Checklist for Public
Private Partnerships (in general/edu)
PPP Presuppositions/Requirements (not only in EDU business)
When
evaluating PPPs in respect to the consequences of the
Directive we will keep a list of general PPP targets in mind – the private
partners view - the public partners view, the original selection and acceptance
criteria of a general PPP co-operation. We will also have a look if a list of
benefits/disadvantages is influenced by the current discussion.
The Private View
Profitability
Optimization of capacity load/balance of company
Positive Cash Flow
Long-term arrangements may lead to negative cash-flow in the beginning of
partnership.
The smaller the company the more private Partners need positive Cash flows as
soon as possible.
Long-Term Arrangement
Private partners prefer investment costs to be covered
from PPP (except optimization of capacity load).
The shorter the arrangement or the duration of contract, the less is the probability
of significant investments.
The shorter the contract duration (contracting-out), the more the
private partner needs exact calculation of single actions/contracts.
Assurance of scope of work and quality
Assurance of scope of work and quality (minimizing dynamic).
Precise offer, precise costs, calculable risk.
Control of operation, book keeping and management
Private Partner needs/usually get a free hand of industrial management.
Commercialisation
Long-term importance of PPP given if new chances arise for further PPPs oder
other kinds of public-private co-operation.
The Public View
Certainty of Achievement of Results
Certainty/reliability of achievements of results is very important for public
services and political decision makers – more than single activities.
Risk Transfer
Risk transfer is one of the reasons in favour of creating PPPs,
but it is also a central problem of PPPs.
Private motivation is evaluating risk versus profit.
In order to prevent the risks of mis-investment a
private partner the less likes to become owner of the values created
the greater the volume of PPPs in relation to private capital basis.
Role of financing institutions/banks.
If contracting-out then private partnership is mostly opposing the public
contracting-out conditions.
PFI-projects usually need a stronger output-specification with users involved
in specifications.
PPP contracts (and prices) contain risks which are transferable from the public
to the private partner by more exact specifications.
If risk transfer fails within a PPP then the public partner usually is in a
weaker position.
Increasing Performance
PPPs combine competence and resources in order to
generate added values / innovations. Work on a problem with common
understanding.
Leistungsinnovation
From the view of result-oriented improvement of quality or fulfilling the
interest of a public organisation.
Flexibility in Scope of Supply and Quality
Political goals and regional problem situations
are subjects to change
PPPs who fail to follow these changes (because
contract or costs cannot be renegotiated or partner insists on results
originally defined, lose their existence.
Change of service demands have to be considered in PPP contracts. Risk management is a value/reason
of PPPs.
Contributions to solutions
Common understanding of the problems.
Contributions of each partner have to be clear.
Public service has to communicate both premises.
Cost reduction important but a minor public aspect for a PPP. There are other mechanisms for that.
Flexibility in scope of performance and quality is a major issue for public
administration and politics versus fix cost/effort calculations of private
sector. 
Selection criteria for Private Partners in a PPP
Competence / Incrementing Expertise
Both side increase/add their competence/expertise, put competence together in
order to solve big problems.
Public Sector offers entrance to a new market by offering privae
partners the opportunity to study the public needs.
Public sector learns professional service-offering and production methods.
Reference Objects / efforts
Great complexity of PPP-projects, volume significant.
Public sector needs good evaluation criteria for reference objects and delivery
of services.
Subcontracting and Service offers desired.
Financial power/Size of PPP
PPPs need good financing. Finance power has to be
adjusted to the tasks of PPPs.
Commercialisation
PPPs focus on profit interests for the private
partner als well as fort he
public sector, revenue as well as enabling innovations.
Increase of competence and knowledge should not remain with one of the partners
only.
Public sector also needs the right to distribute knowledge, management
experience or profit interests.
Problem solutions, goal congruence
Private and public partner need similar/common goals, especially when
public actions and politics are involved.
Contributions to a political problem solution.
Problem of financing is a minor goal.
Improve quality of life.
Local solutions.
Employment.
"Corporate Social Responsibility"
Education
Alternatives to public contracting out
Market-based Best Value laws
Private Finance Initiative
Acceptance of
public-private partnerships
Success if both partners
are enabled to develop their own goals as well as common goals.
Transfer of competence.
Acceptance of PPPs better than other co-operations if
consumer of services (which are in public interest) can be offered exact and reliable,
if the consumer owns clearly-defined rights and duties and is well informed
about alternative solutions.
It is not important which form/kind of service delivery is done by the city,
government, PPP or by other players.
Benefits/Disadvantages
against full privatising of public tasks and services
Full privatising public
tasks is reasonable if there is no public interest for a public control.
PPPs are an alternative to full privatisation if
services or goods are in the scope of public interest.
PPPs are good if new competences can be generated for
all partners which can not be gained by other means or
with a lot of effort only.
For the private Partner profitability is significant which can also mean to
ensure market shares and use capacities in the full.
For public partners financial power and market competence are of
significance. Risk transfer is one of
the major issues and problems for PPPs.
At least in
General problem with PPPs is the commercialisation of
the knowledge and competence gained in partnerships.
Today commercialisation and exploitation is mainly done by the private side of
the PPP.
PPPs need a new quality of contracts between
partners.
In