Public-private partnerships, P3s in the US or PPPs for the rest of the world, have been the exploratory mode of choice for governments seeking to make progress on their infrastructure development plans by augmenting public monies with those from the private sector.
Many governments initially consider PPPs driven by a need for augmenting scarce capital funding. What they may not realize is that PPP can deliver so much more. The modality gives governments the opportunity to deliver quality service performance to the public, consistently over time, backed by the carrots and sticks of a enforceable contract. It can serve as a means to introduce much-needed transparency and objectivity into environments that suffered from the ills of opacity. It can allow strained government human resources to become more efficient, to become more optimally deployed, shifting to an oversight and management role rather than struggling to keep up.
HGA has worked with dozens of national governments and array of state/provincial and municipal entities to help develop their PPP programs, often from the ground up. This work ranges from initial strategizing on PPP policy to developing laws and PPP institutions, creating project screening and preparatory facilities, and, ultimately, helping apply these policies and tools on individual PPP projects. Below are some case studies on various types of PPP programs HGA has supported.
Sample PPP Work
The Government of Bangladesh decided to pursue a comprehensive PPP program, under the auspices of the Prime Minister's Office, to breathe new life into the national infrastructure development program and to make more robust and transparent the process for individual projects. Mr. Hauber worked with the nascent PPP unit and the Ministry of Finance to develop the national PPP law, the program's operating principles, and the establishment of the PPP Authority, the legally mandated institution to manage it. The Government has allocated dedicated funding for PPPs to support them throughout the formation and implementation process.
- PPP Technical Assistance Fund - a revolving fund to cover the costs of professional project preparation, documentation and tendering, all under the Authority's management.
- Viability Gap Fund - a one way fund to help support and realize projects with high economic benefit and in the national interest, but that are fiscally challenged.
- Bangladesh Infrastructure Finance Fund - a source of long-term capital, acting as a project finance funding partner, to help projects reach financial close and provide a fixed income return to the investor base of the fund.
The work helped to identify pilot projects and supported screening them and coaching their sponsoring ministries on the fundamentals that would make them into robust PPPs.