Working Group Report

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19th April 2013

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“A public-private partnership (PPP) is a contractual agreement between the public and the private sectors, whereby the private operator commits to provide public services that have traditionally been supplied or financed by public institutions. The ultimate goal of PPPs is to obtain more ‘value for money’ than traditional public procurement options would deliver.”

Often, PPDs i.e. public private dialogue forums such as the SBF are mistakenly referred to as [being] PPPs. Strictly speaking, PPDs are not PPPs although they retain the “collaborative” feature of PPPs.

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CategoryIntervention Logic Verifiable Target

2. Project Purpose 2.1 Government implementation efficiency of infrastructure services (i.e. projects) improved

2.1.1 % of policy projects finished within planned time frames and budgets

3. Expected Results 3.1 Improved procurement legislation enforced

3.1.1 At least xxx% of tenders are publicised 

  3.2 Public sector projects are more efficiently executed  

3.2.1 At least xxx% of Policy projects are funded annually [according to agreed quality standards]

  3.3 [More] infrastructure (roads, bridges, education services, water) project risks borne by private sector providers

3.3.1 xxx% of publicly tendered projects must be PPP-financed. 

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Activities Outputs Resources4.1 Develop and execute a PPP awareness campaign in Suriname

4.1.1 Highlight examples of PPPs in other countries via PPP seminars

4.1.2 Establish the rationale behind setting up PPP Unit

4.1.3 Identify legislative constraints to be removed to promote PPPs

4.1.1.1 CUS, with assistance from a PPP expert to promote PPPs via seminars with public and private sectors in 2013 4.1.2.1 CUS with expert 

4.1.3.1 CUS with expert

4.2 Carry out a needs analysis, identify potential PPPs inventory (i.e. projects or programmes) and prioritise them

4.2.1 Identify examples of inventory of PPP projects in Suriname

 4.2.2 Catalogue (i.e. list) Government’s investment projects as PPPs

4.2.3 Catalogue public services that could be (re) classified as PPPs

4.2.1.1 CUS, with expert, to carry out cataloguing of potential inventory of PPP projects in Suriname in 20134.2.2.1 As above  4.2.3.1 As above 

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Activities Outputs Resources4.3 Establish a PPP Unit within Government

4.3.1 Identify examples of PPP units and how they work.

4.3.2 Establish operating rules of the Unit.

4.3.3 Create a law to give the Unit a legal basis.

4.3. 4 Train public/private officials on benefits of P3 model

4.3.1.1 CUS and IADB develop ToR and hire an expert to establish PPP Unit in 2013 4.3.2.1 As above  4.3.3.1 As above 3.4.1 As above

4.4 Establish a PPP policy framework

4.4.1 Develop rationale (better services, Value For Money) and PPP strategy/appproach

4.4.1.1 CUS/IADB develop ToR and hire expert to establish policy framework

4.5 Strengthen (i.e. upgrade) Government’s procurement laws

4.5.1 Continue to advance the upgrading of procurement laws

4.5.1.1 Ministry of Finance and Kabinet of Vice President

4.6 Develop legislation to grant public entities powers to contract out services under PPPs

4.6.1 Obtain legal opinion regarding the need for new or amended legislation

4.6.1.1 CUS/IADB expert and all Ministries - and then National Assembly in 2013

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Activities Budget (Costs)

4.1 Develop and execute a PPP awareness campaign in Suriname

Costs for a PPP expert to provide phased interventions over six months of 15 working days per month inclusive of fees, per diem and airfare costs (estimated at US$103,200)  

4.2 Carry out a needs analysis, identify potential PPPs inventory (i.e. projects or programmes) and prioritise them

Included in the estimate above (for all three outputs under 4.2)

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Activities Budget (Costs)4.3 Establish a PPP Unit within Government

For all 4.3, 4.4 and 4.6 outputs: Consultant to set up and run the PPP Unit for up to three years: estimated costs, inclusive of fees, housing and airfares and Personal Effects ocean freight costs: US$170,000 x 3 years = US$510,000. Estimated administrative and support costs of PPP Unit to be established by CUS/Kabinet of Vice President

4.4 Establish a PPP policy framework See above

4.5 Strengthen and improve (i.e. upgrade) Government’s procurement laws

In-progress. No additional funding required

4.6 Develop specific PPP legislation or amend existing legislation to clarify that public entities have the powers to contract out services under PPPs

Costs already estimated under 4.3 above

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Pre-conditions for Public Private Partnership program

Government has to formally endorse the introduction of the PPP model to Suriname. Establish the baseline information as at 1 January 2013 on: 1. Percentage of Policy Measures projects finished within planned time frames and budgets in 2012.2. Percentage of tenders that were publicised in 20123 Percentage of policy projects funded in 20124. Percentage of tendered projects that were PPP-financed in 2012

Establish annual milestone targets for next 5 years for increases in:1. % of tenders publicised2. % of Policy projects funded3. % of publicly tendered PPP projects