While there is no single definition of Public Private Partnerships (PPPs), they often share some common characteristics. These include contracting between the public and private sectors for infrastructure development and management where risk is shared between the parties. Risks are allocated to the party which is best able to manage those risks. The need to call on private sector management and experience, and not only to raise finance, is also common.
How PwC can help you
A PPP can be used to deliver a project or a service ranging from relatively short term management contracts through to concession contracts, to joint ventures and partial privatisations where there is a sharing of ownership between the public and private sectors.
There are a variety of reasons as to why governments undertake PPPs, including:
- Improved value for money
- Increased infrastructure provision and services within budgetary constraints by utilising private sources of finance
- Accelerated delivery of projects
In considering the appropriateness of any particular PPP structure for infrastructure and services procurement, it is important to focus on the key risks and characteristics.
PricewaterhouseCoopers has had considerable experience in dealing with PPPs in Australia and overseas, and can help you to navigate issues surrounding PPPs and their application to infrastructure procurement.
