What is Public Private Partnership? Explain the major forms, main features and strengths of Public Private Partnerships.
Public-private partnerships are business relationships between a private-sector company and a government agency for the purpose of completing a project that will serve the public. Public-private partnerships can be used to finance, build and operate projects such as public transportation networks, parks and convention centers. Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place.
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Public-private partnerships are business relationships between a private-sector company and a government agency for the purpose of completing a project that will serve the public. Public-private partnerships can be used to finance, build and operate projects such as public transportation networks, parks and convention centers. Financing a project through a public-private partnership can allow a project to be completed sooner or make it a possibility in the first place.
Major forms of public private partnership:-
Contractual PPPs: In the scope of purely contractual PPP, there are different kinds of arrangements that depend on the characteristics of the contractual relationship and delegation of tasks to the private partner. Some of the best known models are in the development of urban infrastructure facilities: the associated provision of services corresponds to the “concession model”. In this situation there is a direct link between the private partner and the final user: the private partner provides a service to the public “in place of”, though under the control of, a public authority. The private party assumes all the responsibility relative to the construction, operation and maintenance of the infrastructure assets, charging users for the service. Usually the concession model is associated with long contractual periods, matching the long asset life of infrastructure.
Institutionalized PPPs: Institutionalized PPPs (mixed companies) imply
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