Public Private Partnership is a useful tool and mechanism for successful infrastructure projects to deliver better services.

1. HOW CAN PUBLIC PRIVATE PARTNERSHIPS HELP
BRIDGE THE INFRASTRUCTURE GAP IN SRI LANKA
Assignment for World Bank Group Course
How Can PPPs Help Deliver Better Services?
By Hillary N. Fernando
Colombo – Sri Lanka
June 2015

2. INTRODUCTION
This presentation focuses on Sri Lanka’s infrastructure challenges and how PPPs can
help deliver better infrastructure services.
Key Focus context areas are:
• Infrastructure gap ( ie: poor quality - inadequate - inefficient - unreliable - aging
- badly managed infrastructure) is a major challenge to economic growth,
particularly in developing countries like Sri Lanka.
• Public procurement alone cannot meet the demand for infrastructure
development needs.
• Public Private Partnerships (PPP) offer a useful tool and mechanism to meet
infrastructure investment project challenges
• With good frameworks, institutional support and political champions PPPs can
help governments in the infrastructure development
Source: https://class.coursera.org/effectiveppp-001/lecture

3. INFRASTRUCTURE NEEDS IN SRI LANKA
 Sri Lanka’s economic growth is expected to average 7% a year in 2015-19. Its
infrastructure investment needs are estimated at about; $4 billion to $7 billion
a year, or 4% to 7% of its GDP.
 Key sectors of infrastructure needs that could be developed as a PPPs are;
* Energy * Transport * Water & Sanitation
* Medical Services * Telecommunications * Waste Management
 The Government of Sri Lanka is increasingly looking for international partners
to provide long term infrastructure funding to supplement domestic resources.
 Even 6 years after ending civil war in the North & East, the government needs
to build private sector confidence to join in PPPs for infrastructure projects.
Source: http://www.adb.org/countries/sri-lanka/main

4. Global Infrastructure Gap – Some Facts

5. What does Public-Private -Partnerships do?
Public-private partnership can help to:
Improve access to
basic services
1• Accelerated construction
• On-time and On-budget delivery
• Shifting risk to private sector
• Regular maintenance and
upgrade
Increase quality and
efficiency
2
• Higher quality service standard
• Better identification and
allocation of risks
• Sharing risks with private
partner
• Increased efficiency of facilities
and services
• Access to best practices and
private expertise
Mobilize capital
3• Access to new private financing
• Better budgetary efficiency
• Value for money
Source: http://www.ifc.org/wps/wcm/connect/AS_EXT_CONTENT/What+We+do/IFC+and+PPPs

6. Source: https://class.coursera.org/effectiveppp-001/lecture

7. Ingredients to a successful PPP

8. What can Sri Lanka do to benefit from PPP frameworks
• Sri Lanka should use Public-Private Partnerships (PPPs) as a potential mechanism for government
to procure and implement public infrastructure and/ or services using the resources and expertise
of the private sector.
• Sri Lanka is facing challenges due to lack of good infrastructure and need for more efficient
services, a partnership with the private sector can help foster new solutions and bring finance.
• PPPs combine the skills and resources of both the public and private sectors through sharing of
risks and responsibilities. This will enable Sri Lanka’s government to benefit from the expertise of
the private sector, that allows them to focus instead on policy, planning and regulation by
delegating day-to-day operations.
• In order to implement successful PPPs in Sri Lanka, a careful analysis of the long-term national
infrastructure development objectives and risk allocation is essential.
• The legal and institutional framework in the country also needs to support this new model of
service delivery and provide effective governance and monitoring mechanisms for PPPs. A well-
drafted PPP agreement for the projects should clearly allocate risks and responsibilities.
• Sri Lanka can to get advice for its PPP programme from infrastructure resource centres of World
Bank, Asian Development Bank etc and for setting up a central PPP Unit to spearhead its
infrastructure development.
Learning Resources : World Bank Group Open Learning Course 2015: How can PPPs help deliver better services?

9. PPP Strategy in Sri Lanka’s Infrastructure Development
 Build a long-term pipeline of projects derived from comprehensive national
master plans for infrastructure development
 Establish a competent National PPP unit and build capacity in necessary
professional skills and talent to manage the PPP Unit and PPP processes
 Select projects based on sound economic, business and cost-benefit analysis
and carry out a VFM analysis confirming the PPP is a better deal for taxpayers
than traditional government procurement
 Adapt methodical and staged approach to PPP programs with a degree of
standardization in the project preparation, evaluation and procurement process
 Ensure transparency around the PPP program and avoiding corrupt practices to
get broad buy-in from the private sector and the general public.
 Encourage private initiatives and establish necessary PPP & legal frameworks
 Implement one or two successful infrastructure PPP projects to convey the
message “How PPPs deliver better services”
Learning Resources : World Bank Group Open Learning Course 2015: How can PPPs help deliver better services?

10. PPPs HELP DELIVER BETTER INFRASTRUCTURE SERVICES
Thank You
Sources:
www.studiovimukthi.com
https://class.coursera.org/effectiveppp-001/lecture