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.
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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