Public-Private Partnership in City Beautification:A Study of Khulna City Corporation Area

Abstract

Development and management of cities is one of the major challenges of the time as well as one of the most complex tasks of our societies. Municipalities are increasingly becoming unable to satisfy the city dwellers with urban basic service delivery. Public sectors in partnership with the private ones, for instance, private companies, financial companies and business classes can work together for not only efficient service delivery but also for municipal plan preparation and implementation in the new world order. New governance does not mean the end or decline of the state but transformation and adaptation of the state to the society it is currently emergence in. worldwide ideological shift towards market principles is another explanation for the emergence of new form of urban governance. In this context, Public-Private Partnership (PPP) might be an effective solution in the municipal services delivery. The present study demonstrates the prospects of PPP and emphasizes on involving private concerns along with the public authorities for the city beautification of Khulna city under a favorable situation with appropriate legislative support. As well, the study provides an example of PPP between local government and private organizations working together in enhancement of city beautification which is successfully operating in some parts of Khulna city, at present. 

1.1 Background Information 

Rapid population growth in the developing countries has created harsh conditions in city centers. The haphazard growth of a city lost true beauty and create monotonous environment. In this age of modern science and technology people’s want to have sound and peaceful environment to live in because of a beautiful environment refreshes the human mind and increasing the workability of the people. For this reason every city or area would be better developed with adoption of architectural style/ urban design aspects, this will provide an identity and distinctive character to the city. The modern city planning concept is-“the city must be efficient, economically viable and beautiful. There are other criteria; a city must be socially just, environmentally sustainable and culturally vibrant” (Islam, 2005). The physical and social value of a city depends on city structure and aesthetic view of a city. For considering this issues the city beautification concept coming forward. City beautification has been practicing for a long time in developed countries but now a day it has also being practices by developed countries also. 

Urban services are provided to make urban environment comfortable and easy to live in, meet basic necessities of urban dwellers and help urban dwellers to lead a healthy life (Brownell et al., 2002). Bangladesh is one of the most densely populated and developing country. A traditional administration is inherited from its independence government. City Corporation and Pauroshova Committee is two tier of local governance systems exist in urban centers of Bangladesh. Generally, public authorities provide urban services. City beautification is the responsibility of the urban local government bodies according to the ordinances; “to clean up and increasing the aesthetic view of a city for better living condition”. In recent years, experiments of public private partnership in the area of urban basic services demonstrate that such a collaborative arrangement does posses a considerable amount of prospects. Especially in the area of beautification where partnership is in practice between municipalities/city corporations and private partners

Rules and regulations on public and private sector involvement are not adequate for partnership. There have few questions on cost-benefit analysis, for both the public and private sector if the cost of the project is not compensated with the profit they earn they will not continue that partnership projects. Important consideration is the public satisfaction as everything is for the public, so if the partnership projects could not provide the basis for public satisfaction the project will not feasible.

Due to the previous considerations, it is necessary to analyze the feasibility of the public-private partnership in city beautification, cost-benefit for both public and private sectors and regulations simultaneously to solve the problem involved with the city beautification in urban area. 

1.2 Conceptualization 

In Bangladesh, partnership between the public and private sectors in the field of urban services is developing. With the increase of urban population, the demand for urban services has also been increased in many folds. But the municipalities in Bangladesh can hardly meet all the requirements of the dwellers in providing basic services due to shortage of resources, government fund and different other limitations. The first stage of the research is to understand the problem. To facilitate these, two prerequisite steps will be taken: Reconnaissance and Literature Review. Primary literature review will be done to clarify the concepts related to the research and to examine the views of previous researchers in the concerned area. Published and unpublished theses, journals, books, newspapers, magazines, documents from various organizations/policies of home and abroad etc. will be reviewed to know the past and existing situation. 

 

1.3 Statements of the Problem

The existing infrastructure and services are not enough to cater the needs of the present time which is equally true for the future as well. The city authorities such as Khulna City Corporation (KCC) cannot cope to deliver the required services to the city dwellers in accordance with their demands due to certain financial, institutional and other pertaining administrative constraints. As such, the gap between the lists of demand for the urban services and the supply of services is widening day-by-day. There are numerous problems relating to the provision and maintenance of services and infrastructure for the city dwellers and these problems are of diverse and complex in nature. 

