PPP as innovation in the public domain

Report of UDITE/ PRIMO Europe Round Table, 25th April 2013, Office EY, Brussels, Belgium.

Ed Mallens and Karl Vanderplaetse | July 2013

PRIMO Europe thanks EY for their hospitality and a special word for Mr. Tristan Dhondt and Mr. Rob Ellermeijer. The round table was supported by Belfius, BNG, and our platinum partner, Risk Management Partners (RMP). We very much appreciate their investment and well-prepared contributions to this round table. The meeting was chaired by ir. Jack Kruf, President of PRIMO Europe. The overview of participants and the PowerPoint presentations used are included in the summary.

Innovation in PPP contracts, modern partnership, and constructive cooperation are topics that can stimulate new developments. It’s the challenge of finding new ways to use PPP contracts in the coming period as part of initiatives to get away from the financial crisis, according to the chairman. He framed the context of this meeting: “Public organizations could give the stimulus for new projects being realized via such contracts”.

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Public Sector Report 2009

The effects of the downturn

Philippe Auzimour, Sabrina Boshuizen en Jack Kruf | July 2009

In mid-2009, Alarm, Marsh, and PRIMO Europe joined forces by presenting the results of different surveys and round tables, which focused on the public risks companies and governments faced due to the downturn. This article combines this report’s highlights (selected by the editor). The extended survey gave an in-depth look at perceptions and actual risks directly after a massive financial crisis emerged.

The survey shows that risk complexity has increased: over 75% of participants reported that the volume and complexity of risks within their organisation have increased over the last 5 years. 700 Organisations were interviewed, spanning twelve countries and seven industry sectors. Of these organisations, 101 were in public entities. PRIMO Europe interviewed several people from public entity organisations and sent out a survey to public entities, to which 112 people responded. Also, two round tables were held, one in Amsterdam and one in Bournemouth. The results of all interviews, survey responses, and roundtables are included in this report.

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The Financial Crisis

An opportunity for balancing risks in Infrastructure Projects and Public-Private Partnerships?

Philippe Auzimour and Sabrina Boshuizen | December 2009

Partnership risk is seen as one of the main risks by Public Entities in the Risk Survey Marsh and PRIMO Europe conducted in the third quarter of 2009. The survey shows that 59% of participants rate partnership risk significant, a similar amount as for public liability and business continuity risks.

All over Europe, unsuccessful projects have increased by the downturn. As a result the number of transactions and the total value has gone down. The companies bidding for projects now find it difficult to raise the capital and finance to carry them out, and public entities have their own problems in this regard, as the institutions funding their debt are running into trouble. These issues will all have impact on the time it takes for a project to reach its financial close and will increase partnership risk, whatever the contractual arrangement.

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PRIMO Risk Management Award 2009

The Darlington Borough Council received the PRIMO Risk Management Award 2009. The borough’s approach demonstrates a holistic view of public values and their risks and government services to citizens. It links the government to its partners, is excellent at working, and is highly effective in delivering success. In Darlington, an innovative model has proved popular and introduced a common approach to managing risk within the Authority and all partnerships. It has also raised the risk management profile within the decision-making process for partnerships and improved service delivery.

One Darlington, Perfectly Placed

Interview with George Cornforth, Risk and Insurance Manager Darlington Borough Council

Inge Sebregts | December 2009

Partnership working and building relationships to improve the future is now fundamental in public service delivery. ‘One Darlington: Perfectly Placed’, Darlington’s Sustainable Community Strategy sets out a vision for Darlington, with partnership working key to its delivery. However, partnership working involves risks as well as opportunities and embedding risk management within the culture of partnerships and developing effective governance arrangements are therefore vital for their success.

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PPP is a mindset, not a way of building

Harry Sterk* | april 2010

The major differences between traditional and PPP projects, according to Harry Sterk, lie in how costs are defined and how building plans are developed. In a PPP project, total costs are assessed in light of the project’s lifecycle.

Harry Sterk

Traditionally, the focus is on initial construction costs and omits, for instance, maintenance and other ‘post-initial’ costs. The initiator doesn’t make a detailed plan but instead formulates what has to be done within a certain framework: the output specifications.

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The PRIMO Risk Management Award 2008

The award goes to the city of Saint-Étienne.

Gérard Combe | 2008

The city of Saint-Étienne has taken a renewing initiative to arm itself (the workforce) against the risk of a pandemic flu. This initiative is a pilot, a remedy to improve the processes. The initiative can be fully integrated into all running projects. Such a system aims to maintain an optimal level of services and simultaneously protect the workforce despite the risk of a lack of functioning.

Coat of Arms City of Saint-Étienne.

The challenge of this project consists of the ability of the employees to deal with a shortage of personnel. Moreover, the workforce has to anticipate being overburdened by the crises and a decrease in the risk of an epidemic spreading by leaving affected people at home. Communities are the first to deal with the consequences of such a crisis.

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A Brief History of Public Risk Management 

Towards a holistic approach 

Finn Kjaer Jensen | February 2007

It certainly is true that governments have practiced risk management, in a general sense of the term, for thousands of years. Ancient cities that built walls to keep out invaders were practicing an elementary (but sound) form of risk management. Indeed, risk management is a fundamental purpose of government – government is, to a considerable degree, risk management. Further, there are numerous activities in the public sector that can be characterized as risk management (immunization programs, defense policy), but which are entwined with other functions of government.

The Categories of Public Sector Risk Management 

To better appreciate the historical process that has led to the present risk management environment, it is useful to first understand the general framework of risk management in the public sector. 

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