Our Practices

Our Practices
At IP3, we set ourselves apart from the competition by integrating capacity building and training with specialized consulting services to create successful and sustainable PPP, regulation, and utility reform projects. We believe that success should be measured not only by the advice provided but also by the capacity developed and left behind with our clients, and the impact that our work has on the community at large.

Our services are currently organized in three Practice Areas:

Public-Private Partnerships (PPP)
The Public-Private Partnership Practice provides advice on PPP institutional design and planning, identification and screening of project opportunities, selection of PPP options, project structuring and finance, procurement and negotiation support, contract design and monitoring, and stakeholder consensus building in a multitude of sectors. Learn more…

Regulation
IP3's Regulation Practice supports clients in developing the legal and regulatory framework for regulating public services, including developing competition and sector regulation policy, institutionalizing regulatory processes and procedures, designing subsidy schemes and methodologies for tariff setting and adjustment, devising stakeholder communication plans, advising on the use of benchmarking and quality of service regulatory tools, planning rate case hearings, and creating and operationalizing regulatory agencies. Learn more…

Competitive Utility Management
The Competitive Utility Management Practice works with clients to enhance the performance of public and private utilities through the application of corporate governance principals, commercial management and financial planning practices, customer service and media relations' development, ICT integration, and the use of benchmarking tools. Learn more…

Public-Private Partnerships
Over the last two decades, developing nations around the world have spent, on average, 4% of their national output on infrastructure. Despite these massive expenditures, 1.1 billion people still lack access to safe water, 4 billion lack sound wastewater disposal, 2.4 billion lack adequate sanitation, and 2 billion lack electric power.

IP3 believes that where large government expenditures do not translate into improved public services, the problem is often a combination of weak institutional capacity, poor governance structures, a lack of incentives for efficiency, and political interference. Public-private partnerships (PPPs) are not the only solution to this problem, but they can be an effective tool for addressing the underlying causes of inefficiency and putting poorly performing public enterprises on the path to recovery.
P3's mission is to work with our clients and their stakeholders to design partnerships that draw on the comparative strengths of the public and the private sectors in order to improve the delivery of services in a manner that is affordable, equitable, and sustainable.
IP3 has pioneered the development of innovative public-private partnerships across a range of sectors. Our recent projects in this area include:

• Municipal Public-Private Partnership Project in Eastern Europe: For the European Bank for Reconstruction and Development (EBRD), IP3 is assisting municipalities in Eastern Europe overcome the difficulties associated with attracting private investment into infrastructure services by supporting them in the identification and design of three to four bankable PPP projects in the municipal services sectors. To date, our Team has advised on the development of a PPP for solid waste incineration in Zagreb, Croatia; a PPP for water services delivery in the Sofia Metropolitan Region, Bulgaria; and a PPP for solid waste disposal in Stara Zagora, Bulgaria.
  
  
• Study on Leveraging PPPs to Enhance IDA Effectiveness in the Health, Education and Agriculture Sectors in Africa: For the United Kingdom's Department for International Development (DfID), IP3 assisted the World Bank to evaluate PPPs as a means of enhancing the effectiveness of its lending programs in the health, education, and agriculture sectors in Africa. The goal of the project is specifically to identify three to four innovative PPP models that can be applied in IDA (International Development Association)-funded projects in order to enhance African governments' ability to achieve the Millennium Development Goals.
  
  
• Building Consensus for PPP Amongst Water Sector Stakeholders in Zambia: For the Public-Private Infrastructure Advisory Facility (PPIAF) and Zambia's Ministry of Local Government and Housing, IP3 developed and implemented a program to build consensus amongst key stakeholders for water sector reform, including the introduction of a PPP in the City of Lusaka. For this project, we developed and implemented a series of interactive stakeholder workshops on PPP, conducted a study tour for key decision makers to visit water sector PPPs underway in other parts of Africa, and designed a communications strategy for the Ministry and the Lusaka Water and Sewerage Company to use in reaching out to stakeholders as the PPP process proceeds.
  
  
• Design of Public-Private Infrastructure Financing Facility in Pakistan: For the Asian Development Bank (ADB) and the Government of Pakistan, IP3 designed appropriate mechanisms for accelerating infrastructure development through increased private sector participation and thereby promoting economic growth and reducing poverty. Our Team assessed the performance of key infrastructure sectors; reviewed the legal and regulatory framework for private participation; recommended new frameworks and sector strategies needed to improve the capacity for efficient and transparent contracting of infrastructure projects to the private sector; and recommended measures to strengthen institutional capacity to effectively channel private capital into long term infrastructure projects.
  
