4.1 Different interpretations of what constitutes the 'private sector' were found:
4.1.1 Business associations and representative bodies
4.1.2 Individual businesses themselves
4.1.3 Small versus large, and formal versus informal businesses
4.1.4 'Operational' business versus 'corporate social responsibility' business
It was noted that different categories of the private business sector have different roles at different stages of PPPs (see later).
4.2 Some initiatives appealed to the operational side of business - their desire to make profits by running their business. Others the charitable side of business - CSR with indirect profit motives. These sides mean different things for PPPs.
4.3 Generally PPP initiatives achieved strong public, community and NGO/CBO involvement, but found private sector involvement more complex. Reasons:
4.3.1 Lack of history / experience of working together, absence of channels to communicate between government and businesses, mutual mistrust and skepticism
4.3.2 Limited understanding of how business operates (of what motivates them, how they think, how they operate)
4.3.3 Involving businesses either too early (before tendering) or too late (after opportunities were identified without business input) in the process
4.3.4 Hard to keep businesses involved all the way through the process
4.4 Some initiatives achieved good private sector involvement, in the identification of potential PPP projects and in designing guidelines and policies. Private participation and confidence in the initiative was higher.
4.5 Private sector involvement was stronger where projects were more commercially viable. One programme is focusing first on commercially viable projects to pave the way for more pro-poor projects to follow.
4.6 Having national and/or local government-business communication channels was very useful. Examples included local PPP Steering Committees (or similar bodies) and national PPP consultative bodies. But not 'talk shops'.
4.7 Involving high profile business leaders (national and/or local) in a PPP process seemed to increase credibility for business of the initiative.
4.8 Private sector involvement can be a two-stage process: first involving business representative organizations in initial PPP policy / identification; second involving individual businesses through competitive tendering for the PPP opportunities themselves.
4.9 PPP initiatives should avoid companies taking uncompetitive monopolistic positions - for example by being the only company involved.
4.10 The private sector often seeks central government guarantees for PPP projects. Guarantees must be treated carefully. Having a clear PPP policy helps.
4.11 One national programmes used business organizations to drive capacity building, awareness raising and to spread ideas among their members.
4.12 Sometimes external agencies (such as UNDP) could bridge mistrust between the public and private sectors, for example in Nepal and Namibia.
4.13 Government's should create conditions to improve certainty for the private sector (clear / consistent political support, putting policies in place).