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Public Private Partnership (PPP) Principles and
Practical Examples
Bucharest, 29th June 2006
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Contents
1. Background and Definition of PPP
What is PPP about ? 2. Facts and Figures
on PPP in Germany - Experience and
Results 3. Practical Examples of PPP
Projects a) Qualification of Garment
Companies in Indonesia b) Recovery of
Sugar Production in Afghanistan c)
Support for Supplying Companies in the Oil
Sector in Azerbaijan 4. Chances
of PPP for Romania - An Outlook to the
Future 5. Feedback and Discussion
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1. Background and Definition of PPP What
is PPP about ?
Background and Definition of PPP
? PPP is a voluntary collaboration between the
state or state organizations and the private
sector / business sector ? PPP partners work
together n order to - achieve common goals
- share risks, benefits, competencies,
responsibilities and resources ? PPP
partnerships have a business purpose but go
beyond the core business of the private
partner
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1. Background and Definition of PPP What
is PPP about ?
Aim of PPP Projects
Goals of Development Co-Operation
Goals of Private Sector / Business Sector
PPP
Overall Aim Achieving common goals in a better
way than it would be possible
for each of the PPP partners alone
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1. Background and Definition of PPP What
is PPP about ?
Eligibility of PPP Projects
Complementarity ? Do contributions
complement each other in a way that
both partners reach their aims more
effective, faster, and at lower costs ?
Compatibility ? Does the project comply with
local, regional and sector develop-
ment priorities ?
PPP (Basically Public Contribution Max. 50 )
Contribution ? Does the private partner
make a significant finan- cial and
personnel contribution ?
Subsidiarity ? Would the private partner
implement a project even without public
support ?
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2. Facts and Figures on PPP in Germany -
Experience and Results
German PPP Activities
Main Pillars of PPP In German Development
Co-Operation
PPP as a part of bilateral co-operation
PPP through DEG financing
PPP Facility
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2. Facts and Figures on PPP in Germany -
Experience and Results
Summary of German PPP Activities 1999 - 2006

• ? Financial volume of PPP partnerships since
  1999
• approx. 10.1 billion EUR
• - share of private partners approx. 6.5
  billion EUR
• ? More than 2.000 partnerships in approx. 70
  countries
• and in almost every sector of development
  co-operation
• ? About 70 of private partners were small and
  medium-sized
• enterprises (SME)
• ? Positive feedback of private partners
• - 70 of PPP projects were rated as very
  good
• - 90 of private partners would realize
  further PPP projects

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2. Facts and Figures on PPP in Germany -
Experience and Results
Regional Distribution of all German PPP
Activities 1999 2006 in
Total Volume PPP 10,1 Bn. EUR
Source German Ministry for Economic
Co-Operation and Development, Bonn 2006
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2. Facts and Figures on PPP in Germany -
Experience and Results
Sectoral Distribution of all German PPP
Activities 1999 2006 in
Total Volume PPP 10,1 Bn. EUR
Source German Ministry for Economic
Co-Operation and Development, Bonn 2006
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3. Practical Examples of PPP Projects a)
Qualification of Garment Companies in Indonesia
Partner Private Sector - S. Oliver GmbH,
Rottendorf / Germany - Vocational
College, Bogor / Indonesia Partner Public Sector
- German Association for Investment and
Development (DEG)
Project Background ? Indonesian garment
companies loose competitiveness especially
compared to China due to lacking personnel
qualification concerning quality of products and
workmanship, productivity etc. ? S.Oliver and
other international garment manufacturers
intended to invest into qualification and
development of Indonesian garment companies and
operators (especially SMEs) in order to
sustain Indonesia as a production location
PPP Project (2003 / 2004) ? Setup and financing
of a Training Factory within the Vocational
College in Bogor including all materials
and two trainers for one year (after that self
financing) ? Practical training for workers /
participants in real factories plus seminars
and workshops ? Support for participants
regarding job search in garment factories
Project Results ? Approx. 50 operators / workers
have been qualified in the Training Factory (TF
is now self standing) ? Over 90 of all
