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PUBLIC + PRIVATE = PARTNERSHIP

PUBLIC + PRIVATE = PARTNERSHIP. David Wright Chief Executive CiiD. Partnership. Partnership. Public Interest. PPP Structure. Public sector. Private sector. Partnership.

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PUBLIC + PRIVATE = PARTNERSHIP

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  1. PUBLIC + PRIVATE = PARTNERSHIP David Wright Chief Executive CiiD

  2. Partnership

  3. Partnership Public Interest PPP Structure Public sector Private sector

  4. Partnership • Public interest – the MDA says WHAT it wants from the partnership – lays out the “rules of the game” • Private sector offers a solution for delivering what the MDA wants – it defines HOW the MDA will get what it wants

  5. What the MDA wants • Needs to • Reflect precisely what the MDA wants • Be described unambiguously • Be capable of being provided • Be capable of being measured • This is usually called the “output specification”

  6. Partnership Public Interest PPP Structure Public sector Private sector

  7. How the private sector delivers • Uses its collective skills to create the most effective and efficient solution • Design • Build • Maintain • Operate • Finance

  8. This isn’t free • The private sector solution costs money: • Suppliers • Repaying debt • Profit / return on investment • The private sector will estimate these amounts over the contract life and calculate the regular payment that they need to receive • Users • Government • Both

  9. Nor is this risk-free • The private sector faces risks: • Availability (design, build, maintenance) • Performance (maintenance, operation) • Costs • The public sector faces risks: • Political • Management • Fiscal

  10. How are risks managed • The private sector: • Availability (design, build, maintenance): project management, contractual, holistic approach • Performance (maintenance, operation): contractual, partnership management • Costs • The public sector: • Political: partnership management, performance measurement • Management: procurement management, contract management, capacity building • Fiscal: assessing economic value, identifying fiscal space, monitoring

  11. How can this be achieved? • The private sector: • Create a supply-side partnership • Focus on long-term solutions • Prepare to take on different obligations and manage the risks • Create and nurture a partnership with an MDA • The public sector: • Build capacity • Work outside the comfort zone – cross-functional • Think in terms of outputs, not inputs and processes • Do the right thing first time • MANAGE THE CONRTACT • Create and nurture a partnership with a private sector partner

  12. Thank You • David Wright • david.wright@comiid.org

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