Model of PPP

You are a member of a newly constituted project committee assigned to recommend a model for a Public-private partnership (PPP) for a critical infrastructure in your county. Identify the two basic model of PPP and recommend the most suitable model for the project. Provide the rationale for your recommended model.

Using the APA style, present your response in about 350 words. Your original thread should contain at least 2 scholarly references.

ANSWER

Building suitable, reliable, and modern infrastructure is essential for accomplishing the increasing inspiration of diverse people globally and solving the ever-recurring climate change problem. Infrastructure growth is a significant step towards raising economic growth rates, present fresh economic chances, and facilitating investment in human capital. Public-private partnerships can be an approach to getting more quality infrastructure services to numerous people. When effectively designed and incorporated in a balanced regulatory surrounding, PPPs can bring more sustainability and efficiency to the provision of public services, including transport and energy.

Two Basic Models

There is the design-build-finance-operate (DBFO) model, which allows a private sector partner to finance, design, and constructs the intended infrastructure components and also maintaining it under an extended lease. The private sector will later surrender the infrastructure components to the public division when the lease is complete (Kush, 2020). The second model is the build-own-operate-transfer (BOOT), where the private department is allowed to finance, structure, build and maintain the infrastructure section for an agreed time, after which the possession is given to the public sector partner. These two models have majorly used within the public, private partnership agreements because of the diverse advantages to both parties engaged.

The most recommended model is design-build-finance-operate, which is commonly used by government entities because of its benefits. One of the reasons is that it allocates the majority part of the project’s risks to the private sector (Hodge & Greve, 2017). The government can also accomplish a project for which they may lack finances, operational, and technical capacity. In summary, the strategy is further driven by constantly supporting the strong institutions, building capacity, and embracing engagement with all significant stakeholders.

References

Hodge, G. A., & Greve, C. (2017). On public–private partnership performance: A contemporary review. Public Works Management & Policy, 22(1), 55-78.

Kush, J. (2020, September 23). What is the Design Build Finance and Operate procurement model and what are its advantages and disadvantages – 123 Writing – Student Revision: Study Help: Free Samples. Retrieved from www.123writing.com/free-sample/what-is-the-design-build-finance-and-operate-procurement-model-and-what-are-its-advantages-and-disadvantages