participants found a job in a garment company in
Indonesia ? S.Oliver and other companies have
better qualified operators
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3. Practical Examples of PPP Projects b)
Recovery of Sugar Production in Afghanistan
Partner Private Sector - KWS AG, Einbeck /
Germany - Sugar Research Institute at
the University Berlin / Ger. Partner Public
Sector - Capacity Building Germany (InWEnt)
Project Background ? Afghanistan lost its
domestic sugar production because of
mismanagement of sugar factories under
communist regime in the 1980s now the country
is completely dependent on imports ? KWS as
world market leader in production of sugar seeds
and is interested in developing Afghanistan
as a sales market ? Modern sugar production
needs qualified personnel and management as well
as technology
PPP Project (2004 / 2005) ? Qualification of
specialists and operators in Afghanistan and
Berlin regarding modern sugar production
methods and quality control systems as well as
production technology ? Practical training in
German sugar producing companies ? Education and
coaching for consultants regarding sugar
cultivation (train the trainers)
Project Results ? Approx. 2.000 small farmers /
families and 200 operators / families have a
secure living ? Afghanistan re-started own sugar
production for domestic demand (economic
development, jobs) ? KWS started supply for
sugar producing companies in Afghanistan
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3. Practical Examples of PPP Projects c)
Support for Supplying Companies in the Oil Sector
in Azerbaijan
Partner Private Sector - British Petrol
(BP), Baku Azerbaijan - Other oil
companies and IFC Azerbaijan Partner Public
Sector - German Association for Technical
Co-Operation (GTZ)
Project Background ? BP and other oil companies
are lacking qualified local suppliers in
Azerbaijan and are currently strongly
depending on imports (high costs, low
flexibility, long delivery times) ? Many
industry branches in Azerbaijan have lost
competitiveness due to lacking investment in
staff qualification and machinery park ? BP /
other oil companies intend to increase the share
of local supply for selected sectors / products
PPP Project (2004 / 2006) ? Qualification and
practical training for suppliers / companies in
Azerbaijan in the field of workwear /
protective equipment, metering equipment and food
supply / catering ? Practical training sessions
for AZ companies in factories in Germany and
Turkey ? Preferential access of qualified AZ
companies to tender and ordering procedures of BP
/ oil comp.
Project Results ? Approx. 15 companies in
Azerbaijan are qualified to be listed as official
suppliers for BP /oil comp. ? 4 of the supplying
companies received even export orders by
international customers ? All participating
companies in Azerbaijan created additional jobs
and technical investments
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4. Chances of PPP for Romania - An
Outlook to the Future
Advantages of PPP Projects
Private Sector
Development Co-Operation
? Financial support ? Access to local
networks ? Access to Know-how ? Easier
market entry
? Additional resources ? Know-how
transfer ? Increased sustainability ?
Awareness raising
Creating Win Win Situations
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4. Chances of PPP for Romania - An
Outlook to the Future
Opportunities of PPP for Romanian Development
Co-Operation
? Better Efficiency - Development goals
can be achieved easier and faster since
all concerned contribute their own specific
strengths and their own funding ?
Higher Sustainability - Pilot projects
undertaken jointly are often further continued
by the companies on their own, giving
public funding greater impact ?
Greater Effectiveness - Successful pilot
projects in cooperation with the private
sector have a potential for broader impact
(replication in other regions or sectors)
PPP is not the answer to all questions of
development co-operation but can save money
for both public and private partners and
increase efficiency / improve ownership of
development projects
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5. Feedback and Discussion
Contact and Further Information
Corporate Solution Mr. Thomas Preiss Rittershausst
rasse 6D 61231 Bad Nauheim / Germany Phone
49 6032 82 11 90Fax 49 6032
92 06 64E-mail info_at_corporatesolution.de
German Federal Ministry for Economic Cooperation
and Development (BMZ) Division Cooperation with
the business sector Mr. Helmut
Fischer Adenauerallee 139 141 D 53113 Bonn /
Germany Tel. [phone] Fax.
49 228 10 535 3263 E-Mail
helmut.fischer_at_bmz.bund.de Web www.bmz.de
This presentation is based upon the official PPP
documentations of the German Ministry
for Economic Co-Operation and Development, Bonn /
Germany