Question

GLOBAL MACROTRENDS AND THEIR IMPACT ON SUPPLY CHAIN MANAGEMENT

What are the strengths and weaknesses of a public-private partnership (P3) in relation to infrastructure development?

(2-3 paragraphs please) (5-6 sentences each)

Answer 1

Advantages of Public-Private Partnership-

1. It ensures higher quality of infrastructures

2. Timely provision of public services

3. Private sector expertise and experiences are utilized in its projects implementation

4. Appropriate project risk allocation

5. Reduce risk management expenditure in infrastructure development projects

6. Ensure the necessary investment into public sector infrastructure development

7. Mostly projects are implemented in due time

8. Generally do not take extra amount from public sector

9. A private entity is granted the opportunity to obtain long-term remuneration

Disadvantages of Public-Private Partnership-

1. Infrastructure development could be more expensive

2. PPP service procurement procedure is longer and more costly than traditional public procurement

3. Infrastructure development projects are for long term, complicated and inflexible because of impossibility to envisage

4. It can postponed public sector payments obligations for longer period in future and it can negatively effect on future public sector fiscal indicators.

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