Challenges Facing Inclusion of Sustainability in Schools PPP Projects - Coursework Example

CHALLENGES FACING INCLUSION OF SUSTAINABILITY IN SCHOOLS PPP PROJECTS s Submitted by s: Due Introduction The birth of sustainability dates back in the years between 1972 and 1992 through a series of international conferences and initiatives. The UN conference on the Human Environment, held in Stockholm in 1972, became the first major international gathering to discuss sustainability at the global scale. Through the immense momentum created, the UN Environment Programme (UNEP) was established with other many national environmental agencies at the national level. Sustainability plays a key role in the development of various key government sectors, private institutions and in societies where great commitment has been placed on the sustainable development goals. For the past 20 years, sustainable development goals have been in point of view where great entities have put more emphasis on the idea. Sustainability could be defined in various ways Sustainability is simply the ability of something to be maintained or to sustain itself. This is all about taking what we need to live now, without necessarily affecting the potential for people in the future to meet their needs. A sustainable activity should be able to continue forever. Sustainability can also be defined as a requisite of our peer group to accomplish the base of resource like the typical life quality that we make sure we can hypothetically share by entirely forthcoming generations. Development is referred as sustainable in the event of concerning an increasing average life quality. [Geri B. Asheim, "Sustainability,” The World Bank, 1994]. In this study case, sustainability as seen from the report by Brundtland Sustainability can be viewed as a “Development that sustains the current generations’ needs with no giving in to the capability of forthcoming generations to sustain their very own desires” (WCED, p. 43). For the past two decades sustainable development seem to be a unsolidified notion and different descriptions on it have materialized. Even though the actual meaning appear to be case, limited mutual values are likely to be stressed. First one is pledge to fairness and equity, in that precedence ought to be awarded to the enhancing the the world’s poorest conditions and choices must justify the future generations rights. The second one is a lasting assessment that give emphasis to the cautionary principle, i.e., “where we have shortage of complete scientific conviction, and irreversible or serious harmful threats will not be in use as a motive of delaying profitable actions to avert ecological dilapidation” (Rio Declaration on Environment and Development, Principle 15). Thirdly, sustainable development exemplifies assimilation, and considerate and performing on the intricate interlinks existing amongst the society, economy and environment parts. In spite of an overall reception that sustainable development appeals for a merging between the 3 pillars of environmental protection, Social equity, and economic development, the notion is still indefinable for the reason that application of it is hard. According to Matthews and Hammill (2009: 1119), there is considerable notion that the main difficult ever since the Rio Summit has been established “in scheming the interchange from model to practical concept. In this case, the political, tenacious technological control, political and other restrictions becomes vibrant.” Perception utilization of sustainable development has then been hindered by it predominantly being well-defined a framework of economic growth utilized by countries that are developed in achieving their unparalleled level of wealth, and the tendency being replicated on main developing state’s economies. This does have normal resources in impending exhaustion peril. To obviate the tendency demands for modifications at the level of consumer is upheld in developed countries. Notwithstanding developed countries partaking both technical capacity and wealth to apply more maintainable measures and policies, the prerequisite citizen engagement and political leadership level is just a lengthy way. PPP can be defined in various ways; PPP is an acronym for Public Private Partnership. To understand its (PPP) assumed role in the international development landscape and its impact on policy, one should be familiarized with its definition. The Public Private Partnership (PPP) involves discussions over the type of actors concerned and the level of authority they have in a global governance scenario. Currently, PPPs range from loose forms of cooperation to legally binding contracts for the implementation of specific projects. Definition can be further complicated by the lack of a specific area of action: Partnerships can range from dealing with climate change, infrastructure projects, health, corporate social responsibility, disaster relief/humanitarian aid, and environmental protection. In addition, the level of involvement varies according to partnership, theme, visibility of the project and actors involved. According to Börzel and Risse, from a public management perspective, PPP in a transnational scenario should be defined as “institutionalized cooperative relationships between public actors (both governments and international organizations) and private actors beyond the nation-state for governance purposes”. Such definition requires a further understanding of the idea of governance purposes, which ultimately situates this relationship as a subset of transnational relations in world politics. Attention should be drawn into the definition of the actors as public or private. As a matter of legitimacy governments are perceived as public actors, and other actors such as non-governmental organizations or businesses as private ones. The United Nations applies the definition of PPP as “voluntary and collaborative relationships between various parties, both State and non-State, in which all participants agree to work together to achieve a common purpose or undertake a specific task and to share risks and responsibilities, resources and benefits”. To carry out a school project, clear and well-thought project output specifications are critical for ensuring that a PPP delivers sustainability goals. This is conceptualized in two major different ways which should be differentiated. The