What are the best practices for negotiating a public-private partnership project with a government agency?

1 Understand the context

Before entering a PPP negotiation, you need to understand the context of the project, the objectives and expectations of the government agency, and the legal and regulatory framework that applies. You also need to conduct a thorough market research and feasibility analysis, to identify the potential partners, competitors, and risks in the sector. By understanding the context, you can align your proposal with the public interest and the strategic goals of the government agency, and avoid unrealistic or unethical demands.

2 Build trust and rapport

A PPP negotiation is not a one-time transaction, but a long-term relationship that requires trust and rapport between the parties. You can build trust and rapport by communicating clearly and respectfully, listening actively and empathetically, and demonstrating your credibility and competence. You can also show your commitment and goodwill by sharing relevant information, addressing concerns, and offering solutions. By building trust and rapport, you can foster a collaborative and constructive atmosphere for the negotiation, and reduce the chances of conflict or deadlock.

5 Manage the risks

A PPP project involves various risks, such as technical, financial, operational, legal, political, or environmental risks. You need to manage these risks effectively, to ensure that they do not jeopardize the success or viability of the project. You can manage the risks by identifying, assessing, mitigating, and monitoring them throughout the negotiation and implementation stages. You can also allocate the risks appropriately between the parties, based on their capacity and willingness to bear them. By managing the risks, you can reduce the uncertainty and volatility of the project.

6 Review and evaluate

After completing a PPP negotiation, you need to review and evaluate the process and the outcome, to ensure that they meet the standards and expectations of the parties and the public. You can review and evaluate by conducting audits, inspections, or surveys, to measure the performance, compliance, and satisfaction of the project. You can also use the review and evaluation results to identify the strengths, weaknesses, opportunities, and improvements of the project, and to implement corrective or preventive actions. By reviewing and evaluating, you can ensure the quality and efficiency of the project.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?