Planning and Managing Public-Private Partnerships
Purpose of this Short Course
Governments worldwide have increasingly turned to the private sector to provide infrastructure services that were once delivered by the public sector. A Public-Private Partnership (PPP) is the appropriate vehicle for procuring a public asset or service. Thus, the intention for using a PPP as the preferred procurement option must firstly generate value for money, and additionally, transfer risk from the public entity to the private sector in a way that is affordable to the public institution.
It is vital that all stakeholders in a PPP agreement understand the contractual arrangements, objectives and risks associated with its establishment in order to generate the desired benefits. Moreover, the principle aim of this course is to help create a common ground for terminology regarding PPPs and the PPP process.
Short Course Outcomes
When completing this course the student will be able to:
- Differentiate between PPP and traditional procurement and motivate why PPP deliver better value for money than traditional procurement.
- Explain the limitations of PPPs.
- Understand the features and benefits of the different PPP agreements/models and how to select the right model to achieve strategic objectives.
- Discuss how governments can best facilitate the development of PPP projects, and what can governments do to foster a PPP enabling environment.
- Identify and consider the risks involved in PPPs and how can these risks best be allocated or shared among partners.
- Explain the importance for government to shift risk to the private sector and how such a transfer generates reward for both public and private partners.
- Provide an overview of the PPP project cycle by explaining how suitable projects for PPP implementation can be identified, planned, implemented, assessed and delivered successfully.
- Understand management-related matters that may arise once a PPP project is operational.
- Distinguish between main options for financing PPP projects in relation to project structuring.
- Comprehend key contractual relationship responsibilities for the selected PPP structure and related finance option.
- Recognise methods to assess PPP project financing costs and overall profitability.
- List the regulations for overall approval, implementation and evaluation of PPPs.
- Describe the B-BBEE Framework and Balanced Scorecard as well as the Code of Good Practice.
- Understand the reasons for utilising Special Purpose/Project Vehicles (SPVs).
- Explain the importance of good governance in PPP agreements.
- Understand and describe the functions of a PPP Unit.
- Recognise the role of legislation as mechanism for soliciting sources of funding.