pop-logo-verticalCreated with Sketch.

News (202)

Sydney light rail cost blows out to at least $2.7b after settlement

The cost of the Sydney light rail ‘public-private partnership’ has blown out past $3 billion. “The cost to the government of paying the private consortium to operate the line for 15 years had previously been put at almost $938 million. It is separate to the capital cost—now at least $2.7 billion—of building the line and buying the trams that will run on it. Labor's acting leader, Penny Sharpe, said taxpayers and businesses affected by construction of the line were paying the price of a disastrous project now costing upwards of $3 billion.” Calls for an investigation were prompted in January when it blew past $2 billion.

Source: The Sydney Morning Herald

Public-Private Partnerships Fad Fails

Prominent Malaysian economist and former United Nations Assistant Secretary-General for Economic Development in the United Nations Department of Economic and Social Affairs (DESA), Jomo Kwame Sundaram, says the ‘public-private partnerships’ fad is fading. “After the failure and abuses of privatization became apparent, public-private partnerships have since been promoted ostensibly to mobilize private finance for the public purpose. In all too many cases, PPPs have socialized costs and losses while ensuring private financial gains.”

Source: www.ipsnews.net

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.”

Source: LATINDADD

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.”

Source: THISDAYLIVE

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