Public–private partnerships by country

Australia

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,[1] 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.[2]

Bangladesh

In Bangladesh, the Infrastructure Investment Facilitation Center facilitates private sector investment. As a result of their efforts, the telecom sector has become a very active private investment area.[3]

Canada

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.[citation needed]

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.[4] In Quebec, PPPs include the McGill University Health Centre, the new western extension of Autoroute 30 and Université de Montréal's Hospital Research Center.

China

There are more than 14,000 existing P3 projects in China, totaling $2.7 trillion in aggregate value, according to the finance ministry.[5][6]

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.[7] 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.

European Union

The European Commission sees Investments in public-sector infrastructure are seen as an important means of maintaining economic activity.[8] As a result of this increase in the role played by PPPs in new public-sector infrastructure projects and the complexity of PPP contracts, the European PPP Expertise Centre (EPEC) was established to support the public sector's capacity to implement PPPs and help overcome problems common across Europe in PPPs.[9]

From 1990 to 2009, nearly 1,400 PPP deals were signed in the European Union, representing a capital value of approximately €260 billion.[10] On the onset of the financial crisis in 2008, estimates suggest that the number of PPP deals closed has fallen more than 40 percent that year.[11][12]

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".[13]

Greece

The Greek Inter-Ministerial PPP Committee authorized two Public-Private Partnership projects in September 2017 and October 2018, including eight schools in the Cretan Municipality of Chania and 13 schools on the island of Rhodes.[14][15]

Netherlands

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.[16]

Poland

In July 2017, the Polish Council of Ministers approved the Policy for the Development of Public-Private Partnerships.[17][18] In 2019, the Ministry offered public authorities with information and guidance on public-private partnerships. Poland is developing PPP Guidelines, following the path of the UK and other nations burdened by PPPs. In September 2018, the first installment on PPP Project Preparation was released.[17][18]

Spain

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.[19] 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.[20]

India

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."[21]

The union government has estimated an investment of $320 billion in infrastructure in the 10th plan.[22] 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).[23] Other sectors including power, irrigation, telecommunication, water supply and airports, have gained momentum through the P3 model. As of 2011, these sectors were expected to get an investment of Rs. 2,027,169 crore (according to 2006–2007 WPI).[24] 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.[25]

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]

Japan

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.

Pakistan

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.[26]

Philippines

The Philippine Government (Filipino Pag tutulungan ng Pampubliko – at Pribadong Sektor) maintains an online list of PPP projects.[27] Wikipedia articles on specific PPP projects in the Philippines are categorized into Category:Proposed infrastructure in the Philippines.

The Philippine BOT Law, Republic Act No. 6957 has been passed on May 5, 1994, and had been subsequently amended by RA 7718 with the Revised 2022 IRR of the BOT Law in 2012.[28]

Republic Act 11966 or the PPP Code of the Philippines was signed into law on December 5, 2023. On March 21, 2024, the implementing rules and regulations was signed by Government officials led by Arsenio Balisacan at The Mega Tower, Mandaluyong. "This pivotal moment underscores the Marcos administration's commitment to its Build Better More program of building and realizing high-quality, game-changing infrastructure projects that enable socioeconomic transformation," Balisacan said. "The PPP Code and its IRR aim to strengthen and institutionalize PPPs in the country by providing a unified legal framework for all PPPs at both national and local levels," he explained. It clarifies the ambiguities in the Build–operate–transfer Law, last amended in 1994, and other existing PPP legal frameworks.[29]

Russia

Nowadays there are special laws about PPP in 69 subjects of Russian Federation.[30] 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"[31] and Federal Law #94-FZ (21.07.2005) "On Procurement of Goods, Works and Services for State and Municipal Needs".[32] In some ways PPP is also regulated by Federal Law No.116-FZ (22.07.2005) "On special economic zones"[33] (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.[citation needed]

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).[citation needed]

By 2013 there were almost 300 public–private partnership projects in Russia.[34]

