PPP arrangements in the Brazilian water sector: a double-edged sword

Water Policy ◽  
2015 ◽  
Vol 18 (2) ◽  
pp. 463-479 ◽  
Author(s):  
Rui Cunha Marques

Public-private partnership (PPP) arrangements have been used all over the world to develop infrastructure and provide public services. The principle of this procurement option seems sound. It consists of obtaining a (private) partner who makes the upfront initial investments, manages the infrastructure that will be paid for during its lifespan and assumes all of the corresponding responsibilities. However, the empirical world has proven that frequently results are different from those expected and that the price to pay for service is greater than predicted and sometimes even greater than when traditional public works are involved. With respect to the use of PPP projects, Brazil is no exception. Currently, it is making one of the biggest PPP investments in the world. This paper discusses the use of the PPP model in the Brazilian water sector, its pros and cons and the existing dangers. It also makes some recommendations to improve these contracts. Although the balance seems positive, this research provides some evidence of room for improvement because preliminary studies and procurement documents are seldom well prepared, there is little competition, the risk matrix is unbalanced, favoring renegotiations and the private sector, and contract management is inadequate.

2016 ◽  
Vol 2 (1) ◽  
Author(s):  
Dr. P. K. Sinha ◽  
Ms. Sanchari Sinha

Public Private Partnership (PPP) has emerged as a key prospective for involving the private sector in the provision of infrastructure and other public services. There is a room for debate as to whether private sector involvement necessarily implies private finance. The term PPP could cover situations where private investment is brought, to improve the efficiency of public expenditure and private finance. PPP are not vehicles for privatizing public services since the Government retains full political accountability for the services. They simply are the means by which the Government can use what private sector offers to improve its own performance. It is done by establishing own arrangements often through legally binding contracts that will bring benefit to both sectors. The private sector needs to earn return on its ability to invest and perform. The Government should therefore look very carefully at PPPs, because if economic advancement can be made via infrastructure improvements, it may meet any increased cost of involving the private sector. This article brings an overview of the PPP terminology in infrastructure with emphasis on the roads sector. It highlights on the framework and sectoral overview of road sector in the light of PPP process and phases.


2010 ◽  
Vol 16 (1) ◽  
pp. 5-18 ◽  
Author(s):  
Jing-Feng Yuan ◽  
Mirosław J. Skibniewski ◽  
Qiming Li ◽  
Jin Shan

In recent years, China needs far more financing for transportation infrastructure than can be provided by the government alone. Meanwhile the capacity of the Chinese government to provide public services on its own in an effective and efficient way is being questioned and reassessed at various levels. Accordingly, the involvement of private investors in the development of Metropolitan Transportation Systems (MTS) has been promoted by the Chinese public sector by means of adopting the Public Private Partnership (PPP) model. However, China's dynamic and complex political, financial, legal and regulatory environment makes the private sector adjust to accommodate the existing regime by way of understanding the driving factors in PPP applications for improving the chances of project success. This paper presents two case studies in China's MTS. Based on a case study and comprehensive literature review, 15 driving factors associated with PPP projects from the perspective of the Chinese public sector have been identified. A structured questionnaire survey targeting the public sector has been conducted to seek, analyze and integrate its perception of the driving factors. Through statistical analysis of the relative significance of each of these driving factors, the writers determined five common major dimensions of the Chinese public sector's purpose in developing PPP schemes, and the key factors that quantify each purpose. The establishment of the measures for these objectives and the key factors that quantify each of these purposes will likely be useful in encouraging private participation in infrastructure management and directing/concentrating efforts of the private sector to deliver quality public services under mutually beneficial long‐term contractual arrangements. Santrauka Pastaruoju metu Kinijai reikia daug daugiau finansavimo transporto infrastruktūrai pletoti, nei gali suteikti vien šalies vyriausybe. Jos galimybes veiksmingai ir efektyviai teikti viešasias paslaugas tiriamos bei vertinamos ivairiais lygiais. Skatinamas privačiu investuotoju itraukimas i metropolijos transporto sistemu (MTS) pletra, taikant viešojo ir privataus bendradarbiavimo modeli. Tačiau Kinijos dinamiška ir kompleksine politine, finansine bei teisine aplinka priverčia privatu sektoriu derintis prie egzistuojančios tvarkos, atsižvelgiant i pagrindinius viešojo ir privataus bendradarbiavimo veiksnius, kurie padidintu projekto sekmes tikimybe. Straipsnyje pateikiami du Kinijos metropolijos transporto sistemu pletros pavyzdžiai. Remiantis nagrinejamais pavyzdžiais ir išsamia literatūros analize, iš Kinijos viešojo sektoriaus poziciju identifikuota 15 pagrindiniu veiksniu, susijusiu su viešojo ir privataus bendradarbiavimo projektais. Buvo atlikta apklausa, orientuota i viešaji sektoriu, išanalizuota, kaip pagrindiniai veiksniai suvokiami ir pritaikomi. Atliekant kiekvieno iš šiu veiksniu santykiniu reikšmingumu statistine analize, buvo apibrežti penki pagrindiniai Kinijos viešojo sektoriaus tikslu aspektai, pletojant viešojo ir privataus bendradarbiavimo schemas, ir pagrindiniai rodikliai, ivertinantys šiuos tikslus skaitine išraiška. Minetu tikslu nustatymas ir pagrindiniu skaitiniu rodikliu ivertinimas galetu būti naudingi, skatinant privatu sektoriu prisideti prie infrastruktūros valdymo, galetu padeti koncentruoti bei nukreipti privataus sektoriaus jegas kokybiškoms viešojo sektoriaus paslaugoms teikti, remiantis abipusiškai naudingomis ilgalaikemis sutartimis.


