Public-private partnerships by country
A number of Australian state governments have adopted systematic programmes based on the Private Finance Initiative. The first, and the model for most others, is Partnerships Victoria. While some PPP projects have proceeded smoothly, others have been highly controversial. Australian examples include the Airport Link, the Cross City Tunnel, and the Sydney Harbour Tunnel, all in Sydney; the Southern Cross station redevelopment in Melbourne; and the Robina hospital in Queensland.
In the 2010s, the States of New South Wales, Queensland and Victoria implemented policies to encourage market-led proposals, where potential private partners can pitch PS projects for consideration by the government.
In Bangladesh, the Infrastructure Investment Facilitation Center (IIFC) facilitates private sector investment. As a result of IIFC efforts, the telecom sector has become a very active private investment area.
In Canada, public–private partnerships have become significant in both social and infrastructure development. PPP Canada Inc. was created as a Crown corporation with an independent board of directors reporting through the Minister of Finance to Parliament. Its mandate is to improve the delivery of public infrastructure by achieving better value, timeliness and accountability to taxpayers, through P3s. The Corporation became operational in February 2009 with the appointments of a chair of the board of directors and a chief executive officer.
PPPs exist in a variety of forms in British Columbia through the focused efforts of Partnerships BC, a company registered under the Business Corporations Act, that is wholly owned by the Province of British Columbia and reports to its shareholder the Minister of Finance. Projects include the Canada Line rapid transit line, the Abbotsford Hospital and Cancer Centre and the Sea-to-Sky Highway project. In Quebec, PPPs include the McGill University Health Centre, the new western extension of Autoroute 30 and Université de Montréal's Hospital Research Center.
The municipal government of Shantou, China signed a 50-billion RMB PPP agreement with the CITIC group to develop a massive residential project spanning an area of 168 square kilometers, locating on the southern district of the city's central business district. The project includes real estate development, infrastructure construction including a cross-harbor tunnel, and industry developments. The project, named Shantou Coastal New Town, aims itself to be a high-end cultural, leisure, business hub of the East Guangdong area.
A study, conducted by the European Court of Auditors of the European Union, examined 12 public-private partnerships in France, Greece, Ireland and Spain, in road transport and information and communications technology. It concluded that the partnerships were characterized by “widespread shortcomings and limited benefits” and underlined “considerable inefficiencies in the form of delays during construction and major cost increases”.
The Netherlands Financial Sector Development Exchange (NFX) is a platform of ING, Rabobank, ABN AMRO, Fortis, Triodos Bank, FMO (Dutch development bank) and the Dutch Ministries of Foreign Affairs, Economic Affairs and Finance to stimulate financial sector development in developing countries and emerging markets.
In his paper on P3s in Spain, José Francisco Bellod Redondo notes that one of the main drivers for PFI in Spain is compliance with the fiscal restrictions imposed under the Maastricht Treaty and Stability and Growth Pact, which set concrete limits to the national debt. Examples of PFI projects in Spain include Parque de Valdebebas in Madrid, Ciutat de la Justicia in Barcelona, the Autovia de Noroeste in Murcia, and the Hospital Puerta de Hierro in Majadahonda.
The Government of India defines a P3 as "a partnership between a public sector entity (sponsoring authority) and a private sector entity (a legal entity in which 51% or more of equity is with the private partner/s) for the creation and/or management of infrastructure for public purpose for a specified period of time (concession period) on commercial terms and in which the private partner has been procured through a transparent and open procurement system."
The union government has estimated an investment of $320 billion in infrastructure in the 10th plan. The major infrastructure development projects in the Indian state of Maharashtra (more than 50%) are based on the P3 model. In the 2000s, other states such as Karnataka, Madhya Pradesh, Gujarat and Tamil Nadu also adopted this model. Sector-wise, road projects account for about 53.4% of the total projects in numbers, and 46% in terms of value. Ports come in second place and account for 8% of the total projects (21% of the total value). Other sectors including power, irrigation, telecommunication, water supply and airports, have gained momentum through the P3 model. As of 2011[update], these sectors were expected to get an investment of Rs. 2,027,169 crore (according to 2006–2007 WPI). Recent failures of the major PPPs in India, such as the Tata Mundra Ultra Mega Power Project and the Khandwa Water Supply Augmentation Project, are now questioning the ability of PPPs to deliver on the Sustainable Development Goals.
