EFFECTIVENESS OF PUBLIC PRIVATE PARTNERSHIP AGREEMENT
EFFECTIVENESS OF PUBLIC PRIVATE PARTNERSHIP AGREEMENT

Summary/Abstract: Discussion around the efficacy and effectiveness of Public private partnership agreement (PPPA) has become increasingly polarised. Private enterprises now build and staff the garbage trucks. They build and operate roadways; they staff manual and electronic toll collection systems; and they plow and maintain road surfaces. Critics of PPPA that, It has been suggested that the projects pursued are ones that are perceived to be financially viable from the private sector perspective; the ethical motivation is profitability over poverty reduction; the privatisation of some services will lead to the poor being left behind because of lack of affordability; and governments’ control over public services is greatly reduced with PPPAs.Effectiveness of PPPA means degree to which objectives of PPPA are achieved and the extent to which targeted problems are solved. In contrast to efficiency, effectiveness is determined without reference to costs and, whereas efficiency means “doing the thing right”, effectiveness means “doing the right thing”, “thing right”, effectiveness means “doing the right thing”.For effectiveness information shall be included in a public–private partnership agreement by law: 1) subject of the agreement including the amount, content, quality and manner of construction works or services; 2) financial conditions of the agreement; 3) set of rights each public partner transfers to the private partner; 4) public partner resources each public partner transfers to the private partner and the procedure for transferring such resources; etc..A common feature in any PPPA is the realization of value for money – the acquisition of the financial usefulness of investments along with the hand-over of respective risks, promotion of innovations and efficient management of resources. Thus the determination of value for money is one of the major components in adopting the decision on PPPA implementation.

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