PUBLIC PRIVATE PARTNERSHIP

INDTRODUCTION

Public Private Partnership broadly refers to a long term contractual partnership between public and private sector agencies specifically targeted towards financing, designing, implementing and operating infrastructure facilities and services that are traditionally provided by the Government and/ or its entities. PPPs aim to take advantage of the strength of the public sector through stable governance, citizen’s support and those of private sector by their enhanced operational efficiency, innovative technology, managerial effectiveness so as to deliver higher standard of service to the people with better value for money. The other important features of PPP are allocation of risks to the partner best able to manage them thus minimizing the cost while improving the performance.

The Eleventh Five Year Plan has estimated that in order to sustain the envisaged high annual growth rate, the investments in the infrastructure sector will have to be of massive proportions2. It would be impossible for the public sector to meet such huge commitments in view of its limited capability for additional capital mobilization. The anticipated shortfall of at least 30 percent of the estimated total plan requirements3, which itself will be of a huge magnitude will have to be met by seeking active private sector involvement in the development of the infrastructure sector. PPP refers to an arrangement between the public and private sectors with clear agreement on shared objectives for the delivery of public infrastructure and/or public services. It is an approach that public authorities adopt to increase private sector involvement in the delivery of public services.

4. INFRAST