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Essay text:
The aim is to optimise rather than maximise risk transfer, to ensure that best value is achieved.
Acceleration of infrastructure provision
PPPs often allow the public sector to translate upfront capital expenditure into a flow of ongoing service payments. This enables projects to proceed when the availability of public capital may be constrained (either by public spending caps or annual budgeting cycles), thus bringing forward much needed investment.
Reduced whole life costs
PPP projects which require operational and maintenance service provision provide the private sector with strong incentives to minimise costs over the whole life of a project, something that is inherently difficult to achieve within the constraints of traditional public sector budgeting...
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Common topics in this essay:
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