first is the sustainability of the PPP itself, while the second is how the PPP contributes more broadly to local, national and international sustainability objectives. The approach to achieving both outcomes described in the contract may differ majorly depending on the nature of the project to be undertaken. The case for sustainability to be followed on PPP projects is as given below; The Public Private Partnerships (PPPs) potentially engages in activities that facilitates the delivery of sustainability as they share two core principles. Both PPPs and sustainability involve working over longer timescales whereby sustainability takes into account of the impacts a project over its entire life-time while PPPs considering project efficiency over its life-time period. The two require government and business to work closely together in partnership and base their decision making on public participation. For the PPPs to effectively work wholesale change in mentality is needed and sustainability is the way to achieve this shift in the mind-set. These principles create win-win-win scenarios for the government, private business and the public. For PPPs to effectively deliver sustainability, four factors play a key role. These factors are; needed assessment, clear output specifications, transparent award criteria, and effective monitoring of measurable performance criteria. There is no single template for sustainable development, giving government officials considerable flexibility in how they interpret the principles. The following is an overview of sustainability as followed on PPP projects in EU The launch of eight contractual Public Private Partnerships (cPPPs) by the European Commission today plays a strategic plan of great importance for European industry. The partnerships aim to control over 6 000, 000, 000 Euros of investments funds to be allotted by proposals calls under Horizon 2020, the novel programme of European Union innovation and research. The action tactically purposes to place every public funding euro likely to prompt extra funds of 3 – 10 Euros to grow novel services, products, and technologies that will provide industry of Europe a prominent place on international market (MEMO/13/1159). This is typically a sustainable development move that sustains the present needs with no capability compromising of forthcoming generations to sustain their needs. At its core value, sustainability in this case ensures that the society lasts through time by focusing on longer time scale, since the PPP process taken by the new EU programme lays a foundation that is more efficient over the long term. Sustainability requires all parts of society, including the public, business and NGOs, to work together in partnership with the government. This is an approach entirely taken by the European Commission in the European industry to partner private sectors to develop new technologies to keep the European economy at the cutting edge. The PPP project undertaken by the European Commission is properly designed to promote sustainability effectively since a win-win-win scenario is observable, wherever public funding euro is likely to generate other funds of between 3 and 10 Euros to improve novel know-hows that can outgrowth larger investments. The newfangled programme of European Union for innovation and research is a formulation that oversees the sustainable PPP project a more profitable environment to the private industry by use of a cutting edge technology and management that reduce costs over the entire life-time of the project. This implies that risks are lower and the potential operating profits are higher, making them more attractive to many other private investors. Through the development of cutting edge technology and a deeply grounded innovation platform, the public greatly benefits as the sustainable PPP project provides more effective public services as a result of public consultation. The government on the other hand also benefits from the given programme as the given sustainable PPP project enhances the local support. Also, Private partnerships effectively working with the government greatly attracts investment in the region. Finally, the government benefits from the established self-sufficient sustainable project which is more resilient to future threats. From the European Commissioner for Research word, Science and innovation, well known as Máire Geoghegan-Quinn claimed that Europe requires an industry to modernize to build jobs and income. New products and technologies, like cleaner manufacturing processes, energy efficient buildings, green cars and cleaner, are vital to handle society based encounters like resource and energy efficiency, climate change. We need these predetermined PPPs to impact significantly the EU industry competiveness, on creation of new high-skilled jobs on sustained economic growth in Europe." Reactions to handle change in climate, both adaptation and mitigation, are related to ecological development. Obviously, by using novelty, issues of climatic change are addressed as required. Cleaner manufacturing processes and green cars introduction significantly handles the problems of ozone layer exhaustion in the air to reduce pollution. Jobs and income creation in addition to approach to sustainable development; helps in preventing poverty in the society. Through creation of a sustainable process industry making a supporting setting that is inventive to the energy-efficient and industry organizational, there is inevitable upturn of competition in system production and sustainable technologies. The PPPs’ 3 pillars of (green cars, buildings, and factories of the future) as defined by the European Commission. These 3 pillars were first proven in the year 2009 in reaction to the crisis in economy and had proven to be successful in establishment of innovating key industrial sectors and European supply chains. In Horizon 2020, assurances were considered to be more transparent and firmer on these PPPs. This is on the basis of roadmaps for innovation and research activities as result of a process of open consultation. The mentioned three factors in this case study, immensely determine the success of PPPs to deliver sustainability through transparency and vigorous public participation. The above study of the overview of sustainability as followed on PPP projects in EU relates to the Irish PPP projects in the