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OVERVIEW ON PPP IN EDUCATION

OVERVIEW ON PPP IN EDUCATION. By Dr. Vincent K. Fabella. Outline of the Presentation. Background and rationale Defining Public-Private Partnership Opportunities in PPPs in Education Education PPP Models for SHS Challenges of structuring education PPPs . Background .

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OVERVIEW ON PPP IN EDUCATION

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  1. OVERVIEW ON PPP IN EDUCATION By Dr. Vincent K. Fabella

  2. Outline of the Presentation • Background and rationale • Defining Public-Private Partnership • Opportunities in PPPs in Education • Education PPP Models for SHS • Challenges of structuring education PPPs

  3. Background

  4. Background • Deepening partnerships with the privatesector is becoming a reliable way of financing quality education and making it accessible especially to the poor. (World Bank) • The 2013 Philippine Budget has been designed to enable public-private partnerships (PPPs) for the delivery of social services.

  5. PPP in Education • Private investment imperative to expand infrastructure and provide greater access to all forms of education • PPPs a good way to attract private investments • Concept of PPP and its applicability to education not new (our ESC program is recognized abroad) • Requirement is to accelerate the pace and develop new models of participation

  6. KEY EDUCATION REFORM AREAS: • Expanding the basic education cycle from 10 to 12 years, • Filling the gaps in the system of classrooms, books and teachers, • Expanding education service contracting.

  7. School-community partnerships on the ground have shown the way forward in making schools perform better. • Government and the private sector must ensure that these islands of excellence become the norm for all by scaling up these successful initiatives.

  8. Public-Private Partnerships or PPPs must indeed become part of our education reform effort.

  9. Considerations for PPP in Education: (Usec Francis Varela) • Expands access to basic education, especially in areas not reached by the public school system • Promotes the provision of quality basic education • Offers cost-effective solution for government • Must cater to target clientele of government

  10. Defining PPPs in Education

  11. Defining Public-Private Partnership • Relationship where government contracts out to private providers the supply of a particular service of a defined quantity and quality at an agreed priced for a specific period of time. GOVERNMENT: PRIVATE SECTOR: • Maximizes the use of its skills, resources and capacities to deliver services in a more efficient manner; • Enables public sector to focus on delivering other critical functions and services; • promotes certainty and predictability in spending. • generates new business. Win-win arrangement

  12. PPPs in Education • Definitions differ in terms of scope and formality of arrangements. • Common Elements: • Formal arrangement with contractual basis • Involve public and private sectors • Outcome focus • Sharing of risks/rewards between public and private sectors • Recognize complementary role of public and private sectors.

  13. Financing of Education

  14. Opportunities for PPPs in Education

  15. OPPORTUNITIES FOR PPP IN EDUCATION • Expanded ESC • K+12 Senior High School PPP Schemes

  16. ESC Expansion

  17. 2013 GASTPE Budget • Php 7.0 billion in 2013 vs. Php 6.3 billion in 2012 • 2013 budget sufficient for 1 million grantees (DepEd)

  18. Win – Win Solution(DepED’s Perspective) Proper Grantee Selection Additional Enrollment for Private Schools Increased Revenues for Private Schools Decongest Public Schools Source: Usec Varela’s PPt Presentation: “Enriching PPP in Education”

  19. PPP Opportunity:K to 12 Senior High School

  20. Have classrooms, teachers and expertise for Grades 11 and 12 The Logic Public Private PPP NEED classrooms. Teachers and expertise for Grades 11 and 12

  21. PPPs and the K to 12 Reform • Senior High School Program • Projected total enrollment : 1.1 million by 2016 • Offer Senior High School License: enables not only private secondary schools but also private high education institutions to participate • Some public Junior High Schools will expand to offer Senior High School • Some public Junior High Schools will become stand alone Junior High Schools • Some public Junior High Schools will be developed into stand alone Senior High schools

  22. The Challenge of Bro. Armin Last October 26, 2012 • Of the projected 1.1 million SHS students, how many can the private sector absorb? • SY 2016-2017: 400,000 (Grade 11) SY 2017-2018: 800,000 (Gr 11 and 12) • How many can you absorb during the transition? • What are your plans for after the transition?