In India, public–private partnerships have been extremely successful in developing infrastructure, particularly road assets under the National Highways Authority of India and Midday Meal Scheme with Akshaya Patra Foundation.[opinion]
In Japan since the 1980s, the third sector (第三セクター, daisan sekutā) refers to joint corporations invested in by both public and private sectors.
In rail transport terms, a third-sector railway line is a short line or network of lines operated by a small operating company jointly owned by a prefectural/municipal government and smaller private interests. Third-sector lines are generally former JR Group – or, before 1987, Japanese National Railways (JNR) –lines that have been divested from those larger companies. Most third-sector railway lines in Japan, especially those located in rural areas, operate in a somewhat similar fashion to that of Community rail in the United Kingdom.
The PPP model developed in Pakistan is built around this approach, structured to provide a parallel alternatives to traditional healthcare using corporate infrastructures which has been packaged as corporate social responsibility.
The Philippine Government (Filipino Pag tutulungan ng Pampubliko – at Pribadong Sektor ) maintains an online list of PPP projects. Wikipedia articles on specific PPP projects in the Philippines are categorized into Category:Proposed infrastructure in the Philippines.
The Philippine BOT Law has been passed on May 5, 1994 and had been subsequently amended in 2012
Nowadays there are special laws about PPP in 69 subjects of Russian Federation. But the biggest part of them are just declarations. Besides PPP in Russia is also regulated by Federal Law #115-FZ (21.07.2005) "On concessional agreements" and Federal Law #94-FZ (21.07.2005) "On Procurement of Goods, Works and Services for State and Municipal Needs". In some ways PPP is also regulated by Federal Law №116-FZ (22.07.2005) "On special economic zones" (in terms of providing business benefits on special territories – in the broadest sense it is a variation of PPP).
Still all those laws and documents do not cover all possible PPP forms.
In February 2013 experts rated subjects of Russian Federation according to their preparedness for implementing projects via public–private partnership. The most developed region was Saint Petersburg (with rating 7.8), the least Chukotka (rating 0.0).
By 2013 there were almost 300 public–private partnership projects in Russia.
In 1992, the Conservative government of John Major in the UK introduced the PFI, the first systematic program aimed at encouraging public-private partnerships. The 1992 program focused on reducing the public-sector borrowing requirement, although, as already noted, the effect on public accounts was largely illusory. The Labour government of Tony Blair, elected in 1997, expanded the PFI initiative but sought to shift the emphasis to the achievement of "value for money", mainly through an appropriate allocation of risk. However, it has since been found that many programs ran dramatically over budget and have not provided value for money for the taxpayer, with some projects costing more to cancel than to complete. An in-depth study conducted by the National Audit Office of the United Kingdom concluded that the private finance initiative model had proved to be more expensive and less efficient in supporting hospitals, schools, and other public infrastructure than public financing.
In the UK, two-thirds of the London Underground PPP was taken back into public control in July 2007 after only four and a half years at an estimated cost of £2 billion and the remaining one-third was taken back into public control in May 2010 after seven and a half years for a purchase price of £310 million. The government had paid advisers £180 million for structuring, negotiating and implementing the PPP and had reimbursed £275 million of bid costs to the winning bidders. The 30-year PPP contract for the refurbishment of the MOD Main Building in London was estimated to give a saving of £100,000 as compared to the £746.2 million cost of public procurement. The refinancing of the Fazakerley Prison PFI contract following the completion of construction delivered an 81% gain to the private sector operator. The NATS PPP saw 51% of the UK's air traffic control service transferred to the private sector; however, following the decline in air traffic after the September 11 attacks, the government and BAA Limited each invested £65 million in the private sector operator in 2003.
Public-private partnerships in America have existed in one form of another since the beginning of the colonial period, as colonial charters were based on a partnership between the British Crown and a company responsible for colonisation. In the United States, they mostly took the form of toll roads concessions, which emerged in the mid to late nineteenth century.
