Critics: the PPP financing method is totally incomprehensible
PPPs enable sound and ppredictable management of public spending over the long term. The cost of the project over 20, 30 or even 70 years is known from the outset and takes into account maintenance and repair, as well as developing new services and adapting existing services to better fit with user expectations and needs, which are constantly evolving at an ever increasing pace.
The rules governing PPPs are very strict and contracts are drafted carefully and in great detail. The public authority and its private partner are obliged to comply with the rules. Because of the very precise financing framework, PPPs are one of the safest and most transparent types of contract.
The PPP, one of the safest forms of contract.
The public authority must prove that a partnership contract is the most advantageous approach.
The public authority’s obligation to prove that a PPP is more advantageous than other types of management
Before adopting the partnership contract solution, for example, the public authority must prove that it is the most advantageous form of contract from a financial viewpoint. This is not necessary for other methods of public procurement. The public authority must, therefore, carry out a “preliminary assessment”, spelling out the economic, financial, legal and administrative reasons for deciding in favour of a partnership contract rather than any other contract type. Adopting a partnership contract approach presupposes that this assessment demonstrates that the partnership contract brings more advantages than disadvantages compared with other forms of public procurement contract.
The public authority's obligation to prove that a PPP is the most advantageous approach: Partnership contract example
- 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?