Session Duration: 1.5 hours
Format: Lecture, case illustration, PPP design exercise using templates
Designing and structuring a Public-Private Partnership (PPP) refers to the intentional process of planning, organizing, and formalizing how a partnership between a public entity (like a research funding council) and one or more private or civil society partners will function. It ensures that the collaboration is goal-driven, transparent, and effective, and that all partners have clearly defined roles, responsibilities, and benefits.
Before entering a partnership, it is crucial to define: What problem the PPP is trying to solve, why a partnership is needed, instead of a purely government or private-led effort, what specific outcomes or impact is expected (e.g., creating a digital platform for innovation hubs, co-funding a research challenge, commercializing R&D outputs). This ensures the partnership has a shared vision and common goals.
Designing and structuring a PPP involves creating the architecture that will guide how a public institution, such as a research and innovation funding council, collaborates with private companies, civil society organizations, or academic institutions. This structure ensures the partnership is not only effective but also accountable, equitable, and sustainable. Below are the core components involved in designing and structuring a successful PPP:
a) Defining the Purpose and Scope of the Partnership: The first step in designing a PPP is to define its purpose clearly. This involves answering key questions: What problem or opportunity is the partnership addressing? Why is a partnership the best approach to solve this problem? What is the expected outcome? In the context of research and innovation councils, the purpose of a PPP could be to develop and commercialize a new agricultural technology, establish a joint innovation lab, or co-finance community-based research. This definition must align with the council’s mandate, national development plans, or sector-specific goals. The scope then defines the geographical coverage, target beneficiaries, expected timelines, and boundaries of the project. Without clarity on purpose and scope, PPPs risk becoming vague, unfocused collaborations that yield little impact.
b) Identifying Stakeholders and Clarifying Roles: After the purpose is defined, the next step is to identify the key actors who should be involved in the partnership and to clarify their roles. Stakeholders typically include representatives from the public sector (e.g., research councils or ministries), the private sector (e.g., firms, investors), academia (e.g., universities, think tanks), and civil society (e.g., NGOs, cooperatives, community leaders). Each stakeholder brings specific assets, such as financial capital, technical expertise, access to communities, or policy influence. Proper stakeholder mapping helps distinguish between core partners (those involved in direct implementation), supporting actors (those who provide resources or advocacy), and beneficiaries (those who will be affected by the project). It is equally important to define the roles and expectations of each actor early on. This eliminates confusion, avoids duplication of efforts, and builds accountability.
c) Mapping Resources and Partner Contributions: An effective PPP is based on the recognition that all partners contribute something of value, whether monetary or non-monetary. Designing the partnership requires mapping these contributions to understand who brings what to the table. This could include funding, equipment, land, human resources, data, logistics, or intellectual property. For example, a funding council may offer grant funding and policy backing, while a private company provides technical equipment and co-financing. An academic institution may contribute laboratories and researchers, while an NGO may contribute access to communities or local implementation expertise. Documenting these contributions not only helps with project planning but also sets the foundation for equitable recognition and benefit sharing.
d) Establishing Governance and Decision-Making Structures: Governance is the backbone of any structured PPP. It outlines how decisions are made, who holds authority, and how conflicts are resolved. A sound governance structure prevents dominance by any one partner and ensures inclusive participation. Typically, this includes forming joint steering committees or management boards with representatives from each sector. It may also include technical working groups for specific tasks (e.g., research coordination, monitoring and evaluation). These structures should define roles such as chairperson, secretariat, financial controller, and partnership liaison. Clear terms of reference must be developed for each body to guide their function. Good governance promotes transparency, builds trust, and enables effective project implementation.
e) Drafting Legal and Contractual Agreements: Once roles and governance are agreed upon, the partnership must be formalized through written agreements. These may include Memoranda of Understanding (MoUs), contracts, or joint venture agreements. These documents serve to codify the terms of engagement and protect all parties. Key components of these legal documents include: the partnership’s objectives, roles and responsibilities of each party, financial arrangements, timelines, intellectual property rights, data sharing protocols, and procedures for conflict resolution or withdrawal. In West African contexts, where legal frameworks may vary by country, it is essential that these documents comply with local laws and are reviewed by legal experts. Legal agreements provide clarity, mitigate risks, and support enforcement of commitments.
f) Designing Performance Metrics and Monitoring Systems: To ensure that the partnership stays on track, a structured system of monitoring and evaluation must be built into the design phase. This includes identifying key performance indicators (KPIs), defining how progress will be tracked, and assigning responsibility for reporting. For example, performance metrics might include the number of innovations developed, number of beneficiaries reached, funds leveraged, or patents filed. A joint monitoring and evaluation (M&E) framework allows partners to assess progress collectively, identify areas for improvement, and celebrate successes. It also ensures that accountability is not one-sided but shared by all.
g) Developing a Sustainability and Exit Strategy: Finally, any well-structured PPP must consider how the partnership will be sustained or exited once the primary objectives are achieved. This includes identifying who will own and operate any infrastructure developed, how operational costs will be covered going forward, and what happens to intellectual property or revenues generated. In some cases, PPPs may evolve into permanent institutions, while in others, the public sector may absorb ongoing functions into its structure. An exit strategy outlines the conditions under which a partner may leave the arrangement, how responsibilities will be transferred, and how the impact of the project will be maintained. This avoids abrupt termination of initiatives and ensures long-term value beyond the project lifecycle.
Facilitators Notes
a) Guide participants through stakeholder mapping.
b) Stress the importance of governance and clear legal agreements.
c) Use case-based exercises to illustrate risk-sharing.
Suggestions for Further Reading
a) OECD (2014). Principles for Public Governance of Public-Private Partnerships.
b) Yescombe, E. R. (2013). Public-Private Partnerships: Principles of Policy and Finance.