Andreea Dana Spatariu

Table of contents

INTRODUCTION
I. Characteristics of the sector
II. Actors/ stakeholders involved
III. Steps for implementing public-private partnership
CONCLUSION
BIBLIOGRAPHI
 Introduction

Public-private partnerships can be defined as: A contractual agreement between

a public agency (federal, state or local) and a private sector entity.
Through this agreement, the skills and assets of each sector are shared in delivering
a service or facility, for the use of the general public.
 I. Characteristics of the sector
The tourism sector is one of the cornerstones of economic developments in most countries and a gate which
integrates countries to international markets.

Business tourism is a fast-growing segment of the world's largest industry sector, tourism. The challenge is to
identify the competitive trends, and meet business travellers' needs for both efficiency and relaxation.

Tourism projects generally require a high amount of initial investment for which the private financing may
become impossible for most companies.
II. Actors/Stakeholders involved
PPP projects involve the coming together
and interaction of a number of interests and
parties.

Stakeholders include employees and their

trade unions, the public, the people who will
use the assets and services provided, local
community groups and sectoral interest
groups.
 III. Steps for implementing
public-private partnership
I. Preparation Stage
1.Planning & Organising
Helps to ensure that PPPs are formulated with focus placed on specific goals:
to ensure that all options are explored not just the PPP option, and that the most appropriate option is selected
to ensure that the PPP is not developed as an isolated entity

2. Collecting Information
This information needs to be further analysed with the goal to optimise the involvement of the private sector
or/and the community in the PPP process.
II. PPP Development Stage
3. Identifying Constraints
After collecting information, the municipality will need to assess the potential obstacles and constraints that the
public-private partnership will face.
4. Defining Objectives
The definition of PPP objectives is an important step because stakeholders all have very different perspectives
of the problems, and of the goals and aspirations of involving the private sector.

5. Defing Parameters (Scope)

The scope of the PPP has to be established during the process of strategic planning. First and foremost, the
scope of the public-private partnership should be considered in terms of geographical area and service
requirements.

6. Identifying Partners
The objective at this stage is to identify all the stakeholders that might contribute to, or have a stake in, the
partnership.

7. Establishing Partnership
Processes help to achieve the goals of a partnership via guiding the partners through prescribed procedures.

8. Selecting Options
Once a government has determined that PPP appears financially and politically feasible, it needs to move on to
identifying options for the partnership.
9. Financing
Public-private partnership offers additional possibilities for coming up with the capital investment that is
required for the service sector.

10. Preparing Business Plans

A business plan is a key part of running a partnership successfully and achieving a strategy.

III. Implementation
11. Tendering & Procurement
Procurement is the process of buying goods, works or services. For instance, in terms of PPP, procurement
comprises the process of buying the basic infrastructure and services.

12. Negotiating & Contracting

Negotiating involves five steps:
1. preparing for negotiation;
2. debating;
3. making proposals;
4. bargaining;
5. coming to an agreement (the contract);
13. Managing PPPs
Effective contract management will secure the interests of the public sector and the community by the
development of sound working relationships with the service provider.

14. Monitoring & Evaluation

Monitoring and evaluation is a routine management methodology and improve the communication and
interaction between project partners and other stakeholders.

15. Managing Conflict

Conflict is a natural and normal part of working relationships. Conflict comes about from differences in
needs, values and motivations.
Case study: Transylvania Motorland - features project
Beneficiary: The partnership with the Town Hall Trlungeni Braov
Public Client: City Hall Trlungeni
Estimated total value: around 62 million euros

Project details:
Phase 1 (2012 - 2015)
Development and Applied Research Development Centre, including circuit and test platform;
Value estimated at 20 million.

Step 2 (the period to be defined):

Developing training center and technology park; circuit approval; development of a medical center and
reception;
Estimated value of almost 42 million.
Funded by European funds, private equity and potential capital (step 2)
Date: March 2011 - ongoing
Status: Feasibility study and technical project delivered.
Services provided by Deloitte
Leader of the consortium of consultants and financial assistance under the City Hall application process for
European funds worth about 8 million euro (stage 1 of the project).
Transylvania Motorland - roles in the project
Contracting parties
Contracting Authority / Beneficiary: Municipality Partnership Trlungeni with Brasov City Hall
Finance: Managing Authority of Regional Operational Programme
Consultants
Financial: Deloitte, consortium leader
Technical:
Tilke GMBH (motor circuit engineering services);
Agency of Architecture and Design SC Ada SRL (architectural services for Centre Development and Applied
Research "Transylvania Motorland");
Drafting Services SRL (civil engineering services for the development and Applied Research "Transylvania
Motorland");
Prinfo SRL (engineering services for road and bridge circuit and access roads)
Cuadripol SA (services design and low current electrical installations for buildings and
circuit)
Consult PROING (design services for buildings and other facilities circuit)
Centre of Studies and Technology Park (step 2)
Project benefits
Attracting new investments in Brasov Growth Pole;
New jobs;
Increasing the competitiveness of the economic environment in the region;
Increased productivity and quality of products and services through upgrading technology in the automotive
industry;
Boosting cooperation between the public and private sectors;
Increasing human potential in innovation and research;
Improved cooperation between the research - development, at universities and research institutes -
development and economic sector;
Increasing the competitiveness of firms in the automotive sector;
Recovery of products in other markets - increasing the value of exports auto industry

The project will have an indirect beneficial effect on revenue growth tourism and promotion Pole Brasov
growth as a tourist destination.

Single center in Romania for the automotive industry

The project will be located 15 km from the center of Brasov, on the outskirts of village Trlungeni and will
include a Center for Applied Research and Development the test circuit.
 Conclusion

In line with the Governments strategy to promote and increase the private
sector involvement in the countrys economic and social development plan-
particularly in the area of public utility services- the Government has taken the
initiative to introduce the Public Private Partnership program (PPP).
In conclusion, Public Private Partnership (PPP) could be suggested as the
viable model to finance tourism projects where tourism projects are financed
and operated through a partnership of government and one or more private
sector companies.
Bibliography