Deciphering public-private partnerships with Harvard experts
Public-private partnerships (PPP) are on everyone's lips with public decision-makers. And for good reason: these collaborations between States and companies to develop public infrastructure projects are showing spectacular results. Construction sites twice as fast, budgetary savings, better quality of infrastructure... The successes of PPPs are piling up!
But how can you reproduce these successes in your town or country? How can we initiate such successful alliances and optimize their management over the long term? This is where the problem lies. Because PPPs remain poorly understood and their implementation strewn with pitfalls.
It is to respond to all these issues that this unique online training on PPPs was launched. Led by world-renowned leaders such as Harvard, the World Bank and the Sorbonne, this course deciphers all the ins and outs of these complex arrangements.
On the program for these 4 intensive weeks: analyzes of concrete cases, educational videos, evaluation quizzes... You will explore the legal aspects of PPPs, the processes for selecting the best private partners, the art of negotiating contracts and even good practices for sound management over 30 years. Enough to master A to Z of these public-private partnerships which are reinventing the financing of our public goods.
So, are you ready to become knowledgeable about the future of public infrastructure? This training is made for you! Access a unique summary of the best academic and operational knowledge on PPPs.
These public-private partnerships that are revolutionizing our infrastructure
Do you know what allows you to build a new hospital in just 6 months or repair all the broken roads in your town in just 2 weeks? These are public-private partnerships, better known by the acronym PPP.
Behind these three letters lies a unique mode of collaboration between the public sector and the private sector. Concretely, in a PPP, the State calls on one or more private companies to build and manage public infrastructure. The idea? Combining private sector expertise with the public's mission of general interest.
Result: projects delivered in record time and substantial savings for public finances. We are talking about construction sites twice as fast as normal! Enough to make any mayor green with envy in the face of ever more dilapidated public infrastructure and limited budgets.
But actually, how is this possible? Thanks to PPPs, the financial risk is shared between the State and its partners. The latter are interested in profits and therefore have every interest in delivering their projects at the best quality/price ratio. This is what we call the incentive effect, one of the pillars of these new generation contracts.
Succeed in your PPP: the 3 golden keys to know
In the first two parts, we demystified public-private partnerships (PPP) and presented the fundamentals of this type of promising but complex contract between States and companies. Now is the time to look at the secrets of a successful PPP.
Because some PPPs are indeed resounding successes while others fail or come to an end. So what are the ingredients of an optimal PPP? Here are 3 key success factors.
Firstly, it is essential to choose your private partner, or rather your partners, carefully. Favor groups of companies with complementary expertise. Analyze finely the company track record to assess their reliability over time.
Second, place paramount importance on the balance of risks in the contract. The line of responsibilities between public and private must be clearly defined, according to the principle: “the risk is borne by those who can control it at the lowest cost”.
Third, establish a permanent dialogue between all stakeholders, beyond purely legal aspects. Because a successful PPP is above all a relationship of trust between the State and its service providers over the long term.
These are the 3 magic ingredients revealed by the world's best specialists to guarantee efficient and sustainable PPPs. To meditate !
