Regional Workshop Programme: Preparing Public-Private Partnerships was organized in collaboration with Agence Française de Développement's Center for Financial, Economic and Banking Studies and the Asian Development Bank's Central and West Asia Department and was held in Tokyo, Japan, from 3 to 7 February. This five-day, course-based training program was designed to improve the capacities of civil servants in designing, implementing, and managing public-private partnership (PPP) programs and projects based on the experiences and best practices of Europe in PPP infrastructure reform, regulation and finance. The PPP workshop welcomed executives of PPP units and leading senior public sector PPP and infrastructure policymakers and program managers from countries across the Asia and Pacific region. Some 30 delegates from 20 countries attended the event and exchanged experiences and views on various challenges in implementing PPP projects.
As a prelude to the lectures, representatives of the three co-organizers gave welcoming speeches that touched on the importance of PPP projects to developing economies. In his welcome address, Dr. Masahiro Kawai, Dean and CEO of ADBI, pointed out that the public and private sectors used to be distinct players in providing, financing and managing infrastructure assets and services, and little compromise seemed possible between the two. However, it is now recognized that the private sector could play a larger role in helping deliver public and infrastructure services, promoting economic and social development and improving the welfare of citizens. He noted that PPPs can bring real advantages such as additional funding, more efficient management expertise, a better mix of human capital, and greater opportunities for mutual learning. However, poorly structured partnerships can face the risk of fragmented activities and a blurring of responsibilities and accountability as well as risk making consumers and citizens feel that they are objects of profitmaking. A running theme established throughout the workshop was the importance of strong, equitable partnerships and the care needed in creating contracts for a successful project. Dean Kawai noted that for PPPs to work, supporting institutional, legal, and regulatory reforms are needed and public and private sectors must nurture long-term trust so that they can work together in sharing various risks involved with project financing and management.
The first day of the workshop opened with a presentation of various PPP schemes by Mr. Dominique Hautbergue, Pedagogic Manager of the Center for Financial, Economic and Banking Studies. Mr. Hautbergue discussed the various concepts, benefits, and challenges of PPP as well as touched upon several case studies through AFD's experience with PPP projects. This was followed by Mr. Marc Frilet, a lawyer for Frilet Societe d'avocats, who began his lecture on the institutional and legal framework for PPPs. Noting that the legal and institutional framework to facilitate PPP projects was not in place for many countries, Mr. Frilet stated that it was an international priority to improve the framework regulating the preparation and implementation of PPP projects.
On the second day, Mr. Frilet focused on the practical issues in preparing PPP projects. Introducing the two types of PPP families and their differences, Mr. Frilet elaborated on the various issues and outlined an indicative list of the chain of practical issues to consider for successful PPPs. He delved into the challenges of the PPP procurement process and an overview of the complicated PPP contractual and financial structure.
On the third day, Mr. Frilet unraveled the complicated nature of PPP contracts, discussing the importance of provisions. Contrary to the Asian emphasis on trust between the public and private sector to conduct business, Mr. Frilet discussed the critical importance of provisions to ensure funding and clearly demarked responsibilities for both parties through case studies. Mr. Frilet reinforced the running theme of the workshop, the importance of sharing responsibility and the need for proper information sharing. The afternoon session opened with case studies where participants were able to put the tools and best practices learned from the previous two days into a realistic PPP project proposal. Remembering the lecture themes on the importance of partnerships and risk-sharing, participants carefully identified the issues needed to be addressed when assessing the proposals and used their own work experiences to enrich the exercise. The day concluded with Mr. Takeo Koike's presentation on ADB's involvement with PPP projects. A principal investment specialist in private sector operations, Mr. Koike was able to relay ADB's funding structure and how ADB can be an equitable partner to help participants finance their future PPP projects.
The fourth day opened with lectures by Mr. Vincent Piron, a consultant engineer and economist for Piron Consulting, who introduced macro and microeconomic tools to assess PPP's economic and financial frameworks. Mr. Piron displayed the importance of carefully managing PPP clauses when creating the initial contract, showing through his past work templates that a 1% discrepancy can have an aggravating effect on financing for the project. Participants followed the session by giving country presentations, discussing the methodologies in their respective countries to develop and finance PPP projects. The afternoon session featured a presentation by Dr. Yuqing Xing, CBT Director for ADBI, on a successful PPP project in Japan, the Yurikamome line. Following a detailed recount of the Japanese government's collaboration to create a profitable train system and critical public service, the participants went on a field trip to visit the line.
