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Public Private Partnerships (PPP): Definition

Audit of Public Private Partnerships Introduction and international Experiences Freek Hoek, Netherlands Courts of Audit. Public Private Partnerships (PPP): Definition. Development and delivery of public services or public goods through a partnership of government and private sector companies

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Public Private Partnerships (PPP): Definition

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  1. Audit of Public Private Partnerships Introduction and international ExperiencesFreek Hoek, Netherlands Courts of Audit

  2. Public Private Partnerships (PPP): Definition • Development and delivery of public services or public goods through a partnership of government and private sector companies • Why PPP? Off

  3. High Speed rail Link PPP: twomain types (1) • Concessions: DBFMO contracts • Alliances: Joint ventures Groningen Meerstad

  4. PPP: Two main types (2) Private Parties • Concessions: • Alliances: Private Parties Special PurposeEntity Public party DBFMO Contract Private Capital Public Parties Private Parties • Public + Private • Parties • Special PurposeEntity Public Capital Private Capital

  5. PPP: Two main types (3) Differences

  6. PPP: Some characteristics • Long term relationship • Private law • Public and private capital • Procurement • Competition • Transfer of risks

  7. PPP: Complications Different roles of government Differences in culture andvalues Lack of expertise Unsuitable procedures Unclarity of goals Political context

  8. Auditing PPP: International survey 2010 • 48 audit reports • 13 countries • 21 audit offices

  9. International survey 2010: Countries and reports

  10. International survey 2010: mainfindings • Overall conclusions: Verycritical of PPP • Topics in reports: • Decisionmaking • Procurement • Financingandcosts • Contractmanagement • Evaluation • Policy andconditions • Public accountability • Value For Money???

  11. Auditing PPP: Conference 2012 • Goals: • Share knowledge and experience • Between SAI’s and experts • INSPIRE! • 90 colleagues • 50 countries

  12. Auditing PPP: Conference 2012

  13. Conference 2012: Conclusionsabout PPP • PPP may lead to faster results, better quality and lower costs of public services, but only in specific cases and under specific conditions • Risk transfers to private parties are essential in PPP. The realization of this condition is not always obvious • Government can not lean back after closing of a (DBFM) contract: management of contract-phase is crucial for VFM • New accounting rules leave less room for off balance sheet financing. This may take away a (perverse) incentive for PPPs

  14. Conference 2012: Conclusionsaboutrole of SAI’s • SAIs should be aware of the different roles and responsibilities of government in PPP in order to be effective • SAIs should contribute to the learning process where standards are still to be developed • A longer term programmatic audit approach to PPP audit by SAIs makes investments in expertise worthwhile • SAIs need access to information held by private parties (mandate)

  15. Public Private Partnerships andinnovation • Innovationin SAI’s! • Innovation in government • Knowledge • Audit processes • Standards

  16. www.rekenkamer.nl@rekenkamerwww.linkedin.com/company/algemene-rekenkamerwww.rekenkamer.nl@rekenkamerwww.linkedin.com/company/algemene-rekenkamer

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