PPP Full Form

Introduction

There are so many projects that are ongoing in our country like building bridges, buildings, and airports and service-providing projects like healthcare, waste management and education projects. Some projects were imitated by the government, some by the private sector and some by both sectors. The project started by the both is known as PPP.

PPP: Full Form

PPP stands for the company Public-Private Partnership. It is a mutual agreement between the private and public sectors. This mutual agreement is about providing the goods and services to the public.

The aim of the PPP model is to divide the profit and loss in any project between the private and government sectors.

This model is used to build bridges, airports, roads, hospitals and bridges.

This model also delivers services to the public like education and healthcare.

Different Types of PPPs

PPPs, or private-public partnerships, come in a variety of forms, but the following are the most prevalent:

Public-Private Partnership for Infrastructure Development Program: Build Operate Transfer (BOT), Design, Build, Finance and Operate (DBFO), Build Own Operate (BOO), Management Contracting (MC), Operational Lease

Each PPP kind has distinct advantages and traits of its own.

The most crucial step is choosing the appropriate PPP type for your project's requirements. For instance, the BOT model would be more suited if you wanted to build a new hospital because it entails transferring ownership to the private sector after the building is complete and running. On the other hand, the Operating Lease should be used if you just want to renovate an existing hospital.

Forms of PPP

Public-Private Partnerships can be classified into different given below forms;

Build Operate Transfer (BOT)

Build Own Operate (BOO)

Design, Build, Finance and Operate (DBFO)

Operating Lease

Management Contracting (MC)

Public-Private Partnership for Infrastructure Development Programme (PPPIDP).

These are some important forms of Public-Private Partnership.

PPP: Two Categories

Service-based models and Asset-based models

are the two categories of PPP.

For short time projects such as waste management, healthcare service based models are better.

For Infrastructure based projects like bridges, airport, tunnels, railway, etc asset based models are suitable.

Selecting the correct types of PPP is an essential part for the success of the project. Each type has its own weaknesses and strengths and knowledge of the weaknesses and strengths of each type is important.

How to Select The Right Type of PPP?

Some steps are written for selecting the correct type of PPP.

1. Know the aim of the project and what do you expect?

2. Identify the loss you will face in the project.

3. Impact of the projects on the stakeholders and customers.

4. Also take care about the time period of the project.

5. Take the advice of the people who are experts in PPP.

After choosing the correct type of PPP make sure to prepare a contract for all parties involved in the project.

Advantages of the PPP Projects

Sustainability for a Long Period

For the sustainable development, maintenance of services and infrastructure should be maintained for a long period of time, this can be done with the PPP.

Sharing of Risk

If any loss occurs in the project then all the parties involved in the project share the risk this will reduce the loss of the government and private sector.

Innovation

The more parties involved, the more innovative ideas and plans make the project better.

Potential Drawbacks of the PPP Model

The PPP model has a number of drawbacks, including the following:

• Lack of political will: PPP implementation lacks political support in many nations. This may be the result of a number of factors, including corruption, a lack of openness, and opposition from special interest groups.
• Complexity: The PPP procedure can be time-consuming and complicated. In order to make sure that the project is structured appropriately, it is crucial to get professional advice.
• Transfer of risk: PPPs can aid in the transfer of risk to the private sector, but if they are not effectively managed, they could also result in an increase in overall expenses.

Lack of competition: Using a PPP occasionally has the potential to reduce competition and raise prices.