Question

With regards to critical infrastructure and partnerships the term “P3” refers to Public Private Partnership. When working with the public, there is a balancing point that must occur in four key areas in order for P3 to work. List and explain two of the four key areas.

Answer 1

A private public partnership starts with a business model which eventually grows into the partnership. It is important for maintaining the balance that private companies and public authorities act together as partners. To achieve this, it is important to build and maintain trust based on credibility.

Out of the four key areas, the two essential areas I would like to talk about is the right experience and skillset and also financial capability.

The right experience and skillset: Management for the P3 mode would demand the ability for implementing the infrastructural and operational activities throughout the contract. Thus, this is the key area for exploiting the technical skills and in depth field experience for guaranteeing a nationwide deployment in a timely and efficient manner. References are also very important for providing the public authority with the confidence in your future partner for further work.

Robust financial capability : Another important consideration is the robust financial capability. Assuming that the business case that is being proposed by the public authority is profitable, such an opportunity should work in attracting the consortium or private company willing to operate and implement the same project. The company should be able to demonstrate their capability regarding how well the would manage the local entity and the cash flow for the local currency. All the legal and financial steps should also be effectively taken for such processes.

After that, it is the chance that the same private company would then ask many other investors to invest in the same project via equity or other types of loans.