Public-Private Partnerships and Their Economic Contribution

International Journal of Applied Public - Private Partnerships (ISSN: 1742-5271) Volume 1 Issue 2

Luiz Montanheiro
Sheffield Hallam University


Against a scenario that very little is done in terms of assisting the economic life of a country or even its broader justification for doing something from time to time, the public-private partnership (PPP) approach can have a strong positive influence albeit small in terms of the overall aggregate level of the economy. The welfare effect of carrying out PPP work is positive as it assists growth and progress. Quite often, some of the negative influence working against such projects is the limited interest shown by the private sector. This is mainly associated with issues related to risk bearing in commercial projects. It seems, nevertheless, that the ‘profit’ motive and its accountability and transparency along the lines of quality and ownership that are so much needed to fulfil those very demanding business activities are stumbling blocks to PPPs spreading widely. The lack of knowledge on what public-private sector partnerships can actually do and other methods of control policy by major players can also contribute against the formation of PPPs. In this work, the intention is to identify and highlight the major current issues related to implementation of PPP; the two sector and tri-sector approach to efficiency, quality, outcome results, and policy efficiency, are developed into a brief macro-analysis of PPP. The choice of partners and issues related to PPP formation are considered carefully in order to create a better understanding of the importance of PPP for the politic-economic system to generate efficient change of economic growth and sustainable progress.

Keywords: PPP, PFI, PPP Projects, Market Governance, Efficiency, Social Benefits, Commercial Gains, PPP Accountability, Project Spectrum, Appraisal Issues

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