Broadly public private partnership can be defined as the cooperative institutional working arrangement between the public and the private sector movers. This makes the distinction or the understanding of the concept a bit vague though PPP have been enjoyed a resurgence world over to become a doyen of public administration in modern world (Hodge, 2009). History shows that, there has always been one form or another of PPPs and that they can positively be used for private finance initiatives as it has happened in the UK or for urban renewal as the case is in the US.
This is because they have the potential to offer the government new institutional and contractual arrangements for large amounts of money. Thus since roads structuring needs a lot of monies , PPPs can be used in maintaining our road structures as has happened in Europe where in the last 15 years PPPs have availed in excess of $2000 in microeconomics and systemic significance. With the potential of spreading from transport to other fields (Hodge, 2009). As well they have lots of conceptual options such as arrangements for build-own-operate and transfer or design-build-finance and operate which reliefs of the government the pressure of looking for money to repay developmental needs funded by the initiative. Thus making the initiatives deliver a good return for money.
These programs have also been found to be on time for up to 73%-78% as they do not have to follow massive beaurocracy for the government to release money compared to PFI projects which represents an 11% comparative advantage (Hodge, 2009). The are also not highly prone to manipulation and refinancing scandals that offering better returns on investment in terms of monetary value and time effort.
In conclusion despite notable pitfalls as witnessed in the financing of the channel tunnel PPPs represent a viable option to government that can spare the tax payer the burden of shouldering all the road structuring expenses up front.
References
Hodge G, A, Et Al, (2009).PPPs, the passage of time permits a sober reflection, Oxford, black well publishing