- Do the national public partners, by using the PPDP approach, cede too much control over projects?
No, the partners are responsible for enacting an appropriate governance structure for project delivery prior to entering into the project.
In the case of UNIDO implemented PPDP’s, the governance of the individual PPDP Projects is subject to a project board, with representation from each project partner, and where decisions are made through a democratic process.
- Does the PPDP approach exclude SMEs?
No. SMEs are welcome to join. The LKD Facility will consider a company’s capacity to support individual PPDP projects, based on a specific project’s requirement.
- What is a PPDP?
A Public Private Development Partnership (PPDP) is a variation of the Public Private Partnership (PPP) model. In a PPDP, the public and private sectors make a joint investment in a project implemented by a third party. The development objective is to create conditions for people living in poverty to improve their lives.
- What is the difference between a PPP and a PPDP?
There are various models of PPP, established for different reasons and across a wider range of market segments that reflect differing needs. Although there are various types of PPP, two broad categories of PPP can be identified: The institutionalized kind, which refers to all forms of joint ventures between public and private stakeholder; and contractual PPPs.
The established contractual model for PPPs is one that is setup so that the private sector partner is charged with managing and providing a service on behalf of a public authority with better efficiency and service level than would be achieved by the public body while providing a commercial gain for the private partner.
PPDPs are based on a joint approach to development projects where both the public and private partners stand to gain from the outputs of the partnership. The partners share costs, the risks, get to leverage the others expertise and achieve a desired outcome with shared costs.
- Why the PPDP approach?
A growing number of industry leaders are recognizing that aligning business strategies, operations and supply chains with sustainable development outcomes is not only a social responsibility, but also increasingly a business imperative. Adopting more socially inclusive and environmentally sustainable business operations helps to mitigate risk, develop new markets, and cultivate sustainable relationships with suppliers, customers and investors.
PPDPs allow for harnessing the expertise, know-how and resources of the private sector to tackle important global industrial development issues.
About the LKD Facility
- Who can have access to the knowledge developed by the LKD Facility?
There is no restriction on availability of knowledge products from the LKD Facility; the project is “for the greater public good”. Material will be made available via this LKD Facility website. We welcome any specific questions or queries, and these may be submitted via the Contact details at the bottom of this site.
We will not, however, divulge sensitive or confidential information that has been entrusted to the LKD Facility.
- How is the LKD Facility governed?
The project is subject to the governance of a Project Steering Committee, much like a company’s board of directors governs a private company. The PSC terms of reference can be downloaded from the resources section of the website.
- Does the LKD Facility provide financing for PPDP Projects?
No. Although there is a project development component to the LKD Facility, the projects that are developed will still require the financial backing from an alternate source. The LKD Facility would however, help to source funding for suitable projects.
- Who develops the new PPDP proposals?
Within the LKD Facility, there is a project development component that has been charged with developing a minimum of two additional PPDP projects based on captured knowledge of the LKD Facility.
UNIDO, Sida and the LKD Facility Partners have individual approaches and methods to identifying and developing projects. The organizations each seek to promote knowledge of the LKD Facility within their own organizations (and elsewhere) so that as projects are identified, this is done in cogniscance of the options with PPDP’s as well as the support that can be offered by the LKD Facility.
- How are we capturing and sharing learning and why?
A key objective of LKDF is to disseminate the gathered knowledge for the greater public good by using face-to-face and virtual learning spaces such as meetings, publications, web portal and explanatory videos. The learning is shared in order to strengthen the existing and new PPDPs and the partnership, share with new PPDPs and partners for more efficiency and effectiveness, and to share with external organizations so their initiatives benefit from our learning.
- What is the role of donors?
Sida, together with UNIDO, is a founding partner of the LKD Facility and have perused its implementation in response to initial successes in Sida’s PPDP projects. With a serious lack of publicly available knowledge on the use of PPP’s in development projects, Sida are keen to provide a service that develops such knowledge and best practice in this field.
As an advocate and as part of the governing board, donors assure the development of the LKD Facility is aligned with the established objectives or is appropriately adapted as required, to provide expert advice and guidance, as the main sponsor and to help ensure the outputs are suitably promoted to the international community.
- Who benefits from the LKD Facility?
The LKD Facility benefits the National Vocational Training Systems by providing them with advice on how to build up-to-date training institutions, upgrade trainer skills and enhance their human capital base. Students benefit by gaining access to market-oriented training and improved career and employment opportunities. Development agencies gain information about new forms of development collaboration, thorough understanding of PPDP and potentially higher returns on investment. Companies will benefit by gaining greater and new market exposure, trained local workforce and by analysis of economic and social impact of partnership.
- Why UNIDO and what is UNIDO’s role?
UNIDO, together with Sida, is a founding partner of the LKD Facility; the two organizations have developed a good working relationship and track record with previous partnership projects. UNIDO has a mandate to promote and accelerate sustainable industrial development in developing countries and economies in transition and sees business partnerships as an important instrument in realizing these objectives and should logically be involved in developing this. Business partners see UNIDO’s value, amongst other examples, as the “Honest Broker” as an appropriate neutral body to facilitate the activities of the partners.
UNIDO is the implementing partner and so has the role of delivery agent for the LKD Facility.
Joining the LKD Facility
- What is expected of the private sector partners?
The private partners contribute to the LKD Facility at two levels. (i) Through their direct involvement in the LKD Facility and (ii) Through partnering on those PPDP projects that are within the reach of the LKD Facility.
