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1 Public-private partnerships
are just what the name implies.
Public-private partnerships are a contractual arrangement whereby the
resources, risks and rewards of both the public agency and private company
are combined to provide greater efficiency, better access to capital, and
improved compliance with a range of government regulations regarding the
environment and workplace. The public's interests are fully assured through
provisions in the contracts that provide for on-going monitoring and oversight
of the operation of a service or development of a facility. In this way,
everyone wins -- the government entity, the private company and the general
public.
2 Public-private partnerships
are more common than you may think.
Public-Private Partnerships have been in use in the United States for over 200 years and thousands are operating today. These contractual arrangements
between government entities and private companies for the delivery of
services or facilities is used for water/wastewater, transportation, urban
development, and delivery of social services, to name only a few areas of
application. Today, the average American city works with private partners to
perform 23 out of 65 basic municipal services. The use of partnerships is
increasing globally because they provide an effective tool in meeting public
needs, maintaining a high level of public control, improving the quality of
services, and are more cost effective than traditional delivery methods.
3 They are an essential tool in
challenging economic times.
Even in the best of times, governments at all levels are challenged to keep
pace with the demands of their constituencies. During periods of slow growth,
government revenues are frequently not sufficient to meet spending demands,
necessitating painful spending cuts or tax increases. Partnerships can
provide a continued or improved level of service, at reduced costs. And
equally important, partnerships can also provide the capital needed for
construction of major facilities. By developing partnerships with
private-sector entities, governments can maintain quality services despite
budget limitations.
4 Successful partnerships can
lead to happy employees.
In many partnerships created today, public employees are retained and usually
at equal or improved benefits. One of the greatest areas of improvement for
employees is with opportunities for career growth -- private companies spend
two to three times more on training and personnel development than their
public-sector counterparts, as a way of gaining the maximum efficiency out of
every person, and the maximum amount of job satisfaction.
5 Successful partnerships can
lead to better public safety.
From Des Moines to Delhi, local governments have formed creative partnerships
with private companies to enhance the safety of its streets and its citizens.
By turning over the operation of parking meters or the processing of crime
reports to private-sector partners, police officers can spend more time on
the streets doing the jobs for which they are trained. This is particularly
important as terrorism has risen as a concern for many.
6 Partnerships give many
children better educational opportunities.
Public-private partnerships have been instrumental in constructing new school
buildings and developing teachers. By working with private development
companies, state-of-the-art facilities with a modern computer labs, gyms and
libraries have been constructed in areas with the greatest need. Often,
allowing the private sector to utilize publicly-owned underutilized assets for
commercial activities provides a major portion of the funding for these
projects. Today, a number of are addressing the problem of aging education
infrastructures in this way.
7 Drivers appreciate
public-private partnerships.
These are not easy times for the roads and highways in industrialized nations.
Increasing numbers of vehicles means more roadway wear and tear and
increasing traffic congestion. In countries like India, China and the United States, private-sector companies are working with the governments to build
roads, making it possible to finance construction and upkeep without having
to impose general tax increases. While tolling on one means of generating the
revenue to cover the investment, in a number of cases Transportation Oriented
Development (TOD) of adjacent properties can provide a significant portion of
the revenue stream.
8 Clean, safe water is achieved
through public-private partnerships.
The need for stringent health and environmental standards in developing
countries and the implementation of the Safe Drinking Water Act and Clean
Water Act in the USA presents difficulties for some local governments without
the budget flexibility to make major investments in water and wastewater
facilities. Public-private partnerships have enabled the construction of
state-of-the-art water management facilities, while using efficient
operations to hold down costs and provide a way of providing safer drinking
water.
9 Partnerships make the
information revolution accessible to more of the world population.
This is the age of information technologies, but there can be a hefty cost of
getting a system operating. Through public-private partnerships, many
governments are now able to fully participate in "E-government"
with their constituents, or effectively coordinate government activities and
budgets. Better service, improved tools and saving money are exactly what
public-private partnerships are all about.
10 Governments themselves are
the biggest supporters of public-private partnerships.
While there can be substantial misperceptions about the value of
partnerships, a look at who endorses them should clarify the picture. Federal
agencies like the United States Environmental Protection Agency, the
Department of Defense, and the Veterans Administration all use partnerships.
And the number of state and local governments using this tool is even
greater. For example, the U.S. Conference of Mayors is enthusiastically
working with private-sector providers to discuss ways to make partnerships
more effective. Numerous surveys indicate why -- governments traditionally
realize cost savings of 20 to 50 percent when the private-sector is involved
in providing services. This enthusiasm is spreading globally as the need to
provide cost-effective solutions to public problems is becoming more
prominent among emerging nations.
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