PPP for Cities

PPP for Cities

Specialist Centre on PPPs in Smart and Sustainable Cities

Affiliate to the International Center of Excellence on PPP at UNECE 

The Specialist Centre on PPPs in Smart and Sustainable Cities (PPP for Cities) is a research, innovation and advisory center that aims to provide public administrations throughout the world with support in the organization, management and development of projects involving collaboration between the public and private sectors in the smart cities arena.

PPP for Cities task is to help cities around the world transform themselves into Smart and Sustainable Cities (SSC) by embracing the Sustainable Development Goals (SDG) of the United Nations (UN). PPP for cities will focus its efforts in particular to address goal number 11, “Make cities and human settlements inclusive, safe, resilient and sustainable” using Public-Private Partnerships as one of the most successful mechanism.

It is also a partnership platform between companies and administrations from all over the world where they can further explore the dynamics of public-private partnerships, create guides to good practices and standards and design solutions to the issues facing cities.

The center is led by IESE Business School and is part of the United Nations’ International Centre of Excellence on PPPs program. It has the support and sponsorship of Barcelona City Hall and other public administrations and private companies.

The headquarters of the PPP for Cities are located in Public-Private Sector Research Center at IESE (PPSRC-IESE) in collaboration with the Cities in Motion program.

Objectives

According to the United Nations, some of the main objectives of the PPP for Cities are:

  • Identifying and disseminating good practices internationally
  • Creating working standards for designing, bidding, contracting, managing and evaluating PPP for cities projects
  • Helping governments develop public-private partnership projects in the sphere of cities
  • Creating spaces of debate among companies, administrations and experts from all over the world on specific topics
  • Conducting research
  • Designing training strategies in the sector for state, regional and local governments, especially in countries with less experience, and fostering the exchange of knowledge with countries with more experience in PPPs
  • Providing specialized training in PPPs

Resources

New Cairo Wastewater Treatment Plant (Egypt)

The New Cairo Wastewater Treatment Plant study explains the process of a wastewater plant development in Egypt from the initial problem identification to the operation. The document also assesses the impact of the infrastructure on the city and its residents.

Download case study

 

Barcelona GIX. IT Network Integration 

The case study explains the Barcelona GIX project, which involved the integration (active and passive), expansion, and development of the IT network to provide the city with new infrastructure (5G, the Internet of Things, and connected cars) associated with a smart city using a new business model.

Download case study

 

Beach Maintenance in Barcelona’s Metropolitan Area

The document explains how thanks to the integration of different beach maintenance contracts from different municipalities (through the AMB) there were generated economies of scale that reduces cost and improved service to residents.

Download case study

 

Comprehensive Maintenance of the Barcelona Ring Roads

The document discusses the contract signed by Àrea Metropolitana de Barcelona for the maintenance of Barcelona’s ring roads as an example of a public-private partnership.

Download case study

 

Barcelona Tram Service (Spain)

The aim of this project was to satisfy the need for medium-distance travel, using an environmentally friendly method of transport. The new networks added to the already existing metro and bus networks a new method of transport improving public transport’s capacity and efficiency in the Barcelona metropolitan area.

Download case study

 

El Realito Aqueduct (México) 

The case study explains how the water supply of the urban area of San Luis de Potosí in México was guaranteed thanks to the construction of the Aqueduct from the dam El Realito. This infrastructure guarantee the water supply in an urban area with problems of water supply coming from the underground aquifers. The financial operation was guaranteed by the use of several trusts by the public authorities.

Download case study (Spanish)

Download case study

 

El Carioca Tramway, Rio de Janeiro (Brazil)

The case study explains presents how the Brazilian Public Authorities used several PPP to develop an urban area and build a Tramway that connected this area to the center of the city.

Download case study (Spanish)

 

The Kuelap Fortress Cable Car (Peru)

The case study explains how the Peruvian Tourism Ministry improved the access to the Kuelap Fortress, one of Peru most known tourist attractions placed in the middle of the Amazonas, by building a Cable Car.

Download case study (Spanish)

 

Barcelona Telecare program (Spain)

The objective of this program is to improve elderly people’s living standards by providing users with telematic and face-to-face care. With this care, the program tries to reduce the problems caused by any delays in providing help when there is a health emergency.

