Public-Private Partnership in Water Supply of DKI Jakarta

To control the “uniqueness” risk in Public-Private Partnership (PPP) projects of transportation infrastructure, we design a simplified “uniqueness” contract model by incorporating the impact of the initial investment which is based on the Bertrand model. The nonlinear programming method is adopted to derive the optimal “uniqueness” contracts for incumbent private capital, the public, and the social welfare, respectively. The simulation results show that the achievement of the optimal “uniqueness” contract is essentially the result of a compromise between the private capital, the public, and social welfare. The extent to which such a contract reduces the probability of “uniqueness” risk mainly depends on the equilibrium relation between the interests of private capital and the public. The initial investment is not related to the government default when the contract does not take into account the interests of the private capital. Furthermore, the “uniqueness” contracts between private capital and the government are mainly for anticompetitive purpose in the PPP market of transportation infrastructure. Unless the contract terms focus on the improvement of social welfare, entering a “uniqueness” contract will cause social welfare losses.

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Ten Years of Public Private Partnership in Jakarta Drinking Water Service (1998-2007): Eastern Jakarta Drinking Water Service by Thames PAM Jaya

10.26686/wgtn.16959520.v1 ◽

2021 ◽

Author(s):

◽

Renalia Iwan

Keyword(s):

Drinking Water ◽

Private Sector ◽

Public Private Partnership ◽

Capital City ◽

Cooperation Agreement ◽

Private Partnership ◽

Water Service ◽

The Public ◽

The Government

<p>Clean water is crucial for survival and economic development. Everyday, people need a sufficient amount and a suitable quality of water for drinking, cleaning and sanitation. However, rapid population growth, pollution and climate change have made water a scarce resource, which everyone competed. The United Nations Development Program's recent report stated that more than 1 billion people, up to this day, are without access to safe drinking water and sanitation. Lack of access to clean water can cause social, economic and health problems. Therefore, there is an urgent need to find solutions to this problem. To solve the problem of water scarcity, International Financial Institutions introduced Public Private Partnership (PPP) in the management of water sector. PPP is a concept which involves private sector participation in the management of drinking water service. In PPP, water is recognized as an economic good which is recognised under the 1992 Dublin Principles. It was hoped that by placing an economic value on water, efficient and equitable use of water can be achieved. It was also hoped that it would encourage conservation and protection of water resources. However, studies show opposite results from the Principle. Jakarta drinking water service is one example of a failed PPP. Jakarta, the Capital City of Indonesia, adopted Public Private Partnership (PPP) in the management of its drinking water service in 1998. The twenty five years concession contract was granted to Thames Water International (TWI) and its local partner, Kekarpola Airindo (KATI), now known as Thames PAM Jaya (TPJ). This company is responsible for the management of Eastern Jakarta drinking water service. This research was aimed to evaluate Thames PAM Jaya (TPJ) performance on water provision in Eastern Jakarta, ten years into the twenty five years concession by undergoing a qualitative research method. A range of semi-structured interviews were used to: gain perceptions and opinions of each stakeholder on the Public Private Partnership (PPP), identify the advantages and/or disadvantages of the water privatization in the capital city and to identify the constraints and limitations facing the private sector. Participants involved in this research include Government officials, Thames PAM Jaya, Jakarta Water Supply Regulatory Body (JWSRB), non governmental organizations (NGOs), and TPJ customers. The analysis concludes that Public Private Partnership (PPP) in Eastern Jakarta does not bring improvement to the region's drinking water service. Thames PAM Jaya (TPJ) had failed in fulfilling targets set in the Cooperation Agreement. Lack of transparency and public tendering in the process of forming the public private partnership may have contributed to this poor performance because the proper search for a competent partner was short circuited. Political interference in the bidding process is a form of corruption in which the company granted the contract was clearly complicit. The water tariff in Jakarta is not only the highest in Indonesia, but it is also the highest in the Southeast Asia region. The quality of its service, however, is still of poor quality. Limited access to water due to its high price and low service has resulted in water hacking and the on-going use of groundwater. The Cooperation Agreement, on the other hand, has locked the Government of Indonesia into a long term partnership which is very disadvantageous for the government and the residents. Private sector involvement should be the last alternative to improve the management of the water supply service in Indonesia.</p>

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Public-Private Partnership in Health Care and Its Impact on Health Outcomes: Evidence from Ruharo Mission Hospital in Uganda

International Journal of Social Science Studies ◽

10.11114/ijsss.v6i12.3911 ◽

2018 ◽

Vol 6 (12) ◽

pp. 79

Author(s):