2018 ◽  
Vol 41 ◽  
pp. 04020
Author(s):  
Alexander Myaskov ◽  
Zinaida Nazarova ◽  
Yuliya Leonidova ◽  
Daria Shchedrova

The article presents the interaction scheme worked out by the authors which shows state and private sector interests in public-private partnership. Four main possible ways of transferring mineral deposits to an investor for the development are highlighted and tax regulations are described. The authors considered the advantages of the concession as a way to facilitate investment processes in the development of mineral deposits that are difficult to access. The authors compared the risks that occur under concession agreements and production sharing agreements when developing mineral deposits. Data on the historical experience of this form of subsoil management in the world and in Russia are described in the article. The need to elaborate legal platform for application of concession mechanisms in mineral deposits development in Russia has been determined.


2018 ◽  
Vol 8 (2) ◽  
pp. 141-149
Author(s):  
Mary Ismowati

Bandung city government's desire to work on various projects with a mechanism of Public Private Partnerships ( PPP ) due to limitations of the government for the city of Bandung well within the capability of funding, human resources , technological capabilities , and so forth . This is done to help realize the " Bandung Champion " . City government 's desire based on the opinion the Government is obliged to fulfill its social responsibility to the community economy , and to ensure that public services can be done to the entire community.The aim in this paper to analyze the cooperation scheme of Public Private Partnerships ( PPP ) what is right for the city government The method used in this paper is a descriptive study with technical literature , ie finding relevant theory reference to the case or the problems found , namely the problem of public private partnership cooperation city government with the private sector in the provision of public services . This type of data is secondary data obtained from the documentation media and internet and also sourced from books and other literature sources that support the discussion in this study.In order for the cooperation of public private partnership city government with the private sector managed a few things that must be considered: this cooperation must be strategically important for both parties , this cooperation are complementary rather than mutually competence , openness to information in both parties , and should this cooperation raises link although the true integration of different cultures . Mutual trust is the main thing. Forms of cooperation of public private partnership with the city government to the private sector in the form of contract maintenance , Leasing ( Lease ) or Contract of Build- Operate- Transfer / BOT or Build Operate and Transfer OwnedIt was concluded that the Public -Private Partnership cooperation is not always a bad connotation and in order to succeed , a lot of terms and conditions must be met . It is intended that the government gets the best results , people also get results commensurate , ie welfare . Thus , the spirit of Public -Private Partnership is to strengthen the government or the public service which is considered inefficient 


