Introduction The cooperation increases between the public and private sectors for the development and operation of infrastructure for a wide range of economic activities. Such Public-Private Partnerships (PPP) arrangements were driven by limitations in public funds to cover investments needs but also by efforts to increase the quality and efficiency of public services. PPPs have a long history in some Member countries of the EU while being a more recent development in others. PPPs have received a boost in various countries undergoing process of significant economic growth. The efforts of the Accession Countries to reform and upgrade infrastructure and services could potentially benefit from the PPP approach. This is particularly true, given the enormous financing requirements to bring these infrastructures up to the standards. What is PPP?
There is no consensus about how to define a Privat Public Partnership (PPP) model. The PPP term can cover hundreds of different types of long-term contracts with a wide range of risk allocations, funding arrangements, and transparency requirements with both Public and Private sectors. The advancement of PPPs, as a concept and a practice, is a product of the new public management of the late 20th century, the rise of neoliberalism, and globalization pressures. Despite there being no formal consensus regarding a definition, the term has been defined by major entities. Below are a few general definitions of PPP or. 3P
1- General Definition of PPP A Public-Private Partnership (PPP) is a partnership between the public sector and the private sector for the purpose of delivering a project or a service traditionally provided by the public sector. 2- Definition of United Nation Economic Commission for the Europe (UNECE) A partnership is an arrangement between two or more parties who have agreed to work cooperatively toward shared and/or compatible objectives and in which there is shared authority and responsibility; joint investment of resources; shared liability or risk taking and ideally mutual benefits. (UNECETRAINING MODULE 2012 Publication) The main objective of the Public-Private Partnerships (PPPs) area is to increase the expertise of governments to identify, negotiate, manage, and implement successful PPPs projects. This is done through exchange of knowledge and experiences of PPPs by member States, including experts from public and private sectors, particularly in the identification and testing of best practice. The activities will result in standards, guides on best practice, studies and innovative tools that can be used in capacity-building programmers and training. 3- HM Treasury: An arrangement between two or more entities that enables them to work cooperatively towards shared or compatible objective and in which there is some degree of shared authority and responsibility, joint investment of resources, shared risk taking and mutual benefit. (28,29 Feb 2008) 4- Definition by GOVPH PPP Center Public-Private Partnership (PPP) can be broadly defined as a contractual agreement between the Government and a private firm targeted towards financing, designing, implementing, and operating infrastructure facilities and services that were traditionally provided by the public sector. It embodies optimal risk allocation between the parties – minimizing cost while realizing project developmental objectives. Thus, the project is to be structured in such a way that the private sector gets a reasonable rate of return on its investment. 5-The World Bank: The term “PPP” refers to several elements including the existence of a ‘partnership’ style approach to the provision of infrastructure as opposed to an arm’s length ‘supplier’ relationship … Either each party takes responsibilities for an element of the total enterprise, and they work together; or both parties take joint responsibility for each element… A PPP involves the sharing of risk, responsibility and reward, and value. 6- Definition by ADP PPP Experts The Public and Private Parties share their facilities for development of fundamental humanitarian project(s) saving of public budget, execution of more projects with a single budget is the main purpose and meaning. Public Private Partnership (PPP) is projects funding model, regulated by UNECE, Asian Countries and regulated on 5th October 2016 under Law number 1228 in Afghanistan. The special purpose of the PPP is to improve employment and prevent illegal activities and unemployment. The PPP model is also applicable between two private parties to share their facilities. for its planed humanitarian project(s) (ADP Publication 2022) 7- The Canadian Council for Public Private Partnerships: PPP is a cooperative venture between the public and private sectors, built on the expertise of each partner that best meets clearly defined public needs through the appropriate allocation of risks, resources and rewards. 8- Definition by Organization for Economic Co-operation and Development (OECD) The public-private-partnerships as “long term contractual arrangements between the government and a private partner whereby the latter delivers and funds public services using a capital asset, sharing the associated risks. 9- PPP in General vision A Public–Private Partnership (PPP, 3P, or P3) is a long-term arrangement between a government and private sector institutions. Typically, it involves private capital financing government projects and services up-front, and then drawing revenues from taxpayers and/or users over the course of the PPP contract. Public–private partnerships have been implemented in multiple countries and are primarily used for infrastructure projects. They have been employed for building, equipping, operating and maintaining schools, hospitals, transport systems, and water and sewerage systems. Cooperation between private actors, corporations and governments has existed since the inception of sovereign states, notably for the purpose of tax collection and colonization, in some types of public-private partnership the cost of using the service is borne exclusively by the users of the service, for example, by toll road users such as Yonge Street at the dawn of the 19th century. Contemporary “public-private partnerships” came into being around the end of the20th century. They were associated with neoliberal policies to increase the private sector’s involvement in public administration. They were seen by governments around the world as a method of financing new or refurbished public sector assets outside their balance sheet. At the dawn of the millennium, this vision of PPPs came under heavy criticism as taxpayers or users still had to pay for those PPP projects, along with disproportionately high interest costs. PPPs are controversial as funding tools, largely over concerns that public return. on investment is lower than returns for the private funder. PPPs are closely related to concepts such as privatization and the contracting out of government services. The secrecy surrounding their financial details complexifies the process of evaluating whether PPPs have been successful. PPP advocates highlight the sharing of risk and the development of innovation, while critics decry their higher costs and issues of accountability. Evidence of PPP performance in terms of value for money and efficiency, for example, is mixed and often unavailable.
PPP Union Opinion The PPP is a regulated model for humanitarian project(s) funding and financing partnership arrangement between two or more parties who have agreed to work cooperatively toward shared and/or compatible objectives and in which there is shared authority and responsibility.
PPP Definition
May 9, 2024