Justus Asasira ◽

Frank Ahimbisibwe

Keyword(s):

Health Care ◽

Health Services ◽

Health Outcomes ◽

Public Private Partnership ◽

Private Partnership ◽

The Public ◽

Public Facilities ◽

Mission Hospital ◽

Private Providers ◽

The Impact

Background: Uganda’s government has embraced private provision of social services including health care. The involvement of private providers is an indicator that the public facilities are not sufficient enough to meet the high demands of the ever-increasing population. This has been done through partnership arrangements. This paper discusses the impact of Public-Private Partnership (PPP) in health care outcomes of the local population and opportunities for improving health outcomes, challenges facing private providers in a low income setting.Methodology: Data were collected using qualitative methods in January 2017 through interview (using semi-structured questions) at Ruharo Mission Hospital (RMH) administration, health workers, district health office and used a structured questionnaire for patients/clients. This was a nascent study, with a sample size of 22 respondents. The hospital has three departments; Organized Useful Rehabilitation Services (OURS), General Medical Services (GMS) and Eye Department (ED). All the departments of the hospital were represented in this study.Results: The hospital is a Church of Uganda project and runs a budget of 5 billion shillings ($ 1,351,351.4) annually, had multiple sources of funding including PHC funding annually and that, health services were delivered adequately to clients. Much as some services were accessed at no costs, other services like eye treatment were found expensive on the side of clients. The hospital’s hybrid mode of delivering health services through outreaches and facility-based services was cherished, however it had no ambulance and relied only on a hospital van.Conclusions and Recommendations: Our study concluded that if private providers are supported under the partnership arrangement, they can adequately deliver services to the clients and decongest the public facilities. We recommend that the government devote funds to support the hospital through employing more sub-seconded staff, procuring medicines, and ambulances to enable it to subsidize services especially eye treatment and other services not supported under the partnership.

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Evolution of the mechanism of regulation owing to development road economy on the basis of innovative principles public-private partnership

Problems of Innovation and Investment Development ◽

10.33813/2224-1213.23.2020.5 ◽

2020 ◽

pp. 44-53

Author(s):

Vdovenko ◽

Korobova ◽

Pavlenko

Keyword(s):

National Economy ◽

Public Private Partnership ◽

The State ◽

Theory And Practice ◽

Investment Activity ◽

Private Partnership ◽

The Public ◽

The Road ◽

Road Development ◽

The Impact

Subject of research – relations in the process of improving the mechanism of regulation of road development in Ukraine and putting into practice proposals to ensure innovative approaches and modernization of the road system on the basis of public-private partnership are formed. The purpose of the article. The scien- tific and methodological and practical proposals with the purpose of applying the mechanism of regulation of the road economy development as a promising of the national economy have been developed. The methodology of the work. The theoretical and methodological basis of the research is the system of both general scientific and special methods of scientific cognition, fundamental provisions of modern economic theory and practice. In scientific research such methods as mono- graphic in formulating approaches that the development of the road economy de- pends not only on the level of economic development, but also on the influence of regulatory mechanisms that are applied, economic and statistical – in determining and calculating the concession payment for the right to management are used. The results of the work – the scientific results of the improved basis of development of the national economy through the creation of an effective mechanism for the implementation of new rules and tasks in the system of regulation in the field of road economy are proposed for application. Conclusions. We propose modern mea- sures and tools for shaping the innovative environment, and we propose to intro- duce such rules that would meet the interests of the authorities, increase the level of protection of interests of private investors and the state in the implemen- tation of public-private partnership projects. The advantages in developing mech- anisms for guaranteeing public-private partnership project financing by the state partner during the whole project implementation period are substantiated; mecha- nism of fair compensation in case of early termination of the public-private part- nership contract at the initiative of the state partner in order to compensate for the reasonable losses of the private partner. The scientific-methodological and practical proposals for the purpose of application of the mechanism of regulation of the road development are revealed. It is proved that due to the impact of mod- ernization transformations, the public-private partnership can play a dual role as an institutional innovation and has every reason to combine both the modernization of investment activity and the modernization of the regulatory mechanism for the purpose of evolutionary transformations in the leading spheres of the national economy.

