Setting Up A Public-Private Partnership
Setting up a public-private partnership can be hard. If you're the public entity how do you choose the right private partner? Do you do so through a blind RFP and perhaps find a private partner that has the right background but have no idea if you will mesh? If you are a private entity, how do you work to build a relationship with your public entities? Do you know how far or how deep your relationships need to go? Do you need your city, state, or federal government involved? All three of these groups? These are the questions that come up (or should) in so many p3 projects and we want to offer some insights here.
Build the Right Relationship
A public-private partnership is a marriage of entities and just like a marriage you need to find a partner that you can be with for the long term. You need to build your relationship and you need to understand their interests. It doesn't mean you'll always agree on everything or that you will both contribute 50% of the effort on everything. However, with a strong relationship and understanding of your partner’s interests, you'll see your path ahead of you and most of the time understand the direction you are headed.
Planning is Key
We most often times find an aligned strategic plan or business plan is the best path to understanding and aligning interests. By establishing an aligned strategic plan early in the process, interests and roles can be established to help with aligning the path forward. It's critical that every partner buys into the strategic plan though. Without the right level of buy-in from everyone, there will be missed opportunities, and future problems may arise.
The key here is to build your path forward together and not make assumptions about your partners. ailing to align long-term goals can reduce potential value and increase risk. One partner planning only for the short term leaves the responsibility of long-term upkeep, planning, funding, and risk in the hands of the remaining partner. Building relationships and planning with those partners is key to success.
Interested in more p3 insights? Check out some of our other blogs on The History of the P3 Market and What's Next and the Top 5 ways to Align Vision of a PPP. If you want to learn more about how we develop effective strategies for public-private partnerships, reach out to us today to start a conversation.
