Sample Essay on Advantages and Disadvantages of Public Private Partnership
There are many advantages and disadvantages of public private partnership ventures that should be considered before entering such a joint venture. A public private partnership refers to a venture in which funding and operations are run by a government agency or authority and a company in the private sector. Over the years, public private partnerships have become increasingly popular in different countries.
They are common in different areas including transportation as well as gas and oil exploitation ventures. Today, many governments are faced with budgetary constraints yet the public needs them to deliver certain services. Partnerships between the public and private sectors are critical in ensuring that a country develops economically.
One of the major advantages of a public partnership is efficient management. Efficiency is very important in the management of developmental projects. This is achieved when the public sector and private company work together on a project. Plans, as well as strategies, are formulated and implemented more efficiently.
Another advantage of public private partnership is the improvement of the quality of the end results of a project. The partnership between a public agency and a private company brings technological advancement. This provides the necessary solutions for the completion of a project. Many private companies have highly advanced technology. When the government partners with such companies technology that is needed to deliver quality results are achieved.
The speed with which projects are executed is also enhanced due to the combined efforts of the government agency and the private company. In addition, the cost of accomplishing developmental projects is reduced through public private partnerships. Both the government and the private company provide the necessary capital for development projects.
Nevertheless, there are drawbacks or disadvantages of public private partnerships as well. The difference in the work culture is one of the disadvantages of this venture. Differences in the functioning of a government agency and the private sector company can cause problems in the execution of the project.
Changes in government policies can also affect the model of the public private partnership. Such changes can affect capital flow or direction to favor the government leading to losses for a private company. This is one of the reasons why some companies fear getting into public private partnerships.
Mismanagement of the project is another disadvantage of a public private partnership. Mismanagement of the involved project is always a threat to the programs that are undertaken by the private and public sectors. This is caused by unforeseen or unplanned challenges that lead to loss of resources that can benefit the country.
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Online sources:
http://construction.about.com/od/Government/a/Public-Private-Partnership-Pros-And-Cons.htm
http://www.treasury.govt.nz/publications/research-policy/ppp/2006/06-02/06.htm
http://www.buzzle.com/articles/public-private-partnership.html