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FEATURES OF PUBLIC-PRIVATE PARTNERSHIP AS A MECHANISM FOR IMPLEMENTING A NEW REGIONAL POLICY FOR THE FUNCTIONING AND DEVELOPMENT OF THE ROAD SECTOR

SCIENTIFIC BULLETIN OF POLISSIA ◽

10.25140/2410-9576-2020-2(21)-73-82 ◽

2020 ◽

pp. 73-82

Author(s):

Inna Oleksandrivna Khomenko ◽

◽

Lyudmila Nikolaevna Volynets ◽

Halyna Olehivna Lysenko ◽

◽

...

Keyword(s):

Legal Framework ◽

Public Private Partnership ◽

Private Partnership ◽

The Public ◽

The Road ◽

Road Management ◽

Global Pandemic ◽

Effective Activity ◽

Main Activity ◽

The Impact

This article reveals the basic concepts, principles, significance of public-private partnership (PPP), its significance, main provisions and importance for the functioning and development of the road sector in Ukraine. The main advantages of the functioning of the public-private partnership system are also given, the legal framework and the main principles for effective activity are analyzed. Examples of successful global public-private partnership projects in the field of road management, which are the basis for determining the amount of tolls on public roads for vehicles, are outlined. The agreements concluded by administrative institutions on the basis of public-private partnership are described.The main activity of the state road fund, sources of its financing and distribution of funds are investigated. The main debt obligations of the road industry and their further impact on the development of public-private partnership in Ukraine have been identified. The main problems, the reasons for the inefficiency of public-private partnership in thefield of road management are clarified and effective ways of development and solution of complex issues are suggested. The analysis of the main factors influencing the development of public-private partnership of Ukraine is carried out and the ways of elimination of negative factors are given. The principles of operation and essence of the first six pilot transport projects of Ukraine and further increase of their number, which were developed taking into account world standards on the basis of requirementsof both parties, are considered. The impact of the global pandemic on the traffic of different countries is revealed. There are examples of companies that were able to resume their activities and increase the economic rating during the easing of quarantine restrictions. The main ways to improve the functioning of the road industry of Ukraine are proposed.

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CRITICAL ORGANIZATIONAL SUCCESS FACTORS FOR PUBLIC PRIVATE PARTNERSHIP PROJECTS – A COMPARISON OF SOLICITED AND UNSOLICITED PROPOSALS

Journal of Civil Engineering and Management ◽

10.3846/13923730.2013.802715 ◽

2015 ◽

Vol 21 (2) ◽

pp. 131-143 ◽

Cited By ~ 26

Author(s):

Sungmin Yun ◽

Wooyong Jung ◽

Seung Heon Han ◽

Heedae Park

Keyword(s):

Risk Sharing ◽

Success Factors ◽

Project Success ◽

Public Private Partnership ◽

Mitigation Strategies ◽

Organizational Success ◽

Private Partnership ◽

Project Participants ◽

The Impact ◽

Practical Recommendations

Public Private Partnership (PPP) projects are typically initiated through solicited or unsolicited proposals. The difference between the processes according to the proposal mode often leads to different levels of involvement and responsibilities for the public and private sectors. However, no robust research exists to capture the differences, depending on the proposal mode, in the roles and involvement of project participants and the impact of those differences on project success. This study intends to explore the critical organizational success factors contributing to the success of PPP projects according to the proposal mode and to provide practical recommendations for project success from organizational perspectives. To assess the factors, 141 questionnaire surveys were conducted with participants in 32 PPP projects. The major findings indicated that “Project Implementation Capability” had the most critical influence on solicited projects, whereas “Risk Sharing and Mitigation Strategies” was the most significant in unsolicited projects. In addition, “Interorganization Coordination” among project participants was essential to the success for both solicited and unsolicited projects. Government roles and involvement were also critical, although their contributions were relatively less important than other critical organizational success factors. Based on the findings, practical recommendations were provided for the success of solicited and unsolicited projects.

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Ten Years of Public Private Partnership in Jakarta Drinking Water Service (1998-2007): Eastern Jakarta Drinking Water Service by Thames PAM Jaya

10.26686/wgtn.16959520 ◽

2021 ◽

Author(s):

◽

Renalia Iwan

Keyword(s):

