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Institute for Democracy and Economic Affairs

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Title: Institute for Democracy and Economic Affairs


1

The Role and Impact of PPPs in Education
Learning from International Experience
Institute for Democracy and Economic Affairs 31
May 2011Kuala Lumpur, Malaysia Norman
LaRocque Senior Education Specialist Asian
Development Bank

2
Introduction
3
Defining Partnerships
  • Definition of partnership differs in terms of
    scope, nature and formality of arrangements
  • risk sharing relationship based upon an agreed
    aspiration between the public and private sectors
    to bring about a desired public policy outcome.
  • Commission on UK PPPs
  • cooperative venture between the public and
    private sectors, built on the expertise of each
    partner, that best meets clearly defined public
    needs through the appropriate allocation of
    resources, risks and rewards.
  • Canadian Council for PPPs

4
PPPs Key Elements
  • Key Elements
  • -
  • Formal arrangement between public and private
    sectors
  • Private financing and/or private delivery of
    public services
  • Ultimate responsibility remains with public
    sector
  • Arrangement often based on explicit contract
  • Focus on service delivery and outputs/outcomes,
    not inputs
  • Sharing of risks/rewards between public and
    private sectors.
  • Range of objectives improved efficiency,
    enhanced quality, increased access.
  • Various forms of PPP
  • Service delivery
  • Infrastructure
  • Finance.

5
Potential Benefits of PPPs
  • Increase efficiency improved incentives and
    increased competition
  • Improve quality of service delivery
  • Secure specialized skills not available in sector
  • Overcome public service operating restrictions
    salary scales, civil service work rules
  • Quicker response to changing demands and
    facilitate adoption of service delivery
    innovations
  • Government focus on areas of comparative
    advantage
  • Increase access, especially among poorly served
    groups
  • Increase transparency of government spending.

6
PPPs in Global Perspective
7
Classifying PPPs in Basic Education
Education Service Delivery Initiatives
Infrastructure PPPs
Demand-side Financing Programs
Education Support Initiatives
  • Private management of public schools
  • Contracting with private schools for delivery of
    education services
  • Contracting with private providers for the
    delivery of specialist curricula
  • Provision of before and after school care
  • Provision of tutoring services
  • Outsourcing of ancillary functions at schools
  • Private Finance Initiatives - finance,
    construction and maintenance of core and non-core
    educational assets
  • Private leasing of public school facilities
  • Equipment and maintenance of IT laboratories
  • Private sector school construction
  • Publicly and privately financed voucher programs
  • Targeted scholarship programs
  • Payment of subsidies to students at private
    schools
  • Tax credits/tax assistance
  • Private involve-ment in curriculum development
  • Private sector involvement in quality assurance
  • Private information/ testing services
  • Private sector school review
  • Scholarships, private voucher programs
  • School sponsorships, Adopt-a School programs
  • School construction

