India - Nagpur Municipal Corporation... more on PPPs and their failures - From PSI AP face book page

Contract workers working in water treatment plant and distribution network in Nagpur city observed black diwali for not being paid bonus. The contract for water treatment plant has gone to Veolia Water Ltd. The citizens and workers continue their campaign to discredit the failed model of PPP drinking water in Nagpur.
(Credit: Jammu Anand, Nagpur Municipal Corporation Employees Union)

PSI Launches report that exposes Private Public Partnerships ( PPPs) risks and failures --- why would you use them ???

Report exposes how PPPs across the world drain the public purse, and fail to deliver in the public interest

After the crash, governments bailed out the banks but didn’t fix them. Finance has refused to change its ways. The people – and our public services – have paid the price. Photo: PSI/Shutterstock.com Experts call for World Bank Group to end aggressive promotion of PPPs for public service provision. A new report exposing how public private partnerships across the globe have drained the public purse and failed to deliver in the public interest will be launched at the Annual Meetings of the World Bank in Bali next week. History RePPPeated: How public private partnerships are failing has been written by experts across four continents from many civil society organisations. They expose the negative impacts of PPPs that have often caused misery to local communities.     The report shows that multilateral development banks, such as the World Bank Group (WBG) have played a leading role in providing advice and finance for PPP projects in different sectors. This is despite the mounting evidence showing that PPPs are expensive, risky and opaque. Rosa Pavanelli, Public Services International General Secretary, says: PPPs divert funding from the public purse to private bank accounts. Instead of creating for-profit structures with tax payer’s money, we need investment in public goods such as health, education and water and sanitation. PPPs do not deliver for communities and we call for a stop to these funding mechanisms by the International Financial Institutions before they increase inequalities even further. Last year, EURODAD  launched a campaign manifesto in which more than 150 civil society organisations from around the world, including PSI, called for an end to the aggressive promotion of PPPs. There is overwhelming evidence of the harm they cause. The report covers 10 case studies from Colombia, France, India, Indonesia, Lesotho, Liberia, Peru, Spain and Sweden. The sectors investigated include education, health, water and sanitation, energy and infrastructure. Some of the main findings are: ·         All projects came with a high cost for the public purse, and an excessive level of risk for the public sector and, therefore, they resulted in a heavy burden for citizens. ·         Nine out of 10 of the projects lacked transparency and/or failed to consult with affected communities, and undermined democratic accountability. ·         Five of the 10 projects impacted negatively on the poor, and contributed to an increase in the divide between rich and poor. ·         Three of the PPPs resulted in serious social and environmental impacts. The case studies include the Queen Mamohato Hospital in Lesotho, which is bleeding government coffers largely through huge costs for the treatment of patients; and the case of Jakarta Water in Indonesia, where two PPP contracts resulted in huge losses for the public water utility, while residents often have to rely on groundwater from community wedge wells, or buy expensive water in jerry cans. The report recommends that the WBG, the International Monetary Fund (IMF) and other public development banks, together with the governments of wealthy countries that play a leading role in these institutions: ·         Halt the aggressive promotion and incentivising of PPPs for social and economic infrastructure financing, ·         Support countries in finding the best financing method for public services in social and economic infrastructure. ·         Ensure good and democratic governance is in place before pursuing large-scale infrastructure or service developments. ·         Ensure that rigorous transparency standards are applied. Access the full report including all case studies at: www.eurodad.org/historyrePPPeated or on PSI's website through this link.    LAUNCH OF REPORT: The report History RePPPeated: How Public Private Partnerships are failing will be launched at the World Bank/ IMF Annual Meetings 2018 in Bali Nusa Dua, Indonesia. ·         Date: Wednesday October 10th from 13.30 to 15:00 ·         Where: Civil Society Policy Forum, Bandung Room.

