Helvetas‘ Private Sector
Development
and-Public
Cooperation
Strategy
Tenders for Infrastructure
Projects
-Private Service Providers to Farmers
-Public-Private-Partnership
Presentation of Martin Epp to the World Civil Society Forum in Geneva WGPS2 on July 15,
2002
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Phases in Partnership Development
1955-69
1970-79
1980-89
1990-99
2000-
Initial Phase
Capacity Building of
Government Services
Consolidation Phase
NGO-Phase
Gov. Decentralization, Civil Society
and Private Sector Networks
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BTC
Project Work
BTC
BTC
Good Governance and
Poverty Alleviation
Strategies
CDD
CDD
Appearance of
democratically elected Rural
Councils
Training Schools
directly with
Beneficiaries
Village
CDD Community
Development Dept.
(Technicians and
Animators from
Government Services)
Village
Project Initiators Voluntary Maintenance
Workers
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NGO
Involvement of Civil Society
and Private Sector
Project Conmiitee
Project Maintenance
Team
Project Committee
Village Councils (Decisions on Village
Development)
Project Mainten.Team
Project Committees and paid
maintenance team
Cult. & Dev. Assoc.
Cult. & Dev. Assoc. (Fundraising)
Attribution of Project Roles (ideal case of
Mali)
Government
Sector Policy, Norms and Regulations, Donor Coordination
Decentralized Government Services for Data Bases, Technical
Expertise, Budget Allocation to Councils
Community
Councils
Regional Development Plans and Budgeting
Project Ownership, Coordination, Implementation, Monitoring
Private Sector
Villages
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Engin.offices/NGO/Consultants: Project Planning and Controlling
Enterprises: Project Execution and Maintenance Services
Contributions in cash and kind to all Community Projects
Committees: Project Operation and Routine Maintenance
Strength
Experience with Public Tenders by Local
Councils
Constraints
Recommendations
Increased responsibility of democratically elected
councillors
Villages get equal chance to development projects
Donor driven decentralization
Complex administrative procedure
Fluctuation and skills of elected persons
Negotiate agreements with Councils, intensive
coaching in participatory planning, limit
intervention in decision making and
implementation
External interventions are locally controlled and
coordinated
Development processes become transparent and
comparable
> Local ownership
Intensive policy dialog, information and conflict
management
Time consuming learning process
Patience and respect, mutual learning process,
monitoring and dissemination of lessons learnt
Competence of various stakeholders in planning,
implementation, controlling and project
maintenance
> Increased self-confidence and responsibility for
regional development
Influence/power and particular interests of
stakeholders not always under control
Limited external influence
Training/Advice not always effective
Ensure involvement of key stakeholders
2-3 Project training on-the-job for each generation
of councillors
Support organisation for councillors
No financial sustainability
Small experience/medium skills
Clear role as support agency and networker among
stakeholders
Technical projects selected according to local
priority (defined in mid term regional development
plans of council)
Conditions given by Donors and Government may
differ
Restricted influence of external stakeholders
Communicate clearly methodology and rules of the
game, transparent reporting
Quality of project implementation, operation and
maintenance influence support to new initiatives
Few practical experience
Sanctions in African context rather delicate
Disseminate best practices
Free flow of information, Theatre/Media/Internet
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Strength
Experience with Private Sector in Public
Tenders
Constraints
Recommendations
Great interest in Public Tenders to get equal
access to markets (under fair competition)
Market entry barriers (registration and tax
payment declarations, bank guarantees etc.)
Unexperienced Entrepreneurs/NGOs
Restricted markets on local level
Training on procedures of public tender and
cost/margin calculations needed
Insist in transparent market attribution based
on clear criteria and fair selection procedure
Competition as motor for development
Entrepreneurs are obliged to do a good job to
get follow-up mandates
Structure and functioning of building sector
poorly developed, low logistics and
equipment
Create reference list of quality
consultants/NGO/SME
Offer training courses (BDS system)
Community/committee involvement promotes
local project operation and mentionance
(challenge for new type of SME)
Late cash/kind contributions from
beneficiaries and conflict mediation often
delay work progress > approach not
necessarily cheaper
Consultants often in urban areas, irregular
or cost intensive follow-up in remote project
areas
Increased cost and risk awareness during
tender negotiations
Allow adequate benefits for SME’s extra
efforts in community development
Close monitoring and coaching
Promote newcomers in line with local market
needs (avoid monopoly or nepotism)
Project execution by interested SME,
preferably local, possibility of various sub-lots,
Participatory local monitoring
SME tend to optimistic unreal offers
Few permanent quality staff due to irregular
contracts
Many fold problems in execution
Practical experience permits lobbying for
improved SME output, regulatory framework
and involvement of local finance institutes
High taxes, bureaucracy, monopoly of
suppliers, price fluctuations, security
Continuous learning of Donor/Councils
Supervise SME’s social and economic
behavior
Long term commitment to improve technical,
social and management skills of stakeholders
Create synergies with other donors and local
investors
Support local SME Lobbying and sector
networking
Preparation of tender documents by
Consultants/Engineers who advice stakeholders
and mediate during project implementation
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Why private service providers in NRM?
Positive aspects
Constraints
Recommendations
Reduced dependency of local NGOs
and long-term <h> employees from
one particular donor or strategic
approach
Not everybody has
entrepreneurial skills
Restricted market potential
Transfer program/project ownership to
enhance autonomous development,
local lobbying and client not donor
oriented behavior
Sector continuity and more dynamic
inputs to increase impact on target
group level
Confidence in PS not yet built
up
Knowledge sharing less open
Provide space for multiplication and
creativity, flexibility and autonomous
development, ensure mutual learning
Creation of a market and fair
competition for NGOs, techn.
Offices, at reduced cost
Innovative market approach is
viewed with scepticism
Fear of income decrease and
no market demand for services
Create market-networks
Identify/promote niches
Increase women participation in
decision making positions
Local Partners become competitors
or allies to experts in the North
Difficulty in valuing mutual
contributions or building up
trust by win-win situations
Gather proactively experiences
Joint Ventures as a challenging
alternative?
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Public-private-partnership of
Visions / Courage for Alternatives
Helvetas
Project Co-Funding by
Private Sector (PS)
(Social Commitment)
Joint Ventures/Alliances
Internat.Coop./PS (S-S/S-N)
Long term vertical
Helvetas
cooperation S-N
Funding from PS with (SDC/Seco)
along a product chain
cooperation interest
(Organic Cotton, NN etc.)
in the South
PR & Sales of Products
(Cotecna, GF)
in the North
(Body Shop, Migros, Globotrek,
Fair Trade & Handicraft
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Marketing challenge
Market
Competition
• Helvetas
participates in public
tenders
• Maintain a critical
view and own
identity
Globalization
•Reduce unequal chances
•Neoliberal approach and
good governance are not
sufficient > Lobbying work
and networking
New Technologies
•Promote adequate use of new
tools (PC, GIS) for knowledge
sharing and management
Solidarity is
competitive
New Alliances with
other NGOs
• Subject-specific
alliances
•New cooperation
models with NGOs S&N
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Double Mandate in
CH and abroad
•Reinforce <h> profile
and competence
•Marketing of the
„product <h>“
Fundraising
•Special care for donors
•Attractive public campaigns
Partnerships with
private
stakeholders
•Alliances/joint
ventures
•Cooperation with
private sector industry