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Contributions from
the Column
Focus
Assessment of the first years
Environmental protection in Thailand
Global education for sustainable development
The DEG as largest financing organisation
The BMZ programme / The criteria for PPP projects
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Development partnerships with the private sector
The BMZ programme
TPPP projects are not planned and run by the BMZ but by the Ministrys implementing organisations. Usually, the projects are implemented within the framework of normal bilateral-government cooperation. In addition, the BMZ in 1999 set up a separate PPP facility for measures which because of their short term, small scale or supraregional character are not possible within the framework of the regular cooperation process. Here, projects with a public funds proportion of up to Euro 200,000 can be co-financed on a relatively short-term basis – even if several countries are involved. PPP projects within the framework of normal bilateral-government cooperation have no fixed limit to their sums, but require a formal agreement with the partner country.
Private sector companies in all sectors and sizes can be considered as a PPP partner. Basically, all companies that are preparing or implementing investments, a joint venture, an export or import relationship or another kind of business link with a company in a developing country and therefore can contribute to that countrys development qualify for a PPP measure. Various combinations of public and private sector measures are possible, such as in:
- advanced training of experts and managers;
- certification of local products or production processes;
- establishing or expanding public infrastructure by private companies;
- model solutions in (industrial) environmental protection;
- privatisation of state enterprises; and
- inancing of special project components which in particular make an input to the development of a country.
As a rule, the company is the executor of the measure if it has the know-how and the necessary personnel to implement a PPP measure competently on-site. The implementing organisation concludes with the company a cooperation contract under which the company commits itself to produce certain results within the joint measure. The term of the promotion is usually limited to one year.
The criteria for PPP projects
The partnerships with the private sector are always oriented on the development policy principles of the German Federal government. These are: observance of human rights, participation of the people in political decisions, the rue of law and guaranteeing legal certainty, introduction of the social market economy system, and government action oriented on development. The list of criteria is supplemented by questions which ensure that in the planned project the interests of all sides are safeguarded:
Compatibility with developmental objectives:
Does the project correspond with the regional and sectoral priority areas? Do the projects manifest a clear relevance to development, and are they environmentally and socially sound?
Complementariness:
Do the public and private sector inputs complement each other in such a way that both partners can achieve their goals at a lower cost, more effectively and faster due to the cooperation?
Subsidiary character:
Would the companies also implement the measures without promotion, or must they do so anyway due to a legal requirement?
Competitive neutrality:
Have the promotion measures been notified to all eligible companies? Are the processes in the commitment to the private sector cooperation partner sufficiently transparent? Is the selection of the company made on the basis of standard criteria?
Private sector contribution:
Does the company as the project executing organisation make a substantial financial and personnel contribution? Is with the lowest possible use of public funds the greatest possible input to solving the problems in the partner country being made?
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