Philanthropic Initiatives
8
Examples of Partnerships in Education
Partnership Type Examples
Education Service Delivery Contracting for the Delivery of Education Services Private Management of Public Schools
Education Service Delivery Contracting for the Delivery of Education Services Private Management of Public Schools Government Sponsorship of Private School Students, Cote dIvoire Educational Services Contracting, Philippines Alternative Education, New Zealand Foundation Assisted Schools, Punjab (Pakistan) Universal Secondary Education, Uganda Promoting Private Schooling in Rural Sindh, Pakistan
Education Service Delivery Contracting for the Delivery of Education Services Private Management of Public Schools Concession Schools (Bogota), Colombia Railways Schools/Management of Government Schools Lahore/Developments in Learning, Pakistan Fe y Alegria, South America Independent Schools, Qatar Contract schools and Charter Schools, USA Khazanah Trust Schools, Malaysia
Infrastructure PPPs Private Finance Initiative, UK Leasing of Public Schools to Private Operators, Pakistan School Private Finance Projects in Australia, Canada, Germany, New Zealand Build Transfer Lease Scheme, South Korea
9
Examples of Partnerships in Education
Partnership Type Examples
Demand-side Financing PACES voucher program, Colombia Voucher scheme, Chile Private school subsidies, Cote dIvoire School funding system, the Netherlands and Sweden Milwaukee Parental Choice Program, USA Voucher scheme, Qatar Punjab Education Foundation programs, Pakistan State tax credit programs, USA
Philanthropic Initiatives WEF Global Education Initiative Jordan, India,Egypt, Palestinian National Authority Bill and Melinda Gates Foundation Academies Program, UK League of Corporate Foundations, Philippines Philippines and Pakistan adopt-a-school programs
Education Support Services Private sector school review in UK, Dubai, Thailand,Abu Dhabi Private sector accreditation services, Philippines School testing services, USA and Philippines
10
Education Service Delivery Initiatives
  • Government contracts with private schools to
    enrol students at public expense or contract
    private sector to manage non-performing public
    schools
  • Often used where there is insufficient public
    sector capacity and/or quality of public
    education is low
  • Key features
  • Formal contract
  • School paid a fixed amount per student enrolled
  • Education is delivered using providers
    infrastructure or public infrastructure
  • Schools accountable for performance
  • For-profit or not-for-profit schools

11
Foundation Assisted Schools (FAS) Program,
Pakistan
  • Key features
  • Schools paid Rs350/month for each student they
    enroll (up to set maximum)
  • Schools located in poor urban and rural areas
  • No tuition or other fees
  • Regular quality assurance tests
  • Continued program participation dependent on
    school performance
  • Rapid expansion from 54 schools/20,000 students
    in late 2005 to 1,157 schools/ 500,000 students
    in early 2008

12
Foundation Assisted Schools Program, Punjab
(Pakistan)
13
Educational Service Contracting, Philippines
  • Government contracts with private secondary
    schools to enrol students in areas where there is
    a shortage of public places
  • Administered by the Fund for Assistance to
    Private Education, a private not-for-profit
    organization
  • Certification program for schools participating
    in ESC to address ghost students/ghost schools
    issue
  • In 2008/09, 477,000 recipients, gt 2,000 private
    schools
  • ½ of secondary schools had ESC grantees in
    2008/09
  • Per-student payment is PhP4,500

14
ESC Recipients and Schools, 1986/87-2005/06
15
Concession Schools, Colombia
  • Key features
  • Competitive selection process
  • Newly constructed schools
  • 15 year contract
  • Schools paid US500 per student per year
  • School autonomy
  • Operate in disadvantaged areas
  • Educational outcome targets
  • Formal contract specifying delivery standards
  • 25 schools serving over 26,000 students and plans
    for further schools

16
Vouchers and Voucher-type Programs
  • Many countries are making use of vouchers and
    voucher-type programs in education, including
    subsidies to private schools
  • More than 30 countries using demand-side
    financing mechanisms to finance education - vary
    from small/targeted to full/national programs
  • Colombia PACES program
  • Swedish school choice program
  • Denmark, Netherlands, Australia, New Zealand,
    Canada, Senegal and others public funding of
    private schools
  • Chile national voucher program
  • USA Florida, Milwaukee and Cleveland voucher
    schemes
  • Pakistan Punjab Education Foundation

17
National Voucher Program, Chile
  • Nationwide voucher program implemented in 1980
  • Applies to public and private schools secular
    and religious
  • Monthly payments are made to schools on a
    per-student basis
  • Initially, subsidized private schools could not
    charge top-up fees
  • Voucher schools must follow certain operational
    guidelines (eg. basic facilities, certified
    teachers, class size, etc)
  • Vouchers cover most or all of the tuition at
    eligible schools

18
School Infrastructure Initiatives
  • Governments contract with private sector to
    design, finance, build and operate school
    infrastructure
  • Key features
  • Private sector builds schools and operates them
    for a set period
  • Schools returned to government at end of contract
  • Long-term contracts 15-30 years
  • Government employs teachers, while private sector
    employs non-teaching staff
  • Performance based payments specified services
    and agreed performance standards
  • Examples include Canada, UK, Australia, Germany.

