Effectiveness Of Public Private Partnership For Infrastructure Projects

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Effectiveness Of Public Private Partnership For Infrastructure Projects

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Title: Effectiveness Of Public Private Partnership For Infrastructure Projects
Author: Agyemang,Pius Francis Kwaku
Abstract: Public Private Partnership (PPP) has over the years proven to be a good procurement method for Infrastructure projects. The partnership combines the efficiency, expertise, and innovation etc. of the private sector as well as appropriate risk allocation between both public and private sectors. The method also provides an alternate avenue for capital needed for engineering projects. The financing options provided through PPP makes the method increasingly popular due to the current global financial crisis. The method is employed in both developed and developing countries. The United States of America has been using the method since the 1980's. Most governments currently seek this method for high capital projects that need to be completed within short durations. Though the method has been in practice over a number of decades, there is still the not been enough research to emphasis its benefits and necessity. To appreciate the effectiveness of the method for infrastructure projects, there is a need to examine the benefits, risks, challenges and success indicators of PPP. Comparisons of project outcomes from other procurement methods also need to be considered. The findings in the study have been able to show that most experts in the industry are aware of the effectiveness of PPP but are unable to determine how best to achieve maximum success. Identifying the various factors needed for a successful PPP, risk allocation, and good partnering processes will help determine specific projects that are well suited for PPP. Identifying such projects will help maximize the effectiveness of PPP for infrastructure projects for the benefit of the general public.
Date: 2011-07-14

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