These arrangements are formed to address a particular need by actually overseeing the implementation and delivery of a project or a series of projects. Typically these arrangements are responsible for the design and construction of proj- ects.
Often a design-build procurement is recommended to streamline the process. Type III arrangements have implementation authority and, therefore, are respon- sible for obtaining all the environmental approvals neces- sary, including mitigating the environmental impacts the project s may have.
It is the re- sponsibility of these organizations to decide how the risks between the owner and contractors will be shared for unexpected cost increases or schedule changes. These organizations oversee the construction of their project s by meeting regularly with project managers contractors , tracking the construction progress, systematically identifying obstacles, maintaining adequate contingency and reserves, and monitoring the project budget.
In cases where bonds or loans are issued to finance a project, Type III organizations are responsible for paying that debt. They also are responsible for collecting and distributing any user fees. These agreements are typically consummated in the form of Memoranda of Understanding MOUs between the various partners vested in the project. These agreements define the responsibili- ties of each partner and make sure each partner is vested in the project.
Organizations can fit into one or more types simultaneously or move from one type to another over time as missions shift and programs evolve as is the case with two case studies. Categorization of case studies.
The report examines 40 guidelines, reflecting lessons learned from existing arrangements, that are designed to help agencies and industry representatives work together to invest in and improve the freight transportation system. Appendices, consisting of a literature review, workshop material, detailed case studies, and interview guide, contained on a CD-ROM CRP-CD , which accompanies the printed version of the report and is available for download as an ISO image online.
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Visit NAP. Looking for other ways to read this? No thanks. The governance structure might consist of a board of directors with equal representation of both parties that meets on a regular basis. The private sector is clearly empowered to deliver the project pursuant to the agreement. Active Model. In this model, the public sector is the primary entity responsible for actual delivery of the project. It assumes all execution risk and responsibility and acts as a developer would in managing the land and vertical development process.
This is rarely used in its pure form due to the lack of expertise in the public sector and the high level of execution risk this entails. However, there are instances, often in the case of the development of large-scale public housing, that the public sector has assumed such a prominent role. The cooperation model here might have the private sector assuming some of the risk and delivery responsibilities, such as developing some of the parcels or infrastructure financing.
In this model, the venture is controlled largely by the public sector, with the private sector playing a more narrowly defined role. Hybrid Model. This model is more typical of city regeneration projects.
As an example, assume the majority of the land is owned by the public sector and requires significant infrastructure development, especially in the early stages. The public sector is concerned with the quality of the urban environment and wants to maintain a long-term active role in its development.
However, it does not want to deliver the vertical construction or assume such a high risk. In this model, the cooperation would be structured in such a way that the public sector acts as the land developer responsible for the funding and delivery of area-wide infrastructure not parcel specific.
For its part, the private sector would be responsible for building and financing the vertical construction. The venture would clearly delineate the respective roles, investment requirements, and profit-sharing and decision-making arrangements. In this way, all parties would understand and agree on the clear division of financing and execution responsibilities.
Given the interdependence between the public and private sectors in delivering the regeneration project, issues such as the phasing of development, timing and obligations for capital investment and capital calls, and the level of decision making on key aspects of project conception and execution will need to be well articulated and fully documented.
These examples highlight the complexity of public-private arrangements. In deciding on the appropriate arrangement, the public sector should generally be very clear about the extent of its own capacity and expertise. Providing for ongoing operations and maintenance is critical to project sustainability and must be planned for in advance.
A well-established vehicle is a business improvement district BID , which is covered in the financing section of this chapter. The key point is that it is never too early to plan for the best range of organizational entities that the regeneration project might require. Indeed, there can be multiple entities, each with its own focus that can be created or supported to ensure long-term success.
It is therefore not a simple matter of whether regeneration is public or private. Rather, it will usually be a complex mix that requires careful consideration of a range of options for how the public, private, community, and civic sectors can best interact, as well as the institutional arrangements that are best suited to the aspirations of the leadership and demands of the project. One example involving thorough institutional arrangements in urban regeneration projects concerns the Santiago Repopulation Program see chapter 5 , delegated to the Santiago Development Corporation SDC.
Its flexible institutional structure facilitated the negotiations and partnerships developed with the private sector. Municipal corporations in Chile are ruled by the private law. Thus, they are authorized to enter into contract with public or private institutions, receive contributions, and borrow from private banks or financial entities, and so on.
The PPP agreements between the SDC and other actors were regulated in the same manner as contracts between two private actors. Especially in cases in which the legal framework is weak, institutional arrangements can play an important role in improving it and addressing current constraints.
Different types of institutional arrangements can provide equally for statistics on the international supply of services that follow internationally recognized methodological guidelines, use all available statistical sources in an efficient way and apply appropriate compilation procedures. Practical examples from countries with different statistical systems are provided at the end of the present chapter to help in setting up institutional arrangements in the most effective way.
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