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PPP and Citizen engagement

GPSA Knowledge Platform forums Forum PPP and Citizen engagement

This topic contains 2 replies, has 2 voices, and was last updated by  Narantsetseg 4 years ago.

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  • #5184


    • The PPP development has the great role and effective contributions to develop Infrastructure sector intensively, which define the development and investment results of the country. So the creating favorable law and regulatory environment for the PPPs development is necessary for the investment results, effective risk management and effective debt and equity management. For that the PPPs law and regulatory analysis and evaluations and monitoring is of great significance for the countries intensive development.

    • PPP- is a long-term contract between government and private parties. The effective PPP project management and stakeholders management is of importance for the long-term results of the PPP contracts. Also the variety stakeholder’s effective relationship should be managed effectively for the successful PPP project cycle, so managing complicated issues is necessary toward project results.

    • PPPs are complex method of the procuring public services and infrastructure accordance with their benefits or demand for services by combining main abilities of the public and private sectors with great importance on Value for Money, efficient risk allocation and delivering high quality public services.

    • PPP is a knowledge based process to sign effective concession contracts and to provide successful implementation of contracts in long term. So PPP contracts are complex and require a high level of professional skills by officers and they need design concession contract accurately.
    • The public-private partnerships is mechanism for developing, maintaining and operating infrastructure and other sectors facilities where the responsible governmental entity lacked the budgetary resources to undertake the expensive capital projects.

    • The effective risk management is crucial for the successful process and implementation of PPP programs and projects in long term. The risk identification and risk allocation methodologies are related to forms of risks (such as fiscal, legislative and regulatory, completion, cost overrun, operational, design, environmental, supply, exchange rate, political, private partner, stakeholder, resources and input risk, construction cost, Force Majeure risks, inflation risk, total project value, distributional risks, Market, demand, volume risks, technology and utilities risks and etc.), process of risk management and methodologies of risk analysis. The possible main risky issues are the corruption on part of both government and private partners in PPPs, limited ability of the government to maintain long-term capabilities, unfavorable outcomes for public partners and inqualitative service and product (Sandeep Verma, Government Obligations in PPP Contracts). So the effective risk and guarantee management is a key function for the protecting financers, investors and high quality public service delivery.

    • Main role of government is to provide guarantee of process and implementations of the PPPs programs and projects in long term financing. Government guarantees are a key method to protect investors and financers for the providing long-term investment and financing. So valuation, international accounting and financial statement standard, budget rule, guarantee revenue and returns are necessary.

    • The well developed infrastructure intensifies countries development and investment. But main problem of developing countries are inadequate infrastructure. Main challenges of infrastructure services are not matching demand, low quality, inreliability, limitation of spending to proive enough infrastructure services, poor planning and coordintation, poor management, weak analysis, political risks, spending to wrong projects, poor service delivery, high cost, poor maintenance and low benefits . Also main problems are related to insufficent fund, poor planning and project selection, Inifficient management and inadequate maintenance. PPPs help on creating additional sources for funding and financing, improving project and service delivery, better construction management, improving project selection, improving private sector analysis and supporting innovation and improving maintenance. PPP value drivers to improve value for money in infrastructure is risk transfer, whole of life costing, innovation, asset utilization, focus service delivery, predictability and transparency of costs and funding, mobilization of additional funding and accountability.

  • #5196


    Institutional Investors are re-energized to invest in PPPs as a means of funding Development. Actually, the SDGs financing short fall is $3 trillion per year and it is expected that PPPs and other creative financing mechanism,s stemming from developing inefficiencies in local markets will be the financing vehicle. It is also expected that these projects will demonstrate viability and sustainable revenue generation while delivering measurable high quality services.

    Local government’s role will be to foster the investment climate and governance, in conjunction with project planning that will attract Private Sector participation. Citizens Engagement can be catalytic in demanding their local governments accountability for the delivery of services that are aligned to the realization of the SDG goals in their local economies.

    • #5268


      Hello Claudette
      Greetings. Thank you very much for interesting comments and contributions. I am very appreciated this. Best wishes Narantsetseg

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