Khulna city corporation (KCC), an organization with limited resources, is suffering from technical, financial and managerial capacity is fail to begin city beautification work, mainly because of shortage of financial support and lack of willingness to practice for overall sustainable solid waste management policies. Public-private partnership (PPP) might well be an effective solution for successful management of city beautification over the present handicapped system.

Being a developing country like Bangladesh, to sustain up city beautification through private finance proper maintenance and management are needed in very early stages. In Bangladesh, city beautification through public-private partnership has been addressed in very recent time. The main problem of city beautification is managed the private sector involvement in such particular issues. It is very much needed to consider this issue from the very early stages—how to sustain up public-private partnership in city beautification through proper management schemes and how to increase the involvement of private sector investment in city beautification.           

1.4 Objectives 

1.      To assess the present role of public and private partnership in city beautification.

2.      To ascertain the problems and prospects of public and private partnership in city beautification.

3.      To suggest appropriate recommendations for sustaining public and private partnership in city beautification.

1.5 Research Questions

1.      What was the existing and previous condition of aesthetic view in Khulna city corporation area?

2.      What were the main patterns of local Government and private nonprofits organization partnership exist in Khulna city corporation area?

3.      What are the factors that contribute the formulation of partnership in city beautification provision?

4.      How Public-Private Partnership is sustain in the non-profitable sector like city beatification?

5.      How to increasing the involvement of private sector investment in city beautification?

1.6 Literature Review

Public-private partnership, more precisely, NGO-local government partnership as a whole and especially of Bangladesh context remains all most an unexplored area for the social scientist.  However, three categories of literature have been searched for review:

a. literature on public-private partnership. State –NGO partnership/collaboration specially of Bangladesh and developing nation’s context; b. literature on Basic service provision in Bangladesh and c. literature on different experiences regarding with success and failure of PPP throughout the world. Sources of literature are books, articles in journals and electronic publications.

R. Batley (1996) in his articles ‘Public-Private Relationships and Performance in Service provision” there have some components such as compares the arguments for private-sector involvement in service provision with practice in certain countries of LatinAmerica, Africa and Asia which will help in my thesis.

L. H. Choudhury (1987) focusing on the importance of local bodies and the decentralization of the local bodies. In the context of partnership the author provides some observations and proposed for reorganization of the local bodies.

S. S. Dutta (2000) examines the various aspects of partnerships in urban development of Ahmedabad’s experience and came to conclusion that necessary legislative reform is necessary for strengthening the city government’s ability to pick up the right option for its development.

F. Fernando (2006) in his articles “Public private partnership for municipal governments” focus on local and national government officials identify major relevant to public-private partnership decision making in the area of infrastructure provision and finance. That focus on the nature of PPP’s bang multiple benefits and distinctive risk, the wide range and complexity of modalities, process and distinctive risk, the wider range and complexity of modalities and process and partnership responsibilities and demand which helps to identify the importance of public-private participation.    

A. Merrifield (2005) in his articles “Public-Private Partnerships, Public Infrastructure Investment and Prospects for Economic Growth in South Africa” focus on function of infrastructure in the South African economy and the current status of public investment in infrastructure. Given the fiscal constraints in South Africa, public-private partnerships (PPPs) are discussed as an alternative method of realizing infrastructure delivery and supplementing public sector resources. The paper further outlines the forms of engaging private sector management expertise, resources and finance in the delivery of the services traditionally carried out by the private sector. 

O. Sokha (2005) shows the possibilities of public-private partnership through his thesis “Public-private and community partnerships in land-sharing: A case study of Borei Keila community in Phnom Penh, Cambodia” to describe on community organizing and participation in Borei Keila community in Phnom Penh and he also identify and analyze the community participation in decision-making in public-private and community partnerships in land sharing with particular reference to the form of participation and cooperation; identify the problems and constraint factors that determines the performance of community participation in decision-making within the process of public-private and community partnerships in land-sharing which helps to identify the importance of public-private participation.    

M. Sadia (1997), “A comparative analysis of public and private sector involvement in urban solid waste management in Khulna city”, unpublished thesis. Here the writer found that the improvement of waste disposal situation of Khulna City Corporation area can be achieved through joint involvement for the NGOs and KCC. 

