Public Private Partnerships

This lecture discussed the role of public private partnerships in creating global change. We had Dr. Shahi buzz in from Nigeria, which was pretty cool =).

It is too difficult for one organization to do it alone. We cannot rely solely on the public sector to create global change in this world. In addition, the private sector often has the resources to truly speed global development and bring about positive changes. But, as anything, there are issues. These public private partnerships must be created very carefully and in such a way that both parties are excited about the process and outcome.

Here is an article that highlights some issues:

Layton: P3 projects not the answerNDP boss slams partnerships; N.S. minister fights backBy AMY SMITH Provincial ReporterThu. Apr 24 - 5:39 AM



Nova Scotians shouldn’t be fooled into thinking public-private partnerships will be good for the province, says federal NDP Leader Jack Layton.
Mr. Layton said Brampton, Ont., residents had a bad experience with a new hospital built through the P3 process.
"The funding wasn’t there for the number of beds that they were promised," Mr. Layton said after a speech Wednesday to the Service Employees International Union in Halifax.
"The result was horrific waiting times because their public hospital had been closed and replaced by this new profit-making facility, one-third of which was never allowed to really operate."
In February, The Canadian Press reported Ontario’s auditor general is conducting a value-for-money audit of the Brampton Civic Hospital, that province’s first P3 hospital.
Last month, the Tory government unveiled 10 projects as possible public-private partnerships — everything from a new or refurbished Victoria General hospital in Halifax to a new jail in northern Nova Scotia to twinning Highway 104 from Sutherlands River, Pictou County, to the Canso Causeway.
The province is paying a West Coast company, Partnerships British Columbia, $200,000 to determine which, if any, of the projects should be done through the P3 process.
Mr. Layton said problems occur when "the boardroom takes priority over the operating room."
"When you build these facilities with these private approaches, what we do is set up an obligation for a return on the investment to the shareholders, which ultimately can compromise the health care that the people in the community are looking for," he told reporters.
But Health Minister Chris d’Entremont said Nova Scotians have to be open to new ideas when it comes to making their tax dollars go further.
A recent report on Nova Scotia’s health-care system estimated the cost of replacing the entire VG site of the Queen Elizabeth II Health Sciences Centre at $500 million.
"I don’t have the cash flow to build a $500- million to $750-million building," he said. "So if we can find a partner in it and it can alleviate that kind of cash crunch, then it’s worth looking at."
Mr. d’Entremont stressed that patients are priority.
"It’s not about boardrooms. It’s not about departments. It’s not about doctors. It’s about patients."
The minister wasn’t familiar with the Brampton hospital but said he knows of a few in British Columbia that seem to be working well.
Murray Scott, minister of transportation and infrastructure renewal, said the province hasn’t made any decisions about any of the projects that were sent to Partnerships British Columbia for review.
He said Mr. Layton should concentrate his efforts on federal politics.
"We’ll decide what’s good for Nova Scotia or not," Mr. Scott said Wednesday.
He said it would be irresponsible for the MacDonald government not to at least look at the idea of P3 arrangements, given the fact Nova Scotia has an $8-billion infrastructure deficit.
Under a P3 agreement, a private company comes up with the money to build a project and the government signs a long-term lease and may end up owning the asset, whether it’s a school or a hospital, upon completion of the deal.
The former Liberal government in Nova Scotia worked out P3 agreements for construction of the Cobequid Pass toll highway and more than 30 schools.
Five years ago, the province lost an arbitration decision on who got to keep the revenue from cafeterias and pop machines in schools owned by Scotia Learning Centres.
That decision said the private consortium could keep 35 per cent of the profits and could also set fees for after-school rental of the buildings’ facilities.
( asmith@herald.ca)


As one can see, there is a fear that including the private sector in the building of hospitals will lead to an increased focus on making profits and other beaureaucratic (sp?) red tape issues.

I think the solution is to find a private partner who has a solid interest in social services and helping the community. It is highly important that the goals of the public and private entities be properly aligned. There are several private institutions out there that want to do good social work. It is just a matter of finding them. Once these entities are found and the partnership is established, there will be less of a focus on making a profit (on part of the private sector) and more of a focus on doing what is needed to really improve the health of the population.