Latest Privatisation news from PSI - includes Asia Pacific Region , includes AP Region Local Government and Utilities

http://www.world-psi.org/en/privatization-watch-newsletter-all-issues

Finance got bailed out, we got sold out. That's what's happened in the last ten years. #10YearsOn

After the crash, governments bailed out the banks but didn’t fix them. Finance has refused to change its ways. The people – and our public services – have paid the price. Photo: PSI/Shutterstock.com We’re saying no more. We need to send a message to politicians, banks and institutions everywhere that this won’t stand says Change Finance, a citizens’ movement from more than 11 countries and 5 continents (and growing), including charities, campaigning groups, think tanks, environmental groups, religious organisations and trade unions, who represent millions of people across the world. Across regions, citizens will be participating in a day of action. Which is where you come in. With people like you standing alongside us, we can take a stand and be heard. It starts on September 15th – the 10-year anniversary of the collapse of the US investment bank Lehman Brothers and the start of the crisis. www.changefinance.org

 

India The University Grants Commission has notified new rules that allow public-private-partnership entities to assess and accredit educational institutions, “prompting criticism from academics who say the policy would lead to sale of accreditation grades.” Rajesh Jha, a member of Delhi University's executive council, said: “The government is trying to promote privatization of higher education. It wants top colleges to take autonomous status to start self-financing courses. It wants to give institution of eminence status to Jio Institute, which is yet to be set up. Now it is involving private entities in accreditation also.” Indonesia In Jakarta, a women’s movement is leading the fight against water privatization. Peoples Dispatch spoke to Dinda Nuur Anisaa Yura from Solidaritas Perempuan (Women’s Solidarity for Human Rights) about the movement against water privatization. “If the RCEP [Regional Comprehensive Economic Partnership, a mega free trade deal] comes, then there will not only be two companies to control the water resources, but it will further privatize water in Indonesia. There are very few communities who can still access water for free now and in the future, with RCEP and other trade agreements, we will have much less access to water resources as all of it will be grabbed [by corporates] and it will cost us our sovereignty.” Pakistan The new Prime Minister Imran Khan will be opening negotiations with the IMF, “seeking up to $12 billion in loans that could require privatization of some national assets.”

Audit exposes lack of transparency in consultancy use - Government News

Audit exposes lack of transparency in consultancy use - Government News: NSW Government agencies are failing to comply with procurement requirements when engaging consultants, audit finds.

More than $1 billion in consultancy contracts was handed to just six firms over a period of five years, while a number of departments failed to obtain the relevant approval for contracts, a new audit has found.

Item from Government news www.governmentnews.com.au

 (NSW is Australia's most populous State, over 30% of national population, and thus the countries largest State user of public services)

OECD Publication - roles of Cities and Regions in delivering on Sustainable Development Goals (SDGs)

Reshaping Decentralised Development Co-operation The Key Role of Cities and Regions for the 2030 Agenda Over the last decades, and in line with the adoption of the Sustainable Development Goals (SDGs) in 2015, cities and regions have played an important part in helping to implement global agendas at local level through their Decentralised Development Cooperation (DDC) activities.  Read and Share .  " This report, while heavily European focused, provides examples of cross Local Government cooperation , including internationally, the role of UN - Habitat and reminds us of the role of Local Government in delivering on the UN Sustainable Development Goals. The report is well worth a read, for those interested in this debate, provides number of examples and quotes, including Local Government working with other Local Governments (PUPs as alternatives to the failed PPP's model) as well as Local Authorities working with NGOs, in traditional development models " - Greg Mclean  If the above link does not work please use https://read.oecd-ilibrary.org/urban-rural-and-regional-development/reshaping-decentralised-development-co-operation_9789264302914-en#page1 (The above OECD advice, is provided from the OECD New Publications Bulletin)

Lets bring water into public ownership

News on privatization of public services around the world - by Public Services International

http://campaigns.world-psi.org/t/ViewEmail/r/67F2B1FC9E77CD7D2540EF23F30FEDED/20BCEE507284978AFCACEB58A033025D 

News on privatization of public services around the world - by Public Services International

Debt sustainability and Financing for Development

Photo: Sergsta/Shutterstock.com

PSI organized a workshop on debt sustainability in Castries, St Lucia, with the participation of Jubilee USA network and Jubilee Caribbean, during which case studies were examined and the impact of the recent hurricane season was discussed. PSI affiliates in the Caribbean sub-region adopted a joint declaration on Debt Sustainability and Financing for Development in Castries, St Lucia on 5 July.

