Entrepreneurship Development and Communication Skills

7.4.4.2.Disadvantages of PPP

Work Culture Difference

Work culture difference or the differences between the functioning of the public or government agency and private sector firm can lead to problems in project execution. So, this can be one of the biggest disadvantages of the PPP, if proper care is not taken to resolve differences in time.

Changing Government Policies

The PPP can get affected because of the change in government policies and priorities affecting the flow of capital. The redirection of capital meant for a favorable plan by the government can lead to losses for such partnerships.

Mismanagement

Mismanagement is always a potential threat to programs which are jointly undertaken by the public and private sector. Poor management due to unforeseen and unplanned for difficulties can lead to wastage of resources and money.

Construction of dams, roads or over-bridges can be one of the finest PPP example. In most countries, the government welcomes bids from private companies in the infrastructure and construction sector to implement these projects. The project is awarded to the deserving firm and is executed by it by strictly following government norms and guidelines. PPP creates employment on a large scale which is a healthy sign for the economy of any country.