Ppp 090422142641 Phpapp02
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PPC Concepts

PPC Concepts

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Ppp 090422142641 Phpapp02 Ppp 090422142641 Phpapp02 Presentation Transcript

  • New Public Management Private Public Partnership: non-government is effective by Evgenia Parkina
  • 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
  • Private sector advantages  Management Efficiency  Newer Technologies  Workplace Efficiencies  Cash Flow Management  Personnel Development  Shared Resources
  • 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
  • Public sector advantages  Legal Authority  Protection of Procurement Policies  Broad prospective the competing  Capital resources  Goals to meet public needs
  • Benefits of PPP  Mitigates and properly allocates risks  Provide incentives for lowering costs  Ensures value for money  Attract the right skills and management  Expertise Promotes innovation  Reduces corruption and waste  Reduce burden on taxpayers ►
  • 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”
  • “What takes the government 50 years to achieve can be done by the private sector in a tenth of time” Milton Friedman
  • 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