Public private partnership
Infrastructure
Road/Highways Sector
Public Private Partnership (PPP)
A public private partnership is defined as “a cooperative venture between the public and private sectors, built on the expertise of each partner that best meets clearly defined public needs through the appropriate allocation of resources, risk and rewards.
PPP is a way out to solve public deficit financing. It is done to give rise to speedy infrastructure growth.
The Public Private Partnership has emerged as one of the most important models government use to close the infrastructure gap.
For example, a city government might be heavily indebted, but a private enterprise might be interested in funding the project's construction in exchange for receiving the operating profits once the project is complete.
Why PPP model?
There are usually two fundamental drivers for PPPs. Firstly, PPPs enable the public sector to harness the expertise and efficiencies that the private sector can bring to the delivery of certain facilities and services traditionally procured and delivered by the public sector.
Secondly, a PPP is structured so that the public sector body seeking to make a capital investment does not incur any borrowing. Rather, the PPP borrowing is incurred by the private sector vehicle implementing the project and therefore, from the public sector's perspective, a PPP is an "off-balance sheet" method of financing the delivery of new or refurbished public sector assets.
Characteristics of PPP model:
Shared goals
Shared resources (time, money, human resource).
Shared risk
Shared benefits
How PPP model works?
A PPP typically works as follows:
Bidding process. A public sector entity (usually a central government body/local authority) will identify the need to deliver a particular project, such as building a Highway or a hospital. The public entity will advertise the need for such a project and then run a competitive process under which private sector
Road/Highways Sector
Public Private Partnership (PPP)
A public private partnership is defined as “a cooperative venture between the public and private sectors, built on the expertise of each partner that best meets clearly defined public needs through the appropriate allocation of resources, risk and rewards.
PPP is a way out to solve public deficit financing. It is done to give rise to speedy infrastructure growth.
The Public Private Partnership has emerged as one of the most important models government use to close the infrastructure gap.
For example, a city government might be heavily indebted, but a private enterprise might be interested in funding the project's construction in exchange for receiving the operating profits once the project is complete.
Why PPP model?
There are usually two fundamental drivers for PPPs. Firstly, PPPs enable the public sector to harness the expertise and efficiencies that the private sector can bring to the delivery of certain facilities and services traditionally procured and delivered by the public sector.
Secondly, a PPP is structured so that the public sector body seeking to make a capital investment does not incur any borrowing. Rather, the PPP borrowing is incurred by the private sector vehicle implementing the project and therefore, from the public sector's perspective, a PPP is an "off-balance sheet" method of financing the delivery of new or refurbished public sector assets.
Characteristics of PPP model:
Shared goals
Shared resources (time, money, human resource).
Shared risk
Shared benefits
How PPP model works?
A PPP typically works as follows:
Bidding process. A public sector entity (usually a central government body/local authority) will identify the need to deliver a particular project, such as building a Highway or a hospital. The public entity will advertise the need for such a project and then run a competitive process under which private sector