2.  ‘softer’ alternative to the word ‘privatization’
 enable private organizations to get a market
share of public service provision.
 It seems fair to say that a number of
governments have tried to avoid using the
terms “privatization” and “contracting out” in
favor of speaking about partnerships

3. PPP ; definition:

4.  a specific form of privatisation was
developed to deal with limitations on public
borrowing. This involved using a private
company to borrow money, build a new
hospital, school, road, etc, and then operate
it over many years, recouping the investment
and profit from payments

5. 2 general Forms of PPP:

6. Claims and myths about PPPs:

7. evaluation

8. Framework for evaluating PPP proposals against public sector alternative
Evidence Note
1 Cost of Capital Interest + dividends PPP more Private sector has to pay
expensive higher interest rates than
government
2 Cost of PPP more Higher cost of ‘turnkey’
construction expensive projects, offset by saving on
cost of overruns
3 Cost of operation Efficiency Neutral Empirical evidence suggests
no
significant difference
4 Transaction costs Preparation PPP more Costs of preparing contracts
&tendering expensive &
tenders
5 Uncertainty Renegotiation & PPP more Future renegotiations &
contingent liabilities risky changes