A public–private partnership (PPP) is a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies The PPP projects are good as it do not put financial implications on union and states and creating better infrastructural facilities to the people

1. Public Private
Partnership
M
RAJ.S
MBA

2. PUBLIC PRIVATE PARTNERSHIP
Public-private partnership is a contractual agreement
formed between public and private sector partners,
which allows more private sector participation than
is traditional.

3. Public Sector Strengths
• Legal Authority
• Protection of
Procurement Policies
• Broad
prospective/balance the
competing goals to meet
public needs
• Personnel – dedicated
but constrained
• Capital resources

4. Private Sector Strengths
• Management Efficiency
• Newer Technologies
• Workplace Efficiencies
• Cash Flow Management
• Personnel Development
• Shared Resources
(Money?)

5. Need For Public Private
Partnership.......
1. Growth of Public Debt
2. accounting fallacies to distinguish between
recurrent and capital expenditure.
3. Traditional funding sources could not keep pace
with growing Infrastructure needs.
4. Increase in demand for public services.

6. Advantages OF PPP
• Access to private sector finance
• Transferring risk to the private sector
• Potentially increased transparency
• To reduce the full life-cycle costs (ie, construction
costs and operating costs)

7. Successful Partnerships
• The Secret is to
Balance the Strengths
of Both Sectors
• The Experience Of
One Sector Helps
Another

8. • New technologies, and tools
• New research expertise and
infrastructure
• Private equity markets;
donor funding
• New product markets and
new customers
• New marketing and
distribution networks
Opportunities for partnership exist

9. Where Investments need to be
made
IT Infrastructure

10. Types of ppp
1. Design-Build
2. Operation & Maintenance
Contract
3. Design-Build-Finance-
Operate
4. Build-Own-Operate
5. Build-Own-Operate-
Transfer
6. Build-lease-operate-transfer
7. Operation License
8. Finance Only

11. Design-Build
• Designs and builds the
infrastructure
• To meet the public-
sector partner's
specifications
• For fixed price
• All risk is to private
sector

12. Operation & Maintenance Contract
• The public partner
retains ownership of
the assets.
• Under contract,
operates a publicly-
owned asset for a
specific period of time.

13. Design Build Finance Operate
• Source Financing
• Carries out all designs
• Builds the infrastructure
• operates/maintains it
under a long-term lease.
• Hands over ownership to
public sector when the
lease is up.

14. BOOT – Build Own Operate Transfer
• Source Financing
• Carries out all designs
• Builds the
infrastructure
• Operates the facility
• Hands over ownership
to public sector.
The Dartford Crossing over the Thames River in London is an example of a
BOoT.

15. Build-lease-operate-transfer
• Source Financing
• Carries out all designs
• Builds a facility on leased public land.
• Operates the facility for the duration of the land
lease.

16. Operation License & finance
• License or other expression of legal
permission
• To operate a public service
• For specified period of terms
• Funds the infrastructure component and
charges interest for use of the funds.

17. Conclusion