Parliamentary Inquiry into Public-Private Partnerships (2006)
The purpose of this inquiry was to assess whether P3s are being managed efficiently and effectively, not whether or not they should be used. It compared Australian institutional arrangements with national and international best practice. The inquiry found that Government guidelines for P3s were open to interpretation and were not being applied consistently, that conditions which led to P3 arrangements were seen as less than transparent, and that there needs to be more of a focus on the ongoing evaluation and monitoring of projects over their whole life. The inquiry examined ways in which knowledge sharing about the development and operation of P3s can be improved, to increase the level of P3 management expertise across the public sector and thus increase value for money.
The Partnerships Victoria policy, introduced in 2000, provides the framework for a whole-of-government approach to the provision of public infrastructure and related ancillary services through public-private partnerships. There are 19 Partnerships Victoria projects in existence worth around $9.5 billion in capital investment.
Canada (Building Canada)
Infrastructure Canada was established as a department in August 2002. Since then, the department, among other things, has worked to provide a focal point for the Government of Canada on infrastructure issues and programs through the Building Canada plan, a historic $33 billion infrastructure plan. Under Building Canada, the nation's most important economic and environmental priorities are being addressed through targeted and based-funding programs. One of these programs is the $1.25 billion P3 Fund. This fund will support innovative projects that provide an alternative to traditional government infrastructure procurement. A new federal P3 office will also be established.
Partnerships British Columbia is a company responsible for bringing together ministries, agencies and the private sector to develop projects through public-private partnerships. As a company registered under the Business Corporations Act, Partnerships BC is wholly owned by the Province of British Columbia and reports to its shareholder the Minister of Finance.
Council of Canada
The Canadian Council for Public-Private Partnerships was established in 1993 as a member-sponsored organization with representatives from both the public and the private sectors. As proponents of the concept of P3s, the Council conducts research, publishes findings, facilitates forums for discussion and sponsors an Annual Conference on topics related to P3s, both domestic and international.
Board of Canada Steering a Tricky Course: Effective Public-Private Partnerships
for the Provision of Transportation Infrastructure and Services
This study asks the question: what are the factors that make for successful P3s? To help answer it, the study offers three case studies, two in Canada and one in the U.K. The Confederation Bridge P3 (linking Prince Edward Island to New Brunswick) shows that project risks can be successfully transferred to the private sector and underscores the importance of having the procurement authority adapt its role to the requirements of a P3. The London Underground P3s demonstrate the use of innovative output-based performance measures, but they also show that significant uncertainty about major costs (such as upgrades to legacy assets) can impair the effectiveness of risk transfer to the private sector. As well, these P3s suggest that governments should be cautious about imposing P3 delivery methods on lower levels of government. Finally, the Montreal metro project, which was not a P3, provides insights on the importance of thorough project planning and the value of extensive due diligence.
for Successful Public-Private Partnerships
This document was designed as a practical tool for P3 practitioners in the public sector faced with the opportunity of structuring a P3 and of integrating or "blending" European Communities grant financing in P3s. The report is to focus on a number of critical issues influencing the successful integration of public grants, private funds, IFI loans (such as the EIB or EBRD) and European Commission financing. Reference is made to a number of analytical techniques which are well known and documented. These are not presented with the objective of promoting a standard methodology but rather in an attempt to highlight areas in which particular care and analysis needs to be observed. The Guidelines are not designed to provide an exhaustive list of P3 structures nor present any structures as having the endorsement of the Commission. The Guidelines present five thematic parts dealing in turn with:
Book on P3 Case Studies
The growing interest in the development of P3's was confirmed by the request, put forward by representatives of Candidate Countries, to complement the Guidelines with examples of actual projects in order to better understand the practical implementation issues. Following this request, the Commission has developed this Resource Book, consisting of a set of case studies of P3s in both Western and Central Europe and in various sectors including: Water and Wastewater Management, Solid Waste Management and Transport. These sectors are representative of those in which the Commission has provided grant financing. While they are not the only sectors in which P3 principles are being applied, they do provide a balance between sectors with a considerable history of P3 application such as transport and those in which it is relatively new and encountering specific issues.
Finance of Transport Infrastructure Projects Value and Risk Analysis of
a Finnish Shadow Toll Road Project
This dissertation investigates the characteristics of a feasible framework for private finance of road infrastructure projects using one case project as an aid, which is analyzed in depth. The research makes an effort to find out whether private finance of road infrastructure projects is able to bring additional benefits for the state and the project investors and whether private finance is applicable from their viewpoints.
