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Public-Private Partnership in Urban Design

The public sector provides most water, waste, sanitation, and


energy services. Experience demonstrates, however, that
municipalities alone cannot meet
the continually growing demand for services.
While traditional development assistance plays a vital role in
enabling some governments to meet these challenges, it
provides only a fraction of the needed investment.
New partnerships for sustainable growth sources of financing,
technology, capacity building and management are urgently
needed.

Public-Private Partnership in Urban Design

Following the 1992 Earth Summit, the United Nations


Development Programme (UNDP) initiated a global programme
in collaboration with the Business Council for Sustainable
Development (BCSD),
to promote public-private partnerships (PPPs) to improve
urban environmental services in the developing world.
UNDP's Public-Private Partnerships for the Urban Environment
programme (PPPUE) became operational in 1995.

Public-Private Partnership in Urban Design

The end of the 20th century witnessed unprecedented change in


the pattern of human settlements. For the first time in history,
more people are living in cities and towns than in rural areas.

This urbanisation has been accompanied by an alarming growth


in the incidence of poverty. The result is a radical transformation
in the structure of cities, accompanied by complex social,
economic, and environmental changes.
Urbanisation has placed an extraordinary strain on governments,
both national and local, to meet their citizens basic needs.

Public-Private Partnership in Urban Design

Public-Private Partnership in Urban Design

The term publicprivate partnership describes a range of


possible relationships among public and private entities in the
context of infrastructure and other services.

PPPs present a framework thatwhile engaging the private


sectoracknowledge and structure the role for government in
ensuring that social obligations are met and successful sector
reforms and public investments achieved.
PPP is one tool available to decision makers in reforming
infrastructure or service delivery. It is most effective when it is
accompanied by other reform activities to underpin and reinforce
the PPP and to support sustainable improvement.

Public-Private Partnership in Urban Design

Public-Private Partnership in Urban Design

The public partners in a PPP are:


-government entities,
-including ministries,
-departments,
-municipalities,
-or state-owned
enterprises.

The private partners can be


local or international and may
include:
-businesses or investors with
technical or financial expertise
relevant to the project.

PPPs may also include nongovernment organizations (NGOs)


and/or community-based organizations (CBOs) who represent
stakeholders directly affected by the project.

Public-Private Partnership in Urban Design

The public partners in a PPP are: The private sectors role in


The government also provides the partnership is to make use of
social responsibility,
its expertise in commerce,
environmental awareness,
management, operations,
local knowledge, and an ability and innovation to run the
to mobilize political support.
business efficiently. The private
partner may also contribute
investment capital depending
on the form of contract..
The structure of the partnership should be
-designed to allocate risks to the partners who are best able to
manage those risks and thus
-minimize costs while improving performance.

Public-Private Partnership in Urban Design

Rapid population growth throughout the developing world has


created desperate conditions in urban centres, as citizens,
particularly the poor, lack access to basic water, sanitation,
waste and energy services.
Sectors in which PPPs have been
completed worldwide include:

power generation and distribution,


water and sanitation,
refuse disposal,
pipelines,
hospitals,
school buildings and teaching

facilities,
stadiums,
air traffic control,
prisons,
railways,
roads,
billing and other information
technology systems, and
housing.

Public-Private Partnership in Urban Design

Public-Private Partnership in Urban Design

The three main needs that motivate governments to enter


into PPPs for infrastructure are:
1. to attract private capital investment (often to either
supplement public resources or
release them for other public needs);
2. to increase efficiency and use available resources more
effectively; and
3. to reform sectors through a reallocation of roles, incentives,
and accountability.

Public-Private Partnership in Urban Design

Public-Private Partnership in Urban Design

The basic PPP contract types are:


service contracts;
management contracts;
lease contracts;
buildoperatetransfer (BOT) and similar arrangements;
concessions; and
joint ventures.
In which cities and businesses pool their resources, expertise, and
approaches to solving problems in order to tackle urban
challenges in a sustainable manner.

Public-Private Partnership in Urban Design

Public-Private Partnership in Urban Design

Public-Private Partnership in Urban Design

Public-Private Partnership in Urban Design

Advantages of PPP:
(1) Reduces public debt
(2) Promotes innovation
(3) Benefits from coordinated decision
(4) Creation of new services

Disadvantages of PPP:
(1) Loss of influence in the investment
(2) Creation to public monopoly
(3) Accusation of corruption
(4) Demonstrations against price increase

Public-Private Partnership in Urban Design

The joint venture PPP process main steps:


(1) project identification and the reality check;
(2) partner identification;
(3)working group formation and signing of a memorandum of
understanding (MOU);
(4) Project design and development;
(5) formation of the joint venture business; and (6)
assessment for replicability.

Public-Private Partnership in Urban Design

Public-Private Partnership in Urban Design


EXAMPLES

Public-Private Partnership in Urban Design


EXAMPLES

Public-Private Partnership in Urban Design


EXAMPLES