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“The world is off-track in terms of achieving sustainable development and fundamental policy changes are necessary to unleash the transformative potential of the SDGs.” This is the main message of the Spotlight Report 2018, the most comprehensive independent assessment of the implementation of the 2030 Agenda. The report was launched on the opening day of the High Level Political Forum (HLPF) at the United Nations in New York by a global coalition of civil society organizations and trade unions.

PSI will produce a special edition of Privatization Watch on the HLPF outcomes including a summary of the work PSI and partners have done at the HLPF and the 2030 agenda for sustainable development.

Includes 

Australia

New South Wales authorities are revaluating their policy toward ‘public private partnerships.’ “NSW is worried that it won't find enough contractors to build some $80 billion of infrastructure over the next four years if it does not better manage construction risk and break contracts into smaller sizes, giving smaller companies an opportunity to compete against bigger companies. The average size of new social infrastructure projects undertaken as public-private partnerships has more than doubled in the five years to 2015 to about $753 million compared with the five-year period to 2010, according to Allens. Some of the PPPs have also been controversial, such as Maitland Hospital, which will now be built by the government following opposition to the hospital's privatization. Mr. Donnelly said governments needed to better plan PPP as the size of projects increased, and be careful about rushing proposals into the market to meet political timetables.”

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India

Julie Snorek of the Autonomous University of Barcelona, a researcher for the Environmental Justice Atlas, has helped map out the world’s top ten environmental justice battles, including a conflict involving waste privatization in Delhi, where “middle class residents and informal recyclers joined together to oppose the privatization of waste management and the resulting introduction of incineration.” The Global Alliance of Waste Pickers defends the informal recycling sector in more than 28 countries.

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Indonesia

The Coalition of Jakarta Residents Opposed to Water Privatization (KMMSAJ) has submitted to the Central Jakarta District Court a counter memorandum to the judicial review on the water privatization case filed by the Finance Ministry. “‘The Supreme Court has ruled in favor of civil society. We're very disappointed that the Finance Ministry still cannot accept it,’ the plaintiffs' representative, Nurhidayah, said on Tuesday, as quoted by kompas.com. Through the judicial review, the Finance Ministry is attempting to challenge the Supreme Court's decision.”

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Vietnam

 The European Union-Vietnam Free Trade Area, which is expected to be signed this year, could bring a wave of privatizations. “Vietnamese companies should also be aware of the challenges brought about by free trade agreements, and especially the EVFTA. These are related to higher requirements from the EU market in terms of transparency and competition, both for private and state-owned enterprises (SOEs). The FTA is not necessarily seeking complete privatization, but rather the opening up of those economic sectors where SOEs are present. Vietnamese enterprises may expect to see an impact from this process, provided that the FTA promotes reforms in public procurement.”

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Vietnam

The government has raised private capital requirements for ‘public-private partnerships’ from 15% to 20% of equity. “The Vietnamese government is encouraging PPP investments in areas such as transportation, power generation and transmission, public utilities, social infrastructure, commercial infrastructure and agricultural and rural development. Other sub-sectors can also be targeted under the prime minister’s discretion.”

Full Bulletin can be down loaded at http://campaigns.world-psi.org/t/ViewEmail/r/67F2B1FC9E77CD7D2540EF23F30FEDED/20BCEE507284978AFCACEB58A033025D 

Australia this weekend a significant change was made to a political party policy on privatisation of Public Services

For a number of years Local Government, State and National Public Services Unions have pushed strong and hard against privatisation of essential Public Services in the State of NSW * , including opposition by other Unions and their own Labor Political Party Colleagues .... 

Last year at this conference PSI affiliated State Unions in Electricity ,the ETU and USU (part of ASU National) changed the Labor Party policy https://gmpsiaprec.blogspot.com/2017/08/psi-australian-unions-call-for.html to pursue a similar push by UK Labour Party. In calling for re introduction of majority Government Ownership , through a small corporation buy back of shares to bring two large Electricity Distribution Network Businesses back into majority State Ownership and thus back to Public accountability, reporting to Parliament , reporting to the Government Minister & Public , plus  all the things that differ a State Owned Corporation to a privatisted privately owned and operated private business.