following manner; From the stipulated cases in the Irish governance, “Among the problems identified in the PPP literature are limited transparency and complex adjustment formulae.” Hodge and Grave, 2007 said, “The curtailment of potential improvements in transparency by concerns about commercial confidentiality and inadequate accountability downwards to users through the measurement of user satisfaction.” Malty and Gosling, 2004, Shaoul et al., 2006, and “Transparency is important in this regard and the advantages of making PPP arrangements more accessible and assessable are widely recognized.” Barrett, 2003, Demirag and Khadaroo, 2008, Forrer et al., 2010, is a signal portraying the resilience of the government bodies and other state agencies in releasing financial information about PPP contracts, mainly on the grounds that such information is commercially sensitive. Consequently, immediate concerns are raised about transparency and accountability which are part of the governance challenges that arise in the context of PPP procurement. In return, this denies the public the necessary moral needed through its participation in driving a sustainable developmental system. In contrary, the EU government provides an enabling environment that is accountable and transparent that empowers entrusted public participation. From the observation, “…was the subject of strong criticism from the private sector with respect to aspects such as the extent of deal flow, the level of public sector skills….” A reeve, 2008, lack of partnership on a larger spectrum in the private sector is a critical issue that contravenes the success in output delivery. Unlike for the EU government, due support is given to the parties interested in government project partnership both in legal and time frame work for an effective and successful output delivery. The case study of sustainability as followed on PPP projects in EU when narrowed down to Irish Educational projects (schools project) has the following observation. From the EU PPP in the area of factories of the future, is always established under the current well stipulated contractual arrangement to be implemented in an open, transparent and efficient manner. Considering the Horizontal 2020 framework policy, there is an increased EU industrial competitiveness and sustainability in a global world through research and innovations for the timely developments of new knowledge-based production systems based on competitiveness and sustainable production to the intended cutting-edge technology. By targeting the smart, green and inclusive economy, energy and resource-efficient manufacturing process is achieved and at the same time achieving a social-sustainable, safe and attractive workplace is obtained. Support EU industrial policy targets by raising the share of manufacturing in EU GDP and ensuring technology transfer and training across manufacturing sectors. The parties involved immensely cooperate on the basis of multi-annual roadmap provided in the Annex to develop, implement and support multi-annual research and innovation agenda. This is achieved through an intensive research and innovation both in the most advanced manufacturing technology processes at a larger scale. Considering the achievement of a friendly environment, potential research and innovative methods is done in the field of energy to reduce its consumption in manufacturing processes. To achieve a sustainable development, in the process of manufacturing less material is consumed while producing less waste. De-industrialization of Europe is immensely achieved through creation of high-skilled jobs to increase industrial commitment to stay in the EU as well as raising the industrial in equipment through innovation. There underlies the aspect of efficiency and effectiveness in deploying resources on such a strategically planned projects. To establish proper governance, a Partnership Board is established as a mechanism to streamline dialogue to reach the objectives foreseen by the contractual agreement plan. In ensuring a proper representation, the Partnership Board comprises nominated members by the Private party. Procedures empowering confidentiality, transparency and conflict control are provided by the commission based on harmony. The parties involved in partnership mutually collaborate. Under Horizon 2020 framework programme, the Commission commits to duly consider inputs and devices from the Private side in order to identify research and innovation activities to be proposed for financial support. The private side on the other hand commit to the contribution of identification of research and innovation activities to be included in the Horizon 2020 framework in view of financial support following the calls for proposals. To achieve the progress of the partnership towards its objectives and to assess the impact of its activities and the leverage of the additional investments, the parties will regularly and inform each other as a monitoring process. From the above analogy, it is quite evident that such a system is well structured, an approach that facilitates a smooth flow of the schemed processes. Considering the above EU findings, it is observable that for Irish Educational projects (school projects) sustainability on PPP projects does encounter various dynamic challenges. From the study, the contractual governance observed indicates that the client-contractor relationship is largely transactional in nature, a finding that is at odds with commonly accepted notions of partnership complicating the nature of contractual governance under PPP. Conflict has characterized the relationship between the school and the contractor, attributed to factors including the dispositions of key players towards PPP and the relationship between the schools and the DoES (Department of Education and Science) considering the later bears a critical role in the operation of this PPP. Lack of freely triggering information to all key stakeholders of securing a level of ‘buy in’; can underpin the development of long-term cooperation and mutual benefit to the entire system regarding contractual provisions. This lead most schools to express concerns that the contract is not sufficiently monitored and enforced. Again from the findings of the Irish Educational study the impact of undertaking the PPP at the odds with expectation of relational contracting in the context of