PPC Concepts

1. New Public Management
Private Public Partnership:
non-government is effective
by Evgenia Parkina

2. Definition
 PPP refer to the private sector financing,
designing, building, maintaining and
operating infrastructure assets traditionally
provided by the public sector
 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
company

3. Private sector advantages
 Management Efficiency
 Newer Technologies
 Workplace Efficiencies
 Cash Flow Management
 Personnel Development
 Shared Resources

4. Why do government need
private sector?
 Financial need - budget deficit, large debt
 Aging or deteriorating infrastructure
 Growing demand on public sector services
 Search for greater efficiency and creativity
 Strides to introduce competition
 Lack of domestic experience or skills
 Need to educate local contractors while
remaining competitive

5. Public sector advantages
 Legal Authority
 Protection of
Procurement Policies
 Broad prospective
the competing
 Capital resources
 Goals to meet public needs

6. Benefits of PPP
 Mitigates and properly allocates risks
 Provide incentives for lowering costs
 Ensures value for money
 Attract the right skills and management
 Expertise Promotes innovation
 Reduces corruption and waste
 Reduce burden on taxpayers ►

7. Pitfalls of PPP
 The process of creating a PPP is much more
demanding than a traditional procurement
process
 Failure to communicate: “We don’t speak the
same language”

8. “What takes the government 50
years to achieve can be done by
the private sector in a tenth of
time”
Milton Friedman

9. Sources:
 Darrin Grimsey, Mervyn K. Lewis Public
Private Partnerships: The Worldwide
Revolution in Infrastructure Provision and
Project Finance, 2006
 E. S. Savas Privatization and Public-Private
Partnerships, 2002
 Public-private partnerships: principles of
policy and finance, Elsevier, 2007