Exploiting the Win-Win Opportunity in Public Private Partnerships

Traditionally, the provision of public infrastructure and services has been the sole responsibility of the government. In both developed and developing nations, facilities such as roads, railways, water works, ports and hospitals were fully financed, controlled and supervised by the government. The implementation of public projects was purely dependent on the availability or allocation of funds out of the budget of the government; however, as countries faced major challenges in managing development costs and the need for strategic planning increased, governments began to realise that the traditional model, where the state bears most of the direct financial burden and other social costs is not sustainable. The private sector was identified as a strategic source for financing through arrangements commonly referred to as Public Private Partnerships (or PPPs).

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