Key points
- Agree the public outcome first, then the commercial model.
- Allocate each risk to the party best able to manage it.
- Build governance for the long term, not just for contract signature.
Governments need private capability and capital. Companies want stable, long-term relationships with the state. Partnerships should be a natural fit, yet many struggle in delivery. The difference between those that work and those that don't is usually set in the design.
Start with the outcome
Successful partnerships begin with a clear public outcome that both sides understand: shorter waiting times, cleaner energy, better connected regions. The commercial model then follows from that outcome, not the other way round.
Allocate risk honestly
Pushing every risk onto the private partner looks prudent on paper but tends to raise costs and create disputes. The better principle is simple: each risk sits with the party best able to manage it, and is priced accordingly.
Good partnerships are designed for year ten, not just for the day of signature.
Govern for the long term
Partnerships often last longer than the people who negotiated them. Governance needs to cope with changes in leadership, policy and technology, with clear routes to adapt the arrangement without starting again.
When these features are in place, partnerships can bring together public purpose and private capability in a way that lasts. That is where AMB works, and where we believe the most valuable progress is made.
