Editor in Chief: Moh. Reza Huwaida Monday, May 27th, 2019

Public Private Partnership: Key to improved Service Delivery

Public Private Partnership is a contractual arrangement which is formed between public and private sector partners. It involves the private sector in the development, financing, ownership, and or operation of a public facility or service. In such a partnership, public and private resources are pooled and responsibilities divided so that the partners‟ efforts are complementary. In such a framework, the private sector partner usually makes a substantial cash or equity investment in the project and the public sector gains access to new revenue or service delivery capacity, and this arrangement between the public and private sector differ from service contracting. Based on the successful experience of the PPP in other countries, the government of Afghanistan has also focused on improving PPP in the country. Ashraf Ghani, the Afghan President, has repeatedly urged the private sector for boosting partnerships in urban service delivery.
As In Afghanistan and other developing countries, sustainable access to healthcare and other socio-economic services and products can be accomplished through public-private partnerships, where the government delivers the minimum standard of services, products and or care, the private sector brings skills and core competencies, while donors and business bring funding and other resources. The economists hold that, PPPs can facilitate the development of adequate infrastructure and services, and help resolve problems related to traditional procurement such as inefficiency, unreliability and poor fiscal management, and will also address other factors such as short political tenures and rent seeking behavior from various interest groups. It helps to resolve Infrastructure sector through taking advantage of private sector strengths such as (i) Management efficiency, (ii) Newer technologies, (iii) Workplace efficiencies, (iv) Cash flow management, (v) Personnel development, (vi) Shared resources and platforms and (vii) Access to diverse sources of capital.
The Key Trends the Afghan Government Should consider
Incentives for deploying the PPP model
It shall sustain and advance projects through incentives. They can range from access to skilled resources and government oversight to budgetary stimulus through dedicated PPP funds, or other financial assistance, such as guarantees.
Standardization of principles, processes and documents
As PPP programs mature and the government grow more confident in its preferred risk exposure and procurement practices, the need to reinvent the wheel for each transaction lessens. Standardization generates more efficient procurement (including making better use of advisors) and a stronger pipeline of projects. 
Retrospective evaluation of PPP projects and procurement
Midterm or retrospective scrutiny of projects is an important means of monitoring continued performance and VFM and of ensuring transparency. Project-specific evaluations can include metrics related to financial and operational performance, contractual requirements and timely reporting.
Infrastructure investment and development are top priorities for Afghanistan. While rapid urbanization pressures Afghanistan to develop critical new infrastructure, it needs to expand its existing infrastructure because of aging assets and sustained underinvestment. As infrastructure demand increases and fiscal constraints grow, the PPP model is considered as a viable mechanism to help the governments meet these burgeoning infrastructure challenges. Afghan government and the private sector are innovating and intervening, and lessons are constantly emerging for PPP practitioners, financiers, existing sponsors and new entrants. With this perspective, the private sector can assist Afghan government to improve urban management, participate actively in reconstruction of historical monuments and urban many other urban development programs.