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Explore emerging issues, opportunities, challenges, and lessons learned in local government public-private partnerships by David Locke. Gain insights into 4Ps, project funding, partnerships, and key lessons for successful PPP implementation.
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PPP in Local Authorities – 2 June 2003Trends and Predicted Forecasts David Locke
Presentation Outline • 4ps • Local authority PPP in context • Emerging issues • Opportunities for local government • Challenges and obstacles • Lessons learned
4ps Products Skills Development Project Support 4ps Gateway Reviews Wider Partnerships
Local Government PPP in Context Planned Total £12.3 billion Currently in Procurement Total £17. 5 billion 0.3 0.8 2 4 2.2 3 2.2 12 3.3 4 Defence Hospitals Local Government Schools Transport
£12 billion available until 2006 • 219 projects approved for funding • Nearly 120 projects signed • Some 85 projects operational • Some use of own resources • Wide range of projects – accommodation, infrastructure, ICT
Other Local Authority Partnerships • Partnerships for ICT services • Partnering arrangements • Development partnerships • Joint venture companies • Joint boards
Role for PFI and Partnerships • New options for service delivery • Opportunities for step change in services • Encourages focus on outcomes and outputs • Integration of design, build and operations • Additional source of funding • Best value
Emerging Issues • Value for money is proven in many sectors • Deal flow developing through bidding rounds • Project values are increasing • Bidders may avoid difficult sectors • Innovation is happening…but slowly • Projects are taking too long to deliver • Deficiencies in estimation of project costs • New joint venture approaches
Challenges and Obstacles • Procurement capacity in local government • Opportunities for sharing authority resources • Costing and optimism bias • Standardisation and project documentation • Design and sustainability • Revenue support arrangements • Central government arrangements
Lessons • Importance of sound ‘business case’ • Involve private sector at an early stage • Ensure that there is capacity to deliver • Use experience from operational project directors • Prepare - understand the key stages in the process • Use advice sensibly • Be realistic – costing, timetabling, bidder requirements
David Locke Telephone - 020 7808 1479 Fax - 020 7808 1499 E-mail - david.locke@4ps.gov.uk Artillery House Artillery Row Westminster London SW1P 1RT www.4ps.gov.uk