             

1.7 Justification of the Study 

City beautification is an area of activity which has been relatively neglected by land use planners. But it helps the mental health of the people to remain fresh when he passing through the roads. Without beautification, an area or a plan would not be an impressive plan as well. KCC has already set up an example of working with different local and national NGOs in managing city beautification of Khulna city as development partner. Some private sectors have also shown interested to participate with the corporation in city beautification work. From this study the present situations of partnership in city beautification facility, satisfaction level of the city dwellers, can be find out which can give us a platform to asses the city about its beautification services. This study can also help the planners and the development authorities to take some initiatives to fulfill the needs of the people and to forecast the future participants in this sector.    

1.8 Operational Definitions of Terms Used 

1.8.1 Public Sector 

The public sector category certainly includes national and local governments who provide services to the local people. 

1.8.2 Private Sector 

Private sector category certainly includes for-profit corporations such as encompasses all non-government agencies such as the corporate sector, voluntary organization, self help groups, individual and community based organization. Organizations such as International are private in the sense that they do not belong to a governmental structure, yet they seek to promote public interests. 

1.8.3 Public-Private Partnership (PPP)

Public-Private Partnership or PPP is much used concept. In the main concept of this study, PPP has been considered as a tool of economic policy through which public service decentralizes. They focus privatization of state activities and incorporation of private parties into administrative activities. Wetteenhall (2003) has pointed out in his book “The Rhetoric and Reality of Public-Private Partnerships” that Public-Private Partnership is just another friendlier name of privatization program (pp3:77-107) However, PPP is popular not only among economist but also among development planners and activist. In this case it is considered as a means by which to combat social exclusion by integrating public and private components of local communities - including local government, local communities, politicians and voluntary groups.

Public Private Partnership (PPP) is a partnership between the public and private sector for the purpose of delivering a project or service, which was traditionally provided by the public sector. The PPP process recognises that both the public sector and the private sector have certain advantages, relative to the other, in the performance of specific tasks. Private sector innovation, technological, financial and management expertise are but some of the attributes, which the private sector can contribute. Through a partnership arrangement, the public and private sector can combine to provide quality public services and infrastructure in the most economically efficient manner. PPP also allows for the best of public and private sector management skills to work together in the delivery of services for the benefit of the public.

In a public policy setting partnership can be defined as cooperation between organization from public and private sectors for mutual benefit. In the book ’PublicPrivate Partnership in urban regeneration’ Harding (1990) defined PPP in urban context, as ‘any action which relies on the agreement of actors in the public and private sectors and which also contributes in some way to improving the urban economy and quality of life.’ 

Weaver et al. (1991, p. 49) point out “privatization is privatization and subsidies are subsidies; public private partnerships they are not”. They define PPP as “Primarily a set of institutional relationships between the government and various actors in the private sector and civil society”. It is very important to state that PPP is neither a development strategy nor a loose interaction between different agents”.

A working definition would include three points. First, these partnerships involve at least one private for-profit organization and at least one not-for-profit or public organization. Second, the partners have some shared objectives for the creation of social value, often for disadvantaged populations. Finally, the core partners agree to share both efforts and benefits.

PPP may vary with its purpose, party involved, level of cooperation, risk-resource- responsibility share and many other dimensions. In this research there are two types of PPP who are broadly differentiated from each other on the basis of their source of initiative- PPP initiated by public organization and PPP initiated by private organization. In this study emphasize has been given on the partnership between public authority and local organization.

1.8.4 Feasibility

Generally feasibility refers the degree of sustainability. The PPP Initiative on city beautification aims to develop a sustainable public private partnership on city beautification management. The most promising approach of public-private partnership will be explored and–eventually, when feasibility looks promising-developed, introduced and tested for sustainability and effectiveness for the urban area. 

The feasibility of city beautification provision is determined by the physical systems put in place and by the institutional framework that determines decision making, tariff setting, management responsibilities, conflict management and monitoring activities among others. 

The analytically feasibility assessment includes the following areas required for the sustainability of city beautification: (i) institutional; (ii) technical; (iii) financial; (iv) community involvement and participation; and (v) environment. 

1.8.5 Effectiveness

In general, the effectiveness of a public service is defined by the extent to which the goals and objectives of the service are being met. Departing from this conventional way, in this research, effectiveness of urban service provision, more specifically, effectiveness of city beautification will be defined with and measured by from the perspective of the citizens of the community - who are the bottom line user of the service. 

