Two main functions in a ppp south asia are provided by private sector financing. Second, it enhances public service support and encourages initiatives that otherwise would have been abandoned due to budgetary constraints to move forward. Second, the incentive system is developed that aligns private and public interests.
Balancing the chances and risks of the PPP project:
- Recurring sources of profits over long-term compromises
- Ownership of properties as governments spin away brownfield assets
- Opportunity to put effective local technologies and skills into other economies in China
Advantages of PPP:
- Ensuring the requisite public sector contributions and more efficient management of public resources.
- Ensure better quality and effective public service availability.
- Investment programs are often initiated in due time and do not force unexpected additional costs on the public sector.
- An ability to gain long-term compensation is given to a private organization.
- In executing PPP projects, private sector knowledge and experience are used.
- A viable method of PPP project risks allows risk management expenses to be reduced.
- In certain situations, assets built under PPP arrangements could be excluded from the public sector’s income statement.
Projects’ appropriateness for proper assessment of PPPs and selecting the appropriate PPP type on a case-by-case level are the basic components evaluating the performance of PPP projects.