What is public/private partnership?

Public-private partnerships (PPPs) are a mechanism for government to procure and implement public infrastructure and/or services using the resources and expertise of the private sector.

What are the benefits of PPP?

Advantages of PPP

  • The advantages of PPP include:
  • Access to private sector finance.
  • Higher efficiency in the private sector.
  • Increased transparency in the use of funds.
  • Complex procurement process with associated high transaction costs.
  • Contract uncertainties.
  • Enforcement and monitoring.

What is a P3 company?

There is no single definition of a P3. The Government Accountability Office defines a public-private partnership as “a contractual arrangement that is formed between public and private-sector partners.

What are the main principles of PPP?

PPP is based on two main principles:

  • Both parties invest in the project. In a financial sense (manpower, materials budget) and in an expertise-related sense (knowledge, networks).
  • The parties contribute to a societal and often also commercial purpose.

What are disadvantages of public private partnership?

PPP disadvantages:

  • Infrastructure or services delivered could be more expensive;
  • PPP project public sector payments obligations postponed for the later periods can negatively reflect future public sector fiscal indicators;

What are the limitations of public private partnership?

The major limitations include: Not all projects are possible (for various reasons: political, legal, commercial viability, etc.). The private sector may not be interested in a project due to perceived high risks, or it may lack the capacity to implement the project.

What are the characteristics of public private partnership?

Key Features of Public Private Partnership It involves sharing and transferring risks and rewards between the public sector and the partners. Such partnerships attempt to utilize multi-sectoral and multi-disciplinary expertise to structure, finance, and deliver desired policy outcomes that are of public interest.