Consultants Forum    |   FacilityLocations    |   FastFacility    |   Advertise    |   Subscribe    |   Newsletter    |   RSSRSS
Inward Investment Guides
Successful Public-Private Partnerships Need Common Goals, Sound Leadership
What are some characteristics of successful Public-Private Partnership (PPP) agreements?
Kathy Thomas, Director, County of San Bernardino Redevelopment Agency
Public-private partnership (PPP) arrangements come in many forms that must be adapted to the individual needs and characteristics of each project and its partners. Local governments are particularly interested in private investment given the enormous financing requirements needed for efficient public services and infrastructure, especially in an environment of budgetary restrictions. However, PPPs should not be viewed as a panacea; agreements should not be entered into merely for the sake of undertaking a project. A detail review of the costs and benefits of private sector involvement versus public alternatives must be evaluated to ensure that the structure enhances the public benefit.

Successful agreements require each partner to mutually recognize the objectives and needs of the other and work together toward a common goal. It is critical that both parties set and manage reasonable expectations and responsibilities within legally binding agreements. Performance-based and measured outcomes should be explicitly stated within the contract clearly describing the roles, responsibilities, obligations of the parties. These checks and balances create co-dependence and transparency while enabling all parties to achieve their goals. And, because not all contingencies can be foreseen, every good agreement should clearly define a method of dispute resolution.

Also paramount to the success of the project is executive and project leadership, as well as effective and regular communication. Leadership is of significant importance because the project/partnership can only succeed if there is commitment from the top. A number of people will be affected by a PPP that may result in misconceptions about the partnership or the value of the project to the general public. The PPP needs to establish a structure to effectively share information and develop an approach for delivery.
RELATED TOPICS AND ARTICLES
Article Discussion
If you have site selection or facility planning questions send them to Ask Area Development. A member from our network of industry experts, consultants, and authors will answer:


News Items
Around The Web
Studies/Research
News Items
Around The Web
Studies/Research

Share