Essay: Public Private Partnerships Fundamentals

Governments across the globe have embraced the need to reduce borrowing and spending. They have appreciated that the emergence of many private companies has led to the provision of quality services at lower costs. The result is that various forms of PPPs have been formulated in order to meet the demands at hand. PPPs have the ability to offer off balance sheet accounting is what that make them very attractive (Akintoye et al, 2001).

The PPP form of procurement is hinged on the transference of the monies in the public budget to the private sector.
This relieves the government from occasioning debt, which is informed by the tying of public money in assets investment. PPPs have been successful to the extent that many Governments are issuing national projects in other departments like education, health, transport and defence (Akintoye & Chinyio, 2005). Similarly, the private sector has an obligation to ensure that the projects will add to the social and economic aspects of the community (Shen et al, 2006).

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