partnership arrangements is greatly immense. Grimshaw et al (2002) describes the adoption of partnerships in terms of a ‘shift from a system of atomistic, short-term market-based contracts, which are designed to maximize the gain of each bounded entity, to the development of medium-to-long ‘relational contracts’ where the emphasis is upon permeable organizing practices that are intended to yield mutually beneficial outcomes. According to this view, notions of market structure and the organizing principles of the quasi-market are less important than the form of contractual relationships and the nature of organizational form’ (2002, p.482). From this study, it is quite evident that any expected shift towards relational contracting has encountered a number of fundamental obstacles that did hamper its merit. For instance, the appointment of a preferred bidder prior to testing the scope for VFM under PPP is a practical reality of procuring the project in a political context under pressure to get the schools up and running led to sub-optimal decision making at the pre-contractual stage. In conclusion, the use of PPPs in the education sector will not automatically lead to improved economic efficiency unless considerable care is taken to quantify the costs and benefits of PPP at the ex ante stage. Relating this to the sustainability as followed on PPP projects in EU, there is underperformance as a result of lack of clear structured organs in the government to facilitate proper decision making appropriately. Lack a proper legal framework and government body with a deeper knowledge in PPP lead to lose of direction in identifying weaknesses and loopholes that were evidently observable during the ex ante stage. In the contrary, sustainability as followed on PPP projects in EU is a success. This is attributed to factors, a strongly adopted PPP policy in the European government that could facilitate a smooth running PPP structure, an attractive environment for private parties, and well structured legal policies that facilitated functional the creation of European Commission that could work with the Private party in full complement. 1. LEGAL FRAMEWORK FOR IMPLEMENTING SUSTAINABILITY DESIGN PRINCIPLES INTRODUCTION After a few victorious years of political assimilation, the embracing of a solitary currency, and 15 to 25 Member States expansion in the year 2004, the European Union is boasting of a distinct market made up of more than 455, 000, 000 people. The surfacing of a diversified solitary market coincides with a continual effort on the EU part to progress ecological safeguard in the course of products regulation increase. Whereas with a number of storms, the EU has in the last few years embraced legal actions that stipulate market access to electronic equipment, compliant biotech products, household appliances, car with environmental requirements that are product based. In the near future, EU is likely to assume other actions to control chemicals imports, products using energy, and particular products of timber. In market access conditioning to new product adherence values, EU as a result, established universal standards on products, as they can afford to disregard a possible customer market that is bigger as is compared to one of North America. In this regard, safety managers, environmental health, in-house counsel are having hard and new difficulties as they aim to be aware of and predict innovative mandates based on products in Europe. To comprehend in a better the implication of the new stress on EU regulation on products, it is useful to evaluate a number of other considerable legislation that have been proposed or enacted in the last few years. END-OF-LIFE VEHICLES DIRECTIVE Depending EU waste management policy that aims to shun waste product design improvement and escalating the waste re-use and recycling, the EU has embraced the Directive of End-of-Life Vehicles abbreviated as ELV Directive in the year 2000. Amongst any other stuff creating structures for the assembly and reprocessing of entirely all ELV automobiles and puts aspiring recycling and re-uses objectives. The End –Life-Vehicle order also inflicts quite a lot of strategy directives on auto producers by necessitating EU State Members to make certain automobiles on the market in the time after 1st July, of the year 2003, are not having hexavalent chromium, mercury, cadmium excluding as permitted in the restricted exclusions agreed upon the Directive of Annex II. The legislation likewise demands for constructers to set-up strategy modifications to expedite re-use, dismantling, and recycling, in addition to increasing the recycled material quantity in use on automobiles and additional merchandises. The European Union’s End-Life Vehicle Order has motivated alterations in designing components of vehicles and chain management supply not just in Europe but outside world. ROHS and WEEE Directives The European Union has embraced fresh orders directed at the strategizing and management of end of life management of an extensive variety of domestic purposes, telecommunications and information technology equipment, end user, lighting products, electrical and electronic equipment. Directive otherwise known as Waste Electric and Electronic Equipment Directive, European Union Member States are to create new WEEE management systems for. The newfangled structures are to permit users to “yield” their used electronic and electric equipment to merchants trading the corresponding equipment type. Vendors, then, are indebted to receive the merchandises cost free. The WEEE Directive also proven to provide new product marking, registration, ambitious supplies reclamation rates for products collected. A constituent of latest electronic and electrical equipment variety was set in the marketplace after 30th June, in the year 2006. Under the Restriction Directive on particular harmful materials use in Electronic and Electrical Equipment under the Directive of RoHS, manufacturers and importers are barred from placing on the market electronic and electrical equipment having lead, mercury, cadmium, hexavalent chromium, cadmium, PBB which is known as polybrominated biphenyls ethers and PBDE otherwise known as polybrominated biphenyl ethers. Inadequate exemptions to these bans for particular presentations are forwarded to the Directive in an Annex. By acclimatizing many products market access varying