Bring the benefits

Any partnership between the public and private sector must be structured in such a way that local businesses can benefit.

Pointing out that unlike larger countries, small island states (SIS) only had one airport, one major road, one power generation/distribution company, one major hospital and one major port and as such were limited in terms of their opportunities for public/private partnerships (PPPs) of economic scale, Inter-American Development Bank (IDB) Executive Director for the Caribbean, Kurt Kisto, stressed that in designing models for these PPPS in such territories, they must be crafted in such a way that they are inclusive, developmental and participatory in nature.

“In this regard we must ensure that while some PPPs will require the participation of large foreign companies for the necessary know-how and financing, we must structure them in such a way that local businesses at all levels have the opportunity through the PPP design to participate as service providers and value chain suppliers. Not only must we provide the opportunity and create spaces in the design of the PPP models, we must structure the necessary access to finance for local businesses and micro and small enterprises to be able to participate in the opportunities,” he said.

He further told those gathered at the Hilton Barbados recently that wherever possible, large foreign/local PPP operators should be listed on local stock exchanges to allow for widespread participation and distribution of profits, thus making financial gains available to the general public.

“Some researchers argue that the PPP structures have resulted in an altered language that has replaced competition and conflict with collaboration and complementarity. This point of view warrants concerted effort be invested into achieving synergy among actors involved in delivering services, and to exploit mutual respect and trust as forms of social capital for the successful production and supply of public goods and services,” he said. (JMB)