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News (198)

CUPE denounces the plans to build a new prison using a public-private partnership

CUPE Newfoundland (@CupeNL) denounces Dwight Ball, the premier of Newfoundland and Labrador, for planning to build a new prison using a ‘public-private partnership.’ “Naturally, Ernst & Young recommended using a public-private partnership. P3s= higher-cost private financing, ‘off book debts’ now that will mean less available funding in future years.”

Source: Twitter

PPP model: debt and transparency risks

A new report by Peruvian researchers Germán Alarco Tosoni and Ciro Salazar Valdivia through LATINDD reveals debt and transparency risks in the PPP model and provides recommendations. The study “includes the experience of PPPs implemented in Peru and the cost that these have had for the government of this country, as well as the overcosts that they have had during realization. Among the main problems that this business model implies, the lack of evaluation mechanisms to define whether the APP model is the best option for project execution; It also carries fiscal risks because the PPP dealership plays the same role as a public debt holder; finally the text also considers the weaknesses that the project can have in the planning stages, in the institutionality of the country in which it is developed and the transparency with which the works will be executed.”


The IMF and PPPs: A master class in double-speak

María José Romero and Gino Brunswijck of Eurodad say the International Monetary Fund (IMF) is simultaneously warning about the fiscal effects of ‘public-private partnerships’ and promoting them. “The advice of the IMF seems to lack coherence when it comes to PPPs. On the one hand the IMF recognises the fiscal risks associated with PPPs in its policy advice, while on the other there is a continued push for fiscal austerity measures, which has paved the way for the introduction of PPPs in many countries.”consolidation.

Source: Bretton Woods Project

Infrastructure and privatization market is heating up

KPMG is rubbing its hands over privatization fever in Brazil. “Initiatives are currently underway to reorganize and streamline the previously scattered infrastructure procurement process for much higher efficiency and participation—including enhanced governance concerning approval and tendering of projects and efforts to minimize or combine the number of authorities and ministries involved.”

Source: KPMG

The next phase of the privatisation program will focus on ‘public private partnerships’

The next phase of the federal government’s privatisation program will focus on ‘public private partnerships’ says Alex Okoh, the Director General of the Bureau of Public Enterprises (BPE). Among the first targets: housing. “The new phase targets reforms mostly in the utility and infrastructure sectors which include; water resources, railways airports and highways.” Okoh stated this “when he received a Word Bank delegation led by the Senior Economist (Economics and Private Sector Development), Mr. Volker Treichel which visited the Bureau’s head office in Abuja [and] said this was aimed at correcting the infrastructural deficit in the country.”

Source: pop-client

The Our Water, Our Right Movement has asked to halt ongoing water privatisation in Lagos

The Our Water, Our Right Movement led by the Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN) has asked the Lagos Governor-elect, Mr. Babajide Sanwolu, to halt ongoing water privatisation in Lagos. The movement said “in tackling the water challenge, previous administrations including the outgoing Governor Akinwunmi Ambode have not consulted Lagos citizens, and instead, advanced false solutions including the globally-discredited Public Private Partnership (PPP) model of water privatisation.”


Rio Grande do Sul state has launched an initiative to promote concessions and “public-private partnerships”

Rio Grande do Sul state has launched an initiative to promote concessions and “public-private partnerships” (PPPs). “The government started the ‘RS Parcerias’ program to structure and present infrastructure projects for investors. ‘What we are doing in this act is to demonstrate that Rio Grande do Sul has made a very strong and clear decision regarding the partnership with the private sector. We are not thinking about how we can solve this problem. We are saying clearly that the government is aware that the state government alone is not the answer to all the needs of the population, said state governor Eduardo Leite. (…) Concessions for the RSC-287 and ERS-324 highways, state capital Porto Alegre's central bus station, and Sapucaia do Sul zoo are the first projects in the PPP program. Together they demand a 3.4bn-real (US$883mn) investment over 30 years. The government is weighing PPPs for 752km of highways, currently administrated by the state, along with PPPs for local port waterways and school building.”

Lubowa hospital: Uganda should learn from the Lesotho experience

Salima Namusobya, executive director of the Initiative for Social and Economic Rights (ISER), says Uganda should learn from the Lesotho experience before implementing the public private partnership (PPP) for the International Specialised Hospital of Uganda (ISHU) at Lubowa. “It is, therefore, very likely that the government will spend taxpayers’ money on debt repayment for a hospital that will serve a small number of people, yet the Shs1.3 trillion shillings would go a long way in improving the public healthcare system in the country. The money could, for example, also go towards improving the Uganda Cancer and Heart Institutes at the Mulago National Referral Hospital. It is not too late for Uganda to learn from the Lesotho experience and drop this PPP that is coming at a very high cost to the public.”

Source: Daily Monitor

“Public-private partnerships” take too long to implement

The Department of Finance says privately-led “public-private partnerships” take too long to implement. “To show the government’s commitment to fast-track the country’s infrastructure development, Dominguez said the Duterte administration decided to take on the lead to construct the key projects under its “Build, Build, Build” program.”

Source: business.mb.com.ph

The privatization industry has produced a report to promote ‘public-private partnerships’ in the water sector

The privatization industry has produced a report to promote ‘public-private partnerships’ in the water sector. The report, a collaborative effort by The American Water Works Association (AWWA) and Ernst & Young Infrastructure Advisors, LLC. “As the water sector increasingly invests in advanced wastewater treatment, energy recovery, potable water reuse, desalination and other complex infrastructure, P3s will have a key role to play in advancing a number of these critical projects,” said Stephen Auton-Smith, an EYIA managing director.

Source: Water Finance & Management

Labor considers an inquiry into $10b Melbourne to Brisbane inland railway

NSW Labor leader Michael Daley says a future Labor government will conduct an inquiry into the $10 billion Melbourne to Brisbane inland railway which could result in an overhaul of the landmark project. The Australian Financial Review reports that “while Labor is unlikely to scrap the $9.3 billion equity investment in ARTC, a review or inquiry into the planning process is likely to be announced. Another potential headache for the Morrison government is the Queensland government has yet to sign up to the intergovernmental agreement for the inland rail project. NSW and Victoria are already on board. The $10 billion project stops at the Queensland border. It is dependent on a complex 126-kilometre section tunneling through Toowoomba Ranges to Acacia Ridge in Brisbane's west which will be put to the market as a public-private partnership.”

Source: Australian Financial Review

Accountability railroaded by Ottawa privatization scheme

Two Ottawa ‘public-private partnership’ projects have been approved by councilors without them being able to see the details. The National Union of Public and General Employees (NUPGE) reports that “the need for public services to be accountable to the public took a back seat to ‘commercial confidentiality’ when Ottawa city council approved 2 P3 privatization schemes to extend rail lines. Even though there are significant problems with a P3 privatization scheme for the city’s first light rail line, city councillors were told they didn’t even need to know if bidders met technical requirements. The 2 P3 privatization schemes will cost at least $4.7 billion, and councillors have had very little time to delay the project. Councillors with unanswered questions were told that even delaying the decision by 2 weeks wasn’t possible.” Meanwhile, SNC-Lavalin, which is implicated in the national political controversy threatening to bring down Prime Minister Trudeau, has just been awarded another P3 contract.

Source: nupge.ca