Public Private Partnership’s a solution for Aruba and the Netherlands Antilles?

The public-private partnership model has emerged as the favored prototype of project execution in today’s world, especially in areas related to infrastructure development, health and education. Partnerships between the public and private sectors, in both social and economic spheres, establish a fundamental basis of further development and improvement of society. This phenomenon is currently applied in all spheres of activity in societies worldwide as the essential element and impetus for economic enrichment and social growth. Numerous political, administrative and civic –both universal and specialized- agencies, organizations and corporations at both national and international levels work to encourage partnerships between public and private sector officials. Although the partnerships are helpful for all countries, they may be particularly useful for development of the countries in economic transition. The public-private partnership (PPP) model has been in practice for some years. PPP broadly refers to a long term partnership between a public and private sector agency, specially targeted towards financing, designing, implementing, and operating infrastructure facilities and services which were traditionally provided by the public sector. In a PPP, each partner, usually through legally binding contract(s) or some other mechanism, agrees to share responsibilities related to implementation and/or operation and management of a project.

 The Concept

PPP is a mode of implementing a government program/scheme in partnership with the private sector. The term private in PPP encompasses all non-government agencies such as the corporate sector, partnership firms, individuals and community based organizations. PPP subsumes all the objectives of the service which was being provided earlier by the government, without compromising it any bit. Essentially, the emphasis shifts from a direct delivery of services to service management and coordination. The roles and responsibilities between partners may vary from sector to sector. While in some partnerships the private provider may be a significant player, yet in others it may only have a minor role. PPP’s can take many forms. The partnership could range from complex public-private teaming and work share arrangement to a straightforward lease of facilities or equipment by the private sector. In a teaming arrangement, the public and private partners accomplish work jointly through a contractual relationship. Some partnerships can be established by contracts under statutory authority and some as arrangements pursuant to Memorandum of Agreement. In a work share arrangement, each partner works separately to accomplish a portion of the workload. Partnerships can range from joint public-private undertakings, to private participation in some aspect of production to direct sales of articles/services by a private partner. PPP’s have flexible characteristics; and each partnership should reflect the unique objectives that are the basis of the partnership as well as the particular needs of the partners and the resources to be shared.

Priority Sectors for PPP

 Health care facilities and medical research and treatment facilities

 Power sector including power generation and transmission infrastructure

 Tourism related facilities and infrastructure

 Transportation roads, bridges, road transport and related areas

 Urban infrastructure including: o Water supply; o Sewage disposal and treatment o Urban roads and street lighting; o Solid waste management; o Parks; o Urban mass transit system; o Parking facilities; o Park and ride facilities o Effluent treatment and related activities; o Disposal of bio-medical wastes

 Industrial estates, industrial parks, modern industrial townships and special economic zones

 Water conservation and management

 Information technology related projects

 Food processing and post harvest facilities like warehousing facilities and cold chains, and marketing infrastructure for agricultural produce

 Infrastructure for giving boost to education.

Aruba and the Nertherlands Antilles

All circumstances considered it would seem that Aruba and the Netherlands Antilles could benefit by implementing PPP’s in certain areas.