A team needs to be assembled that will design and implement the privatization program. Structuring successful privatization programs requires a careful balance of intangible ingredients, such as creativity and insight into the marketplace. (see Figure 4)
Other important qualities team members should possess include:
Knowledge of the economic return required by the private investment community for each type of project.
Ability to develop alternative privatization plans that balance a government's constraints and opportunities with the often rigorous requirements of private investors and the capital market.
Knowledge and access to the national network of private companies offering the services required for each of the privatization opportunities.
Ability to carry out exhaustive financial analyses and develop alternative deal structures from the perspectives of both the government and the private-sector.
A high level of sensitivity and responsiveness to the participating public and private groups, as well as users, media and the voters.
Ideally, the team of advisors would include individuals with expertise in the following areas:
Public/Private Deal Structures/Privatization Plans
State-of-the-Art Public/Private Finance Plans and Instruments
Financial Models and Cost Analysis
Traditional Public Finance and Current Private Finance
Legislation and Regulation
Public/Private Partnership Agreements
Land and Building Development
Cash Management and Debt Restructuring
Investment and Development Incentives
Local Commercial Development Market
Delivery of Services
Architecture and Engineering
The government's team for a privatization program must continually consider future contingencies, such as: 1) how to implement a privatization opportunity; 2) what the political obstacles will be; 3) when the project should be implemented, and so on. One individual should have responsibility for the entire project.