PPP is a type of partnership in which government collaborates with the private sector for development. Because no country can build its infrastructure and reach optimal economic growth without the support of the private sector, it is not limited to infrastructure. but includes other aspects such as education, health sector and other social domains.
PPP can be financing the project, building the project advised and consultancy.
Following are the benefits which both public and private sector can ripe by having the partnership.
- Private industries can use the innovations and technology for the better development of public sectors.
- Effective delivery of the project within the time,
- It can provide the public better funding to the projects that can improve overall quality.
- The high return of the index (ROI) will be higher when the project is based on a single entity, i.e., privately or publicly.
- There will be a lesser amount of risk involved. The private organization can immediately notify the government if any risk is involved or the government makes unrealistic demands.
- They will be a reduction in the taxes.
But now, the question arises of how one develops an effective public-private partnership. Here is the list which you can incorporate.
Develop a Common Vision: in PPP , a shared vision is necessary. It may be a difficult task, but it is essential. Both the parties have to bring on one page, and the. When the vision is created, it should include detailed strategies, funding mechanisms, patterner, and other details. with the mutual agreement.
Build trust: Both parties should know each other very well for effective project development. It means that private and public both understand the motives of each other. Private always wants to maximize profit while, in contrast, the government is a slow mover and not profit-making.
The team includes experts: The most crucial point of the PPP is that the team should comprise experts to deal with public matters and tackle complex general issues. This step is especial for those who are new in this field.
Transparency of communication: Both parties ensure that there is define goals, expectation and when it comes to a decision making both have to agree upon the same point.