Author(s):  
N. D. Bazaev

The study presents the practice of foreign countries in the application and implementation of publicprivate partnership, as well as the existing development trends, considered different approaches to the concept of public-private partnership. The differences between the implementation of public-private partnership in the world andRussiaare highlighted, the key of which is the non-mandatory financing of the project by the private sector in foreign countries. The pros and cons of PPP in the implementation of joint projects. Statistical data on the development of relations between public authorities and private parties inRussiaare also presented and analyzed. The result of the study was the identification of key trends in the development of public-private partnership in theRussian Federation, the main of which are: the increase in the number of low-budget projects and the expansion of the regulatory framework. The results of the survey of the Russian business community on the level of development of public-private partnership in theRussian Federationare presented. It is concluded that it is necessary to focus on the development of industry legislation, the creation of clear rules for the selection of participants of agreements based on PPP and improving the methods of implementation of warranty obligations for private partners. The importance of the implementation of public-private partnership projects for the economic growth of the regions of theRussian FederationandRussiaas a whole was noted. 


Author(s):  
Artan Spahiu

Ensuring high productivity in public services has been required to be achieved by reducing costs and at the same time by raising standards. This is indeed a challenge intended for which the public sector has turned its eyes on the market. The latter's mechanisms and management methods used by the private sector in the production and delivery of services have become the management philosophy that has characterized public sector reforms in recent decades. Nowadays the main objectives of public sector organizations are to reduce costs and increase the efficiency of operations, which has steered these organizations towards the outsourcing model. Transferring or subcontracting a private entity for some of the operations of public institutions is a concept already known to public sector managers. Heads of various public institutions see the transfer of part of their operations or all operations to private entities as the proper way to provide added value public services. One of the widely used ways of engaging private parties in public projects is the Public Private Partnership (PPP). Implementation of this public-private partnership ensures immediate service availability, debt and public budget avoidance, management, technology and higher performance in service standards and contract enforcement. This type of engagement requires a great deal of attention to the legal framework in order for the private sector to participate in public affairs and services in a regular and reasonable manner and also in order to protect the public interest, maximize the value for money and ensuring appropriate risks sharing.


Author(s):  
Anastasia E. Lobanova ◽  

The article examines the nature and world experience of public-private partnership (PPP). The advantages of PPP for the state and for private business, types of contacts and the most popular spheres of application of public-private partnership are considered. The essence of concession is considered as one of the most widespread types of public-private partnership, as well as features of concession contracts. Prospects of application of concession relations in Russia are analyzed. The article analyzes the conditions of occurrence and the main stages of development of partnerships between the state and the private sector. The features of functioning of public-private partnership (PPP) in developed and developing countries are investigated. The world experience of PPP projects implementation is summarized and practical recommendations on the establishment and development of the public-private partnership institute in Russia are presented.


2007 ◽  
Vol 13 (3) ◽  
pp. 651-664
Author(s):  
Marko Perić ◽  
Maja Niksić

In the last fifty years world tourism and hospitality industry experienced a phenomenal growth of international tourist arrivals, overnights and receipts. It is widely recognized that the tourism became one of the most dominating socio-economic activities at the beginning of the 21st Century. The example of Croatia speaks in favour of that statement. Tourism is the most prosperous industry and the essential development factor in Croatia. The great share of tourism results refers to family business that is of high importance to development strategy of Croatian tourism. Family business in Croatian tourism is based on households and family hotels. Family hotels are recognized on the tourism market by its original and identifiable service imbued with indigenous values and cultural heritage, diversity and individuality. Moreover, they are the most sound and prosperous segment of Croatian tourism and their top-level quality and high professionalism are basic elements of tourism development. Croatian strategic tourism development documents highlight the participation of private sector in tourism development. One of the possible ways of such participation is through public-private partnership (PPP). There are many examples of public-private partnerships in tourism around the world. According to world experiences, marketing and promotions and product development are the main areas where public-private partnership has developed. Despite the fact that tourism is very important economy generator, Croatian experiences with integral implementation of public-private partnerships in tourism are only at the beginning. The aim of this paper is to examine how Croatian family hotels could take a part in establishing public-private partnerships in tourism. Considering the world best practices on publicprivate partnership in tourism investment, the paper also suggests two acceptable partnership models. The first is related to existing tourism clusters while the second is more innovative and is related to the development of a new tourist complex. Proposed public-private partnership model for the new tourist complex development includes government (on local or/and national level) as public sector representative and family hotels as private sector representative. The paper also examines necessary prerequ


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