Ingles

INGLES AVANZADO III
E. WHAT ARE SOME OF THE ADVANTAGES AND DISADVANTAGES OF PRIVATE SECTOR INVOLVEMENT IN PUBLIC SERVICES?
The private sector involvement in public services is a publicprivate partnership built between public authorities and private sector firms with the overall aim of designing, planning, financing, building and operating infrastructure projects which aredeveloped through public procurement procedures.


ADVANTAGES OF PUBLIC PRIVATE PARTNERSHIP
PPP can provide a number of benefits in the domain of public sector projects:

Easingbudgetary Constraints: Private sector financing through PPP enables developing some projects at little or no expense on the part of public authority.

Value -for- Money issues:Advantages are manifested in following aspects:
Better coordination and greater synergy between the phases of design, construction and operation.
A more efficient use of capital investment.Set on sustainable and environmentally - Compatible development: Creation and expansion of sewerage and waste removal/ treatment projects in public-private partnership made constitutefundamental component of sustainable development program. Private sector is capable of innovating under their service provision (e.g. air pollution mitigation) to changes in environmental demand.Social benefits: Improvements in services of local residents: with the availability of financial resources, local public authorities are able to provide resources for other socialwelfare measures etc.

Project stability: As the concession agreements under public-private partnership are signed for periods exceeding the terms of elected representatives which results inpublic services to be less sensitive to both direct and indirect political effects. The parameters of maintenance and quality of service are less likely to be subjected to any uncertainty.