  
• Emerging Lessons in Consensus Building and Stakeholder Consultation for the Private Participation in Infrastructure: For the Public-Private Infrastructure Advisory Facility (PPIAF), IP3 researched the experience to-date with consensus building and public awareness of public-private partnerships in the infrastructure (water, power, telecommunications, and transportation) sectors. Our findings, as well as recommendations for lessons learned and best practices, are summarized in a working paper intended for publication by the World Bank.
  

Learn more about IP3's projects and training programs in the field of public-private partnerships….

For more information, please contact:
Mr. Matthew Hensley
President
Tel: (202) 466-8930
Fax: (202) 466-8934
Email: mhensley@ip3.org

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Regulation
Many countries are successfully engaged in the reform and restructuring of their infrastructure industries. Demand has never been higher for reliable electricity, clean gas, clear channel communications, safe drinking water, and safe and efficient transportation services for moving goods and people all over the world. Demand is growing in emerging economies and even in economies that have not yet begun to transform themselves.

Reform generally involves changes - such as the restructuring of monopoly companies, vertical and/or horizontal unbundling of enterprises, and adjustments to the policy and legal environment - to enable competition. These changes often require the introduction of cost-based rates, private participation in the market and the establishment of an independent regulatory authority to realize their full potential. Good regulation is especially important during the transition from state-owned companies providing monopoly services to an open market where consumers make choices based on market prices for commodities.

IP3's Regulation Practice is at the forefront in helping national and local governments design and operate functioning regulatory systems to oversee sectoral reform in the water, energy, telecommunications, transport, health, and education sectors. Our strategic consulting services are based on the belief that good regulation promotes service upon demand for everyone, uniform policies to all users, acceptable service quality, fair rates to customers, and a fair return to stockholders.

IP3's objective is to work closely with our clients to develop regulatory regimes that are efficient and transparent, and that assure fair treatment of both customers and investors alike.
IP3 has been actively involved in creating the legal and institutional framework for the effective regulation of public services in a variety of countries and across a range of sectors. Some of our recent projects in the field of regulation include:

• Design and Implementation of the Public Utilities Regulatory Authority in The Gambia: For the Public-Private Infrastructure Advisory Facility (PPIAF), IP3 designed and oversaw the establishment of The Gambia's first independent regulatory institution to regulate public enterprises slated for divestiture. The overarching goal of the project was to design a regulatory institution that would provide sound economic oversight to the water, telecommunications, and energy sectors and would create the legal and regulatory enabling environment for private sector participation in these sectors. IP3 proposed amendments to existing legislation, recommended the form, structure, and governance of the PURA, drafted position descriptions for agency staff, and developed an operating budget for PURA's first year of operation. IP3 also designed a tariff-setting methodology, and developed sets of key performance indicators (KPIs) to be used by the PURA in measuring the performance of regulated enterprises.
  
  
• Telecommunications Regulation Advisory Services in Egypt: Since 2002, IP3 has been providing technical assistance to the National Telecommunications Regulatory Authority (NTRA) and the Ministry of Communication and Information Technology (MCIT) in Egypt. Under this USAID funded project, IP3 developed guidelines on dispute resolution and consumer protection, and drafted model rules and processes for the implementation of dispute resolution mechanisms. We also developed guidelines for NTRA on broadband service, interconnection, and pricing. To support the growth of a competitive information technology (IT) market in Egypt, IP3 designed the structure, operating guidelines, and financial sustainability plan of the "Competitive Egypt IT Association."
  
  
• Comprehensive Training Needs Assessment for Energy, Telecom, Rail, and Water Regulatory Institutions in Uganda: For the World Bank, IP3 conducted an institutional assessment of the ministries, utilities, and regulatory authorities in the telecom, energy, water, and rail sectors to assess their immediate and long-term institutional capacity building needs. Our training design will form the basis of a short and long-term training plan for these institutions.
  