like mobile phones and washing machines on requirements on new markets, the European Union has, as a consequence, established fresh worldwide standards on products that motivate changes in design for protected goods heedlessly of the place of selling or manufacture. EU States are instigating each of these directives nationwide. PRODUCTS DERIVED FROM BIOTECHNOLOGY In respect to products of biotechnology, the European Union has had a freeze of de facto on the new biotech crops approval that arose from the long procedure presently put on for approval. In the month of September in the year 2003, the EU assumed new labeling necessities, placing and traceability, enlisting on the biotech food, feed products and crops market derivative of biotech crops. The new regulations of European Union necessitate that all products before packing having over one amounts on trace of GMO also known as genetically modified organisms, allow a label to be put with this reading, “This product has been hereditarily altered entities” or “This product got hereditarily altered [entity(s)].” The ruling additionally necessitates that all protected operatives meaning the ones placing a product of biotechnology in the marketplace or obtain a product of biotech retained on the EU market to be make it easy to ascertain their supply companies and suppliers that they have been supplying their products. Operatives need to retain each transaction records that involve crops of biotech for 5 years and ought to avail to the public authorities such records authorities on demand. The European Union has acknowledged that, as a real-world it is practically unlikely to guarantee that a slight biotech product would fail to commingle with conformist merchandise in the stage of collecting, packing, transferring, or dispensation of the products. The European Union, nevertheless, has set predominantly little inceptions for the well-known adventitious otherwise defined as theoretically inevitable existence of hints of Genetically Modified Organisms in conservative goods. The European Union unapproved diversities tolerance that has not been validated by “European Community Scientific Committee” is 0. The degree of the effect of European Union’s impact in the arena of Agbiotech is noteworthy and can lead to intense effect on comprehensive agricultural trade of merchandises in case other regimes resolve to follow suite the European Union line of attack agricultural commodities regulations. DIRECTIVE OF EUP In the year 2005 on July, the European Union assumed an established framework of energy eco-design set-up necessities for by the use of merchandises which is Directive of EUP. This Directive institutes eco-design and performance standards through subsequent implementation methods. The legislation needs abiding with prospect instigating standards and measures as a market access condition for protected products using energy. This order has the prospective of regulating an extensive energy range by the use of European marketed products and envisages new requirements of products and performance environmentally. REACH The European Union has developed legislation likely to build a new European Union guiding chemicals framework. The legislation is defined as Registration, Evaluation, Authorization, and Restriction of Chemicals abbreviated as REACH, and was projected to have been complete by the year 2007. The legislation tries to address the prevailing substances – the chemicals produced before the year 1981 and have inadequate safety and health accessible information. ” Registration Evaluation Authorization Restriction of chemicals” would substitute more than forty prevailing regulations and directives, and so necessitate firms that producing and importing chemicals to evaluate the arising risks associated with chemicals use and take required actions to cope with any risk identified. Impacts beyond Europe Following EU derivative drive on basis of conservation necessities, the European Union is setting the ground for new environmental legislation of generation that aspects further than the impacts on environment related with just manufacturing and production. The approach of European Union on regulation of product facilitates comparable ecological resourcefulness in the other countries as and in different places. For instance last year, legislation addressed ELV electronics management presented in twenty eight countries and in Maryland, Maine, and California as U.S. Congress. Despite the fact, the European Union has acted swiftly in enacting fresh rules affecting merchandises, there are questions concerning whole environmental advantages attained and effects on the global trade as the European Union. For instance, in the latest hearings of U.S. Congress concerning electronic/electrical -waste, the United States Agency of Environmental Protection gave a report that the electronic waste disposal in up-to-date public landfills offered little ecological hazards. The European Union movements to reduce products introduction resulting from biotechnology has been tested by the U.S.; in rules of WTO otherwise known as World Trade Organization as an unlawful restriction on trade. Correspondingly, WTO challenge was challenged by Japan where the benefits to be added and the international trade effects have been freshly embraced in parts of Canada and United States of America. In these countries, they are better known as innovative laws to address e-waste. In respect to substantial bars, Californian legistration called for the embracing of rules that should ban particular electronic devices types in California wherever the merchandise is banned trading in Europe in the Directive of RoHS. A legal framework in Ireland An ambitious projection for a maintainable Irish industrial sector like construction necessities to incorporating the following extents - a segment categorized as: Reacting to existing and antedating forthcoming necessities in a measured and informed way. Exceeding and meeting construction standards in a global setting; Providing in a compliant manner, efficient, and cost competitive. Operating in viable domestic market conditions at a sustainable level of output; Engaging more overseas markets business in dedicated capacities; Continuously looking for a way of innovating reasonably other than depending on old-style p methods and practices. Adequately trained globally recognized