Drinking Water ◽

Private Sector ◽

Public Private Partnership ◽

Capital City ◽

Cooperation Agreement ◽

Private Partnership ◽

Water Service ◽

The Public ◽

The Government

<p>Clean water is crucial for survival and economic development. Everyday, people need a sufficient amount and a suitable quality of water for drinking, cleaning and sanitation. However, rapid population growth, pollution and climate change have made water a scarce resource, which everyone competed. The United Nations Development Program's recent report stated that more than 1 billion people, up to this day, are without access to safe drinking water and sanitation. Lack of access to clean water can cause social, economic and health problems. Therefore, there is an urgent need to find solutions to this problem. To solve the problem of water scarcity, International Financial Institutions introduced Public Private Partnership (PPP) in the management of water sector. PPP is a concept which involves private sector participation in the management of drinking water service. In PPP, water is recognized as an economic good which is recognised under the 1992 Dublin Principles. It was hoped that by placing an economic value on water, efficient and equitable use of water can be achieved. It was also hoped that it would encourage conservation and protection of water resources. However, studies show opposite results from the Principle. Jakarta drinking water service is one example of a failed PPP. Jakarta, the Capital City of Indonesia, adopted Public Private Partnership (PPP) in the management of its drinking water service in 1998. The twenty five years concession contract was granted to Thames Water International (TWI) and its local partner, Kekarpola Airindo (KATI), now known as Thames PAM Jaya (TPJ). This company is responsible for the management of Eastern Jakarta drinking water service. This research was aimed to evaluate Thames PAM Jaya (TPJ) performance on water provision in Eastern Jakarta, ten years into the twenty five years concession by undergoing a qualitative research method. A range of semi-structured interviews were used to: gain perceptions and opinions of each stakeholder on the Public Private Partnership (PPP), identify the advantages and/or disadvantages of the water privatization in the capital city and to identify the constraints and limitations facing the private sector. Participants involved in this research include Government officials, Thames PAM Jaya, Jakarta Water Supply Regulatory Body (JWSRB), non governmental organizations (NGOs), and TPJ customers. The analysis concludes that Public Private Partnership (PPP) in Eastern Jakarta does not bring improvement to the region's drinking water service. Thames PAM Jaya (TPJ) had failed in fulfilling targets set in the Cooperation Agreement. Lack of transparency and public tendering in the process of forming the public private partnership may have contributed to this poor performance because the proper search for a competent partner was short circuited. Political interference in the bidding process is a form of corruption in which the company granted the contract was clearly complicit. The water tariff in Jakarta is not only the highest in Indonesia, but it is also the highest in the Southeast Asia region. The quality of its service, however, is still of poor quality. Limited access to water due to its high price and low service has resulted in water hacking and the on-going use of groundwater. The Cooperation Agreement, on the other hand, has locked the Government of Indonesia into a long term partnership which is very disadvantageous for the government and the residents. Private sector involvement should be the last alternative to improve the management of the water supply service in Indonesia.</p>

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Influencing Factors on Profit Distribution of Public-Private Partnership Projects: Private Sector’s Perspective

Advances in Civil Engineering ◽

10.1155/2018/2143173 ◽

2018 ◽

Vol 2018 ◽

pp. 1-10 ◽

Cited By ~ 4

Author(s):

Jing Du ◽

Hongyue Wu ◽

Lei Zhu

Keyword(s):

Private Sector ◽

Influencing Factors ◽

Risk Sharing ◽

Public Private Partnership ◽

Public And Private ◽

Private Partnership ◽

Effort Level ◽

The Public ◽

Profit Distribution ◽

Management Ability

As an important issue in the public-private partnership (PPP) projects, the profit distribution has a critical impact on both the public and private sectors. Moreover, the influence of the private sector on the profit distribution of PPP projects cannot be ignored because the private sector are the implementers of PPP projects and responsible for the life-cycle performance and management of PPP projects. Therefore, this study aims at (1) investigating the influencing factors of the profit distribution of PPP projects from the private sector’s perspective and (2) analyzing the relationships between the factors and the profit distribution by the qualitative comparative analysis (QCA). The results first showed that the five key influencing factors on the profit distribution from the private sector’s perspective were the risk sharing, financing ability, investment, management ability, and effort level. Moreover, the results indicated that the risk sharing was the most important factor that had a positive impact on the profit distribution. Furthermore, the strong management ability and the high ratio of investment were identified as critical factors that led to a larger proportion of profits distributed to the private sector. In addition, the financing ability and the effort level of the private sector should also be considered in the profit distribution plan. The findings first contributed to the body of knowledge on the influencing factors of the profit distribution in PPP projects. In addition, this study is the first attempt of exploring the characteristics of the private sector under the context of profit distribution of PPP projects and using the QCA method to enrich the theoretical research. Thus, the findings would help the private companies improve their abilities and ensure their profits. Besides, the public and private sectors can make appropriate profit distribution proposals in practice based on the conclusion of this study.

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