19 Aug Comment
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Discussion:
Public private partnership is a good method of expanding financing for enterprises, and it can also promote infrastructure construction. Corporations can play full role in their advantages and public private partnership can lighten the burden of the government. However, there are many potential risks in public-private partnerships. Public-private partnerships may lead to corruption and monopoly. In the bidding process, collusion officials are prone to occur, or because there is no objective evaluation team, it is impossible to select the most appropriate corporate cooperation. Even in the case of imperfect laws and regulations, there is direct negotiation, resulting in high cost and low utilization. For example, Tanzania Water Conservancy Project，it’s a direct negotiation case which was found to have provided poor value for money, and possibly been corrupt.(pppknowledgelab.org) At the same time, if long-term cooperation, during this period,it is prone to become monopoly. Because of contract protection, enterprises may be lazy to work and make the extension of construction period, reduce the enthusiasm of enterprises and increase the time cost of the government. At the same time, if there are problems, the government cannot quickly replace the cooperative enterprises, and need to share the risks and costs arising from the problems, which also have a certain impact on the reputation of the government. The government needs professional supervision team to participate in the project and supervise the project. The government needs talents with professional knowledge, which increases the cost of government expenditure. These disadvantages can be reduced by laws and well-regulated. We can’t deny public private partnership is a trendy and benefits a lot.
Benefits and Pitfalls of Unsolicited Proposalshttps://pppknowledgelab.org/guide/sections/79-benefits-and-pitfalls-of-unsolicited-proposals
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