Private public partnership
-
Upload
muhammad-reza-sahib -
Category
Documents
-
view
175 -
download
1
Transcript of Private public partnership
![Page 1: Private public partnership](https://reader036.fdocuments.net/reader036/viewer/2022081512/55616108d8b42a35458b4cdb/html5/thumbnails/1.jpg)
![Page 2: Private public partnership](https://reader036.fdocuments.net/reader036/viewer/2022081512/55616108d8b42a35458b4cdb/html5/thumbnails/2.jpg)
‘softer’ alternative to the word ‘privatization’
enable private organizations to get a market share of public service provision.
It seems fair to say that a number of governments have tried to avoid using the terms “privatization” and “contracting out” in favor of speaking about partnerships
![Page 3: Private public partnership](https://reader036.fdocuments.net/reader036/viewer/2022081512/55616108d8b42a35458b4cdb/html5/thumbnails/3.jpg)
PPP ; definition:
![Page 4: Private public partnership](https://reader036.fdocuments.net/reader036/viewer/2022081512/55616108d8b42a35458b4cdb/html5/thumbnails/4.jpg)
a specific form of privatisation was developed to deal with limitations on public borrowing. This involved using a private company to borrow money, build a new hospital, school, road, etc, and then operate it over many years, recouping the investment and profit from payments
![Page 5: Private public partnership](https://reader036.fdocuments.net/reader036/viewer/2022081512/55616108d8b42a35458b4cdb/html5/thumbnails/5.jpg)
2 general Forms of PPP:
![Page 6: Private public partnership](https://reader036.fdocuments.net/reader036/viewer/2022081512/55616108d8b42a35458b4cdb/html5/thumbnails/6.jpg)
Claims and myths about PPPs:
![Page 7: Private public partnership](https://reader036.fdocuments.net/reader036/viewer/2022081512/55616108d8b42a35458b4cdb/html5/thumbnails/7.jpg)
evaluation
![Page 8: Private public partnership](https://reader036.fdocuments.net/reader036/viewer/2022081512/55616108d8b42a35458b4cdb/html5/thumbnails/8.jpg)
Evidence Note
1 Cost of Capital Interest + dividends
PPP moreexpensive
Private sector has to pay higher interest rates than government
2 Cost ofconstruction
PPP moreexpensive
Higher cost of ‘turnkey’ projects, offset by saving on cost of overruns
3 Cost of operation
Efficiency Neutral Empirical evidence suggests nosignificant difference
4 Transaction costs
Preparation &tendering
PPP moreexpensive
Costs of preparing contracts &tenders
5 Uncertainty Renegotiation &contingent liabilities
PPP more risky
Future renegotiations &changes
Framework for evaluating PPP proposals against public sector alternative