPP and they underlined the following concepts:

 

a) Business Environment: Focus on strategic Partner’s (country wide collaboration, Industrial, Private Equity, Institutional)

b) Behavioral Patterns: Innovative Funding strategies such as Crowd-funding (~Islamic) Kick-starter for PPP?

c) Risk Management: Value at Risk models for risk allocation and using scenario creation models, consensus on discount rates

d) Globalization: PPP as asset class: commoditization of contracts (Care facilities, Education, energy sector)

e) Regionalization: Understanding of political hazards and Major Adverse Government Actions

f) Critical success factors: Which patterns of behavior, competences, image, crated problems to be avoided?

g) Accelerator: Which patterns created acceleration to implement PPP.

 

Public – Private Partnerships are a long-term performance-based approach to procuring public infrastructure where the private sector assumes a major share of the risks in terms of financing and construction and ensuring effective performance of the infrastructure, from design and planning, to long-term maintenance.

A value for money analysis is the comparison between the total project costs (capital base costs, financing costs, retained risks and ancillary costs), at the same point in time, for traditionally delivered project (known as the public sector comparator or PSC) and delivery of the same project using the PPP model (known as the shadow bid). The incremental difference between the public sector comparator and the shadow bid is referred to as the value for money. If the shadow bid costs are lower than the public sector comparator, the P3 project is found to deliver positive value for money to the taxpayer.

Private-sector technology and innovation help provide better public services through improved operational efficiency. The public sector provides incentives for the private sector to deliver projects on time and within budget. In addition, creating economic diversification makes the country more competitive in facilitating its infrastructure base and boosting associated construction, equipment, support services and other businesses.

Public-private partnerships have been in existence since long before the Revolutionary War. In 1652, the Water Works Company of Boston was the first private firm in America to provide drinking water to citizens. Today, creative government leaders develop partnerships with private contractors to provide essential services to meet environmental compliance requirements and improve operations, without having to increase taxes upon their constituencies. Also, governments realize that the combined capital and intellectual resources of the public- and private-sectors can result in better, more efficient services.


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