Attachment_1-_PPPs_and_GDAs.docx

ATTACHMENT 1

PUBLIC-PRIVATE PARTNERSHIP AND GLOBAL DEVELOPMENT ALLIANCES

Public-Private Partnerships (PPPs) enable the U.S. government to leverage private sector markets, and partner expertise, interests, and assets in a manner that solves critical development problems and promotes effective market led development. They also enable the private sector to leverage USAID and State’s expertise, assets and working relationships in a manner that advances business success and fosters the broader economic growth and poverty reduction that is vital to sustaining such success.

A Public-Private Partnership is a collaborative working relationship with external, non- governmental partners in which the goals, structure, and governance, as well as roles and responsibilities, are mutually determined and decision-making is shared.

PPPs are distinct from traditional contractual arrangements – such as grants, cooperative agreements, and contracts – in that they are rooted in co-creation, co-design, and co-resource mobilization towards a shared and mutually beneficial objective. Further, PPPs are characterized by jointly defined objectives, and collaborative program design and implementation. Successful partnerships entail: complementary equities; transparency; mutual benefit; shared risks and rewards; and accountability.

Partnerships typically enable the U.S. government to achieve one or more of the following goals:

· Shared Policy and/or Development Objective: PPPs address a specific, discrete policy and/or development issue, either within a country, region, or globally.

· Enhanced U.S. Reputation/Visibility: PPPs enhance the reputation or visibility of the United States on a certain issue.

· Resource Sharing: PPPs allow the U.S. government to enhance its ability to fulfill a stated objective by sharing financial burdens with the private sector.

· Programmatic: PPPs create opportunities to advance U.S. interests programmatically that are better done through partnership rather than working alone.

PPP Criteria. PPPs involve a mutual exchange of ideas, information, and services. Some partnerships may involve funding and in-kind donations of products, services, or time; others will solely be based upon shared interests and non-monetary contributions.

Some partnerships do not require funding and instead rely on the synergies created when the unique comparative advantages of the public and private sectors are joined together. Government monetary commitments are not the only assets that can be invested into a partnership; programmatic and policy objectives frequently can be advanced by leveraging the convening power of the U.S. government to bring together the right partners to stimulate and catalyze collaboration. A PPP must involve:

· An external, non-governmental partner (such as businesses, financial institutions, entrepreneurs, investors, non-profits, universities, philanthropists, and foundations);

· Mutually determined goals, structure, governance, roles and responsibilities; and

· Shared decision-making, including jointly defined objectives and collaborative program design and implementation.

PPPs are typically formalized by a Memorandum of Understanding (MOU) among the participants to document the understandings and intentions of the participants. Having an MOU is considered a best practice. Through the MOU, the participants can establish the overarching purpose of the alliance, identify how they will govern themselves, establish their respective roles and responsibilities identify resources to be committed, and finalize communications plans and other partnership issues. An MOU can be developed at several different stages of a partnership. While some are developed at the outset of the partnership to express a desire of the parties to collaborate together, other MOUs can be done later in order to provide greater detail on how the relationship will be governed.

A PPP should have a name specific enough to distinguish it from other potentially similar partnerships. If a PPP is part of a larger, umbrella PPP, the name of the larger PPP should be used. For example, a media partnership that is a component of a broader public health PPP should be reported using the name of the public health PPP.

Partner Contributions. Private sector partners (e.g., corporations, financial institutions, foundations, social entrepreneurs, diaspora organizations) for PPPs contribute cash and/or in-kind, non- monetary resources to a PPP, including technical expertise, goods and services, market access, networks and related investments. A PPP can have multiple private sector partners. If the partners are working toward the same goal, even if separate from each other (for example, each partner works in a different area of the country), reporting should be combined under the same partnership tab.

Notes and Examples. The Global Development Alliance (GDA) model is one model for partnering with the private sector, whereby USAID works with the private sector to tackle important business challenges and development problems - in a replicable, sustainable and scalable manner. A partnership is considered a GDA when the total value of the private-sector partner contributions (both cash and in-kind), is equal to or greater than the USAID contribution. For example, a partnership with $1 million contribution from USAID and a $1 million contribution from a private company would be classified as a GDA. However, a partnership with $1 million contribution from USAID, $200,000 contribution from a private company, and $800,000 contribution from the World Bank, a Public International Organization (PIO) and/or host-country government would be classified as a regular PPP. When developed in a strategic and collaborative manner, with a concerted focus on each partner’s core interests, objectives and desired outcomes, GDAs enable USAID, private sector partners, and related implementing partners to achieve a greater level of desired results and impacts than would be achieved without the alliance.

Additional resources on PPPs and GDAs, including examples, are available at http://www.usaid.gov/gda.