Entrepreneurship Development and Communication Skills

7.4.4.Public Private Partnership

7.4.4.Public Private Partnership(PPP)

Definition

Involvement of private enterprise in the form of management expertise and/or monetary contributions in the government projects aimed at public benefits.

PPP has benefited many nations in undertaking works for common public. There are always been a debate on whether the public sector companies or the private sector firms contribute to the real growth of a country. While some analysts are in favour of the public sector, others think that achieving the growth targets is impossible without private participation. Recent history shows that whenever there is a partnership between public sector undertakings and the private companies, the results have been phenomenal and have benefited the common man greatly.

The ppp model can work efficiently if implemented well. As per the agreement between the government controlled and privately run organizations, both entities agree to work closely and provide research and technical support for completing the projects on time. The rules of the agreement are binding on both of them and hence there is more efficiency and discipline in the way of functioning. There are various types of public private partnership and the initiative for such partnership is taken by the government authorities. The government authorities select the private firm which will be the partner of public firm after considering the track record of the private firm in successfully delivering projects on time and maintaining high quality standards.