Characteristics Of PPP Implementations

PPP implementations present set of differences than conventional procurement methods, as briefly follows:

  • To realize en bloc, some or all of the components (design, built, finance, operate) of investments or services.
  • To adopt the "life-cycle" approach during the economical life of the project to gain the maximum benefit wit a minimum cost.
  • During these kinds of business cooperation, public authorities became supervisor and contract administrator for effectively realization of the service. Shortly, they change their point of view from asset focused approach to service focused approach.
  • With the budgetary constraints, huge public investments can not be realized in a short period. Via PPP implementations, private sectors' financing facilities are used to realize the public investments.
  • Via PPP implementations the public authority defines the scope of services (output specification) and the private sector produces high quality and cheaper solutions with innovative solutions.