To begin with, PPP refers to public private partnership which specifically means that the government and the private sector will join hands for specific projects according to the pre agreed conditions given in a document called Concession Agreement. This document gives the terms and conditions regarding the cost and revenue sharing model, upfront payment if any, etc. between the two. The next stage is the invitation of bids for the project. The selection crieteria may be the concession period or maximum upfront payment whichever is applicable.
There are many types of PPP. The details are here.
The need of PPP arose because of growing needs of the economy and decresing reserves of the government. By inviting private parties, Government can access their financial resources,
knowledge of technologies, managerial efficiency. This paper explains all.
7 years ago