WELCOME

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THE US PPP POLICY & THE

DEVELOPMENT OF PPP ACTIVITIES IN

THE USA

Student Presentation for PPP module

IBDEM

Rifat Ibne Jamal

10.12.2012

INTRODUCTION

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Why is today’s Presentation important? •Versatile application of PPP in USA •A country where private sector played a relatively larger part •Helpful for future mangers Objective/Learning Target To apprise you about the background history ,policy and development activities of US PPP sector in order to enrich our knowledge in the relevant field

OUTLINE

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Background and Brief History of PPP in USA

US PPP Policy

Important policy frameworks

Types of partnerships

Outcome of existing policy

National Council for PPP (NCPPP)

Development of PPP Activities in USA

Contemporary global standing

Major PPP sectors

PPP by states

Recommendation

Lessons Learnt & Discussion

Background and Brief History of PPP in USA

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• Dependence on private sector for throughout the 19h century

• Brooklyn Bridge of New York ( late 19th century)-built with private sector

capital

• Utilities developed by private sector (later nationalized at 20 th century)

• Substantial growth at 1980s in private –prison sector

• Insufficient growth of federal tax

• The current largest sector is water & waste water (15% of municipal

system)

• Recent higher profile in transport system

• Power Purchase Agreement (PPA)-developed in 1980s

Important Policy Frameworks

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1991

Intermodal Surface Transportation Act (ISTEA)

-Provisioning for non inter state toll road with private sector funding

1995

National Highway System Designation Act (NHS)

-Creation of state infrastructure banks for leveraging state funding

1998

Transportation Infrastructure Finance & Innovation Act (TIFIA)-

-Encouraged the use of private sector financing for major (US$ 100 million plus)

transportation project

2005

Safe, Accountable, Flexible, Efficient Transportation Act: A legacy for Users

(SAFETEA-LU)

Types of Partnership

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• O&M: Operations and Maintenance

• OMM: Operations, Maintenance & Management

• DB: Design-Build

• DBM: Design-Build-Maintain

• DBO: Design-Build-Operate

• DBOM: Design-Build-Operate-Maintain

• DBFOM: Design-Build-Finance-Operate-Maintain

• DBFOMT: Design-Build-Finance-Operate-Maintain-Transfer

• BOT: Build-Operate-Transfer

• BOO: Build-Own-Operate

• BBO: Buy-Build-Operate

• Developer Finance

• EUL: Enhanced Use Leasing or Underutilized Asset

• LDO or BDO: Lease-Develop-Operate or Build-Develop-Operate

• Lease/Purchase

• Tax-Exempt Lease

• Turnkey

Outcome of Existing Policies

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• Existing policies are not able yet to gear up PPP to its full swing

• There are still huge gap between demand and supply

• Many states are facing deficit

• Scope for further involvement

Infra-structure Deficit Facing State

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The national Council for Public Private Partnership

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- I

- In short called NCPPP

- A corporation dedicated to making a platform for

• Better co-ordination amongst partners

• Policy advocating

• Organize events (training, workshops, seminars)

Contemporary Global Standing

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Major PPP sectors

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Utility sector

-water

-power,

-waste disposal

• Transport sector

-roads

-bridge

-railway

• Social Infrastructure sector

-prison or correctional centre

• Military Infrastructure Sector

-barrack for soldier

-accommodation

PPP Activities by States

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Major Highway Projects

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Recommendation

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• Establish dedicated PPP units to tackle bottlenecks in the PPP process and protect the public interest

• Pass legislation and change the procurement culture to a more transparent and outcome based project selection process

• Work with the federal government to address technical assistance gaps on PPPs, on an as-needed basis

Research Question

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Do you think that excluding certain specific PPPs can help USA to reduce relevant policy complications and speed up rest

other PPP programs?

REFERENCES

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Project Finance Legal adviser Review 2004/2005

(www.projectfinancemagazine.com)

Yescombe, E. R. (2007). Public-private partnerships: Principles of policy and

finance,1- 41

Emilia,I., Robert, P. (2011) :Moving Forward on Public Private Partnership : U.S.

and International Experience with PPP Units

Class presentation by Prof. Horst Brezinski (PPP module-winter semester 2012)

Thank you!!

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