Private pubic partnership: non-government is effective

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  • 1. New Public Management Private Public Partnership: non-government is effective by Evgenia Parkina
  • 2. Definition
    • PPP refer to the private sector financing, designing, building, maintaining and operating infrastructure assets traditionally provided by the public sector
    • PPP describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector company
  • 3. Private sector advantages
    • Management Efficiency
    • Newer Technologies
    • Workplace Efficiencies
    • Cash Flow Management
    • Personnel Development
    • Shared Resources
  • 4. Why do government need private sector?
    • Financial need - budget deficit, large debt
    • Aging or deteriorating infrastructure
    • Growing demand on public sector services
    • Search for greater efficiency and creativity
    • Strides to introduce competition
    • Lack of domestic experience or skills
    • Need to educate local contractors while remaining competitive
  • 5. Public sector advantages
    • Legal Authority
    • Protection of
    • Procurement Policies
    • Broad prospective
    • the competing
    • Capital resources
    • Goals to meet public needs
  • 6. Benefits of PPP
    • Mitigates and properly allocates risks
    • Provide incentives for lowering costs
    • Ensures value for money
    • Attract the right skills and management
    • E xpertise Promotes innovation
    • Reduces corruption and waste
    • Reduce burden on taxpayers ►
  • 7. Pitfalls of PPP
    • The process of creating a PPP is much more demanding than a traditional procurement process
    • Failure to communicate: “We don’t speak the same language”
  • 8.
    • “ What takes the government 50 years to achieve can be done by the private sector in a tenth of time”
    • Milton Friedman
  • 9. Sources:
    • Darrin Grimsey, Mervyn K. Lewis Public Private Partnerships: The Worldwide Revolution in Infrastructure Provision and Project Finance, 2006
    • E. S. Savas Privatization and Public-Private Partnerships, 2002
    • Public-private partnerships: principles of policy and finance, Elsevier, 2007
  • 10.