United Kingdom

In 1992, the Conservative government of John Major in the UK introduced the PFI,[35] 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[36] 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.[37] 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.[38] The 30-year PPP contract for the refurbishment of the Ministry of Defence Main Building in London was estimated to give a saving of £100,000 as compared to the £746.2 million cost of public procurement.[39] The refinancing of the Fazakerley Prison PFI contract following the completion of construction delivered an 81% gain to the private sector operator.[40] 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.[41]

United States

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.[42] In the United States, they mostly took the form of toll roads concessions, which emerged in the mid to late nineteenth century.[43]

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.[44]

Vietnam

USAID and Coca-Cola Public-Private Partnership to Boost Renewable Energy and Energy Efficiency in Vietnam

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.[45] By 2016, Vietnam had introduced 101 P3 projects, totaling $18.5 billion.[46] In 2019, Vietnam adopted its first P3 law, which was rafted in collaboration with the United States Agency for International Development (USAID).[47]

PPP units by country

Country Territory PPP unit Duration
Australia Australia New South Wales New South Wales NSW Public–private partnerships
Queensland Queensland Projects Queensland
Victoria (state) Victoria Partnerships Victoria 1999–present
Bangladesh Bangladesh National Infrastructure Investment Facilitation Center 1999–present
Public–Private Partnership Authority 2010–present
Belgium Belgium Flanders Flanders Flemish PPP Knowledge Center
Wallonia Wallonia Financial Information Cell
Brazil Brazil Federal PPP Unit
Bahia Bahia PPP Unit
Espírito Santo Espírito Santo PPP Unit
Minas Gerais Minas Gerais PPP Unit
Pernambuco Pernambuco PPP Unit
São Paulo (state) São Paulo PPP Unit
Rio Grande do Sul Rio Grande do Sul PPP Unit
Canada Canada Federal PPP Canada 2009–2018
British Columbia British Columbia Partnerships BC 2002–present
New Brunswick New Brunswick Partnerships New Brunswick[48]
Ontario Ontario Infrastructure Ontario 2005–present
Quebec Quebec Quebec Agency for Public–Private Partnerships[49] 2004–2009
Saskatchewan Saskatchewan Saskbuilds 2012–present
China China National Public–private partnerships Center
Hong Kong Hong Kong Hong Kong Efficiency Unit
Croatia Croatia National Agency for Public–Private Partnerships
Czech Republic Czech Republic National PPP Association
Denmark Denmark National Danish Business Authority
Egypt Egypt National PPP Central Unit
Estonia Estonia National Public Procurement Center
France France National Mission d'Appui aux Partenariats Public–Privés 2004–2017
Germany Germany Lower Saxony Lower Saxony PPP Task Force
North Rhine-Westphalia North Rhine-Westphalia PPP Task Force
Ghana Ghana National PPP Advisory Units
Greece Greece National Secret Secretariat for PPPs
Honduras Honduras National Commission for the Promotion of Public–Private Partnerships
Hungary Hungary National Hungary Central PPP Unit 2003–present
Republic of Ireland Ireland National Central PPP Policy Unit
Israel Israel National PPP Unit (Ministry of Finance)
India India Federal Department of Economic Affairs PPP Cell 2006–present
Andhra Pradesh Urban Finance and Infrastructure
Assam Assam PPP
Bihar Infrastructure Development Authority
Karnataka Infrastructure Development Department
Maharashtra Region Development Authority
Odisha PPP Unit
Punjab Infrastructure Development Board
Uttarakhand PPP cell
Indonesia Indonesia Federal Indonesia Infrastructure Guarantee Fund
PPP Directorate of Bappenas
Italy Italy National Project Finance technical unit
Jamaica Jamaica National National Investment Bank of Jamaica 1980–present
Japan Japan National PFI Promotion Office
Kazakhstan Kazakhstan National Kazakhstan PPP Center
Kenya Kenya National PPP Unit
Kosovo Kosovo National Partnership Kosovo
Kuwait Kuwait National Partnerships Technical Bureau
Latvia Latvia National Central Finance and Contracting Agency
Lebanon Lebanon National Higher Council for Privatization and Partnerships
Malawi Malawi National Public Private Partnership Commission
Malaysia Malaysia National PPP Unit
Mauritius Mauritius National PPP Unit
Mexico Mexico Federal + Regional Program for the Promotion of Public–Private Partnerships in Mexican States 2007–present
Namibia Namibia National PPP Unit
Nigeria Nigeria National Infrastructure Concession Regulatory Commission
New Zealand New Zealand National National Infrastructure Unit
Pakistan Pakistan Federal Private Power Infrastructure Board
Infrastructure Project Development Facility
Punjab, Pakistan Punjab PPP Cell
Sindh Sindh PPP Unit
Peru Peru National ProInversion
Philippines Philippines National Built Operate Transfer (BOT) centre 1999–present
Poland Poland National The department for PPP in the Ministry of Funds and Regional Policy
Portugal Portugal National Project Monitoring Technical Unit 2012–present
Russia Russia Federal PPP Development Center
Senegal Senegal National Agence nationale chargée de la promotion des investissements et des grands travaux
Unité Nationale d'Appui aux Partenariats Public–Privés
Serbia Serbia National Commission for Public Private Partnerships
South Africa South Africa Federal South African Treasury PPP Unit 2000–present
South Korea South Korea National Private Infrastructure Investment Management Centre 2005–present
Sri Lanka Sri Lanka National Utilities Commission of Sri Lanka, Board of Investment
Uganda Uganda National PPP Unit (MoFPED)
United Arab Emirates United Arab Emirates Emirate of Dubai Dubai PPP Unit 2015–present
United Kingdom United Kingdom National Treasury Task Force for PPP 1997–1998
Partnerships UK 1998–2011
Local Partnerships 2009–present
Northern Ireland Strategic Investment Board
Scotland Scotland Scottish Futures Trust 2008–present
United States United States Puerto Rico Puerto Rico PPP Authority
Uruguay Uruguay National Public–Private Participation Unit 2009–present