19
PPP for New Schools, Egypt
  • PPP to build 2,210 new primary and secondary
    schools in Egypt
  • First stage involves construction of 345 schools
    in 18 governorates
  • Government provides land
  • Private sector designs, constructs, finances and
    furnishes schools and provides non-educational
    services
  • 15 year contracts

20
Education Support Services
  • Various forms of educational support are
    delivered via PPPs teacher training, school
    review, performance evaluation
  • Examples include
  • CfBT undertakes teaching/learning support and
    personnel/evaluation functions in Gulf States
  • CfBT and Cambridge Education both undertake
    school reviews/inspections China, Dubai,
    Thailand, UK
  • Public authorities in Colombia contract with the
    Escuela Nueva Foundation to train rural school
    teachers, distribute textbooks and update
    curricula
  • Punjab Education Foundation trains private school
    teachers

21
Philanthropy
  • Wide range of philanthropic ventures in education
    in many countries some centrally coordinated/
    regulated and others not
  • Examples include
  • Adopt-a-school programs
  • School improvement programs
  • School construction
  • Private sector venture funds
  • Some countries coordinate/regulate philanthropic
    initiatives eg. Philippines, Pakistan

22
League of Corporate Foundations, Philippines
  • Established 1993 and officially registered in
    1996
  • Governed by 7 member Board
  • More than 50 corporate foundations and business
    organizations
  • Role
  • Provide services to enhance institutional
    capabilities to member firms
  • External advocacy role information,
    coordination, networking, research
  • Full time Secretariat

23
Amount of Education Investments, LCF, 2002-2007
24
Adopt-a-School Program, Philippines
  • Private sector philanthropic venture that
    provides resources and support to public schools
  • Key features
  • Established 1997
  • Public primary, secondary schools and tertiary
    institutions
  • Targeted on poorest provinces
  • Assistance can involve staff development,
    construction/ upgrading of facilities, books and
    learning materials and technology
  • Tax incentives for participating individuals,
    organizations and firms
  • 284 million invested from 2000-2008
  • Sometimes combined with private management of
    public schools initiatives

25
Private Sector Support Through Adopt-a-School,
Philippines
26
Making Public-private Partnerships Work
27
Regulating for PPPs
  • Provide legal recognition for private education
  • Introduce realistic and objective criteria, and
    streamlined processes for the establishment and
    operation of private schools
  • Allow for-profit schools to operate
  • Provide financial incentives to private schools
  • Provide families with information on school
    performance
  • Encourage philanthropy

28
Regulating for PPPs
  • Establish quality assurance processes
  • Develop government regulatory capacity
  • Promote and facilitate FDI in the education
    sector
  • Ensure flexible operating environment for private
    schools
  • Provide support services to schools

29
Other PPP Success Factors
  • Split purchaser/provider roles within government
  • Ensure capacity of contracting agency
  • Transparent, competitive process for selection of
    PPP providers
  • Establish appropriate performance measures,
    incentives and sanctions
  • Effective contract monitoring framework
  • Introduce longer-term contracts with providers
  • Independent evaluation of provider performance

30
Conclusions
  • Wide range of PPP models available
  • Increasing international experience with PPPs.
    Countries have adapted general PPP model to a
    variety of country and developmental contexts
  • Considerable interest and growing expertise in
    PPP design among donor agencies such as ADB
  • Context important country governance, financial
    management/administrative capacity, size/nature
    of private sector, fiscal situation,
    demographics
  • Debate should be about role of government, not
    whether government is involved or not in
    education

31
It doesnt matter if a cat is black or white, as
long as it catches mice. - Deng
Xiaoping
32
ADB Education Website www.adb.org/education

33
nlarocque_at_adb.org
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