This weekend the Labor Leader and his party Members of Parliament committed to the Labor Party Conference his Government when elected would not support electricity privatisation,  along with Water, Public Transport , Ambulance, Education , Health system and Hospitals, plus more. 

This statement by the Labor Leadership is an important step and one all the Unions in Public Services areas have argued for and sought strong policy statements from their political party leadership and political party for some time, as conservatives, Liberals and National party political , along with some past politicans from all sides have pushed for or supported privatisation of essential services .

The outcome of the conference actions and policy statements also come at a time, when Electricity prices continue to rise across the country with higher increases in prices in the privatised states , see 

http://gmpsiaprec.blogspot.com/2017/07/electricity-prices-in-australia-has.html

 * Population 7.8  Million aprox. or one third of the Countries population , in the largest State and therefor the State with highest number of persons using Electricity , Water and Local Government Services and other Services Public Services.  

The End of Water Privatisation?

http://www.world-psi.org/en/end-water-privatisation 

Across the world, a wave of remunicipalisations has delivered water services back into public hands, often after decades of private mismanagement.

Yet the United Nations and many governments still seem convinced that we need Public-Private-Partnerships (PPPs) and private finance to achieve the Sustainable Development Goals (SDGs).  They remain deluded by the false promises of PPPs, even as the evidence of the crisis of privatisation is mounting.

Just look at the meltdown of many privatisations in the UK: even the Conservative Environment Secretary Michael Gove is chastising the behaviour of privatised water utilities. He recently highlighted how tariffs are too high, financial manipulations and tax avoidance are endemic, shareholder dividends swallow most of the profits, and CEOs pay themselves exorbitant salaries.  And this from the party of Margaret Thatcher.

A recent report published by Public Services International and the Transnational Institute shows that since 2000 there have been at least 235 cases of water remunicipalisation in 37 countries, affecting more than 100 million people. So what’s driving this trend?

The motivations for ending privatisation in the water sector include cost savings, improved quality of service, financial transparency, and regaining operational capacity and social control.  Environmental objectives, such as speeding up renewable development or reducing waste are other key drivers. And of course, providing social tariffs for low-income households (where many families cannot afford the high utility bills) is another key reason.

Furthermore, there’s mounting empirical evidence that remunicipalisation across the public sector makes economic sense. The termination of transport PPPs in London resulted in a £1 billion reduction in costs, mainly through the elimination of shareholder dividends and legal fees. In Canada, after the Government decided to build four schools via public provision rather than through PPPs, the savings were enough to build an entire new fifth school.

Yet the unfortunate reality is that over one billion people remain without access to safe water. In 2015 the UN endorsed universal access to water by 2030 as one of its Sustainable Development Goals.  How can we ensure our public water operators are able to deliver? 

We need to demand a fairer global tax system, so we can invest in essential infrastructure such as modern water utilities. Failure to do so can lead to devastating consequences such as in Flint, Michigan where cost-cutting paired with a hefty corporate tax cut led to the poisoning of thousands of (mainly poor) people.  Another key step is to remove public services from trade deals, which often dissuade or penalize governments for acting in the public interest.  Finally, Public-Public Partnerships between water utilities can assist in sharing of both best practices and resources.

The turning tide in the privatisation debate is welcome news to workers, unions and the wider public. Now we need to convince global leaders to go with the flow.

On World Water Day, 22 March 2018, PSI and affiliates gathered at the Alternative World Water Forum in Brasilia, to work with unions and communities fighting for social justice, in Brazil, in Latin America and across the planet. 

Says Margarita Lopez, President of the water union Sintracuavalle in Colombia, “We join our Brazilian colleagues in denouncing the assassination of Marielle Franco, the young City Councillor of Rio de Janeiro and her driver. Regrettably, our opponents are too willing to kill unionists, environmental activists, and young political leaders. The levels of violence are increasing. But we will not be silenced, we will not be cowed. The fight for social justice continues, including the fight for public water and sanitation.”

