PUBLIC-PRIVATE PARTNERSHIPS: AN EFFORT TO SUSTAINABLE DEVELOPMENT

Dr. NANDAN VELANKAR YOGESH ATRAY RAHUL DWIVEDI

PPP(PUBLIC PRIVATE PARTNERSHIP)

A public-private partnership is a contractual agreement formed between public and private sector partners, which allows more private sector participation than is traditional.

Public–private partnership (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 companies. These schemes are sometimes referred to as PPP, P3 or P3.

PPP A public-private partnership exists when

public sector agencies (federal, state, or local) join with private sector entities (companies, foundations, academic institutions or citizens) and enter into a business relationship to attain a commonly shared goal that also achieves objectives of the individual partners.

FORMS OF PPP

Some of the commonly adopted forms of PPPs include management contracts, build-operate-transfer (BOT) and its variants, build-lease-transfer (BLT), design-build-operate-transfer (DBFOT), operate-maintain-transfer (OMT), etc. 

WHYTraditional funding sources are not keeping pace

with infrastructure investment needs and the growing public demand for services.

In short, P3 is a tool that can help governments meet demands for the development of modern and efficient facilities, infrastructure and services while providing value for taxpayers.

PHASES OF PPP

1. Genesis

2. Feasibility

3. Plan & Test

4. Procure

5. Implement

6. Operations

AREAS OF PPP Infrastructure Health Education Water & Sanitation Inclusive Marketing Urban Services Utilities Welfare Services

IMPORTANCE • PPP projects are an important vehicle for

economic development, providing much needed market orientation, operational efficiency and

resource additionality. • PPPs play an increasing role in infrastructure

development. 50% of financial resources are expected to come through private investments

in PPPs during the XII Plan. This is an increased from the 36% in the XI Plan.

• PPPs also play an important role in social infrastructure

CONCLUSION It concludes that the more complete transfer of

risk that is possible under a PPP, results in better project evaluation and stronger incentives to innovate and minimize whole of life costs. But these advantages must be balanced against the large contract negotiation costs, the inflexibilities of a long-term contract and the reduced competitive pressures on performance after the contract has been entered into (compared with a situation where the contract is re-tendered periodically over the life of the infrastructure).

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