There are two reasons that may sometimes explain why PPPs suffer from a poor image.
The first is the complexity of the PPP model, which can sometimes make it difficult to understand how it works. Private operators should probably communicate more and make a greater effort to explain the model and its legal and financial aspects. Only 42% of French people state that they know the difference between a public management method and management assigned to a private partner.
The PPP model is often distorted
The second is due to a few failures, projects in the past that experienced problems and made a bad name for the PPP model. Irrespective of the system and contractual model selected by the public authority for issuing a project, the decision must be based on an accurate socio-economic analysis that identifies the need and enables it to be clearly analysed. The PPP must not be a means of having a private partner finance a “bad” project, i.e. one that serves no useful purpose, is disproportionate to the need, is poorly scaled, or does not meet the needs and expectations of the region or users.
The PPP model is often distorted
On project launch, the public authority must draw up the detailed project specifications.
No matter what type of contract or what sector of activity, any business model can malfunction. The fact that a specific PPP project is singled out for criticism does not mean that all such projects –which, in the main, operate perfectly well – should be given a bad name.
Malfunctions sometimes appear in the execution of projects under public programme management, with late deliveries and cost increases.
The public authority can not decide in favour of any given contractual model unless it has a clear vision of the structure it wants to have built.
Then, on project launch, it must draw up the detailed project specifications.
- Everyone has an opinion but who know exactly what a PPP is?
- Why assign the management of public infrastructure to the private sector?
- Critics: PPPs bring no benefits
- Critics: PPPs are expensive
- Critics: PPPs are a threat to SMEs
- Critics: PPPs are a “time bomb” for public finances
- Critics: the private sector only takes a short-term view
- Critics: the PPP financing method is totally incomprehensible
- Critics: PPPs sometimes have a bad image
- PPPs: a French model applied only in France?