|
Public-Private Partnership Experience so far
By Chandi Raj Dhakal
While the concept of economic liberalization and privatization are gaining greater importance as a more effective method of managing economy, it cannot be forgotten that there are some areas in which private sector alone cannot be as effective as desired. All the products of such activities cannot be appropriated by the producer. Therefore, the producer will not be able to benefit from these “goods” as they do not appear in the balance sheet of the firm. Similarly, there are certain other activities that produce bads for the society (or social costs) as the by-products, but they are not accounted for in the books of the firm that produces them.
Due to this fact, the search for an alternate method to address these issues was inevitable and the best method identified in this regard is known as public-private partnership.
In Nepal, FNCCI is active in promoting this concept by helping to successfully implement some of the programs under this model. With support from United Nation’s Development Program (UNDP), FNCCI implemented various projects under this concept in five municipalities of the country (Biratnagar, Bharatpur, Butwal, Hetauda and Pokhara) joining hands with the respective municipality corporations and some civil society organisations. As the first phase of the program (2002-05) is already completed successfully, similar program is being extended to additional five municipality areas (Dhulikhel, Bhaktapur, Kathmandu, Mechi Nagar and Siddharthnagar) for the period up to 2007.
Basic idea behind the public-private partnership is to combine the creativity, capital, technological knowledge, managerial capability and innovation of the private sector with the spirit of social responsibility, justice, social accountability and local knowledge to achieve some defined social goals. When the private sector joins hands with the representative bodies of the people such as the local government authorities (municipalities, village development committees and district development committees) and the non-profit organizations, all the activities that are taken up by this combination of forces can be expected to be successful. And this experiment has indeed proved successful in Nepal.
With the experience so far in this concept, we can say that a number of high value activities can be successfully undertaken under the concept of public-private partnership. The examples are development and operation of bus terminals, public toilets, vegetable markets, shopping complexes in public land, pay-parking lots, solid waste management and management of street lights.
In this connection, FNCCI has also taken the lead to provide skill trainings to the people so as to improve their employability and efficiency. One Trade School each has been set up and they being operated in four of the country’s five development regions with support from the local Chambers of Commerce and Industry and one such Trade School is about to open in the fifth development region.
So, the time now is to shun the practice of blaming each other by public and private sector for various weaknesses of each other and move forward with this concept of public-private partnership by learning from the experience so far and refining it further for better efficiency in achieving more benefits.
(Dhakal is the 1 st Vice President of FNCCI and this article is based on a presentation he made as the Officiating President of FNCCI at a recently held seminar at Itahari)
|
