P3's (Slides) Flashcards
1
Q
What are P3’s?
A
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
2
Q
What are some variations of a P3 contractually?
A
DBOM - Design-Build-Operate-Maintain
DBFO - Design-Build-Finance-Operate
3
Q
Does the government need to pay upfront in a P3 arrangement?
A
No, it’s like a lease instead of a mortgage
4
Q
List 4 attributes of a P3
A
- 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
5
Q
List for drawbacks of a P3
A
- 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