Private Enterprise and Development MidTerm Study Sheet
ProPoor Public Private Partnerships:
Definition: Arrangements where the private sector supplied infrastructure assets and
services that traditionally have been provided by the government…
1. (a)Why are they valuable for consumers and urban poor?
• Increased efficiency, expertise, and innovation from the private sector contribute
to better infrastructure and greater cost and time saving across the construction
and operation phases, increasing the value for money equation of a project.
• Access to private sector financing allows increased investment in public
infrastructure, and governments are able to implement projects without the need
to raise or budget additional funds, as is the case in standard procurement.
• PPP’s provide the private sector with access to reduced risk, secure, longterm
investment opportunities that are underwritten by government contracts. Such
agreements ensure private capital flows, provide investment opportunities, and
stimulate local industry and job markets
• History has frequently shown that PPPs can improve urban living through
collaborations hat combine innovative efforts from the Private sector, forward
thinking policies from governments, and supports from nonprofit organizations.
o Encouraging new ways of doing things
o Information Communication Technology
PPPs that incorporate – in innovative and creative ways – the
deployment and use of ICT have the power to improve the services
that matter most to city residents: Education, transportation,
economic development, public safety, and healthcare.
o Rather than simply cut back on these services in the face of budget
deficits, governments can work with private corporations to transform
the way such services are delivered by using ICT through initiatives
such as egovernment, remote healthcare, and intelligent transport.
1. (b) Why was it a struggle in Uganda?
2. Roles played by formal and informal service providers in a typical PPP project?
• There are 3 constructions of PPP’s
o Introduce privatesector ownership into stateowned business through a
public listing or the introduction of an equity partner
o Private finance initiative, where the government takes advantage of private
sector management skills by awarding longterm franchises to a private
o Selling of government services to privatesector partners
• As cities struggle to overcome economic stress and accommodate rapid
population growth, they must pursue an interconnected model of problem
solving. • Innovation from the private sector can be extremely beneficial in this process by
leveraging the capabilities of ICT to make all the systems used to supply the city
with services smarter, more efficient, and more effective.
• The public sector can explore models that have proven to be successful in
corporation and other enterprises.
3. What are five funding sources for PPP in any country?
o Example would be the building a bridge. Charging people, a minimum
amount – able to finance the PPP – consumers entering into responsibility
taking in financing the project.
• Tax Increment finance
• Other Revenue Streams
1. What are the main characteristics of infrastructure development projects in
developing countries? What role do those governments play with an aim to successfully implement infrastructure development projects? Use two country
cases for your explanation.
a. Main Characteristics
i. CapitalIntensive investment
ii. Spread over many years
iii. Economies of scale
iv. Network Effects; linkage effects
v. Involvement of various stakeholders
vi. Advanced technical expertise
vii. BOT (BuildOperateTransfer)
b. Role of Government
i. Resource utilization planning
ii. Preparation and allocation of budget
iii. Coordination (across departments and units)
iv. Resource Mobilization
v. M&E – Monitoring and evaluation
vi. Institutions and capacity building
vii. Aid/Donor management
2. What should the role of development organizations be to assist in infrastructure
development? Use the context of Uganda.
a. A mining company said they would build the hospitals but no one thought
about eh maintenance fees, doctor’s salaries, etc. What is plan b?
i. Local context is very important
b. Uganda has developed very quickly in comparison to the rest of Africa.
i. Poverty % lowering drastically
1. However not equally distributed
a. The majority of the poor in Uganda
b. Agricultural research and extension spending also
has the largest assessed impact on poverty
c. Additional investments in the northern region (a
poor region) cont