  
• Institutional Capacity Building of the Water Regulatory Authority in Mozambique: For the World Bank and the Water Regulatory Agency (CRA) in Mozambique, IP3 developed guidelines, policies and operating procedures for the regulatory authority's internal operations. IP3 also assisted CRA in its negotiations to renew its lease contract with the private water operator, Aguas de Mozambique.
  
  
  
• Creation of a Water Regulatory Authority in Egypt: In support of the USAID-funded Legal, Institutional, and Regulatory Reform project for Egypt's water sector, IP3 drafted legal instruments, recommended the form and structure of a regulatory body, provided initial support to the creation and operationalization of the Egyptian Water and Wastewater Regulatory Authority (EWRA), and developed guidelines for the regulator's involvement in the Government of Egypt's privatization program, managed by the Central Department for Private Sector Participation. As a result of our work, the EWRA was officially constituted by Presidential Decree in 2004.

Learn more about IP3's projects and training programs in the field of regulation….

For more information, please contact:
Mr. Matthew Hensley
President
Tel: (202) 466-8930
Fax: (202) 466-8934
Email: mhensley@ip3.org

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Competitive Utility Management
IP3's services in the field of competitive utility management apply the private sector principles of efficiency and accountability to public sector management. When public enterprises under perform, the quality of service to customers declines, there are insufficient funds to meet the expanding demand for service, and state budgets are burdened by the need to provide ever-increasing subsidies. This can hamper economic growth, discourage private investment, and divert funds needed for investment in critical areas such as housing, education, and healthcare.

Whether a utility is being managed by the private or public sector, IP3 believes that sound commercial business management practices should be applied in the daily running of the business. At IP3 we are well aware of what it means to run a utility effectively and have been engaged by numerous clients to assist in achieving sustainable utility management.

Our Competitive Utility Management Practice advises on all forms of corporate restructuring, from enhanced and more streamlined management structures, to workforce redeployment, and benchmarking. From our experience around the world, we know how sensitive these changes can be. By effectively integrating all stakeholders - from general staff to middle and senior management - we help our clients create "enabling strategies" that ensure the process of change is not only a smooth one, but that it produces the desired results in terms of enterprise performance.

In addition to helping underperforming utilities to enhance their competitiveness, we have a long track record of advising top performers on how to expand their market through mergers and acquisitions.

IP3's recent projects in the field of competitive utility management include:

• Business Planning for Water Utilities in Warn Torn Areas of Croatia: For the United States Agency for International Development (USAID), IP3 conducted a thorough evaluation of water services in the towns of Drniš, Kostajnica, and Pakrac and developed business plans to assist the publicly-owned water utilities to recover from damange incurred during the Balkans War.
  
  
• Effective Process for Restructuring, Regulating, and Overseeing Competitiveness of State-Owned Enterprises in Ghana: For the State Enterprise Commission, the Public Utilities Commission, the Ghana Water & Sewerage Corporation, and the Ministry of Communication, IP3 designed and delivered a customized capacity building program on restructuring strategies for the utilities sectors. The program consisted of sessions on the fundamentals of market-oriented provision of goods and services, designing a corporate restructuring action plan, and introducing appropriate legal and regulatory environment for private sector participation in infrastructure. IP3 developed all curriculum materials, including slides and case studies, and a compendium of presentation and reading materials.
  
  
• Reinventing Municipal Government in Jakarta: IP3 advised the Jakarta Capital City Government (DKI) on strategies to reinvent municipal government. This project included capacity building programs as well as technical assistance to develop and implement specific "reinventing government" pilot projects in various departments and agencies of DKI.
  
  
• Reinventing Government Management in Kuwait: The Civil Service Commission of the Government of Kuwait and the United Nations Development Programme selected IP3 to serve as special advisors on governmental organizational restructuring and human resources development. IP3 analyzed the organizational and institutional conditions throughout all branches of the Government of Kuwait and developed a work plan for restructuring and "right-sizing" a series of government departments and agencies. IP3 assessed the new management skills and capabilities that will be required by the senior and mid-level managers who will direct and implement the Government's Reinventing Initiative. IP3 also developed a comprehensive training and human resources development action plan to provide Kuwait Government managers with the necessary management skills.
  

Learn more about IP3's projects and training programs in the field of competitive utility management….

For more information, please contact:
Mr. Matthew Hensley
President
Tel: (202) 466-8930
Fax: (202) 466-8934
Email: mhensley@ip3.org

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