In recent years, there has been interest in expanding P3s to multiple infrastructure projects, such as schools, universities, government buildings, waste and water. In the early 2000s, P3s were implemented sporadically by different States and municipalities with little federal guidance. However, during Obama's second term, multiple policies were adopted to facilitate P3 projects, and Congress passed bills in that direction with overwhelming bipartisan support.
P3s were introduced in Vietnam in 2010, with the goal of attracting private investments for the country's infrastructure projects.This development was encouraged by the World Bank. By 2016, Vietnam had introduced 101 P3 projects, totaling 18.5$ Billion dollars. In 2019, Vietnam adopted its first P3 law, which was rafted in collaboration with the United States Agency for International Development (USAID).
PPP units by countryEdit
|Australia||New South Wales||NSW Public-private partnerships|
|Bangladesh||National||Infrastructure Investment Facilitation Center||1999-present|
|Public-Private Partnership Authority||2010-present|
|Belgium||Flanders||Flemish PPP Knowledge Center|
|Wallonia||Financial Information Cell|
|Espírito Santo||PPP Unit|
|Minas Gerais||PPP Unit|
|São Paulo||PPP Unit|
|Rio Grande do Sul||PPP Unit|
|British Columbia||Partnerships BC||2002-present|
|New Brunswick||Partnerships New Brunswick|
|Quebec||Quebec Agency for Public-Private Partnerships||2004-2009|
|China||National||Public-private partnerships Center|
|Hong Kong||Hong Kong Efficiency Unit|
|Croatia||National||Agency for Public-Private Partnerships|
|Czech Republic||National||PPP Association|
|Denmark||National||Danish Business Authority|
|Egypt||National||PPP Central Unit|
|Estonia||National||Public Procurement Center|
|France||National||Mission d'Appui aux Partenariats Public-Privés|
|Germany||Lower Saxony||PPP Task Force|
|North Rhine-Westphalia||PPP Task Force|
|Ghana||National||PPP Advisory Units|
|Greece||National||Secret Secretariat for PPPs|
|Honduras||National||Commission for the Promotion of Public-Private Partnerships|
|Hungary||National||Hungary Central PPP Unit||2003-present|
|Ireland||National||Central PPP Policy Unit|
|Israel||National||PPP Unit (Ministry of Finance)|
|India||Federal||Department of Economic Affairs PPP Cell||2006-present|
|Andhra Pradesh||Urban Finance and Infrastructure|
|Bihar||Infrastructure Development Authority|
|Karnataka||Infrastructure Development Department|
|Maharashtra||Region Development Authority|
|Punjab||Infrastructure Development Board|
|Indonesia||Federal||Indonesia Infrastructure Guarantee Fund|
|PPP Directorate of Bappenas|
|Italy||National||Project Finance technical unit|
|Jamaica||National||National Investment Bank of Jamaica||1980-present|
|Japan||National||PFI Promotion Office|
|Kazakhstan||National||Kazakhstan PPP Center|
|Kuwait||National||Partnerships Technical Bureau|
|Latvia||National||Central Finance and Contracting Agency|
|Lebanon||National||Higher Council for Privatization and Partnerships|
|Malawi||National||Public Private Partnership Commission|
|Mexico||Federal + Regional||Program for the Promotion of Public-Private Partnerships in Mexican States||2007-present|
|Nigeria||National||Infrastructure Concession Regulatory Commission|
|New Zealand||National||National Infrastructure Unit|
|Pakistan||Federal||Private Power Infrastructure Board|
|Infrastructure Project Development Facility|
|Philippines||National||Built Operate Transfer (BOT) centre||1999-present|
|Project Monitoring Technical Unit|
|Russia||Federal||PPP Development Center|
|Senegal||National||Agence nationale chargée de la promotion des investissements et des grands travaux|
|Serbia||National||Commission for Public Private Partnerships|
|South Africa||Federal||South African Treasury PPP Unit||2000-present|
|South Korea||National||Private Infrastructure Investment Management Centre||2005-present|
|Sri Lanka||National||Utilities Commission of Sri Lanka, Board of Investment|
|Uganda||National||PPP Unit (MoFPED)|
|United Arab Emirates||Dubai||PPP Unit||2015-present|
|United Kingdom||National||Treasury Task Force for PPP||1997-1998|
|Northern Ireland||Strategic Investment Board|
|Scotland||Scottish Futures Trust||2008-present|
|United States||Puerto Rico||PPP Authority|
|Uruguay||National||Public-Private Participation Unit|
Source: World Bank
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- Editorial, Reuters. "China overhauls $2.69 trillion public-private projects as debt..." U.S. Retrieved 2018-04-18.
