Public-Private Partnership Management at Namibia Business School

What is Public-Private Partnership Management?

PPP is a broad term that can be applied to anything from a simple, short-term management contract — with or without private investment requirements — to a long-term contract that includes funding, planning, building, operation, maintenance and divestiture.

Overview

PPPs can help both to meet the need and to fill the funding gap. PPP projects often involve the private sector arranging and providing finance. This frees the public sector from the need to meet financing requirements from its own revenues (taxes) or through borrowing.

Frequently Asked Questions

What is public/private partnership?

A Public-private partnership (PPP) is often defined as a long-term contract between a private party and a government agency for providing a public asset or service, in which the private party bears significant risk and management responsibility (World Bank, 2012).

What is an example of PPP?

A typical PPP example would be a hospital building financed and constructed by a private developer and then leased to the hospital authority. The private developer then acts as landlord, providing housekeeping and other non-medical services, while the hospital itself provides medical services.

What is a PPP contract?

A Public Private Partnership (PPP) is a service contract between the public and the private sector where the government pays the private sector to deliver infrastructure and related services over the long-term.

What are the limitations of PPP?

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.

Why does government choose PPP?

The official reasons why PPPs are used are because they enable projects to be realised now which otherwise would not be affordable, and because they take advantage of the supposedly greater efficiency of the private sector in public service delivery.

How do you structure a PPP?

“Structuring a PPP project” means allocating responsibilities, rights, and risks to each party to the PPP contract. This allocation is defined in detail in the contract. Project structuring is typically developed through an extended process, rather than by drafting a detailed contract straight away.

What are P3 projects?

P3 Projects are “Public Private Partnerships” which are a long-term approach to procuring public infrastructure where the private sector assumes a major share of the risks in terms of financing and construction, from design and planning, to long-term maintenance.

What are the three major sources of PPP?

There are three basic sources by which a PPP project can be financed: debt, equity and government support[4].

How is PPP different from Privatisation?

PPPs are different from privatization. While PPPs involve private management of public service through a long-term contract between an operator and a public authority, privatization involves outright sale of a public service or facility to the private sector.

How many PPP models are there?

Commonly adopted model of PPPs include Build-Operate-Transfer (BOT) ,Build-Own-Operate (BOO), Build-Operate-Lease-Transfer (BOLT), Design-Build-Operate-Transfer (DBFOT), Lease-Develop-Operate (LDO), Operate-Maintain-Transfer (OMT), etc.

How much is contract period of public private partnership?

Most PPP projects present a contractual term between 20 and 30 years; others have shorter terms; and a few last longer than 30 years. The term should always be long enough for the private party to have an incentive to integrate service delivery costs considerations into the design phase of the project.

What is PPP write its two features?

The following are the main features of PPP : PPPs are related to high priority Govt, planned projects. (2)PPP’s main objective is to combine the skills, expertise and experience of both public and private sectors to deliver high quality services. (3)PPPs divide the risk between public and private sector.

What is the ingredient common to all types of PPP?

A sound and securely funded company is undoubtedly one of the critical ingredients for a successful PPP. Even when a business proposed by the public authority is credible and wins support, long-term contract challenges and problems may arise.

How are public and private sectors funded?

Public funding comes from a federal, state, or another publicly funded agency. Private funding does not entail public funds and may include both grants and gifts, depending upon the organization’s mission.

Where do private companies go to seek funding?

Money from personal savings, friends and family, bank loans, and private equity through angel investors and venture capitalists are all options for funding throughout the life cycle of a private company.

What type of projects are best used for public-private partnerships?

P3s are used to build and expand roads, bridges, hospitals, water treatment plants, transit systems, schools and justice facilities.

Is public/private partnership privatization?

PPPs are therefore a species of privatisation having already developed distinctive features in comparison to the various forms of the privatisa- tion phenomenon.