Public Private Partnerships

government capacity building: Cambodia

"We've got to move beyond the idea that the public and private sectors are at odds. Government has to lay the groundwork for private equity to productively invest in things like education. It's a partnership, not a battle.” — Sebastian Pinera

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PPP Capacity Building: Cambodia

Challenge

The Government of Cambodia wanted to use Public Private Partnerships to improve the quality and efficiency of utility services, but it also knew that this approach had some drawbacks. PPP projects can be more expensive and complex than traditional government projects, and they can also create social and political problems if they involve raising tariffs or displacing people. Moreover, the Government still had to answer to the public for the performance of the utility services, even if private partners ran them. Therefore, the Government faced the challenge of how to balance these risks and benefits of PPP.

Strategy

We collaborated with the Government to create and run a Capacity Building Program: Training and Support under the Framework for Improving Governance in the Management of Private Participation in Infrastructure in Cambodia. This program enhanced the skills and abilities of central and local authorities to manage, deliver, and implement PPI transactions in a fair, transparent, and competitive way. We also prepared draft PPP contract models that covered all the issues and risks that the Government and the private sector had to agree on and address in any PPP process. The models came with detailed PPP Contract guidance notes to help the local and central government bodies to participate and manage effectively.

Transformation

The Government and officials received a detailed risk management process for developing, bidding, and managing potential PPP projects, including templated contract models and guidance notes for future reference. This process aimed to ensure that the PPP projects aligned with the Government's strategic objectives, delivered value for money, and mitigated the risks associated with complex and long-term contracts. The Government and officials also consulted with various stakeholders, such as private sector partners, civil society organizations, and beneficiaries, to solicit feedback and input on the design and implementation of the PPP projects.

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