As you may have read, the concept of Public Private Partnerships (PPPs) has become a Cross-Cutting Solution Area (CCSA) for the World Bank. This means that since this summer, there is a specific department within the bank that deals with PPPs.
Although the concept of PPPs as such is not new at all, it is often a virtually unknown instrument for many governments in developing countries and emerging markets. After all, something is either built by the government, or by the private sector. And if it is built by the government but used by the private sector, the population may think foul play is at hand!
In certain situations, and in certain locations, a PPP may very well be a good solution to bring much-needed services to the people, to kickstart economic activity, or to achieve something either party could not otherwise afford to do by itself, for example building a road or collecting trash. At the same time, a PPP is not always the right approach – it is not a panacea that can simply be the answer to every challenge posed. For many governments and private sector parties alike, it is hard to make the right call when it comes to PPPs: is it the appropriate tool in this situation, in this context, in this location, and with these actors? To help answer that all-important question, the World Bank has created a resource center on Public Private Partnerships: http://ppp.worldbank.org. Although it focuses primarily on infrastructure projects, it can be used by a much broader audience.
The resource center has examples of regulatory frameworks, policies and laws, examplesof agreements, leases, joint ventures and management contract. It has sector information for sectors such as clean technology , solid waste, transportation and water. Financing, also an important issue, is another topic it has information on, such as financing mechanisms, risk allocation, various sources of financing, and government risk management.
In sum, if you are thinking of entering into a PPP, if your governmental counterpart is proposing setting up a PPP, or if you would simply like to find whether PPPs would work in your sector and for your company, visit the World Bank’s PPP resource center.