The final day began with discussions of the field trip and presentations by the participants on their PPP project proposal exercises. The participants delved into issues of methods for sustained funding for the project. The week-long workshop was drawn to a close with a final lecture by Mr. Frilet who emphasized the point that PPPs were tools, not a panacea, for projects and reiterated the running theme that PPP projects must focus on improving partnerships between the public and private sector.
The workshop imparted important lessons to demystify PPP. Although a tool to gain additional funding, the lectures emphasized the importance of equitable partnerships, noting that a successful PPP project required strong partnerships and was not "just about the money." Thus, sharing risks and carefully structuring clauses that designate clearly the roles and responsibilities for both parties are essential.
The five-day workshop was highly praised by the participants with 92% of participants giving the conference a rating of good or higher. And 84% of participants noted that they obtained new knowledge and skills from the workshop relevant to their current position and could be used in their future work.
This program aims to provide Asian infrastructure managers, planners and practitioners with perspectives, tools, frameworks, and key concepts on public-private partnerships (PPP) for infrastructure development, and strengthen their competency to develop and implement functional and strategic PPP programs and projects. This program will share PPP lessons from Europe but tailored to Asia's unique circumstances to allow participants to gain the perspectives, tools, frameworks, and key concepts needed to meet infrastructure needs in their home countries.
Development in infrastructure has become one of the most pressing challenges for accelerating economic development and social progress, especially in Asian countries. As globalism and regionalism ensues, tremendous private capital can be tapped for infrastructure projects. PPPs have become an important mechanism for responding to the challenges of infrastructure development. Asian countries are at different levels of development and not all countries are familiar with the great opportunities presented by PPPs in infrastructure development.
In the last two decades, the world has witnessed dramatic improvements in living standards among developing countries. Infrastructure investments played a critical role in this development process and have helped countries improve access to basic services, create jobs, and even shift to a more sustainable development trajectory. Yet, large infrastructure needs remain. In East Asia alone, one-quarter of the urban population lacks improved water access, sanitation, and durable housing and 170 million people lack access to electricity. PPPs are a policy option available to governments to improve the provision of basic services with involvement from the private sector and are thus an alternative to traditional full public provision of those services.
This five-day course-based training program, in collaboration between ADBI and CEFEB from 3 to 7 February, has been designed to improve the capacities of civil servants in designing, implementing and managing public private partnership programs and projects. This program takes into consideration the unique challenges faced by Asian countries and will feature the experience of Europe in PPP infrastructure reform, regulation and finance. This program aims to provide Asian infrastructures managers, planners, and practitioners with perspectives, tools, frameworks, and key concepts on PPP in infrastructure development, and to strengthen their competencies to develop and implement functional and strategic PPP programs and projects.
The course will cover the following topics:
- Institutional, economic, legal and contractual aspects of PPP
- Preparation of a PPP project: the range of options for concluding a PPP contract, procurement process and practice
- Key long term risks and opportunities
- The donor point of view
- Financial and regulatory framework of PPP
- Technical tour of a PPP project in Tokyo
- Improve capacities of civil servants in designing, implementing and managing PPP programs and projects;
- Feature the experience of Europe in PPP infrastructure reform, regulation and finance;
- Strengthen competence of Asian infrastructure managers, planners, and practitioners to develop and implement functional and strategic PPP programs and projects.
- Deepen the understanding of the role of PPP in infrastructure;
- Create a space to discuss and to share experiences;
- Create a network of colleagues from different countries to share ideas and innovation, and improve participant's capacity to make choices and decisions regarding PPP infrastructure development;
- Presentation materials and summary of proceedings to be uploaded to the ADBI website.
Senior government officials in charge of PPP infrastructure projects for selected Asian countries, members of ADBI advisory council, and ADB staff members: approximately 25.
How to register
By invitation only.
Actively participate in discussions and share views and experiences with others.
- Centre d'Etude Financiere Economique et Bancaire (CEFEB) of Agence Francaise de Developpement (AFD)
- Asian Development Bank (ADB)