The UK is regarded as a pioneer in the development of public private partnerships (PPPs) and one of the most advanced users of PPPs in the world. PPPs are at the heart of the UK's successful public service reform agenda. It is on this basis that many countries are designing and developing PPP projects based on the UK model. Countries - and states within countries - thinking about PPPs are looking to the UK PPP experience to help advise and develop their own models, presenting real opportunities for UK firms to develop markets overseas.
PPPs have proved their worth by bringing about improvements in public service quality through shorter delivery times, better value for money and increased innovation through the use of competition across a range of sectors. This does not mean that developing a PPP market is easy: significant political, fiscal and institutional hurdles must be overcome in order to move from a traditional, public sector model of public service delivery towards one in which public, private and increasingly third sectors work together.
Despite these challenges, PPP markets continue to grow apace. A variety of countries now use them to deliver public services - and the range of PPP models employed is broad. Some countries are still in the early stages of using PPPs and are focusing on infrastructure and building projects, while others are at the stage of creating PPP units similar to the one within the UK Treasury. This report outlines the major models used and the ways in which they have been developed.
The CBI recognises the commitment to public service reform that has been shown by successive UK governments. Without this, the PPP market in the UK would not have reached the stage it is at today. The challenge now is to build on this success, in the UK and internationally. With a growing interest in PPPs around the world a strong export market for UK skills is developing. One priority we identify is the need for all politicians to commit to promoting the UK PPP model abroad and working with businesses in developing public service markets overseas, in particular taking on a stronger support role through UK Trade and Investment and other bodies.1
Recognising that the UK can learn from other countries such as Australia and Japan is just as important as championing the success of the British experience. This report does not just champion the UK PPP model - it showcases best practice from around the world to which we should all be looking to continuously improve the way public services are delivered.
The report also draws on 'lessons learnt' by the UK and other countries in developing PPP markets to identify key recommendations that all countries should follow when moving forward with PPPs.
KEY RECOMMENDATIONS |
All countries engaged in or looking to develop PPPs should:
1 | Build on models other countries have tried and tested |
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2 | Develop high-quality, outcomes-focused public procurement managed by skilled professional staff |
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3 | Understand the needs and capacity of the market |
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4 | Ensure sustainable deal flows through managed markets to encourage new providers |
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5 | Use innovation as a means of delivering service improvements and value for money |
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6 | Create governance arrangements that are ft for purpose |
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7 | Move towards a competitive neutrality model that establishes a level playing field for all providers. |