In Costa Rica, both public-private partnerships and PPPDs are considered the same. We describe their main differences below.
Cooperation agreements for a co-responsible interaction between public institutions and private organizations, where the parties share resources, skills, and risks to achieve common goals that will contribute to sustainable development.
A contract between the public sector and private organizations for the design, funding, building, operation, and maintenance of public infrastructure and services, transferring to the private sector a part of the risks and responsibilities, while allowing the State to maintain discretionary powers of control and regulation.
Short and medium term
Transfer of financial resources for public-interest initiatives.
Transfer of financial resources to the private sector.
Focus on social and environmental topics.
Focus on infrastructure and public services.
At ALIARSE, we understand public-private partnerships for development (PPPDs) to be the co-responsible interaction between public institutions and private organizations, where both parties share resources, skills, and risks, for the purpose of achieving common goals that contribute to sustainable development.
The PPPDs, promoted by Goal 17 of the Sustainable Development Goals, require a balanced distribution of power between the partners. It is an interactive process where all partners use common regulations, guidelines, and structures. It involves both formal and informal negotiations, as well as consensus-building.
Some contributions from PPPDs to the social and economic development of the country include:
These are contracts between public and private organizations for the design, funding, building, operation, and maintenance of infrastructure and public-interest services, transferring part of the risks and responsibilities to the private sector while the State maintains discretionary powers of control and regulation.
In ALIARSE, we understand that the State must guarantee the provision of cost-efficient quality public services and infrastructure. PPPs can be instrumental in achieving this goal. In fact, Costa Rica has been promoting public-private initiatives for the development of infrastructure and the provision of quality public services. Nevertheless, the country faces challenges establishing new PPPs while creating the conditions to promote them within the context of severe economical restrictions and large gaps in infrastructure.
In this context, ALIARSE hopes to generate knowledge, build capacities, and provide guidance to public organizations for the promotion of good practices for transparent management of future PPPs.
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