Improving PPP Implementation in Health Sector through Knowledge Sharing
To support the implementation of PPP in Indonesia, it is necessary for all key players to understand and keep developing their knowledge about the scheme. Directorate of Government Support and Infrastructure Financing Management (PDPPI – as the government facilities and support manager) is one of the key players that also needs to keep updating their knowledge from time to time to be able to improve their service and make things more effective. In order to enable the improvement, on Monday, 8 May 2017, a workshop on PPP in health sector was held in Jakarta. PPP in Health: Examples from Across the Globe was aimed to share practices and methods about PPP implementation around the world. A part of collaboration between DGSIFM and The World Bank, the workshop invited Mr. Dhawal Jamb from the World Bank to give presentation to DGSIFM staff and other parties that involved in PPP implementation in Indonesia, such as Indonesia Infrastructure Guarantee Fund (IIGF) and the Ministry of National Development Planning. The workshop discussed different needs of health sector and how PPP can be the solutions they need. Mr. Jamb shared about a few countries which have implemented health PPPs and how in general, PPPs in health sector can be classified in three categories:
- Health infrastructure PPPs - private sector is engaged for creating and maintaining infrastructure; often clubbed with non-clinical operations
- Clinical services PPPs - private sector is primarily engaged for providing clinical services; often clubbed with developing infrastructure too.
- Health continuum PPPs - private sector is made responsible for the health (including prevention) of a defined population.
- Cost of private debt and equity are higher in developing countries
- PFIs in developed world are heavily leveraged
- PFIs are based on regular government payments for a long period of time. Governments in developing countries have lower credit rating than in developed countries - thus PFIs are considered to have higher risk and thus higher returns are expected from investors.