public-private partnership. does it really work? lessons from ireland
TRANSCRIPT
Public-Private Partnership. Does it really
work? Lessons from Ireland
Richard Hamilton
17th September 2010
European Urban Summer School
www.urb.ie
twitter.com/UrbTownplanning
www.lifeafterroundabouts.blogspot.com/
• PPP definition:
• “A contractual arrangement between public sector organisations and private interests, with clear agreement on specific shared objectives, for the delivery of an asset or service that would otherwise have been provided through traditional public sector procurement processes and mechanisms”
Evolving PPP framework
• 3 main phases:
– 1986 to 1994 Taxation incentives
– 1994 to 1998 Changing Economic context
– 1998 to 2008 Celtic Tiger Economy
Ireland in the 1980s
Ireland
18% Unemployment
48% Unemployment in construction
Construction activity decline 20% 1982 - 86
Mass emigration
Dereliction in urban areas
Aims:
Political Motivation
Generate Development
Create Employment
Taxation led renewal
• 1986 Urban Renewal Act
– Taxation allowances for capital expenditure for construction set-off against income/corporation tax
– Rent allowances, Rates allowances
– Income tax relief for owner occupiers
– Taxation relief for investors
– Corporation Tax 10% in IFSC
– Incentive areas designated
Incentives to develop but no up front costs
International Financial Services Centre (IFSC) Dublin
Construction commenced 1988
By 2000:
Over 40,000 sq.m./ €152m investment
8,000 direct employees in
485 International Finance Companies
8,500 in related firms
€700m Corporation tax paid in 2002
1997 Dublin Docklands Development Authority formed
Temple Bar
11 Hectare city centre site – designated bus terminus
Cultural, artistic and entertainment quarter
Temple bar development Council - Area Action Plan – European City
of Culture 1991
Temple Bar Area Renewal and Development Act, 1991
Temple Bar attracted some €51.55m in EU and State funding, of
which €28.06m from European Regional Development Fund.
Celtic Tiger – Typical PPP model
Phase 3 1998 to 2008
• Full employment
• In-migration
• GNP growth of 8% per annum
• National Development Plan
• Programme for Prosperity and Fairness
• Urban Renewal based on Integrated Area Plans
Motivation for PPP?• Ideological. Engaging the private sector in the
delivery of predominantly state activities
• Overcome resource restraint
• Major infrastructure delivery
• Value for money
• Risk Sharing
• EU Maasricht Treaty 1997– Growth and Stability Pact
– Government deficits to be kept within the limit or reference value of 3%
– Eurostat Guidance – PPP is off Government Books
Urban Renewal Act 1998, extended incentive areas to local authority
housing
Eleven Acres, Ten Steps – ‘a brief from the People of Fatima to the
planners, developers and serviceproviders who will help shape the
renewal of Fatima’
PPP scheme
Design Build and Finance
• 150 social rented dwellings
• 70 affordable dwellings for sale to low-income households
• 396 private apartments for sale on the open market
• Neighbourhood centre, community services and recreation facilities
• €6.5 million towards the cost of a social regeneration
Fatima Mansions
The Digital Hub
3.6 Hectares
Objective = CREATING AN INTERNATIONAL CENTRE OF EXCELLENCE FOR KNOWLEDGE, INNOVATION AND CREATIVITY FOCUSED AROUND DIGITAL MEDIA ENTERPRISE
Integrated Area Plan 1998
Digital Media Development Ltd. (DMDL) to manage PPP
Media Lab Europe established in association with MIT
Urban Design Framework Plan 2002
Conflict between heritage and private
development proposals
2008 breakdown in Urban PPP
Market change
Breakdown in financing structures for
government and private sector
Cumbersome procurement, accounting
and legal arrangements
