Rodolfo Gómez
Director General
Applied Research Center for Public Policies (CIAPP)
/
View from the Top

Social Infrastructure Aligned to Private-Sector Business Models

Wed, 11/01/2017 - 10:19

Q: What are the advantages of participating in PPP projects for social infrastructure such as hospitals?

A: Overall, PPP projects can be complex considering the number of contracts that are involved. The main challenge in these projects are related to culture, finance and risk management but the biggest one is time. This can be an enemy when it comes to PPP projects because governmental authorities have a short window in which to create and develop programs. Projects that cannot be finished on time are often forgotten and new authorities lose interest in promoting them. PPP projects need to have more realistic time and cost models to generate better infrastructure in the country.

We notice that there is a demand for both PPP projects related to mobility and social infrastructure. CIAPP has participated in two highway maintenance and conservation tenders released by SCT. The main difference between mobility and social infrastructure lies in the way projects are executed. In highway concessions, large construction companies tend to participate and these projects are often complex with clearly set standards. Hospitals are different because their PPP schemes align well with private-sector business models. There are various and viable management strategies that can be used in hospitals. The model naturally attracts service providers and the private sector to the health industry. But when it comes to unsolicited proposals, these projects need to be more aligned to the business models of the private sector and avoid putting companies at risk through use of a clear pipeline.

Q: What is CIAPP’s mandate and what is its role in the infrastructure industry?

A: CIAPP was founded to create a link between the private and public sectors. Many of our partners have experience with the private sector, while my expertise is more related to the public sector, which creates a healthy balance. Our six associates have come together to strengthen the link between these sectors and design PPP schemes that promote the development of the industry. This requires collaboration with the public sector, which is complex, takes time and requires trust between key players. We also work on financial matters with certain municipalities and federal authorities to strengthen their ability to design infrastructure.

ABC Medical Center