Source: World Bank[50]

References

  1. ^ Moore, Matthew, "Open Secrets", Sydney Morning Herald, 31 October 2005. Accessed 7 January 2007.
  2. ^ Whiteside, Heather (2016). "How are P3s?". Public-private partnerships. Halifax: Fernwood Publishing. ISBN 978-1-55266-896-2. OCLC 952801311.
  3. ^ "Welcome to Infrastructure Investment Facilitation Company (IIFC)".
  4. ^ An Introduction to Public Private Partnerships. (PDF) . Retrieved on 20 November 2011.
  5. ^ Reuters Editorial. "China overhauls $2.69 trillion public-private projects as debt..." U.S. Retrieved 2018-04-18. {{cite news}}: |author= has generic name (help)
  6. ^ "CPPPC". Archived from the original on 2017-06-12.
  7. ^ 线, 丽阳. "中信地产：PPP模式啖头汤". CITC Real Estate. Archived from the original on 2014-11-04. Retrieved 4 November 2014.
  8. ^ European Commission Communication on PPP November 2009[dead link]
  9. ^ European PPP Expertise Centre. Eib.org. Retrieved on 2011-11-20.
  10. ^ Public-Private Partnerships in Europe. Archived 2010-08-08 at the Wayback Machine. (PDF) . Retrieved on 2011-11-20.
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  12. ^ Barlow, J. Roehrich; Wright, S. (2010). "De facto privatisation or a renewed role for the EU? Paying for Europe's healthcare infrastructure in a recession". Journal of the Royal Society of Medicine. 103 (2): 51–55. doi:10.1258/jrsm.2009.090296. PMC 2813788. PMID 20118334.
  13. ^ See European Court of Auditors, Public-Private Partnerships in the EU, p. 9.
  14. ^ "In Crete and Rhodes, students learn ABCs thanks to PPPs". European Investment Bank. Retrieved 2021-06-07.
  15. ^ "Public Private Partnerships In Greece - An Overview - Government, Public Sector - Greece". www.mondaq.com. Retrieved 2021-06-07.
  16. ^ 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.
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  18. ^ a b "PAIH | Public-Private Partnership (PPP)". www.paih.gov.pl. Retrieved 2021-06-07.
  19. ^ Bellod Redondo, José Francisco (November 2006), "Financiación privada de infraestructuras: El caso de la Autovía del Noroeste", Instituto de Estudios Fiscales
  20. ^ "Hospital Puerta de Hierro in Majadahonda".
  21. ^ "PPP". Department of Economic Affairs, Ministry of Finance, Government of India. 2007. Archived from the original on 2012-06-16.
  22. ^ S.S. Raju (2011). "A successful Indian model". The Hindu Survey of Indian Industry 2011.
  23. ^ "Status of PPP Projects as on July 31, 2011" (PDF). Archived from the original (PDF) on 2 October 2013. Retrieved 8 March 2014.
  24. ^ "PPP". Archived from the original on 2010-04-21.
  25. ^ See "History RePPPeated, How Public Private Partnerships are failing Archived 2019-01-02 at the Wayback Machine", October 2018
