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Private public partnership (ppp)

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

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Private public partnership (ppp)

  1. 1. Public Private Partnership M RAJ.S MBA
  2. 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. 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. 4. Private Sector Strengths • Management Efficiency • Newer Technologies • Workplace Efficiencies • Cash Flow Management • Personnel Development • Shared Resources (Money?)
  5. 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. 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. 7. Successful Partnerships • The Secret is to Balance the Strengths of Both Sectors • The Experience Of One Sector Helps Another
  8. 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. 9. Where Investments need to be made IT Infrastructure
  10. 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. 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. 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. 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. 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. 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. 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. 17. Conclusion