- "CPPPC". Archived from the original on 2017-06-12.
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- Knotnerus, Jacco (May 24, 2005). "Banking the Poor: The Pivotal Role of Financial Sector Development in Reaching the Millennium Development Goals" (PDF). Archived from the original (PDF) on February 23, 2017.
- Bellod Redondo, José Francisco (November 2006), "Financiación privada de infraestructuras: El caso de la Autovía del Noroeste", Instituto de Estudios Fiscales
- "Hospital Puerta de Hierro in Majadahonda".
- "PPP". Department of Economic Affairs, Ministry of Finance, Government of India. 2007. Archived from the original on 2012-06-16.
- S.S. Raju (2011). "A successful Indian model". The Hindu Survey of Indian Industry 2011.
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- "PPP". Archived from the original on 2010-04-21.
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- "List of PPP Projects". Philippine government. Archived from the original on 2014-06-22.
- PPPCenter – R.A. 7718 The Philippine Amended BOT Law and its Revised Implementing Rules & Regulations
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- Федеральный закон "О Концессионных Соглашениях" (in Russian). Retrieved 27 March 2013.
- Федеральный закон "О Размещении заказов на поставки товаров, выполнение работ, оказание услуг для государственных и муниципальных нужд" (in Russian). Retrieved 27 March 2013.
- Федеральный закон "Об особых экономических зонах в Российской Федерации" (in Russian). Retrieved 27 March 2013.
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- Allen, Grahame. "The Private Finance Initiative (PFI) Commons Briefing papers RP01-117" (PDF). UK Parliament: House of Commons Library. UK Government. Retrieved 20 January 2018.
- See United Kingdom, National Audit Office, PF1 and PF2, a report by the Comptroller and Auditor General (London, 2018)
- "Tube maintenance back 'in house' as new deal is signed". BBC News. 8 May 2010. Retrieved 10 May 2010.
- "London Underground PPP: Were they good deals?". National Audit Office. 17 June 2004.
- "Ministry of Defence: Redevelopment of MOD Main Building". National Audit Office. 18 April 2002.
- "The Refinancing of the Fazakerley PFI Prison Contract". National Audit Office. 29 June 2000.
- "Refinancing the Public Private Partnership for National Air Traffic Services". National Audit Office. 7 January 2004.
- Thorpe, Francis Newton; United States (1909). The Federal and state constitutions, colonial charters, and other organic laws of the states, territories, and colonies now or heretofore forming the United States of America. Washington: G.P.O. OCLC 958714228.
- David T. Beito and Linda Royster Beito,"Rival Road Builders: Private Toll Roads in Nevada, 1852–1880,* Archived 2010-06-10 at the Wayback Machine Nevada Historical Society Quarterly 41 (Summer 1998), 71–91.
- PricewaterhouseCoopers. "Public-private partnerships in the US: The state of the market and the road ahead". PwC. Retrieved 2020-05-13.
- "Public Private Partnerships in Vietnam: an introduction". Pinsent Masons. Retrieved 2020-05-13.
- "Vietnam". PPP Knowledge Lab. 2016-07-28. Retrieved 2020-05-13.
- "USAID Supports Vietnam's first Public Private Partnership (PPP) Law". www.usaid.gov. U.S. Agency for International Development. 2019-10-11. Retrieved 2020-05-13.
- Whiteside, Heather (2016). Public-private partnerships in Canada. Halifax: Fernwood Publishing. ISBN 978-1-55266-896-2. OCLC 952801311.
- Cosette, Robert. "La nouvelle Agence des partenariats public-privé du Québec" (PDF).
- "PPP Units Around the World | Public private partnership". ppp.worldbank.org. Retrieved 2020-06-09.