Public private partnerships (PPP)
Public private partnerships (PPP) are commonly described as a government service or private business venture, which is funded and operated through a partnership between government and private company or other entity. The reason to establish such partnerships is to mobilise private investments for public ventures, use the resources more efficiently, to maximise the benefits and combine public sector risk taking capacity with private sector efficiency.
International organisations, bilateral aid agencies and other actors in international development cooperation have reached a consensus that without private investments from industrial countries to developing countries, as well as systematic efforts to improve emerging private sectors it is not possible to create wealth in the developing world. PPPs are perceived as one of the most appropriate ways to promote private sector investments in development countries.
In forestry, sustainable management especially of natural tropical forests is typically less profitable than unsustainable forest management in the short and medium term. Therefore new and innovative financing mechanisms and instruments – often concretised as PPPs - are required to make sustainable forestry an attractive land use option in the long term. The governments especially in emerging economies are often the absolute owners of the forest resources. Outsourcing the management of the asset to a competent private entity often makes sustainable and profitable forestry more likely. In addition, PPPs can be created among governments, companies and local communities.
Indufor has developed public private partnership instruments for the bilateral aid agencies and provided technical assistance for development projects where PPPs have been in place. In addition, Indufor has actively developed concepts of company- community partnerships. We perceive that forestry is one of the key areas where PPPs are needed to enhance sustainable use of renewable natural resources globally.
- Development of PPP instruments
- Business-to-business partnerships
- Community- company partnerships
- Social and environmental risk management