What Successful Public-Private Partnerships Do
What Successful Public-Private Partnerships Do - An Outlook of the Model
Infrastructure Projects in today’s timeline work in many ways. The public sector is responsible for designing such infrastructure-based investments on the road, water, railways, and others. However, many countries have gone down the path of collaborating on a major portion of the investments by turning the project into a Public-Private Partnership (P3). Most developing nations have emphasized the concept and are now reaping the benefits.
The United States of America alone spends over 2.5 Trillion USD on these infrastructural projects every year and often ends up being short of funds at some point. There are many reasons why a public setup fails to get the same results, causing the project to be more expensive. It is no surprise that more focus on the P3 models helps a great deal. In return, these Private bodies will charge nominal fees on those projects from the consumers and reap profits. According to an estimate, this will reduce the cost by almost half from projects handled solely by the public sector.
However, the P3 model has its share of negative factors. One of the more notable failures has been a U.S interstate highway project that stalled after going well beyond the proposed deadline. These situations created a problematic scenario for the public in general and left a bitter taste for the government among them as well.
Despite Shortcomings, P3 is indeed a model to consider. Many of the established and organized companies keep the model and projects to which it is applied are successful beyond what was achievable by public means. Here are some of the major contributions achieved through successful P3 enterprises.
Work with Commitment
Commitment has no alternatives. This is a trait found in companies successfully using the P3 model. Taking infrastructure projects, for example, there are plenty of avenues to focus on, ranging from installation, following up, sensitive constraints, and legal systems.
Resolving Differences
In many cases, Public-Private Partnerships often see partners with different approaches than their own. As such, there may be an agreed-upon outcome, but decisions consistently fail to be unanimous. There may be an instance where the Public sector is not showing great interest. Regardless of the project or its novelties, problems will arise. A sound P3 project will resolve any such differences and operate smoothly.
Sticking to Deadlines and Backup Plans
P3 projects can deal with some of the most critical infrastructure projects of a nation. There are likely situations where project deadlines receive unexpected blows. Imagine a natural disaster bringing a stall to complex infrastructure projects. Perfect P3 enterprises will bring partners together to work in unison, according to the plan, and resolve any issues that might require modifications.
Concluding Thoughts
P3 Models require both private and public parties to collaborate with equal understanding and establish a modus operandi. With more nations adopting the model, there are many sectors set to adapt the model sooner rather than later.
Interested in more p3 insights? Check out some of our other blogs on The History of the P3 Market and What's Next and the Top 5 ways to Align Vision of a PPP. If you want to learn more about how we develop effective strategies for public-private partnerships, reach out to us today to start a conversation.