Download case study

A

Asset
Any item of economic value, either physical in nature (such as land) or a right to ownership, expressed in cost or some other value, which an individual or entity owns.

B

Bidder
A candidate, consortium, contractor, private sector partner, or tenderer bidding for the project.
Book Value
Net amount at which an asset or liability is carried on the books of account (also referred to as carrying value or amount). It equals the gross nominal amount of any asset or liability minus any allowance or valuation amount.
BOOT
Build, own, operate and transfer
BROWNFIELD
Abandoned, idled, or under-used industrial and commercial facilities where expansion or redevelopment is complicated by real or perceived environmental contaminations
Build/Operate/Transfer
Public-private partnership arrangement involving private construction, private operation for given period of time, and eventual transfer to public ownership.

C

Consortium
Those private sector persons who together intend to deliver a PPP
Contract
The Contract or Project Agreement between the parties for the provision of the contracted service

D

D&C
Design and construct
DBFO (Design, Build, Finance & Operate)
A form of contract in which a consortium takes responsibility for the design, construction, financing and operation (including maintenance) of an asset for a period of years.
DBFM
Design, build, finance and maintain
DBOM (Design, Build, Operate & Maintain)
A form of contract in which a consortium takes responsibility for the design, construction, operation and maintenance of an asset for a period of years, but does not finance its creation.
DCM
Design, construct and maintain
Design-Build
A procurement or project delivery arrangement whereby a single entity (a contractor with subconsultants, or team of contractors and engineers, often with subconsultants) is entrusted with both design and construction of a project. The term encompasses design-build-maintain, design-build-operate, design-build-finance and other contracts that include services in addition to design and construction. Franchise and concession agreements are included in the term if they provide for the franchisee or concessionaire to develop the project which is the subject of the agreement.
Directive
An instruction to national governments from the EC, to create harmonising legislation on a specific subject area within a stated time period; a blue-print for new legislation.
Discount Rate
The rate used to calculate the present value of future cash flows

E

EOI
Expressions of interest for a project
EOI Phase
The phase used to shortlist parties to proceed to the RFP phase who are capable of delivering the project

G

Greenfield
A project which lacks any constraints imposed by prior work

I

Invitation for EOI
An invitation to the market to seek expressions of interest for a project

O

Output Specification
A detailed description of the functions that the new accommodation must be capable of performing. Usually split into building functions and service functions. The Output Specification is intended to state only the outputs required of the services, and not the way in which the PSP will achieve these.

P

Pay-As-You-Go Financing
Describes government financing of capital outlays from current revenues or grants rather than by borrowing.
PFI (Private Finance Initiative)
A procurement route established in 1995 in the UK, and more widely adopted since 1997. It is an important route for much Government spending on assets, as it transfers significant risks to the private sector. PFI requires private sector consortia to raise private finance to fund the project, which must involve investment in assets, and the long-term delivery of services to the public sector. In BSF, PFI is one of several possible procurement routes being funded.
PPP (Public Private Partnerships)
The relationship formed between the private sector and public bodies often with the aim of introducing private sector resources and/or expertise in order to help provide and deliver public-sector assets and services. The concept of PPP embraces many forms of partnership including PFI.
Present Value (PV)
The value of future cash flows discounted to the present at certain interest rate (such as the entity’s cost of capital or funds), assuming compounded interest. The GAO definition of present values is as follows: The worth of a future stream of returns or costs in terms of money paid immediately (or at some designated date). A dollar available at some date in the future is worth less than a dollar available today because the latter could be invested and earn interest in the interim. In calculating present value, prevailing interest rates provide the basis for converting future amounts into their “money now” equivalents. Under credit reform, the subsidy cost of direct loans and loan guarantees are to be computed on a present value basis and included as budget outlays at the time the direct or guaranteed loans are disbursed.
Project Revenues
All rates, rents, fees, assessments, charges, and other receipts derived by a project sponsor from a project.
PSC
The Public Sector Comparator for a project, which is defined in the Guidelines as the hypothetical, risk-adjusted whole-of-life cost of a public sector project if delivered by government