Luis Isarra, President of the water union FENTAP in Peru said, “It is ironic that the push for privatisation is receding. Earlier this week (13 March 2018), the water privatisation of Tumbes, Peru came to a crashing halt, as the companies pulled out in defeat.  And it is the same Minister of Water, Carlos Bruce, that we warned 12 years ago against the Tumbes privatisation, who announced the return to public management.”

Says Edson Aparecido da Silva of the municipal workers union FNU, “Brazil is going against the trend: while the world is bringing water services back in public ownership and management, Brazil under Temer is privatising as fast as it can.  Our union FNU is waging a valiant battle in every community, to raise awareness of the threats and to push for stronger social control of public utilities. We are in a very difficult political context, where corporate control is growing, at all levels, including in the U.N.; where rising inequality is leading to toxic political movements seeking to divide and exclude; where governments shut down spaces for free expression. But our movement for water justice is built in the workplace and in the community, with too many voices to be silenced. "

David Boys will also speak in the ‘commercial’ World Water Forum, to denounce the privatisation and commodification of water services and resources. 

Says Boys, “Policy makers need to get their heads out of the corporate trough and listen to what our members and our families really need.  We don’t want our water – or other public services to be run for the profits of the few.  The privatisation mania has got to stop.  One step we can take is to build a global tax system, so that the rich and the corporations pay their fair share into the public coffers.  Another step is to remove public services from the trade deals.  And, we will hold our elected officials and their public appointees to account, to ensure they deliver on their obligations, whether in water and sanitation, in health and social services, in transport, in justice...”

Posters

Download in EN for print (.pdf)    Download in FR for print (.pdf)     Download in ES for print (.pdf)

EU’s Financial Watchdog Slams Public-Private Partnerships: “Widespread Shortcomings, Limited Benefits”

http://www.world-psi.org/en/eus-financial-watchdog-slams-public-private-partnerships-widespread-shortcomings-limited-benefits

The European Court of Auditors (ECA), the European Union’s very own Financial Watchdog, has slammed Public Private Partnerships in a no-holds-barred report released today.

“EU co-financed Public Private Partnerships (PPPs) cannot be regarded as an economically viable option for delivering public infrastructure,” reads the opening line of the ECA’s press release, calling into question the EU’s long-entrenched promotion of the controversial funding mechanism.

The report comes after a wave of negative press stories, such as the Carillion collapse in the UK, and adds to a growing body of empirical evidence and examples which show that PPPs provide neither the efficiency gains nor cost savings so often promised. The termination of transport PPPs in London resulted in a £1 billion reduction in costs, mainly through the elimination of shareholder dividends and legal fees. In Canada, after the Government decided to build four schools via public provision rather than through PPPs, the savings were enough to build an entire new fifth school.

The ECA Report states that “the PPPs audited suffered from widespread shortcomings and limited benefits, resulting in €1.5 billion of inefficient and ineffective spending. In addition, value for money and transparency were widely undermined in particular by unclear policy and strategy, inadequate analysis, off-balance-sheet recording of PPPs and unbalanced risk-sharing arrangements.”

The auditors recommend that both the Commission and Member States should “not promote more intensive and widespread use of PPPs until the issues identified have been addressed.”

There is growing evidence that failed PPPs are leading to the reversal of privatisations across the world. Last year, Public Services International and Transnational Institute released a report - Reclaiming Public Services - which highlighted at least 835 examples of (re)municipalisation of public services in recent years, involving more than 1,600 cities in 45 countries. The report examines how “these (re)municipalisations generally succeeded in bringing down costs and tariffs, improving conditions for workers and boosting service quality, while ensuring greater transparency and accountability.”

Speaking ahead of the ECA’s report release, PSI Deputy General Secretary, David Boys said:

“For decades trade unions, civil society groups and the wider public fought against the failed privatisation agenda. Now that the EU’s very own financial watchdog is clearly saying PPPs are a bad idea, it’s surely time for leaders to take note.”

“PPPs have been promoted under the myth that there isn’t enough money to fund public services via public provision. But the recent astonishing tax leaks such as the Panama and Paradise Papers blow this myth to pieces. This is not a question of resources - this is a question of political will.”

Contact Marcelo Netto, PSI Communications Officer, for further information - marcelo.netto@world-psi.org