abilities and inventiveness and inventive managing. Operating within strategic and effective regulatory and planning frameworks; and Partnering with the set EU and UK Government in line of provision of the necessary structures to cater social and economic growth objectives. Optimum enactment On assessment basis with the construction industry size in long-run trends and outside world countries, Ireland in the last years has portrayed a positive sustainability. It is conceivable that this size of economy (Ireland economy). The optimistic statistics accompanied by deficits in outstanding structures is able to sustain a structure engineering corresponding to about 12 % of GNP. Productivity is presently at 6.4 % of GNP equivalent to 5 % of GDP. There is a substantial opening to be linked in case the area is to attain activity levels of 12 % GNP. Constraints and Barriers on development in Europe focusing on Ireland In anywhere possible, difficulties to start of required structural activity requires addressing the short term, deprived of prevailing in the marketplace to an extent that is not productive. The problems emphasized in the industry discussions of participants as main issues facing recovery and stability in the sector of construction: Restrictions on spending of public capital A capital expenditure back in the Threesome framework (EU Directive) scale back targeting on a given objectives. Withdrawal and rescheduling of a variety of suggested structural projects where they would stop and start now and then; and Trials in safeguarding remote funding to sustain the European Union and UK Régime premeditated infrastructure investment, and to assist better funding in obligatory dynamic structures. 2. THE ROLE OF CONTRACTING AUTHORITY Contracting authority (Public Sector) plays a crucial role, influencing sustainability on PPP projects in Ireland in the following ways; Typically in a PPP project, contracting the authority can consist of a number of parts of the public sector each having specific responsibilities in relation to the project. In Ireland depending with a given sector, to implement/impact sustainability on PPP projects the authority will have various roles as outlined bellow;- Sponsoring agency This is the part of the public sector that will act on behalf of the Government in procuring the service that is required. For instance, in the case of procurement of school buildings, this is part of the role of the Department of Education and Science (DoES) with chief responsibility to determine the viability of the given contract and the criterion of contract price (i.e. winners curse) to avoid a scenario of the lowest bid on the basis of inferior design. The Accountable Officer This is a senior manager in the DOES who has overall responsibility for the project. In directing the PBU to carry out the initial assessment, the Officer is required to have knowledge of various matters. In the case of school PPPs, he has to know the needs of school user: available in the form of the initial submission from the school management authority. Know the PPP process and how it differs from the traditional procurement route: available in the PPP Guidance Notes 1-15, (Department of Environment & Local Government 2000a-o) and in DOES 2004b. The officer should be aware of the current market for schools PPP: this information changes with time and will be generated by the PPP Assessment. Also the officer should know the outcome of earlier schools PPPs: currently the only available example is the Grouped Schools Pilot Partnership Project (Comptroller and Auditor General, 2004), further outcomes must be documented as further Irish schools PPPs are procured. Have a general knowledge of provision of school buildings in other countries: available from reports of the Audit Commission (2003) and Audit Scotland (2002). Additionally, the Accountable Officer must have a clear understanding of risk allocation and project finance issues that are likely to emerge as the project develops. Some of the risks that are expected at this level are as below; Demand risk: arising from demographic changes and subsequent participation rates, Design risk: arising from engineering and other technical design decisions that could influence the level of operational and maintenance costs, Construction and development risks: arising from potential cost and time overruns caused by inadequate construction management or construction techniques, Operating cost risks: arising from an underestimation of the true costs of operating the facility, Performance and availability risk: arising if the operator fails to provide a satisfactory level of service as specified in the contract & Residual value risk: arising from issues that will affect the value of the facility at the end of the concession period. When introducing the private finance to the provision of a public facility the process brings with it a range of new financial issues of which the Accountable Officer must be aware. For instance, the public sector funding for the capital element of a traditionally procured project is provided through the annual budgetary allocation to a government department. The finance for a PPP project will be raised by the private sector using a combination of equity, internally generated cash flows and debt (Dell et al., 2001). The project partners that make up the PSO will generate some of this finance, but usually some further finance will be required from other investors. The Project Board: Is a group constituted to provide the specialist skills necessary to support the decision-making role of the Project Manager. The Secretary of the Project Board: Is an individual responsible for the retention of all documentation relevant to the project. The Process Officer: This is an individual appointed by and reporting to the Accountable Officer. The Process Officer’s responsibility is to monitor compliance with the procurement procedures that have been agreed for the project. The Contract Manager: This is an individual appointed by the Accountable Officer to manage the operational contract. The Project Manager: He is the lead individual in the DOES with responsibility for the planning, monitoring and implementation of the project. By the time the Project Manager is in power, must lead the Project Board in the completion of the Appraisal stage. This involves two main tasks, the first being