Key Features of Successful Public Private Partnerships

Public-private partnerships start with either or both:

1. A widely acknowledged crisis: Until there is a widely acknowledged crisis, seriously affecting the individual needs of key stakeholders, and incapable of being solved by any one party, there are few incentives to develop collaborative solutions - unless there are
2. Effective champions: One or more individuals, with the credibility, stature, trustworthiness, drive and commitment to push through the partnership.

To build the foundation for the partnership based on:

3. Complimentary goals: Partnerships can only work to the extent that the goals of the major stakeholders are both (a) mutually compatible (acceptable services for acceptable prices and levels of return) and (b) articulated, understood and respected
4. An enabling environment: The collaborative effort needs to occur in a legislative, administrative, political and social environment that is supportive of both the process of developing the partnership, as well as the achievement of its objectives over time.

Using processes that generate arrangements that are durable over time, including:

5. Resource commitments: The major parties to the parties must commit resources (financial, human, material) to give them a stake in ensuring its success.
6. Participation and transparency: The interests of all the major stakeholders must be reflected in project development. Special attention should be paid to meeting the needs of the poor. Broad participation in the collaborative process must be sought at strategic points to maximize the acceptability and sustainability of the solution developed. Transparency on the basic features of the project (framework, fees and ownership) is necessary.
7. Capacity building: Projects requiring substantial institutional change or large capital investments will require building the capacity of all stakeholders: (a) consumers, on the nature of the service they are receiving and the costs associated with its provision; (b) providers, particularly local organisations, on entrepreneurial skills; and (c) governments, on adopting the frameworks for and overseeing the provision of the services.
8. Patience: In addition, projects requiring substantial institutional change or large capital investments require lots of time. Careful attention must be paid to the balance between responding rapidly to the most pressing crises and developing integrated solutions that will last.
9. Flexibility: All partnerships are context-based and locally embedded. Draw from experience elsewhere, but be opportunistic about exploiting the comparative advantage of local resources. For long-term, capital intensive projects, changes in investment plans, technology choices and priority actions will be necessary in response to unforeseen circumstances. Including clear procedures for making such changes over the life of the project will reduce their impact.

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