Nairobi s central business district. With a population of more than 3 million people Nairobi is one of the most prominent cities in Africa politically and financially. Photo: Francesco Zizola / NOOR

Photo: Francesco Zizola / NOOR

Public Private Partnership

Ten key principles and criteria governing the Public Private Development Partnerships

Published: Thursday, July 12, 2012

Changed: Tuesday, April 09, 2013

  1. A social problem and an area of developmental improvement as the point of departure.
    Projects should be anchored in defined problems and needs in partner countries, and not be driven by company’s supply desires (although the latter might be the basis of interest by the company). The scope of such problem-solving and benefits to the partner countries should be the key justification for support by Sida.

  2. Country focus.
    The programme addresses projects that take place in Sida’s partner countries in Africa, Asia, Latin America, the Middle East and Eastern Europe .

  3. Country strategy and sector alignment.
    The project should be within the parameters of the country’s existing national policies, e.g. Poverty Reduction Strategies. Preferably, the PPDP should be focused on the key sectors defined in Sida’s development assistance in line with the Paris agenda but is not limited to these sectors.

  4. Rights based approach.
    The project shall align with a rights-based approach, strengthening key principles such as participation, transparency and accountability. Operations should support and complement existing local democratic and institutional management systems rather than be contra productive to these.

  5. Local partner.
    A close cooperation with relevant local bodies is as fundamental as in any other form of development cooperation. Local commitment to the project is critical in the form of a formal partnership and strong interest from relevant local national bodies, such as local public sector institution, a ministry, department or a trade union. The partnerships might for example be driven by a group of concerned stakeholders. A local body such as a national authority, ministry, NGO or a trade union shall be committed, give their formal approval to the project initially and take part in developing the programme.

  6. Scaling-up potential.
    PPDPs which potentially can have considerable scale effect, and a greater impact i.e. through replication elsewhere, will be given priority.

  7. Market creation, not distortions.
    The PPDP is designed and shall be conducted in a way which does not imply subsidies to individual enterprises. It should trigger market creation rather than imply market distortions. Thus, the support should be provided neutral to different existing or potential market players, not favouring one company over another. In the earlier stages of development (such as feasibility studies and minor pilot projects) such neutrality might be difficult to achieve, but the end-result should never be a distorted market situation and favouring one company over a competitor.

  8. Transparency.
    The company should be willing to share information, results and outcomes from the projects as it is an important part of improving methods for development partnerships.

  9. Additionality.
    The Sida support shall have a strong degree of additionality, i.e. stimulate pro-poor developmental impact of business and economic activities which would not have emerged to the same extent without Sida support.

  10.   Corporate Social Responsibility (CSR).
    Assurances that business is conducted under high social and environmental standards and is complying with international conventions and standards including environmental and climate sustainability. Environmental impact assessment for the business venture is mandatory as for all Sida engagement . The size and scope of the assessment varies according to the relevance.

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