  23. PPP Models for SHS

  24. Three Models • Expansion of Current ESC Program • Voucher System • Variant: tiered vouchers • “Concessions:” Individual contracts with schools • Government will pay per student, may provide capital • schools deliver enrollment and quality targets at agreed-upon price

  25. 3 Models, Con’t • 100% Demand: free exercise of market choice by students and their families. • Universal: all public elementary graduates receive a voucher which will be honored in any DepEd or non-DepEd school. • Tiered: amount of government subsidy linked to students’ capacity to pay. Source: DepED’sPPt Presentation to Congress, 15 Oct 2012

  26. 3 Models, Con’t

  27. Challenges in implementing ppps in education

  28. KEY CHALLENGES IN STRUCTURING EDUCATION PPPs • Initial structure and prioritization of objectives • Government priorities (meets DepEd mandates) • Private participant priorities (price, demand stability, financial viability, performance targets) • The bidding process • Capacity building • Regulatory and legal issues

  29. SELECTION CRITERIA OF PPP PROJECTS • Project Readiness/Preparation 2. Responsive to the Sector’s Needs 3. High Implementability (bankable, no major issues)

  30. Thank You

  31. SCHOOL VOUCHER(also called an education voucher) • is a certificate issued by the government, which parents can apply toward tuition at a private school (or, by extension, to reimburse home schooling expenses), rather than at the state school to which their child is assigned. • An alternative to the education voucher is the education tax credit, which allows individuals to use their own money to pay for the education of their children or to donate money towards the education of other children. • Under non-voucher education systems, people who currently pay for private schooling are still taxed for public schools; therefore, they fund both public and private schools simultaneously. Via offsetting the cost of private school tuition, vouchers and tax credits are intended to allow students and families to choose the school that best fits their needs. Opponents of school vouchers say allowing families the option of both public and private schools undermines the public education system through threatening its funding and enrollment. Source: Erica Cordova. "School Choice: Vouchers". Ncsl.org. Retrieved 2011-08-11.

  32. FORMS OF PUBLIC-PRIVATE PARTNERSHIPS Service Delivery Initiatives Infrastructure PPPs Demand Side Finance Initiatives Strategic Partnerships • Private management of public schools • Contracting with private schools for education delivery • Before and after school care • Private information/ testing services • Private sector review • Outsourcing of non-core functions • Outsourcing of delivery by public tertiary institutions • Private Finance Initiatives - finance, construction and maintenance of core and non-core educational assets • Private leasing of public school/ tertiary institution facilities • Equipment and maintenance of IT laboratories • Publicly financed vouchers and scholarships • Privately financed vouchers and scholarships • Publicly provided student loans • Subsidies for private schools • Private involve-ment in curriculum development • Private sector involvement in quality assurance • Adopt-a-school initiatives • Research collaborations • On-job-training • Public/private tertiary institution affiliations • Social marketing

  33. Typology of Forms of Contracting in Education

  34. Two other contract types • Auxiliary Services/Professional Services: involve contracting the private sector to undertake education-related functions such as school review, schooling improvement or curriculum development. • Public Private Partnerships (PPPs) for educational infrastructure: involve contracting the private sector to design, build, finance and operate educational infrastructure such as classrooms and school hostels.

  35. Regulatory Differences Among Charter Schools, Contract Schools and CPS Performance Schools, Chicago Public Schools Source: http://www.ren2010.cps.k12.il.us/types.shtml

  36. Five Types of Contracts in Education

  37. TWO WAYS OF GIVING PUBLIC FUNDS FOR PRIVATE OPERATION

  38. Six Models – Three for Discussion • Improved ESC • Vouchers – Universal • Vouchers – Targeted • Concessions • Charter Schools • Others

  39. Some PPP Models for SHS Provision in the Philippines

  40. Some PPP Models … continued

  41. Six Dimensions – Two for Discussion • Quality • Access • Equity • Pricing and Financing • Business Arrangements • Policy Environment

  42. Comparing PPP Models for SHS

  43. Comparing PPP Models for SHS … continued

  44. COMPARING PPP MODELS FOR SHS

  45. Comparing PPP Models for SHS … continued

  46. DepED PRESENTATION TO CONGRESS(OCTOBER 2012)

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