the compilation of the Procurement Process Checklist, the second being the agreement of procedures for selection of the consultants who will prepare the Project Initiation Documentation. To complete these tasks, the Project Manager must have an in-depth knowledge of the PPP process and its specific application to the procurement of school buildings. He/she will also have studied the outcome of the PPP Assessment for the project in question and will have become acquainted with the project specific issues that have been manifested to date. In preparing the checklist, the Project Manager will require significant project planning skills whilst displaying further skills in team building, motivation, communication and problem solving as the leader of the project board. In the agreement of the consultant selection procedures, the Project Manager will require a thorough knowledge of the ability of the different consultants to whom the work is to be outsourced and will need to display considerable leadership skills in drawing on the strengths and abilities of the individual members of the Project Board. The sanctioning authority: This part of the public service has the responsibility for sanctioning the expenditure of funding in the procurement of the service. In the case of PPP in Ireland, this is part of the role of the Department of Finance. This also is the body that approves the Affordability Cap, the baseline at which the cost of the project cannot rise. The Public Sector Benchmark (PSB): Is an analysis of the cost to the public sector of providing a facility under traditional procurement. Department of Environment Heritage and Local Government (2003) states “…The PSB focuses on the whole life costs over the contract term and provides a detailed cost valuation of all risks (transferred and retained) associated with the project”. On a profound ground, this line of course definitely yields a sustainable PPP project. The principal outcome of the PSB will be the establishment of the maximum cost (the Affordability Cap) that must not be exceeded if the project is to be procured as a PPP. Once the Affordability Cap is established, it must be sent along with the PSB to the Sanctioning Authority for approval to proceed to the Procurement Stage. The Process Auditor: Appointed by the Accountability Officer by the time the project enters the statutory process stage. At the start of this stage, should have knowledge of the PPP Process and of the roles of the Project Manager, the Project Board and the CEP in the project, and also bear good skills in communication and decision-making with confidence to act with authority and fairness when a situation arises that could lead to conflict as well. This is achieved through a clear understanding of the requirements of his/her role and having the full backing of the Accountable Officer at all times. In the operational stage of a schools PPP for instance, Contract Manager has various responsibilities as outlined below; Developing a Monitoring Plan to follow the monitoring procedures set out in the Project Agreement. Maintain Record Availability to the space available for use to the school and will particularly note any action that might adversely affect the operation of the school such as maintenance work. Monitor Performance Standards to the standard of the facilities available and the usage of such facilities related to that defined in the Project Agreement. Authorization of Payment through procedure for authorizing payments must be set out, agreed and implemented. Repair and Maintenance to provide a schedule agreement for the necessary repairs when the project is handed to the PSO to maintain the value of the asset. Contract Obligations to monitor compliance with contract obligations and ensure that the service provided conforms with current regulations. The Contract Manager must also ensure that the PSO has all the relevant valid insurance policies in place at all times. Change Management. For over a 30-year period, it is likely that some changes will be required in the service to be provided, the Contract Manager should follow the criteria for dealing with this as set out in the Project Agreement. With these public practitioners well articulated into the PPP project system, facilitates in achieving project sustainability through accountability, transparency, efficiency as well as effectiveness. 4. THE ROLE OF FACILITY PROVIDERS Facility providers (Private Sector) can influence sustainability on PPP projects in Ireland through three main roles as outlaid below; Through project biding A private company may comprise the entire private sector elements of the project that facilitates its specifically to bid for and operate a number of PPP projects. Through partnership This is a situation where one of a number of companies that join together to bid for a specific project, and once the invited to prepare for a detailed bid, the joint companies would become a partner in a Private Sector Organization (PSO) that would control all aspects of the private sector element of the project. Through Private Sector Organization (PSO) Through PSO, a private company may effective become a subcontractor and get involved in part of the project. Seeing that the partnership approach comprises the two other functions, its functionality brings the clear picture of the private sector’s involvements in the PPP project which is undertaken in stages. a. Early project stages The role of the PSO under this stage is to identify the core partners who are the construction specialist (a Contractor or a number of them), an operating specialist who would manage the operation of the facility (Operator) and one or more financial specialists that would concentrate on securing the finance necessary to fund the project (Financial Partners). Each partner shall then have the mandate carry out the following; Identify the criteria for considering involvement in a PPP, Decide on preferred role, Participate in meetings to assess the potential of the project to be offered as a PPP, Reach initial agreement on the structure of the PSO, Prepare and submit expression of interest, Identify design consultants, potential investors & appropriate maintenance and operation specialists Prepare outline proposal Agree the formal structure of the PSO Technology use must be maximized to ensure that competitive advantage is retained. PPP’s criterion in