The Challenge of Public–Private Partnerships

The Challenge of Public–Private Partnerships

Learning from International Experience

Edited by Graeme A. Hodge and Carsten Greve

The aim of the book is to investigate how PPP reforms function in comparison to the more traditional methods of providing public sector services and infrastructure and who typically experiences the successes and failures of these reforms.

Chapter 12: Public-private partnerships in social services: the example of the City of Stockholm

Roland Almqvist and Olle Högberg

Subjects: economics and finance, public sector economics, politics and public policy, public policy


12. Public–private partnerships in social services: the example of the City of Stockholm Roland Almqvist and Olle Högberg INTRODUCTION The concept of public–private partnership (PPP) is based on the notion that the public sector can, over a long period, contract out public services to private providers. One reason for doing so is to make use of these private providers’ competence in directing and managing activities; another is to permit financial risks to be transferred to these providers. PPP includes agreements and quasi-franchising deals whereby private providers assume responsibility for performing the public service by, for example, administering, improving or constructing new, necessary infrastructure. The concept is also based on the public sector retaining responsibility for the requirements, volume and funding of the services to be performed. The public sector also remains in charge of setting and monitoring performance levels and quality, and is still obliged to act in the event of services being inadequate in terms of volume or quality. In European municipal activities, a range of tools are used to run PPP arrangements (Torres and Pina, 2001). One option is to create an organization in which the municipality and the private service provider are jointly responsible for the commitment. Another is full outsourcing of service delivery to a private provider, while the municipality retains primary responsibility for the manner in which the work is carried out, and also control over the strategic decisions involved. The latter approach includes contracting-out, but franchising assured for private providers and...

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