Advantages of Public Private Partnership

1. Advantages of Public Private Partnership A public-private partnership is also known as P3. It is a contract between a private entity and a governmental body that can be used to build, finance and operate projects, such as public transportation parks, networks, and convention centers. The goal of the public-private partnership is to provide public benefit, either a service or an asset. It is long-term and includes large organizations on the private side. A key attribute of such partnerships is that the private organization must take on a notable part of the risk. The contractually specified payment typically depends on performance. Generally, Public- private partnerships have a contract period of 25 to 30 years or can be longer according to the need of a project. United Bridge Partners is a major example of a public-private partnership. United Bridge Partners is one of the most trusted private transportation infrastructure company in the United States which invests private bridge capital for solving infrastructure crisis. They own and operate private toll bridges across the United States. At present, United Bridge Partners is operating the Cline Avenue Bridge and the South Norfolk Jordan Bridge. This private bridge infrastructure company deals with funding, designing, implementing, and funding. An Example of the Success of Public-Private Partnership Public-Private Partnership is popular in many European countries. As large-scale infrastructure and public works projects are increasing, it’s now moving to the United States too. Several projects of public-private partnerships in recent decades have been extremely successful. The high-occupancy toll lanes project in Virginia is a good example. Many private-sector firms contributed to this partnership, prompting in cost savings in the millions of dollars. Furthermore, the collaboration between private partners and the government brought expanded highway capacity online years earlier than a traditional government-does-all approach might have done.

2. Benefits of Public-private partnerships •P3 offers great transportation infrastructure solutions than an initiative that is entirely public or entirely private. Each entity does what it does best. •Results are faster in public-private partnerships, as it reduced delays on infrastructure projects by involving time-to-completion as a metric of performance and therefore of profit. •The return on investment (ROI) in public-private partnerships might be greater than the projects with traditional, all-government all-private fulfilment. Financing approaches and Innovative design become available when the two different entities work together. •Risks are completely assessed earlier to determine the feasibility of the project. This implies that the private bridge infrastructure company can serve as a check against impractical government expectations or promises. •The project execution and operational risks are conveyed by the government to the private entity, which usually has more experience in cost moderation. •Public-private partnerships may involve preliminary completion bonuses that further increase efficiency. They can sometimes minimize change order costs as well. •By escalating the regulation of the government's investment, a P3 allows government funds to be diverted to other crucial socioeconomic areas. •The greater efficiency of P3s reduces government budgets and budget deficits. •High-quality standards are better maintained and obtained throughout the life cycle of the project. •Public-private partnerships that minimize costs potentially can lead to lower taxes. No doubt that public-private partnership is very beneficial and great for a country, but it’s not good for every project!