Question

Adaptation of ppp model for infrastructure development of the country has not been free from criticism. Critically discuss the pros and cons of the model.

Answer 1

ADVANTAGES OF PPP MODEL OF INVESTMENT

Access to private sector finance.
Efficiency advantages from using private sector skills and from transferring risk to the private sector.
Potentially increased transparency.
Enlargement of focus from only creating an asset to delivery of a service, including maintenance of the infrastructure asset during its operating lifetime
This broadened focus creates incentives to reduce the full life-cycle costs (i.e. construction costs and operating costs)

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