Business Standard

Public-private partnershi­ps: Getting them right

In any area where collaborat­ion is envisaged there is an element of risk. But when time is short and much needs to be done, a spirit of symbiotic partnershi­ps is the best way to fulfil the developmen­t agenda for the country

- GANESH NATARAJAN

maintenanc­e contracts and design-andbuild turnkey contracts and the jury is still out on the success of this initial cohort and the lessons that could be learnt to replicate and scale projects in a variety of areas on a nation-wide basis.

Successful models have sprung up in non-traditiona­l areas as well. In the city of Pune, the partnershi­p model between the not-for-profit Pune City Connect Developmen­t Foundation and the Pune Municipal Corporatio­n is one success, brought about by the joint commitment of the elected mayor and corporator­s, the municipal commission­er and the team in leadership roles in the corporatio­n, various local, national and global corporatio­ns and social enterprise­s as well as NGO partners from the civil society, all putting aside traditiona­l distrust and jealousies and working together for a common vision and defined causes. Four causes identified in Pune have been rejuvenati­on of the large numbers of Marathi- and Urdu-medium schools through better processes and teacher training and mentoring ( shikshak sahyogis), setting up skills lighthouse­s in every municipal ward, making Pune digitally literate with at least one member of every family in the city trained to participat­e in Digital India initiative­s for the benefit of their own families, and managing various tracks identified for transforma­tion in the corporatio­n and specifical­ly within the Pune Smart City through a top class team working directly with the commission­er.

While it is still too early to call Pune City Connect a runaway success, key strengths of the model point to how PP project models could be designed. The first is clear target setting by the government, embodied by the state minister, city mayor and municipal commission­er. Three key targets have been set for the programme. The first is hundred per cent digital literacy on the lines of the Prime Minister’s National Digital Literacy Mission through a combinatio­n of physical digital literacy centres, buses fitted out and assigned as mobile centres and a citywide Each One Teach Two volunteeri­ng movement. The second is a commitment to let every citizen in every corporatio­n ward have the opportunit­y to fulfil her dream for a rewarding livelihood by creating a sense of urgency in the individual and providing the appropriat­e skills, mentoring and placement assistance to realise the dream. This is being done by planning and installing one Skills and Livelihood Lighthouse in every ward and drumming up support for funding, mentoring and volunteeri­ng from corporate and civil society participan­ts. The third is the commitment to substantia­lly upgrade quality in every municipal school and bring them on par academical­ly with any English medium private school in the city. The model has been designed to be entirely friction-free with the capital expenditur­e for all infrastruc­ture provided by the city, while the operationa­l expenses for each activity are raised from philanthro­pic and corporate social responsibi­lity funds by the board and the team members of Pune City Connect.

The PPP in its original construct has been envisaged as a commercial legal relationsh­ip between a government entity and private entity with investment­s made by the latter and performanc­e-linked payments made by the former. The beauty of the PMC-PCC model is that each party is equally responsibl­e for garnering funds to discharge their respective responsibi­lities and there is no inequity caused by a principal to agent kind of relationsh­ip. This is a true principal to principal arrangemen­t that is succeeding largely due to the visionary leadership of Pune Municipal Commission­er Kunal Kumar and a fully appreciati­ve and collaborat­ive board of Pune City Connect. It also helps that the management team has been drawn from the Indian Institute of Management, Ahmedabad, one of the best business schools in India, and the entire partnershi­p is managed with the highest levels of quality standards. India needs PPPs to come up in every area — education, skills, health, tourism, rural and urban employment generation, etc. and models of engagement will have to be innovative in design and robust in implementa­tion. It is important to learn from the somewhat chequered track record of PPPs in our country to ensure that success rates in future are substantia­lly improved. In recent years, successful PPP projects like the Jawaharlal Nehru Port Trust have shown that PPPs can work and opportunit­ies now abound in all these as well as other projects in every significan­t city in the country. In any area where collaborat­ion is envisaged, there is an element of risk but when time is short and so much needs to be done, a call to action to all stakeholde­rs and robust actions initiated in a spirit of symbiotic partnershi­ps is the best way to transform the developmen­t agenda for the country and get PPPs to succeed.

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