Finance Initiative: strengthening long-term partnerships
United Kingdom Treasury
This publication builds on measures introduced since 2003 that explain the UK's approach to its Private Finance Initiative (PFI) program, setting out further improvements to PFI to support its ongoing important role in delivering better public services. The Government sees PFI continuing to play a small but important role in the overall objective of delivering modernized public services. It will continue to be used only where it can demonstrate value for money and is likely to continue to comprise around 10-15 percent of total investment in public services.
Central Public-Private Partnership Unit of the Department of Finance
The Central Public-Private Partnerships Policy Unit in the Department of Finance was established to provide optimum support for the development of the P3 process. The key function of this unit is to develop the legislative framework, technical and policy guidance to support the P3 process and to disseminate best practice in P3s.
Infrastructure UK is a unit within the UK Treasury, that works on the UK's long-term infrastructure priorities and secures private sector investment.
The Scottish Futures Trust is a Government-owned company set up to improve public infrastructure investment. Established in September 2008, SFT pursues value for money by operating across the whole public sector and by delivering benefits and savings wherever possible at each point in the infrastructure investment cycle. From needs identification, options investigation and investment appraisal; through financing, procurement, design and construction; to life cycle management, maintenance and disposal, the SFT offers value and professional expertise.
Transport Infrastructure Investment: Options for Efficiency
Full Report PDF
This OECD report examines principles for determining the most appropriate models for investment in surface transport infrastructure. Public-private partnerships (P3s) have attracted much attention in recent years. Appropriately designed, P3s have the potential to allow for important efficiency gains by transferring the responsibility for long-term cost management to private organizations that are intrinsically motivated to reduce overall costs in pursuit of profits, including by way of innovation. But P3s are complex arrangements, with many pitfalls. Much surface transport infrastructure does not lend itself to P3s, so the true role for these instruments in the overall system has to be carefully defined. Governments are faced with a complicated set of options for investing in infrastructure. In all likelihood, different elements of the surface transport system will employ different models, including various degrees of user charging. One of the greatest challenges is in ensuring consistency across the system.
This report begins in Part I with a discussion of the overall challenge of providing surface transport infrastructure, including a description of the available models. It also provides an overview of the current situation observed around the world. Part II discusses the fundamental question of how borrowing for the creation of surface transport infrastructure should be treated in public accounts. Part III considers the potential benefits of using different models for the provision of infrastructure. Part IV looks at key questions related to the design of P3s, particularly their legal and regulatory frameworks and procurement processes. The report is based on research by a working group of experts from 19 countries, chaired by Dr. Urban Karlström, Director General of the Swedish National Road and Transport Research Institute.
Recommendation of the Council on Principles for Public Governance of Public-Private Partnerships
This document sets forth the OECD Council's principles on public-private partnerships governance. Twelve principles are described, organized under three topics:
Guidebook on Promoting Good Governance in Public-Private Partnerships
Prepared by the Public-Private Partnership (P3) Alliance of the United Nations Economic Commission for Europe (UNECE), this Guidebook promotes good governance in the use of P3s and is designed to support P3 capacity-building programs especially in the transition economies. The P3 Alliance was established in 2001 to improve the awareness, capacity and skills of the public sector in developing successful P3s in Europe. To this end, the Alliance prepares guidelines on best practices in P3s, as well as preparing other P3-related educational and training materials, and sponsoring P3 conferences and workshops. The Guidelines were reviewed at an International Conference organized by UNECE and the Government of Israel with the participation of experts from different countries to provide their experience and best practice in creating good governance conditions for P3s. A network of experts has also been established, incorporating the experts from the former Alliance group, to implement a work program on P3s.
Nations Economic and Social Commission for Asia and the Pacific
The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) is the regional development arm of the United Nations for the Asia-Pacific region. With a membership of 62 Governments, 58 of which are in the region, and a geographical scope that stretches from Turkey in the west to the Pacific island nation of Kiribati in the east, and from the Russian Federation in the north to New Zealand in the south, ESCAP is the most comprehensive of the United Nations five regional commissions. Its Transport Division works with member countries, including the public and private sector stakeholders to help them to optimize and manage the opportunities brought by the deepening of globalization. The division comprises three sections: Transport Infrastructure Section, Transport Facilitation Section, and the Transport Policy and Development Section. The Transport Policy and Development Section is, among other things, responsible for the division's work on financing infrastructure and public-private partnerships for infrastructure development.