Engaging the Private Sector in Sustainable Urban Development - Frameworks for Sustainable Partnerships
Day / Time Wednesday, June 21st / 16:30 - 18:30
Event Description
The challenges of urban growth are too much and too important for governments alone and the private sector can play a key role in many aspects of urban development. This event will challenge local authorities and finance institutions, as well as other urban development partners around the world, to create favourable conditions for private sector engagement. Participants will benefit from the perspectives of the World Bank and the Canadian Council for Public-Private Partnerships. The Mayor of Porto Alegre, Brazil will explain why his city implemented a municipal Public-Private Partnership law ahead of most other cities in Brazil. Geomax International Inc., a Canadian information technology company, will provide a private sector perspective on working with municipalities around the world.
Session Language
English
French
Speakers
(Chair)Trevor Rees, LEAD International; Daniel Hoornweg, Senior Municipal Engineer, World Bank
Dale Richmond, President, The Canadian Council for Public-Private Partnerships
José Fogaça, Mayor of Porto Alegre, Brazil; Cyril Robitaille, Geomax International Inc.
Host Organization
Industry Canada
Host Organization Description
Industry Canada’s mission is to foster a growing competitive, knowledge-based Canadian economy. The department works with Canadians throughout the economy and in all parts of the country to improve conditions for investment, improve Canada's innovation performance, increase Canada's share of global trade and build a fair, efficient and competitive marketplace. Program areas include developing industry and technology capability, fostering scientific research, setting telecommunications policy, promoting investment and trade, promoting tourism and small business development, and setting rules and services that support the effective operation of the marketplace.
Website
Report
Title of Event: Engaging the Private Sector in Sustainable Urban Development – Frameworks for Sustainable Partnerships
Name of Organisation: Industry Canada
Date and time of the session: Wednesday, June 21, 2006 (16:30 – 18:30)
Key Highlights
Over 80 delegates participated in this networking event that challenged local authorities, finance institutions and urban development partners to create favourable conditions for private sector engagement. Where conditions are favourable, the private sector is already a key partner in sustainable urban development helping cities to overcome infrastructure deficits and urban development challenges.
Core issues
The Networking Event explored the role of private sector in overcoming urban development challenges with examples of successful partnerships and a presentation on guiding principles and favorable conditions for public-private partnerships (PPPs). Together, we discovered new ideas and we identified steps that local governments and urban development partners can take to turn ideas into action.
Main points raised by speakers
Trevor Rees, Senior Programme Manager at Leadership for Environment and Development (LEAD stressed that the challenges of urban growth are too much and too important for governments alone and that the private sector can play a key role in many aspects of urban development.
According to Mayor Fogaca, local governments must provide favourable conditions for private sector investment and show political will to collaborate with the private sector. Municipal PPP laws in Brazil are examples of this political will as it provides a legal framework and process for private sector engagement. Mayor Fogaca made it clear that PPPs are not the same as privatization. In Porto Alegre, the PPP law prohibits some public services from being privatized (ie water and sanitation).
Dan Hoornweg from the World Bank argued that WUF, with a cost of over CDN $30 Million, was made possible by funds derived mostly from the private sector either directly or indirectly. This provocative and deliberate comment emphasized the point that private sector’s contribution to urban economic activity is often under appreciated. Dan used specific examples from Colombia (Barranquilla and Cartagena) to demonstrate improvements in the delivery of municipal water services through private sector participation. What used to be known as the worst utilities in Latin America, are now considered the best in the region.
Dale Richmond, President of the Canadian Council for Public-Private Partnerships spoke about the infrastructure deficit in urban centers around the world and more specifically the infrastructure backlog in Canada. He defined public-private partnerships (PPPs), emphasized that PPPs are simply a means of delivering infrastructure and services, and explained how PPPs can benefit all partners. Public risk is reduced as private sector involvement increases in the PPP process. Some examples of PPPs in Canada were identified and Mr. Richmond then outlined favorable conditions for PPPs including political accountability, effective public sector management, civil society and media participation, private sector interface, and institutionalized checks and balances.
Cyril Robitaille, President of Geomax International Inc. explained how his company has been able to help municipalities around the world by integrating municipal data and geographic information that is often found scattered amongst numerous departments on different systems. Geomax has been able to help municipalities overcome redundancies and Cyril indicated that the process of data integration often breaks down barriers between municipal departments that operate as silos.
New Ideas Generated During Discussion
Private sector’s contribution to sustainable urban development is understated at the World Urban Forum. What can UN-Habitat do to increase the profile of this forgotten partner both at the World Urban Forum and at within the organization?
Explore the terms Public-Private Partnerships, Private Sector Participation and Privatization and why there is hostility and fear about “privatization” at a time when collaboration is needed to overcome the challenges of urbanization.
Infrastructure Deficits – who has them and how are they overcoming them?
Accountability – how do you measure and quantify the costs and benefits of private sector participation in urban projects? Baselines? Indicators?
Risk Tranfer - is risk really transferred? Who protects the taxpayer’s investments?
Land Development – when it comes to land development the private sector can become more innovative and creative by partnering with the public sector than working alone – what examples are there?
Process Steps
1) implement legislation that provides a framework for private sector engagement and show political will to collaborate (Fogaca)
2) provide appropriate incentives and contract conditions in order to attract the private sector to work on projects with medium size and small size municipalities. (Hoornweg)
3) guiding principals for a project’s success include project size and definition, competitive private sector market, value for money to the public and risk transfer. (Richmond)
4) political leadership, public sector involvement, and well-developed and communicated plans as well as a dedicated income stream can lead to successful PPPs. (Richmond)