Public Private Partnerships in America

Private Public Partnerships in America

Public-Private Partnerships are arrangements between private companies and public sector organizations can help constant investments into public sector while bringing responsibility and accountability to private firms. It would be ensured that the construction and maintenance works would be completed and delivered in time while reducing delays on infrastructure projects. Studies have also proven that the return on investment (ROI) might be higher in PPP-operated projects than an only government/all-private owned project. Risk mitigation and contingency measures are also taken before the start of the projects. Seeing all these advantages, this is the most popular form of financing major infrastructure projects in developing countries. Yet, private public partnerships have started to become accepted only in recent times in America. “The market for public-private partnerships (P3s, also known as PPPs) in the US is gaining ground. Investors are interested, capital is plentiful, and the federal government is increasingly involved” (PWC).

An infographic explaining the pros and cons of a public private partnership (Image Credits: The Balance)