  26. ^ F. Ahmed and N. Nisar (2010). "Public–private partnership scenario in the health care system of Pakistan" (PDF). EMHJ. 16 (8): 910–912. PMID 21469575.
  27. ^ "List of PPP Projects". Philippine government. Archived from the original on 2014-06-22.
  28. ^ PPPCenter – R.A. 7718 The Philippine Amended BOT Law and its Revised Implementing Rules & Regulations
  29. ^ Gonzales, Anna Leah (March 21, 2024). "Gov't signs PPP Code IRR". Philippine News Agency. Retrieved March 22, 2024.
  30. ^ Геворкян, Арфи; Литвинова, Анастасия. Правительство одобрило закон о государственно-частном партнерстве (in Russian). Retrieved 27 March 2013.
  31. ^ Федеральный закон "О Концессионных Соглашениях" (in Russian). Retrieved 27 March 2013.
  32. ^ Федеральный закон "О Размещении заказов на поставки товаров, выполнение работ, оказание услуг для государственных и муниципальных нужд" (in Russian). Retrieved 27 March 2013.
  33. ^ Федеральный закон "Об особых экономических зонах в Российской Федерации" (in Russian). Retrieved 27 March 2013.
  34. ^ Гагарин П.А.; Двинянин Е.А. Государственно-частное партнерство как инструмент реализации масштабных проектов (PDF) (in Russian). Archived from the original (PDF) on 19 October 2015. Retrieved 27 March 2013.
  35. ^ 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.
  36. ^ See United Kingdom, National Audit Office, PF1 and PF2, a report by the Comptroller and Auditor General (London, 2018)
  37. ^ "Tube maintenance back 'in house' as new deal is signed". BBC News. 8 May 2010. Retrieved 10 May 2010.
  38. ^ "London Underground PPP: Were they good deals?". National Audit Office. 17 June 2004.
  39. ^ "Ministry of Defence: Redevelopment of MOD Main Building". National Audit Office. 18 April 2002.
  40. ^ "The Refinancing of the Fazakerley PFI Prison Contract". National Audit Office. 29 June 2000.
  41. ^ "Refinancing the Public Private Partnership for National Air Traffic Services". National Audit Office. 7 January 2004.
  42. ^ 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.
  43. ^ 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.
  44. ^ PricewaterhouseCoopers. "Public-private partnerships in the US: The state of the market and the road ahead". PwC. Retrieved 2020-05-13.
  45. ^ "Public Private Partnerships in Vietnam: an introduction". Pinsent Masons. Retrieved 2020-05-13.
  46. ^ "Vietnam". PPP Knowledge Lab. 2016-07-28. Retrieved 2020-05-13.
  47. ^ "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.
  48. ^ Whiteside, Heather (2016). Public-private partnerships in Canada. Halifax: Fernwood Publishing. ISBN 978-1-55266-896-2. OCLC 952801311.
  49. ^ Cosette, Robert. "La nouvelle Agence des partenariats public-privé du Québec" (PDF).
  50. ^ "PPP Units Around the World | Public private partnership". ppp.worldbank.org. Retrieved 2020-06-09.
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