The public sector has turned to P3 projects as an alternative way to build and maintain roads, institutions, waste management facilities and other public infrastructure.
Acker Choquette provides infrastructure consulting services to public as well as private sector customers. Our goal is to optimize the management of government resources, with the support of external multidisciplinary professionals in the implementation of major public infrastructure projects.
Traditional infrastructure projects are built by private companies financed by the public sector. However, the P3 projects are funded by the private sector, which is paid for results - such as completing the project on time and on budget, and or operation and ongoing maintenance.
The P3 model is not intended to replace the process for the award of traditional markets. It is an additional tool in the toolbox. Any proposed P3 potential must be rigorously evaluated to ensure that the benefits outweigh the disadvantages.
Definition of PPP
A public-private partnership (PPP) is based on the performance of a long-term contract in which a public body working with a private company for the design, construction, operation / maintenance of infrastructure projects related to public administration.
This contract defines the division of responsibilities, sharing of risks and benefits between the public and private partners and provides targets for improving public service delivery.
These agreements may apply to projects involving infrastructure, installation of equipment or provision of public services and will require funding from the private sector.
Public-private partnerships cover a range of models that progressively engage the expertise or capital from the private sector.
Design-Build: The private sector will ensure the construction of infrastructure to meet public sector performance specifications, often at a fixed price, so the risk of cost overruns is transferred to the private sector.
Financing during construction: The private sector provides finance the construction and capital costs only during the construction period.
Concession: A private sector concessionaire undertakes to make investments and operates the facility for a fixed period of time after which the property back to the public sector.
Each model has its advantages and disadvantages and can be adapted to achieve the main objectives of public-private partnership in various degrees.