Governments around the world are increasingly turning towards Private-Public partnerships (PPPs) for the completion of key public infrastructure projects. Green Urbanes’ recent database suggests that even considerably developed countries like the USA lack far behind in public infrastructure as compared to other developed nations like Singapore and some European countries. Many public sector consulting firms also predict that the demand for infrastructure requirements is increasingly growing at the rate of 10% per annum for both developed countries like the USA and developing Asian countries like India, by the year 2025 the requirement is predicted to go around 25%
Looking at this growing demand and inclination of various governments toward PPP, Green Urbane, a major public service consulting firm, predicts a much better future for private investors willing to invest in PPPs.
Despite the growing demand for public infrastructure, the fiscal deficit does not permit countries to invest in as many development projects as they had like to. Another survey conducted by the Green Urbane team suggests that apart from the financial viewpoint, there are at least eight reasons PPPs prove extremely beneficial to the governments as well as the public at large.
Green Urbanes’ research suggests that there are many pain points that PPPs can overcome and efficiently deliver to the public. We are illustrating some key points below;
No concrete responsibility
One of the main benefits, the public sector gets from a PPP, is a private organization’s ability in taking key responsibility for all the aspects related to the completion of a project. There is an absolute lack of clarity in decision-making and responsibility-taking when a project is being looked after by a government body. When governments and private investors enter into a PPP, this is bridged by a transparent and commercially viable outlook. Green Urbane when consulting any firm on PPP explains such pain points and gaps that can be covered for benefit of both public and private sectors; we are thus often regarded as the best public sector consulting firms.
Poor utilization of Resources
Most Public sector advisory has a similar opinion on this point, no matter how many resources a certain public sector body has, as they are unable to use them towards their full utilization. Whereas in many developing nations it is seen that due to internal diplomacy and issues resources do not become available in time. This hinders the completion of a project in a timely and professional manner. When a PPP enters into such a case, these concerns get immediately addressed, as the availability of resources is completely in the hands of the private sector.
Lack of Discipline and willingness
Multiple horizontal and parallel hierarchies and a lack of straight control give a lack of discipline to a government-owned body. This manifests in the form of a lack of willingness to even carry out basic duties and procure minute requirements. Multiple hierarchies result in unhealthy competition within the organization resulting in long delays, losses, and going over budgets. PPPs align and deliver as per the obligations laid down upon them through the PPP contracts. Green Urbanes’ various case studies determine that PPPs employ specific systems for a project to finish it as per the laid guidelines and agreed on terms. It is Green Urbanes’ various in-depth researches and studies that make us the first choice for major public and private bodies when it comes to hiring public sector advisory.
The traditional mindset of many public sector organizations lies in the pattern that the material or resources must be procured from the lowest quotation. This low-cost mindset does not consider the challenges, quality, life of the project, and end goal of the project. Even full life cycle and maintenance costs are not considered. Governments are increasingly adopting a modern approach and hiring public sector consulting firms in recent times. By taking suggestions and pieces of advice from public sector advisory like Green Urbane and entering into PPP, the public sector is getting into better control of the completion of the project. PPP focus on the long-term cost of ownership and other parameters based on public welfare and financial viability.
No strategic approach
Support can wane anytime, and there can be multiple factors that affect the delaying of a project. However, when the public sector enters into a PPP, they have more control over choosing the best private firm. Public bodies, by hiring public sector consulting firms like Green Urbane, thoroughly verify the background and credentials of a firm and after a thoughtful consideration award work to one particular private entity. Similarly, private firms also hire public sector consulting firms and assess factors about probable risk, barriers, and financial viability of a project. This adds to transparency and PPPs have a better strategic approach towards any particular project.
No ownership mindset in delivering team
This has been particularly experienced in developing nations, where leaders of the public sector in a body completely lack the mindset of ownership. In such a situation, projects get tangled up and unnecessarily dodged from one place to another. A PPP addresses this issue efficiently, as the private investor is bound by contractual obligations and second they want to get returns on their investment promptly. While a private organization hires a public sector consulting firms like Green Urbane, return on investment is one of the major goals that are considered and project reports made upon.
Green Urbanes’ studies suggest that there is increasing evidence of PPPs consistently delivering projects on time and within the assigned budgets. The study conducted by Green Urbane also speaks about a UK audit office report showing a drastic reduction of over 70% in project overrun costs with PPPs. Similar reports from the USA and India suggest that PPPs are becoming a good option for both developed and developing economies.
However, PPPs cannot tackle all the obstacles every time, but the increasing demand from various public sector organization suggest that PPP is becoming a better and more viable option for both the public and private sector. While getting into a PPP, it is advisable that both public, and private organizations, hire a public sector consulting firm like Green Urbane, to stay updated and get the best results.