INTRODUCTION This research aims to study the

INTRODUCTION

This research aims to
study the benefits and risks of public private partnerships in infrastructure
projects. Furthermore, this study will try to determine factors which can
reduce these risks. For this purpose systematic literature review will be
conducted on public private partnership in context of infrastructure. The
rationale for conducting this research paper is to systematically provide
theoretical background about public private partnerships for
infrastructure. 

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PUBLIC
PRIVATE PARTNERSHIP

Public private
partnership is defined as institutionalized form of cooperation of public and
private actors, who on the basis of their own indigenous objectives, work together
towards a joint target (Nijkamp, 2002). PPP’s comprise different types of
short-term and long-term contracts with private sector, short term contracts
involves only a part of the service whereas long term contracts involves an
entire service. (Grimsey and Lewis, 2002). PPP’s can also be defined
as “cooperation of some sort of durability between public and private actors in
which they jointly develop products and services and share risks, costs and
resources which are connected with these products and services” (Van Ham and
Koppenjan, 2001: 598). Characteristics of PPP’s includes cooperation, durable
relationships, developing mutual products/services, sharing of risks and
benefits, mutual value addition. (Klijn and Teisman, 2003).

 

 

PUBLIC
PRIVATE PARTNERSHIPS FOR INFRASTRUCTURE

Public private
partnerships for infrastructure are the long-term contracts. In these types of
contracts, government join hands with the private sector and ask them to
design, finance, build, operate ((DFBO) or build, own, operate, transfer (BOOT)
infrastructure projects. (Jurong Zheng and Jens K. Roehrich, 2008). These
projects typically include construction of roads, bridges, buildings, schools,
hospitals etc.  These types of partnerships
are risky but they also involve benefits and mutual gain sharing.

PROBLEM
STATEMENT

Governments in most
developing countries face challenges to meet the growing demand for new and
better infrastructure services. Governments have found that partnership with
the private sector is an attractive alternative to increase and improve the
supply of infrastructure services. But sometimes these partnerships among
public and private sectors creates problems 
and as a result partnerships fails. So in order to make partnerships
successful, public and private sector first need to understand importance of
PPP’s and then they must identify and avoid risks which can create problems in
the future. The aim of this paper is to provide clear understanding  of public private partnerships for
infrastructure projects and its benefits, also to provide a list of risks which
should be avoided during public private partnerships.

OBJECTIVES

Objectives of this study are as follow:

·        
To
determine the benefits of public private partnerships for infrastructure
projects

·        
To
determine the risks of public private partnerships for infrastructure projects

·        
To
find out the factors through which risks of PPP’s for infrastructure can be
minimized.

 

RESEARCH
QUESTIONS

Q1:
What
are the benefits of public private partnerships for infrastructure projects?

Q2:
What are the risks
involved in public private partnerships for infrastructure projects?

Q3:
Which factors can reduce
risks of these type of public private partnerships?

SIGNIFICANCE

The significance of this
research paper is to provide understanding about benefits and risks of public
private partnerships for infrastructure. Benefits will help in determining the
importance of PPP’s in today’s world, whereas list of risks will aware the
partners to be careful while doing partnerships for such type of long term
contracts. This study will also tell ways through which risks can be minimized
so that end projects becomes successful.

REFERENCES

Nijkamp,
P, Van der Burch, M. and Vidigni, G. (2002), A comparative institutional        evaluation of public-private
partnerships in Dutch urban land-use and revitalization projects, Urban Studies, 39, 1865-80

Grimsey,
D. and Lewis, M. (2002), Evaluating the risks of public private partnerships
for       infrastructure projects, International Journal of Project Management,
20, 107-18

Klijn,
H.-E. and Teisman, G.R. (2003), Institutional and strategic barriers to
public-private partnership: an analysis of dutch cases, Public Money and Management Review, 23, 1-9

Van
Ham, H. and Koppenjan, J. 2001. Building Public-Private Partnerships. Public Management Review, 4(1), 593-616

 Zheng Jurong, Roehrich, Jens K,
Lewis, M.A. (2008). The dynamics of contractual and relational governance:
Evidence from long-term public–private procurement arrangements. Journal
of Purchasing and Supply Management. 14 (1),
43–54

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