2.2 Solving PPP governance issues through good governance practices

The goal is making PPP successful, where the outcome of success is the achievement of public good the generation of business/market value. Indeed, each of these outcomes is the results of the sum of variable dependent on the quality of institutions, the capability of its actors, the legal, and economic frameworks to which PPPs 9and eventually PPP laws) are parts of. Yet they are also the consequences of governance independent variables that when applied to dependent variables serve to enhance the success of PPPs.

The lack of transparency spurs a sense of distrust over service-users and citizens that fear becoming objects of profit making calculus; staff involved into the PPP transition that fear loosing their job or experiencing worse conditions; politicians that fear loosing control over policy making while remaining the ultimate political responsible for the service provision.

To be credible, aligning the public interest in achieving a quicker and more efficient delivery of infrastructure services with the private interest in entering into continued business transactions and new financial deals, must therefore count with the trust not only of the partners but also of community as a whole. The undertaking of long term business relationships with private partners under highly complex contractualization of bundled infrastructure arrangements, in addition to the vast financial commitments being made by the governments in the name of the citizens, requires their participation and understanding as a mandatory element. Users and affected stakeholders must have the confidence in both the public and private partners' ability in serving the public32 interest first.33 Transparency and accountability must forge their trust which need for them to continue to operate effectively and not be undermined along the lifecycle of the PPP.

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32 HODGE G. and FLINDERS argue that PPPs may offer governments a way of achieving short term gains, but with longer term risks or even losses in terms of democratic and political costs. HODGE G. (2002), Who Steers the State When Governments Sign Public-Private Partnerships?, The Journal of Contemporary Issues in Business and Government, 8 (1), 5-18. FLINDERS, M., cit.

33 BREWER B. - HAYLLAR M.R., (2005), "Building public trust through public-private partnerships", International Review of Administrative Science, 71, pp.476; HODGE G.A. - GREVE C. (2007), "Public private Partnerships: An International Performance Review", Public Administration Review, May-June, pp.551