P3's (Slides)

Question 1

What are P3’s?

Answer 1

Public Private Partnerships

A partnership arrangement in the form of a longterm performance based contract b/w public sector and private sector to deliver public infrastructure to citizens

Question 2

What are some variations of a P3 contractually?

Answer 2

DBOM - Design-Build-Operate-Maintain

DBFO - Design-Build-Finance-Operate

Question 3

Does the government need to pay upfront in a P3 arrangement?

Answer 3

No, it’s like a lease instead of a mortgage

Question 4

List 4 attributes of a P3

Answer 4

• taxpayers/users pay for project, but not until facility is built, and then pay is based on performance
• private partner can utilize efficiencies not available in public sector
• government retains ownership, control and responsibility
• private partner is liable for cost risks, epsecially on projects which include operation for a fixed period

Question 5

List for drawbacks of a P3

Answer 5

• Agreements take a long time to put together
• Agreements can be costly
• Projects usualy so big only a very large company can undertake them
• Even with partial compensation, costs to bid project are very high
• Pirvate partner is reponsible for both quality control and quality assurance