Understanding the rising benefits of public-private partnership companies

In most developed countries including in The United States of America, governments are increasingly partnering with public-private partnership consulting firms to implement public infrastructure works. In this blog post, we will talk about the benefits of public-private partnerships (P3s) for project delivery.

The pain points that can be addressed by P3s

A strategic P3 approach can mitigate the schedule delays and overruns that plague traditional infrastructure project delivery by allocating shared risk, clearly delineating governance, applying best practices, integrating resources and establishing a life cycle-long perspective of accountability and costs.

Institutions face recurring challenges with their capital portfolios that are not often related to financing. Public-private partnerships can address each of these points to different degrees depending on the specific project.

Poor alignment with strategy

Implementation can be delayed, or support can wane when projects aren’t backed by a robust and strategic commitment. PPP consulting firms, however, are thoroughly vetted and screened from a portfolio of potential investments with a very high degree of public visibility. This can result in project commitments aligned with the sponsor’s strategy.

Unclear responsibilities

Lack of clarity about project governance and decision making often hinders effective project delivery. public-private partnership address this challenge by requiring owners to negotiate and document the performance standards, responsibilities, risk allocation mechanisms, penalties and rewards in a commercially realistic and transparent manner.

Insufficient optimization of features of projects

Sponsors are often constrained by existing methodologies, standards and limited exposure to best practices under traditional approaches. P3s encourage problem-solving by concessionaires during design, bidding, long-term operational phases, and construction.

Lack of discipline in execution

Expensive infrastructure projects often suffer from competing time frames, objectives and resource commitments. Public-privatepartnership consulting firms in America achieve clarity operational accountability and delivery by integrating project delivery functions and defining and aligning various contractual obligations.

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