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PPP

1. Private management of public service through long term management contact


2. Responsibility and accountability of the govt.

Privatization
1. Outright sales of public service or utility to private sectors
E.g. Deregulation, divestiture, complete privitisation,delicenci ng

Problems 1. Policy and regulatory gaps. 2. Inadequate long term finance 3. Inadequate capacity

Solutions 1. PPAC (Public Private appraisal committee) for clearance of PPP Projects. 2. Standardized bidding and contractual documents. 3. For finance (VGP Viability gap funding) through IIFC (India infrastructure finance company ) supports 75% of project development expense in the form of free loan. 4. 5.

Features Risk ,rewards and returns are shared through contact Defined output + avenues for generating revenue + capacity building Qualities Project should be high priority. Shared risk allocation Government remains accountable for service quality .price certainty and cost effectiveness Role played Government Facilitator and enabler Private Company Financer builder and operator

2.

Public private partnership

PPP Forms and formats 1. 2. 3. 4. 5. 6. 7. Service contract Management contract Lease Concession ( BOOT , BOT) BOT (Toll) , BOT ( Annuity) Joint venture Community based provision 8. Municipal bond scheme 9. Coproduction 10. Franchising Government service or private business ventures funded and operated through partnership of government and one or more private sector companies. Policy decision or initiative of government to promote public interest or public

PPP Unit 4 Topic 7

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