company consideration is highly based on its proactive nature and this requires a fundamental change in the company’s culture. For the company to shift from its norms of operations, it may follow the below given guideline; Establish the need for change, Set Objectives, Examine the Organization /System/Processes/Tasks / Interfaces Establish the required changes Plan the implementation of change Implement the change Monitor results Business and company self-examinations should be done to highlight a number of the characteristics that would be sought in partner companies and through a variety of business networks and informal contacts, companies that decide to become involved in PPP will match themselves with other partners. At this stage of the process, it is possible that a company could have formed an association with more than one group that is interested in a project. b. Procurement stage Once the companies have learned about the project and have formed a reliable team/group from the perspective of their own organizations, they will then undergo through the procurement process as below; Sign an agreement formally establishing the PSO as a legal entity, Appoint a Bid Manager, Agree a bid programme and a bid budget, Prepare the bid, Appoint; Construction Manager, Design consultants, Financial advisors, Legal & contractual advisors & the Operational Manager, Develop construction strategy, Prepare design strategy, Develop financial model for the full project life cycle, Establish risk and insurance issues, Establish operational issues and develop operational, Prepare the Construction estimate, Finalize the bid, Decision to proceed, & Submit the bid. The successful bidder then goes to the final stage that has the following steps; Fully develop proposal Negotiation with construction specialists Negotiate supply contracts Arrange Finance Negotiate concession contract Achieve commercial contractual and financial agreement, Decision to proceed Enter into contract c. Construction stage During the construction stage PSO differs from the traditional contract methodology, in that it is in their commercial interest to design out any future problems that may occur during the operational life of the building. Consequently, it is possible that the construction costs may be higher in a PPP project with a view to making savings over the concession period. At this period, the following is undertaken; Final design Co-ordinates design, Begins to draw down finance, & Operational issues raised and clarified Planning and management of construction operations Project planning, quality assurance, management of time, cost, quality and safety, Financial monitoring and reporting to investors , Continued input to construction management, & Begins planning of commissioning and handover, Commissioning Completes outstanding works and assists facilities manager in the commissioning of the building, Draws down the remaining finance, Manages the commissioning of the building and the commencement of the operational service of the building. It is essential that the PSO begins to get an income stream from the project at the earliest possible date. Consequently, all work must be carried out in such a manner to allow the building to be commissioned and made ready for use with the minimum of delay. 5.SUMMARY OF CHALLENGES FACING CONTRACTING AUTHORITY OF PPP SCHOOLS The challenges facing the contracting authority of PPP school projects in implementing sustainability are as follows; Transfer of Risk; The lack of effort to jointly develop measures that would address and reduce each type of risk is a major weakness of the PPP relationship. Value for Money; From the PSB study, Grouped Schools project showed that the final agreed cost was 17% higher than would have been expected under traditional procurement. Management; By the auditor, the management by the public sector of the Grouped Schools PPP project, was found to be somewhat less than perfect innovation. 6. CONCLUSIONS By examining various PPP projects (schools projects) in different countries/localities in terms of Risk, Value and Innovation, three propositions were put forward: that there were differences in project outcomes, that there were differences in the attitudes of the project participants, & that the attitudes influenced the outcomes. For the close term it seems the European Union go on in setting the speed once it concerns environment on product basis guideline. In Ireland, it appears possible that a growing number of the nationals are following the European fresh regulating on products. Other states out of European nations, like China, have also adopted the approach of European Union through embracing their requirements of their very own environment based products. If these novel sub-national and national inventiveness drift down toward corresponding standards products or alternatively develop into piecemeal of rival directive which emasculate global trade remaining one of the significant economies and environmental strategy question of this decade. Through preparing access to market for variety of products on the newly established ecological requests, the European Union was reflected, as a result, as having established new international standards on products that motivate changes in design of shielded merchandises irrespective of the place they were made and traded. The EU Member States are in the implementation process in the same way of others following these dictates nationwide Reference List ALLEN, S., ABBOTT, C. & LENARD, D. 2003. Private Finance and Public Private Partnerships - A Review. Centre for Construction Innovation. ANNESLEY, B., HORNE, M. & COTTAM, H. 2002. Learning Buildings. School Works BREALEY, R. A., COOPER, I. A. & HABIB, M. A. (1997)Investment Appraisal in the Public Sector (United Kingdom public sector debate on efficiency and the public sector). Oxford Review of Economic Policy, 13, pp12 - 27. McNeill, Jim, 2007. Our Common Future: Advance or Retreat? Sustainable Development: A New Urgency. Geneva: Economics International. Moyo, Dambisa, 2009. Dead Aid: Why Aid is Not Working and How there is a Better Way for Africa. New York: Farrar, Straus and Giroux. World Trade Organization, 2010. About the WTO – A Statement by the Director General,. World Trade Organization. Accessed on 7th December 2014 from: http://www.wto.org/english/thewto_e/whatis_e/wto_dg_stat_e.htm. Read More