What are the problems with PPP?

There are a number of potential risks associated with Public Private Partnerships: Development, bidding and ongoing costs in PPP projects are likely to be greater than for traditional government procurement processes – the government should therefore determine whether the greater costs involved are justified.

Which of the following are all major risks associated with PPPs according to the lectures?

Awuah (2020) posits that risks associated with PPPs may include operational risks, relationship, construction, finance, legal and regulatory, sustainable(economic, socio-cultural, environmental risk), force majeure, and money laundering risks.

What is PPP investment model?

Public-private partnership (PPP) is a funding model for a public infrastructure project such as a new telecommunications system, airport or power plant. Different models of PPP funding are characterized by which partner is responsible for owning and maintaining assets at different stages of the project.

What is the percentage of FDI allowed in PPP mode of infrastructure development?

Foreign Direct Investment (FDI): upto 100\% FDI in equity of SPVs in the PPP sector is allowed on the automatic route for most sectors.

What are the types of PPP?

Types of PPP Contracts

• Build – Operate – Transfer (BOT)
• Build – Own – Operate (BOO)
• Build – Own – Operate – Transfer (BOOT)
• Design – Build.
• Design – Build – Finance.
• Design – Build – Finance – Operate (DBFO)
• Design – Construct – Maintain – Finance (DCMF)
• O & M (Operation & Maintenance)

Why is PPP model economically good for infrastructure?

The advantages of PPP include: 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 (ie, construction costs and operating costs)

Why is PPP used in infrastructure development?

Why PPPs are attractive to governments? PPPs have become attractive to governments as an off-budget mechanism for infrastructure development as: • They can enhance the supply of much-needed infrastructure services. They may not require any immediate cash spending.