R

RFP
A request for proposal issued by government for a project
RFP Phase
The phase involving the release of the RFP to shortlisted bidders for detailed, fully-costed and binding RFP responses, followed by evaluation and selection of the preferred bidder
Risk Allocation
The allocation of responsibility for dealing with the consequences of each risk to one of the parties to the contract; or alternatively, agreeing to deal with a particular risk through a specified mechanism which may involve sharing that risk

S

SPV (Special Purpose Vehicle)
In establishing a project consortium, the sponsor or sponsors typically establish the private party in the form of a special purpose vehicle (SPV) which contracts with government. The SPV is an entity created to act as the legal manifestation of a project consortium

T

Technical Dialogue
A formal process of dialogue to assist in Project Scoping, undertaken by the authority and potential candidates in the period after issuing the PIN but before issuing the Contract Notice.
Tender Process
Includes each of the following phases:
▪ EOI phase;
▪ RFP phase; and
▪ Negotiation and completion phase
Traditional Procurement 
The delivery of the infrastructure and associated services by government using its normal procurement processes
Transferred Risk
The value of those risks (from government’s perspective) that are likely to be allocated to the private party under a PPP project

W

Whole-of-life
The integration of up-front design and construction with ongoing maintenance and refurbishment elements over the life of the asset under the PPP arrangement

1st Conference on Public Management. Public Private Partnerships debate

The Conference on Public Management, co-organized jointly with the Barcelona Provincial Council and the Specialist Center on PPP in Smart and Sustainable Cities (PPP for Cities), aims at creating a space for reflection and knowledge on good practices in local management within the framework of public-private partnerships. The meeting will represent a channel for the local government to have at its disposal the existing knowledge on excellence in public management and at the same time to serve as a meeting point for professionals in the sector that allows them to share experiences, learn from experts and discuss proposals, in order to generate opportunities to implement improvements in the management of their public services.

This Report is a transcript of the “1st Conference on Public Management. Public-private partnership debate” that took place on October 5, 2016. The elements of debate of this first Conference pivoted around assessing the capacity and need for a concession by the Public Administration or the keys to its renegotiation. During the Conference, a roundtable discussion was also held with experts on PPPs, where real cases of concessions and renegotiations were exposed, and the participants themselves were able to participate in the debate that was opened at the end of each intervention. The activity was addressed to employees of the public administrations, both political representatives and municipal managers.

The Report has gathered the contributions of all the speakers during the conference, as well as the participants in the debate. It should to be read as a transcript, taking into account that the participants used colloquial expressions common to debates and oral presentations

Download report (Spanish & Catalan)

 

Shaping the Cities of Tomorrow: Renewable Energies and Sustainable Urban Ecosystems

A total of 29 case studies are analyzed in Shaping the Cities of Tomorrow: Renewable Energies and Sustainable Urban Ecosystems, a report prepared by IESE’s Specialist Center on Public-Private Partnerships (PPP) in Smart and Sustainable Cities. These case studies help illustrate good practices in the consumption and production of energy for more sustainable cities.

Data collected from these cases allow the report’s authors to share insights that are applicable elsewhere, including a series of recommendations for policy officers. With over half of the world’s population already living in cities, and more to follow, smart solutions can help urban ecosystems improve the quality of life for inhabitants.

Download report (English)

PPP Guideline for Regional and Local Governments in Latin America

The Specialist Center on PPP in Smart & Sustainable Cities has prepared this PPP Guideline for CAF- Latin American Development Bank. The purpose of this first PPP guideline is to improve the capacities of local & regional Governments in Latin American Region. The Guideline introduces the main topics related to PPP and helps to determine when, where and how to use these kind of contracts by public officers. The Guideline has an especial focus on PPP in urban areas, as in Latin American region 80% of the population is concentrated in urban areas. Finally, an innovation of this Guideline is that it presents the People-First PPP concept, used by the United Nation Economic Commission for Europe to determine how a PPP can help societies to reach the United Nations Sustainable Development Goals.

