Session 3: Planning and organizing

PPPs1. Planning and organizing 2. Defining Objectives 3. Defining Parameters (scope) 4. Collecting information

PPPUE/Capacity 2015 Public Private Partnership training

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

1. Planning and organizing

Strategic planningwhat the objectives are;how the PPP fits within their overall goals and

if a PPP is actually the best solution;how the PPP relates to other municipal

functions; andhow the PPP contributes to poverty reduction

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

Key steps in strategic planning

1. identifying the service problems to be solved2. defining service objectives3. analysing the key factors influencing service delivery4. understanding existing service provision and the

opportunities for (and constraints of) including all stakeholders in the delivery process

5. investigating delivery options (including the PPP)6. coordinating a system of service delivery 7. considering implications of services non-delivery

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

Key steps in planning and organizing

1. Establish stakeholder consultation

2. Select a management team

3. Select a taskforce

4. Plan and agree a process

5. Select and appoint advisors

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

Knowing the risks Political risks Implementation risks Construction risks Operating risks Revenue risks Financial risks Force majeure risks Environment risks

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

Things to keep in mind while planning PPPs The role of a champion(s) Transparency and stakeholder consultation Every proceeds is different – there is not right

solution Flexibility Appointing advisors Poverty skills

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

2. Defining Objectives

1. Formulate and agree a transparent process

2. Hold stakeholders consultations and discussion forums

3. Set out the framework of objectives4. Agree objectives and priorities5. Clarify objectives with indicators

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

Challenges defining objectives

Including all objectives Diverse and changing objectives Convergence with urban poverty

objectives Project value assessment

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

3. Defining parameters (scope)

Defining factorsGeographical areaService requirementsRegulatory framework

Level of decentralizationMulti- or single-sector

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

4. Types of information required

Information from the public sector Legal and institutional framework State of the utility Stakeholder information

Information from the consumers Characteristics of coverage areas and existing service

levels Market research

Information from the private sector Existing providers: nature, SWOT Services costs

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

Information How? Who? What? and When?

How to collect information? Who collects the information?

Development of Terms of Reference for the initial assessment

Expertise needed for the collection of information

What information need and when?

PPPUE/Capacity 2015 PPP trainingJanaury 25, 2005

Written assignment

You are a Mayor of Dedeman, a capital of Ecis. At one of the UNDP trainings you have been

introduced to the concept of PPPs You are excited and decided to think about using

this instrument to fix the deteriorating sanitation system in the city

Describe in no more then 200 words major steps before involving yourself into a partnership with a private sector