Recently in Public/Private Partnerships Category

Source: Yonah Freemark, Transport Politic,  August 3rd, 2010

 

For investors interested in infrastructure projects these days, there is apparently a lot of low-hanging fruit to pick. This, at least, is the argument made by Montréal-based contractor and engineering firm SNC-Lavalin, which has pulled out of a years-long commitment to operating Toronto's planned airport connection train because the regional transportation authority refused to subsidize the service.

Source: John Forrer,  James Edwin Kee,  Kathryn E. Newcomer, Eric Boyer;  Public Administration Review, Volume 70 Issue 3, Pages 475 - 484 May/June 2010

 

Public-private partnerships (PPPs) are growing in popularity as a governing model for delivery of public goods and services. PPPs have existed since the Roman Empire, but their expansion into traditional public projects today raises serious questions about public accountability. This article examines public accountability and its application to government and private firms involved in PPPs. An analytical framework is proposed for assessing the extent to which PPPs provide (or will provide) goods and services consistent with public sector goals of effectiveness, efficiency, and equity. Six dimensions--risk, costs and benefits, political and social impacts, expertise, collaboration, and performance measurement--are incorporated into a model that assists public managers in improving partnerships' public accountability.

Source: American City & County, Apr 21, 2010 12:29 PM, By Robert Barkin

..... At a time when financial resources are scarce, governments are looking more closely at public-private partnerships as a means of tapping the expertise and economic power of the private sector to make possible large projects that might otherwise fall flat. "There's a need for work to catch up on repair and improvement of our infrastructure. Federal and state funding is not giving nearly enough," says Fort Bend County, Texas, Judge Robert Hebert, who is effectively the county executive. "There are fewer options and more interest in public-private partnerships."

While government officials who have experience in the relationships tout their benefits when designed effectively, they also warn that they can be very complicated and even financially disastrous without proper planning.

Source: CUPE, Apr 30, 2010 11:31 AM

One of the consultant's reports released today on the proposed Halifax convention centre confirms the P3 option would be the more expensive one for taxpayers.

CUPE Nova Scotia President Danny Cavanagh says, "This confirms what we have been saying about this project.  The consultant has agreed with us that the public option is cheaper."

 

Criterion Communications report

 

Source: By Marvin Shaffer, Straight.com (Vancouver), November 20, 2009

 

 ...... However, the major and most obvious failing of Partnerships B.C.'s methodology is that it only focuses on the benefits of P3s and completely ignores the cost side of the equation. When private companies finance public projects, they pay higher interest rates on what they borrow and require a high rate of return on what they invest. The higher costs of private financing for P3s are built into the lease rates that taxpayers ultimately pay, and are much higher than the debt service costs that government would pay if it financed the projects itself.

Source: BETH GARDINER, Wall Street Journal, November 6, 2009

 

Business schools are mainly known for grooming future financiers and corporate bosses, but many now count public-sector staff from military officers to local government managers among their students too.

......  The economic downturn has also prompted a small but growing number of graduating M.B.A.s to consider government careers, a departure from their traditional preference for fields like finance and consulting.

..... With public-private partnerships key to the delivery of many government services and big governmental departments now commonly containing business-like strategy units, she adds, "there's been much more of a mixing up of the kind of skills and knowledge needed within both the public and private sectors."

Source:  Sean Holstege, Arizona Republic, Oct. 16, 2009 12:00 AM

The  Arizona has opened the gates to building the state's first private toll road, and would-be developers are poised to rush in.

When Gov. Jan Brewer signed the law in July allowing public-private partnerships to build toll roads, she granted Arizona more freedom than most states to cut such deals, experts say. Arizona Department of Transportation officials expect to set the rules early next year to put the law into action.

Source: Richard Norment, American City & County, Apr 1, 2009 12:00 PM



..... Public-private partnerships (PPPs) could help compensate for the shortfall between the ARRA's funds and the amount necessary to fix the infrastructure problems in both the short and long term. In the near term, the shortfall forces a closer examination of the available private sector financing options. The private capital available for infrastructure projects is estimated at $450 billion, more than five times that available in the ARRA.