Public Private Partnership

Public Private Partnership

Definition of PPP Public Private Partnership is defined as an arrangement between a public entity, which could either be a government owned entity or a statutory entity and a private player for the provision of products or services for the benefit of public. The private sector receives payments as per its performance which is compared with certain specific standards.

Common forms of PPP models in India

We have various forms of Public Private Partnerships taking place between private and public entities. Different forms of models have helped the entities get into the agreement as per their feasibility thereby rendering better results. The Common forms of PPP active in India are as follows:

1. Modified design-build

• Tenure: They include relatively shorter periods from 3 to 8 years. Depending on the quality of service delivered the payment of the private partner is done by the public partner

• Arrangement: Outsourcing is the basic arrangement used in these kinds of contracts. Although some of the PPP principles apply to this case it is not a “true partnership”

• Usage: Delegated management contracts are often used in preparation of more fully involved PPP contracts. e.g. long-term concession contracts or divestitures

2. Institutional PPP

These are equivalent to mixed companies concept in economics where both public and private sector form joint entity. The main intention is to provide services beneficiary to the public.

Formation: They can be formed either through an entity where public and private sectors jointly participate or through private sector buying and owning shares in an existing public company.

Control: Although the operation and servicing is done by the private company but major control lies in the hand of public partner. The public company controls the company either as a shareholder or by means of some special

Functions of PPP Centre

The technical assistance needed by national government agencies (NGAs), government-owned-and controlled corporations (GOCCs), state universities and colleges (SUCs), and local government agencies (LGUs) as well as by private sector to help develop and implement critical infrastructure and other development projects is given by PPP Centre PPP Centre facilitates and assists national implementing agencies, including government corporations, and Local Government Units (LGUs) by addressing impediments or bottlenecks during the implementation of projects and programs Establishes advisory services, technical assistance, trainings and capacity development agencies/LGUs for the project preparation and development The centre provides assistance by recommending plans policies and proper guidelines in consultation with appropriate oversight committees, LGUs and the private sectors A revolving fund to be known as the Project Development and Monitoring Facility for the preparation of business case is managed and developed to provide pre-feasibility and feasibility studies and tender documents of PPP programs and