Sample Essay on Public Private Partnership Benefits
Public private partnership benefits can be seen in different aspects depending on the areas of joint ventures between the private and public sector companies. Public private partnership refers to a private business and government venture where a project is operated and funded via a partnership between companies or a company in the private sector and the government.
This partnership comprises a contract involving a private party or company and the public sector agency or authority. The private party in the contract provided a project or public service whole assuming substantial technical, operational or financial risk.
In some partnerships, users of service bear it cost instead of passing it to the taxpayers while in others the company in the private sector makes capital investment based on the contract that it enters with the government on the provision of the agreed services. The cost of the provided service is borne by the government either entirely or in parts.
Regardless of the shape, size, or even structure of a public-private partnership, there are common benefits that are realized when projects are managed properly. For instance, some countries explore public private partnerships as a way of enhancing innovation and technology. Innovation and technology are improved when the private and public sectors merge in projects.
This is because both sectors combine skills, experience, and financing in the project which enhance efficiency in the operations leading to a faster rate at which infrastructures in a country are established.
Public private partnerships act as incentives to private sector firms to ensure faster completion of the projects. This is because the government ensures that there is the required financing. It also assures the private company security through the establishment of a stable environment and appropriate financial systems.
Through public private partnership, budgetary certainty is imposed because the present and future costs in the infrastructure projects are presented with time. Thus, a country that engages in these ventures has better changes of planning and engaging in successful infrastructural developments in the future.
Using public private partnerships enhances the capabilities of the private sector in a country. This is because in some cases, these partnerships involve international firms while sub-contracting with the local firms in different areas including electrical works, civil works, facilities management, cleaning services and facilities management among others.
Through private public partnerships, a government exposes its enterprises which increase the participation of the private sector. In addition, the public private partnership ventures enhanced skills transfer which leads to the establishment of incapacitated entities in a country.
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