Download Guideline (Spanish)

Download Guideline (English)

Download Guideline (Portuguese)

Video

Go to IESE Insight

Activities

  • Designing guides to PPP good practices in urban development.
  • Creating management standards for PPP projects in specific areas through multidisciplinary, multicultural working groups.
  • Developing a database of practical case studies and a network of specialized experts.
  • Independent consultancy services for public administrations seeking to develop their capabilities and PPP markets.
  • Hosting technical workshops.
  • Partnering to host conferences and fairs in the sector.
  • Creating working groups to share good practices and communities of innovation.
  • Holding seminars on different aspects of PPP with the participation of both the public and private sectors.
  • Holding periodic international conferences on the development and transformation of cities through public-private partnerships.
  • Promoting partnerships among cities, bringing together the public and private sectors.
  • Publications and newsletters.
  • Research

Events

November 13, 2018 / Barcelona, Spain
International Conference in Smart Logistics 

 

November 7, 2018 / Barcelona, Spain
III Conference on Public Management
“Smart Solutions for cities needs”

 

January 22, 2018 / Barcelona, Spain
II Conference on Public Management
The future of industrial estates

 

November 14, 2017 / Barcelona, Spain
III International Conference PPP for Cities
“Reaching the Sustainable Development Goals in Latin American cities thanks to Public Private Partnerships”

 

March, 21 & 29 and May 3, 2017 / Barcelona, Spain
Workshop: The future of the high streets: from local commerce to integral urban economic development

 

November 17, 2016 / Barcelona, Spain
II International Conference PPP for Cities
“Governance among partners in Public Private Partnerships”

 

October 5, 2016 / Barcelona, Spain
I Conference on Public Management
Discussion on PPPs

 

June 21-22, 2016 / Qingdao, China
First Qingdao China PPP Forum.

 

March 30 – April 1, 2016 / Geneva, Switzerland
International UNECE PPP Forum for the Sustainable Development Goals (SDGs)

 

February, 2016 / Kiev, Ukraine
Course on Public – Private Partnership for Sustainable Development

 

November 18, 2015 / Barcelona, Spain
I Global Meeting UNECE International PPP Centre of Excellence.

 

November 17, 2015 / Barcelona, Spain
I International Conference PPP for Cities.
“Fostering sustainability and innovation in cities through Public Private Partnerships”

 

April 29, 2015 / Madrid
Presentation PPP for Cities

 

April 22, 2015 / Barcelona
Presentation PPP for Cities

March 10, 2015 / Barcelona, Spain
Do Different People Need Different Governments?
Presenter: Giacomo Ponzetto (CREI, UPF, and Barcelona GSE)

 

February 20, 2015 / Paris, France
Optimal Spatial Taxation: Are Big Cities Too Small?
Presenter: Jan Eeckhout (University College London and Barcelona GSE – UPF)

Technical Support

Sponsors

Ajuntament de Barcelona

Founding Member

CaixaBank

Global Partner in Finance

Sustaining members

Aqualia
Cintra
GLOBALVIA
Iberdrola

Sponsor Members

ATM

General Members

INECO
Anteverti

Partners

Amec Amec Urbis
BID Banco Interamericano de Desarrollo
CCIES
CTecno
Camins.cat
Foro Infraestructuras
IEMed
SEOPAN
Smart City Expo World Congress
Smart Space
Telecos.cat

Media Partners

Cities Today
InfraPPP
Smart City Business Institute

Membership

 

The center aims to be a meeting point of reflection and partnership between the public and private sectors. To this end, it has established different levels of participation in the center’s activities:

  • Institutional promoters, reserved for public entities and international organizations
  • Sustaining member (public and private sectors)
  • Sponsor (public and private sectors)
  • General Member (public and private sectors)

Become a member

Benefits for members depending on their degree of affiliation:

 

  • Forming part of a worldwide benchmark center in public-private partnerships in cities
  • Access to the reports, practical guides, studies and other documents generated by the center
  • Placement of the member company’s logo on the center’s website and most important communications
  • Receiving a periodic newsletter with the latest international news
  • Access to conferences and other events, with the possibility of having first dibs at sponsorships
  • Access to exclusive events for members
  • Access to the network of United Nations’ Specialist Centres on PPPs
  • Forming part of the center’s group of international experts with the possibility of joining international advisory missions, participating in talks at conferences, etc.
  • Access to the database of practical case studies
  • Leading and participating in working groups to draw up standards
  • Publishing articles in the center’s communications
  • Receiving specialized training from center experts
  • Including your own case studies in the center’s database