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PPP projects in the north

November 24, 2012

Public Private Partnership projects are attractive to governments as they allow projects to be built quicker and with less financial commitment up front. PPP projects are becoming more popular.

Governments at all levels have been increasingly relying on P3s to reduce public risk, speed up construction timelines, improve efficiencies and give private enterprise an opportunity to innovate on major infrastructure projects like bridges, roads, hospitals and schools. Basically, the public entity (usually the government agent) and the private entity negotiate a long term agreement under which the private entity will build the asset and the public will pay over a long period of time but will ultimately own the asset. Project delivery methods differ on the level of responsibility a private entity is given. Typically, a project delivery method that transfers more responsibility onto the private entity also transfers more financial risk. PPPs such as build-own-operate and build-operate-transer are no exception. While these project delivery methods allow the private sector more responsibility in financing, designing, building and operating the project these methods also assign more financial risk to the private sector.

Some examples of PPP projects in the north are:




Tight public finances and successful PPP experiences will increase interest in public-private partnerships.