Under what circumstances a strategic alliance might be undertaken by a public and private partner
Answer
A public private partnership (PPP) is a government service of private business venture which is funded and operated through a strategic alliance between government and one or more private sector companies.
PPP refers to arrangements, typically medium to long term between the public and private sectors whereby some of the services that fall under the responsibilities of the public sector are provided by the private sector, with clear agreement on shared objectives for delivery of public infrastructure and/or public services.
PPP can be defined as “a cooperative venture between the public and private sectors built on the expertise of each partner, which best meets clearly defined public needs through the appropriate allocation of resources, risks and rewards”. It can also be defined as arrangements where the public and private sectors both bring their complementary skills to a project, with varying levels of involvement and responsibility, for the purpose of providing public services or projects”. (Kwak, Chih, & Ibbs, 2009)
PPP’s combine the skills and resources of both the public and private sectors in new ways through haring risks and responsibilities. This enables government to benefit from the expertise of the private sector, and allows them to focus instead on policy, planning and regulation by delegating day to day operations.
PPP’s tend to be associated with the following characteristics:
• It enhances government capacity to develop an integrated solution.
• It facilitates the adoption of creative and innovative approaches to infrastructure development.
• It reduces the cost and time to implement projects.
• It transfers certain risks to private sector partners.
• It attracts larger, more sophisticated bidders to the project with access to skills, experiences and technology.
A strategic alliance between a public and private partner...