PPF-An Expected approach for infrastructure development in developing country

Abstract

Conventionally in the procurement of public physical assets, govemment/public agencies have engaged the private sector to construct facilities and/or supply equipment, and public agencies will then own and operate the facilities or equipment to deliver sen-ices to the public. However, Public Private Partnership (PPP) is another form of best sourcing that can be used to work with private sector to deliver services and a favorable approach for a government that is expecting further involvement of the private sector in development of new physical assets/inffastructures. On the other hand, under PPP, the private sector can look forward to providing a wider range of services and over a longer period. Through closer collaboration with the private seciot, public sei vices can be delivered in a more value for money way by making optimal use of the public and private sectors expertise, resources and innovation to meet public needs effectively and efficiently. The role of government in providing the public service be switched from a provider to a buyer of services through PPP and the government can focus on its core responsibilities of policy-making and regulation. While involving the private sector can be an important option for sustainable economic growth of a country, various types of risks exist in implementing the infrastructure, projects. The features and the magnitude of the risks identified for a project are different depending on the project. It is, therefore, necessary to formulate and assess a project from various aspects. This paper aims to present an overview of PPP and a framework to assess various risks involved in public infrastructure projects in PPP.