The effectiveness of services will be considered in following aspects of the service:

a)  Cost – cost from both organization side and recipients side

b)  Access - how close is the user physically to the service provided.

c)  Availability – the continuation of service provision

d)  Usage - to what extent does he use it.

e)  Reliability - how dependable is the service

f)   Responsiveness - to what extent the provider care of his complains

g)  Community satisfaction – the overall expression of community on that service

1.9 Analytical Framework 

In the following section it is tried to come up with an analytical framework through which we can address this research problem. The analytical framework is based on following assumptions:

1.      There has demand among the urban people, NGOs and private sector parties, and national and local (municipal) decision-makers, specifically in the local context of the regions of the country; 

2.      Public-private partnership is a form of private sector participation in public service provision.

3.      Public-private partnership is enhanced by so many factors, including socioeconomic factors, organizational structure, regulatory involvement, community participation etc.

4.      Feasibility assessment includes the following areas required for the sustainability of city beautification; institutional settings, capacity requirements, regulatory involvement, financial sustainability, economic feasibility and community involvement. 

5.      If the PPP implemented successfully then it affects effectiveness of public service provision. 

The main purpose of the mission is to assess the feasibility for a PPP on city beautification for the urban areas in Khulna City.

                                                                                                                      

                                            Fig 1.1 Analytical Framework

From the above framework it is clear that PPP affects effectiveness of urban service provision. Eventually it affects community, public and private sector’s achievement. The whole process is embedded in a greater context which could be, for analytical purpose differentiated as different factors (structural context and organizational factors etc. Here structural factors refer to the structure of the constitutional provision, related legislations and historically rooted process of distribution. Organizational factors refer particular rules, regulations, organizational structure, resources available to that organization, the acceptance of that organization to the local people and the Policies of involved organization in the process etc.) The interplay of these factors determines who will form PPP why and so on. They also affect the perception of community and their preferences of interest which determine the level of effectiveness. Moreover these factors also affect the process of accumulation of resources at the community level. And, it is not unlikely that the relationship between dependent and independent variables is also might be affected by these factors. And finally, the private-public partnership perpetuates the achievement of community, private and public sectors.

1.10 Scope and Limitations of the Study

This study ascertain the following aspects—

1.      Through this study it helpful to know that in what terms and condition private profitable organization come ahead in this non-profitable issue in city planning.

2.      This study helpful to know the present city beautification policy and planning schemas.

3.      This study helpful to know the how public-private partnership is  to be sustained and how to increasing the involvement of private sector investment in city beautification 

The Limitations of the Study are--   

1.       Despite this being the very first attempt to evaluation the public-private partnership in city beautification, there was no available literature for review.  

2.       This study dose not concern on designing perspective of the city beautification. 

3.       City beautification is a broad aspect but due to lack of time, budget and available information this study concern with roads, pavements, sidewalks and divider beautification which have been implemented in recent time in Khulna city corporation.

1.12 Organization of the Dissertation  

Chapter One presents the main concepts of the study and strategies used in the study to illuminate our understanding and to establish link between scientific knowledge and the empirical world. This chapter also represent the theoretical frame of reference have been used in the thesis within which the whole phenomenon will be understood. In this chapter an analytical framework have been developed to guide and organize the relationship among different variables. Limitation and obstacles have faced during conducting the study also attached in this chapter. 

Chapter Two consists of methodology which is the best of any research work. The methodological processes four sub-components, namely- study, survey and analysis procedure. Based on these three paramount components the design of research will developed which includes numerous micro components like selection of topic and study area, development of goals and objectives, data collection and data processing, data analysis and interpretation procedure. In deed, this design of research work provides a systemic view of the overall procedure of the research work.  

Chapter Three includes a brief account of the state of public-private partnership in Bangladesh with reference to the international perspective as well. This chapter actually demonstrates the broader context within which the public-private partnership can take place. National and local issues regarding with water supply through partnership way have also included in this chapter.

Chapter Four consists of the description of the study area and the overview of Khulna City Corporation and the obligation responsibly of KCC in city beautification. Chapter Five consists of overview of beautification in Khulna city and its prospect and problems. 

Chapter Six consists of Analysis of public-private partnership in city beautification in financial context and also analysis on Satisfaction level of city beautification before and after public-private partnership especial reference to provider and recipient’s point of view.

Chapter Seven presents the final comments. The main goal of this chapter is to present some concluding remarks regarding with the obstacles of establishing public-private partnership in city beautification and conclusion about the issues in public-private partnership. This chapter also intended to provide some guidelines or future study regarding the field.