Triggers & Motivators for 3P Partnership

From my previous blogposts, it can be seen that Singapore’s 3P Partnership has certainly been successful. It has been internationally acknowledged and praised. However, what makes the partnership amongst the 3P sectors flourished. After analysing the importance of the different sectors in contributing to the positive result, I have identified five different triggers in the 3P Partnership collaboration for green building and green energy.

The five drivers that catalyse the formation of the 3P Partnership are:

  1. Large-scale Investment
  2. Budget Constraints
  3. Better Procurement
  4. Access to Skills and Knowledge
  5. Service Capacity

So what do these different drivers mean?

Large scale investments push for collaboration between the public and private sector in Singapore, as the government is main infrastructure provider in Singapore. To get private sector alone to provide green features in buildings and green energy is impossible without the backing of the public sector. Moreover, such investments require large capital which in turns leads to the second trigger, budget constraints. Incentives provided by the government encourage the private industry take advantage of these benefits to green their buildings and implements green features such as using green energy technology.

The third motivator is better procurement. This is to exploit the strengths of the private sector in bringing out efficient and effective operations while government shifts its role from being a supplier to a buyer of services (Qiu, 2010). Moving on is the access to skills and knowledge. Through the collaboration between the public and private sector, the government will be able to leverage on private sector expertise, innovation and competitive advantage (MOF, 2012).

Last but not least is service capacity.  Singapore is one of the rising leaders in the green building and energy movement. Nonetheless, it is still a young industry and requires a lot more expertise. As such the public and private sector collaborates with the people sector by educating them through the BCA Academy, exhibitions and also schools so that we have a green workforce to design and manage sustainable buildings.

Being aware of the drivers of the 3P Partnership, why do 3P Partnership occur. Through the partnership, it provides a win-win-win solution for the public, private and the people. Each of the sectors gains significant advantage through this strategic collaboration. The public sector, for instance, will be able to focus on its traditional core function which policy making and regulation. By switching its role from a buyer of services rather than a provider, it can optimise and stretches taxpayers’ making a better value for money. Furthermore, through this collaboration, it fosters synergies allowing the public sector to utilise private industry experience and network while leverage on their expertise and cutting edge infrastructure (A-Star, 2012).

Furthermore, as well all know the industry is still young. The usage of green energy, for instance, is not widely utilise yet due to Singapore’s land constraint and also the lack of advances in technology. By collaborating with the private sector, the government can achieve optimal sharing of risk. This means that risk that accompanies research and development is not entirely shouldered by one sector but is spread according to each party’s expertise. Knowing that they do not have to fully bear the burden and the costs, private and public sector are more willing to invest in green technology. They can achieve large-scale investments much more quickly.

As for the private sector, it creates more business opportunities for them as through collaboration with the government; they will be able to create more business opportunities. By working with the government, it gives companies valuable expertise which may help them to gain overseas contracts. Asides from that the private players also have access to government funding. The government in Singapore, for instance, has provided a plethora of incentives schemes to spur the private sector towards green building and green energy. One example of such incentive is the BREEF (Building Retrofit Energy Efficiency Financing) Scheme. The scheme is carried out by BCA in collaboration with Financial Institutions to provide credit loan to companies to retrofit existing green buildings to achieve Green Mark certified standard (Tay, 2015).

Last but not least is the people sector. Members of the public are the end users of the services provided by the public and private partnership. Through the public and private collaboration, it ensures that the government will be able to provide the services at the best value for money. Moreover, through the public and private collaboration, it also creates learning and employment opportunities for the people. The setting up of the BCA Academy, for instance, trains the members of public that are interested in pursuing a career in the green industry. The academy, for example, has partnered with famous universities globally such as Carnegie Mellon University and University College London to offer learning opportunities for the people.

All in all, we can see that aside from the five triggers that I have identified, the positive outcomes that result from the 3P Partnership has indeed pushed for the formation of the strategic partnership. Such success should not be taken lightly and should continue to be strengthened as it is certainly a promising partnership for the future. Albeit all that, there are surely bound to have obstacles in getting everyone on board. This will be discussed in the subsequent post!

Number of words: 881 words

Resources:

 Public-Private People Partnership: Winning Collaboration. India. Pricewaterhousecoopers (PwC). Retrieved from http://www.pwc.in/assets/pdfs/publications/2014/public-private-people-partnership-winning-in-collaboration.pdf

Qiu, P. (2010). Ethos Perspectives — Issue 4, 2010. Cscollege.gov.sg. Retrieved, from https://www.cscollege.gov.sg/Knowledge/Pages/Can-Public-Private-Partnerships-Deliver-Better-Public-Services.aspx

Public Private Partnership Handbook. (2012). Ministry of Finance. Retrieved from http://www.mof.gov.sg/Portals/0/Policies/ProcurementProcess/PPPHandbook2012.pdf

First Public-Private Collaboration Initiative For Green Building Research > Agency for Science Technology and Research (A*STAR) > Press Releases. (2012). A-star.edu.sg. Retrieved from https://www.a-star.edu.sg/Media/News/Press-Releases/ID/1632.aspx

Tay, E. (2015). 2015 Guide to Singapore Government Funding and Incentives for the Environment. Green Future Solutions. Retrieved from http://www.greenfuture.sg/2015/02/16/2015-guide-to-singapore-government-funding-and-incentives-for-the-environment/

3rd Green Building Master Plan (3rd ed.). Singapore. Retrieved from https://www.bca.gov.sg/GreenMark/others/3rd_Green_Building_Masterplan.pdf

 

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