As partners of the LKD Facility the companies make contributions of professional expertise, advice and guidance when participating at a regional and global level. This includes the time and cost implications of attending meetings as well as time allocation of company experts made available to review and support the development of LKD Facility material. They will, where possible, provide access to learning and management resources and host meetings, workshops and study tours at company facilities.
The companies provide inputs at individual and local project level as agreed on a project by project basis. The methods and results of the involvement at this level will feed into the monitoring and evaluation system that drives the learning process.
- What are the selection criteria for partners to join?
Currently applications or suggestions for membership are considered on a case by case basis. A selection criterion will be developed as part of the LKD Facilities activities. In general consideration is made on the basis of:
- Participating PPDP projects – is the prospective member bringing a project into the LKD Facility
- PPDP Project Experience – has the prospective member had any experience in PPDP Projects to bring into the LKD Facility
- Pipeline PPDP Projects – does the prospective partner intend to develop a PPDP that would benefit from the LKD Facility (whether subsequently included or not)
- Expertise and Experience – does the prospective member add value in terms of knowledge and skills that will benefit the Facility.
- Conflicts of interest – will the new prospective member result in a conflict of interest, for example, would the new partners mission statement be at odds with those values of LKD Facility, company past history in terms of controversy etc.
- Other contributions – does the prospective member bring any other form of contribution to the benefit of the LKD Facility.
- Where the prospective partner is a private company there may be some considerations (either legal or otherwise) in terms of the existing partners
- Are there not any conflicts of interest involving private companies in public development initiatives?
The LKD Facility is subject to the rules and regulations of UNIDO, the contracting partner. UNIDO adhere to the mandate of the UN System which prohibits unethical practices and requires an open and transparent approach. As such, the LKD Facility will not enter into any PPDP arrangement where there is perceived to be any incompatible conflicts of interest.
- I have a proposal for a PPDP; can I submit this to the LKD Facility for consideration?
We would encourage applicants to submit proposals via established channels. However, we would consider applications that were appropriate and fit for purpose (FAQ 3 about selection criteria would provide some further pointers) but would urge for potential applicants, under all circumstances, to contact us prior to developing or submitting a proposal. Sida have an established process for accepting and considering project proposals and the guidelines can be found on their website.
Information on how to partner with UNIDO can be found on the Business Partnership section of the UNIDO website.
- Is this not just a CSR Marketing activity for the private companies?
No. The companies engaged in the LKDF are required to make careful and considered inputs. While the private sector partners may market their involvement in the LKD Facility, the LKD Facility does not accept private partners who only intend to contribute cash to the programme.
- Why should the private partners team up with UNIDO or other public or not-for-profit organizations for delivery?
UNIDO and Sida jointly bring to the LKD Facility profound know-how in industrial development for developing countries and transition economies. With a field presence in more than 50 countries and a worldwide pool of experts and trainers we can leverage our global resources, and those of our partners, to achieve significant and sustainable scale and impact.
UNIDO offers a service that is not typically within the established competencies of business organizations, one that allows the partners help foster synergies in developing economies that not only lead to improved conditions for local people but at the same time open up business opportunities for industry and business.
Additionally UNIDO plays the role of the “honest broker” as the implementing partner for the LKD Facility, ensuring the appropriate and correct use of information.
The involvement of local public partners brings about awareness with those partners of business needs and how to address these. Such public involvement may also provide an opportunity for business to influence public policy for a better and more productive business environment. Local public bodies also have an important role to play in the ongoing sustainability of projects as well as contributions in terms of initial and ongoing outlay such as, for example, training facilities and trainers.
- We are interested to be part of the LKDF, is it possible for us to join too?
Yes, we welcome the inputs and participation of all relevant groups. Please also refer to FAQ number 3.
- What project management methodology does UNIDO adhere to for PPDP projects?
UNIDO has its own technical cooperation guidelines and does not subscribe or mandate any other pre-defined project methodologies such as 6 Sigma or MSP. UNIDO will adhere to any reporting or management standards that would be requested for specific projects by a donor organization.
- How is commercially sensitive information handled?
The LKD Facility does not seek to compile or hold information that is sensitive except where this is necessary to facilitate outputs. The LKD Facility will protect sensitive information entrusted to it and as agreed with the information owner. Information shared by one partner does not have to be shared with the other partners.
- Can non-UNIDO and non-Sida PPP projects join the LKD Facility?
Yes, we welcome the inclusion of additional PPP / PPDP projects and this helps to facilitate the LKD Facilities learning outputs.
- How to become involved?
We welcome the participation of relevant organizations and companies; queries on involvement should be made via the contact details at the bottom of this website.
Interns who wish to work with the LKD Facility will need to apply through the official UNIDO Internship Programme but should first submit a query to the LKD Facility via the contact page to ensure an opportunity is available.
- What are the boundaries of the LKDF?
The LKDF is currently limited to the following sectors: Industrial skills, related sub-sectors, automation, transportation, construction, mining, agriculture, oil & gas and forestry.
- What are the benefits of joining the LKD Facility for private partners?
The reasons for the private sector involvement are several. Overall, the LKD Facility will offer the private partners the opportunity to improve their competitiveness and develop effective and responsible practices for doing business in developing and transitional economies. The development of local capacity and resources in developing economies present challenges that are often not within the expertise of individual companies. By working in collaboration with other private and public partners, the companies can leverage the necessary strengths and inputs from the other partners that allows for delivery in a supported framework.